Forex 101 - An Educational Guide for Beginners

New in the Forex market? This market may sound really complicated and scary to tackle but it's not. Just like in any kinds of trade, you make money when you buy low and sell high. It is simply trading currencies in the Forex market.

Forex is the largest financial market in the world. It generates trillions of dollars of currency exchanges everyday and it operates 24 hours a day and seven days a week therefore, also making it the most liquid market in the world.

In the world of Forex, trading in this very liquid market is very unique compared to other financial market like stocks. Since the market operates 24 hours a day worldwide, