There have been a lot of articles written about the high probability of winning trades when trading with the trend. Everyone has heard the phrase “the trend is your friend” but does any one know the definition of a trending market? A trending market can be defined as several bars in the same direction. It can further defined as a relationship of where the price is in proximity to the 56 Exponential Moving Average (or any moving average that a trader is comfortable with). Above the 56 EMA, a trader is looking for long trade set-ups, below the 56 EMA; a trader is looking for short set-ups. By not violating this one crucial rule, a trader can keep the winning trade ratio very high. The basic premise behind this concept is that if the market is trending in a particular direction and the trader uses a trading strategy to get into that trend, the results of the trader improves dramatically.
85 to 90% Winning Trade Ratio
There are systems out there that claim to have an 85 - 90% winning trade ratio. How do they do that? The ones that I have seen have 2 common traits. The first and probably the most important rule is that they buy into the trend-trading concept. Trading with the trend really does improve trading results. The second trait that most systems that have high winning percentages are that they keep their profit objectives reasonable. The hardest thing for a trader to do is to go for large profits. The market gives a trader those types of returns but they are usually few and far between. Even with the market volatility that we have been seeing, going for the large “out of the park” type of returns will reduce the winning trade ratio. The system that typically looks for “single base hits” will end up doing better in the long run.
System Simplicity
The complexity of the system will also reduce the winning trade ratio. The main reason why most systems that are complex are developed is so that the person who developed the system can charge you a lot of money. Most of those systems or trading plans require the trader to make a large number of discretionary decisions. Every time one of those decisions are made, there is the possibility that a mistake can happen. If, on the other hand, a trader that uses a system that has very few decision points, the better the winning ratio will be.
If you are looking to improve your trading results, look for a trading system or plan that utilizes the “kiss” (keep it simple, stupid) principle and one that uses the “trend as your friend” mind set. Finally, make sure that the profit objectives outlined in the plan are reasonable. By keeping these simple concepts in the forefront of their mind when selecting a trading system, most traders will greatly improve their results.
So you think that this type of system is not available? Take a look at http://www.futuresinvestingmadeeasy.com. What do you have to lose!! The strategies and the daily market wrap-up, including the charts of that days trades set-ups, are totally FREE! Take a look…
This is not a solicitation to buy or sell.
There is a risk in any investment!
Ron Lewis operates http://www.futuresinvestingmadeeasy.com an educational blog about investing and trading. For more trading tips and investment strategies, or to contact the author, visit his blog at http://www.futuresinvestingmadeeasy.com To get the FREE report “HOW TO MAKE $12,000 A MONTH ON A $5,000 ACCOUNT, click on to the above link and fill out the FREE GIFT area in the upper right hand corner of the blog.
Posted by alex on Monday, July 30th, 2007
The word forex is a short form of the word Foreign Exchange, which is the basis of the commercial transactions which take place between two countries with their own currencies. The forex market refers to the trading that takes place within this area and is different from the stock market. Established since the ’70s, this market deals not just with one business or investment but the entire gamut of trading and selling of currencies.
While both the forex and the stock markets deal with money, the biggest difference between the two is the sheer volume of money transacted on a daily basis as well the span of operations. The forex market deals with nearly 2 trillions of dollars which in comparison to any stock market is much larger. The players in the forex market are also different, where the money transactions are done between governments, international banks and financial institutions of different countries.
The amount of money which is bought, sold or traded in a forex market can quickly be turned into liquid cash, or better still, it is actually made into hard cash. The speed with which such transactions take place in a forex market can be really fast for any investor, irrespective of the country of his origin.
The other difference between a stock and a forex market is that stock markets operate in shares and businesses which belong to a specific country; forex markets on the other hand operate globally and can include any and every country of the world. Its span of operations is far wider. The market encompasses nearly every country of the world and deal with trading their individual currencies which has nothing to do with any specific business or corporation.
While stock markets operate only on business working days and may remain closed on bank holidays and weekends, the forex market has to consider the several time zones across which it operates. Hence the forex market is open 24 hours 7 days a week to accommodate all the countries. While one market opens another closes. Because of the difference in time zones, one country may close its market but another in another part of the world has opened its own. Thus the trading in a forex market happens on a non-stop basis.
The stock market of any country operates with the prevailing currency of that country. For instance, Japan will work with the yen and the US stock market will work with dollars, Indian stock market with Indian Rupees, etc. The forex market, on the other hand, works with many countries and trades in many currencies. These are the major differences between the stock and the forex markets.
It is important to know the basics of this important financial market called the forex or foreign exchange market, if you also want to participate in it with your investments.
Darren Williger is a tea drinking, guitar playing, low-carb eating, spiritually minded winemaking sales maker who writes for ForexFoundations.com, and PennyStockMaven.com
Posted by alex on Thursday, July 26th, 2007
In our Reason#1 article we pointed out how easy it is to trade e-mini’s compared to investing in or trading stocks: You never have to do any research. Also, you can very effectively and profitably trade e-mini’s with so much LESS money than it takes to be involved in stocks. That brings us to our Reason #2 Why E-mini’s are such a great little Home Business idea: the low start-up cost for trading e-mini’s.
All you really need is a good computer and a high speed Internet connection (which most homes already have). And, of course, a little knowledge. If you visit my web site and spend a couple of hours there studying all of the free information I give you, you’ll know enough to start practice trading e-mini’s right away. You’ll find a ‘road map’ there that carefully lays out for you, step-by-step, exactly what you’ll need (tool-wise, i.e, software) and how much money you’ll need to plan for, once you are ready to open an e-mini trading account and start trading real money. (You can ‘paper trade’, i.e., practice almost for free…for as long as you want.)
I don’t think you could ever find any business, let alone a ‘home business’, that you can learn and prepare yourself so effectively and inexpensively for…with so little operating capital required once you are ready to go. Yet, a home business that you can generate real professional-level income from …even in your first year. And, a business that you can be most effective at by limiting yourself to working it just a couple of hours a day!
I know… this probably sounds like I must be smokin’, but I’m not. I started dabbling in stocks right out of high school, then switched to trading stock options about 20 years ago. In early 2002, another e-mini trader whom I met accidentally, asked me if I knew about trading e-mini’s. I had no idea what she was even talking about. But what she described to me really caught my attention and interest.
I immediately closed my film production company I’d run for over 25 years …to devote my full attention to my new career - trading e-mini’s.
Since then, I’ve had a daily goal of making $500 for myself, spending a couple of hours each morning at my computer. Another great feature - thanks to the Internet, I can do it when I wish…from anywhere in the world!
In my next article…. I’ll explore with you the low overhead for e-mini trading. (Reason #3) why e-mini trading is such a great little home business idea.
Mel Hardman
http://www.melhardman.com
http://www.emini-forex-trader.com/blog
Posted by alex on Friday, July 20th, 2007
The exciting adventures of Winnie the Pooh and his adorable friends have captured the imagination of generations of children throughout the world through items such as dvd’s, books, videos, bedding, jewelry, a variety of accessories and of course Winnie the Pooh Costumes.
It is a fact that children love to dress up as their favourite character and there are some wonderful Disney costumes available such as those of Winnie the Pooh.
Perhaps your little boy or girl has got a party to attend and he or she wants to make an great impression by getting their own little outfit to wear. If they adore Winnie the Pooh then why not let them have their own costume that imitates their favourite character. This can help them to feel confident and good about themselves since they will be dressed as their favourite character.
When you’ve decided on the right type of costume for your little boy or girl, you can then search around to see what type of products are available to purchase. That is, unless you decide to make your own of course, which is also a great idea if you have the necessary dressmaking skills to use.
However, there are some wonderful and affordable costumes available for children of all ages, including adults! They come in all sizes, colors and prices which make them accessible to everyone who is interested in purchasing them.
When you’ve had time to do some adequate research of the types of products available, you will then hopefully be in a better position to know what type of character costume to purchase.
If you are searching for a particular character costume, then you can visit Winnie the Pooh Products to get some more information about the various type of products available.
You can visit Winnie the Pooh Costumes to get more information about your favourite Disney Characters.
Posted by alex on Sunday, July 15th, 2007
Currency market trading is quite an old business for people to participate in, but has become quite popular in recent years due to the internet. This market, only a decade ago, was dominated by large banks and firms. Today, individuals from the comfort of their own home can participate and make good profits in this market with very little to start up with. This isn’t a place to get rich quick. I’ve seen plenty of people lose a fortune worth of money because they assumed it would be easy. I’m going to share some things I’ve learned over the years that have really helped me out in this market.
If you’re new to this market, you were probably told that it is a 24hr a day market. This is pretty exciting for a lot of people because it opens the door to trading anytime they really want. The problem is that there are times that are more profitable than others. If you look at high volume times (typical during business hours), there is a lot of trading going on, but this causes a very stable equilibrium of price. If you look at low volume times (late in the evening), there is very little trading going on, which causes a weak equilibrium of the price. Any odd trade could cause massive shifts in the price.
That is why it is important to have automated software. Sometimes trades can’t trade during regular business hours. I know when I started out, I had a regular job, which was during business hours. I picked up some automation software that would make profitable trades on its own while I was at work. It was great to come home to a trading account with extra money in it.
The 10 Minute Forex Wealth Builder is an excellent automated software tool for trading. It is ideal for the people out there that still have a regular day job.
Check out the 10 Minute Forex Wealth Builder Review.
Posted by alex on Friday, July 6th, 2007
Forex trading can be a wonderful way to begin investing or to create an additional stream of income. Yes, the forex trading risk is there, but the power of online information has made it possible for just about everyone to understand the basics of Forex, as well as the ability to begin actively working with currency trades. Here are some risk management tips to help you on your journey.
Tip #1: Use Websites For Research
Thanks to the Internet, you do not have to spend a lot of time in a classroom to learn the basics of Forex. There are some excellent web sites that will provide details about the fundamental principles behind foreign exchange. Keep in mind, many websites are backed by forex brokers or trading companies, so be aware of their true intentions when doing your research.
Tip #2: Learn On Demo Accounts
Along with helping you understand the basics, some sites also offer what is known as practice or demo accounts. Essentially, these accounts allow you to experiment with the trading process before you begin to execute real orders. Trying out your wings in this sort of safe environment allows you to set up dummy transactions and then follow the trends in the market in real time. You get to see what would have occurred if you had executed a real order with a given market, and learn from the experience without ever losing one penny.
Tip #3: Never Invest More Than You Can Afford To Lose
This is the ultimate and most important disclaimer. Never risk more than you have available to lose. Even if you have spent a lot of time doing your research, invested in software and training and practiced on a demo account, there is no guarantee that you will always profit from your trades. There is always risk involved when investing on the foreign currency markets.
Bonus Tip: Get more information on protecting your forex trading against risk by visiting a free forex forum and chat room now at: http://www.FreeForexForums.com
Posted by alex on Monday, July 2nd, 2007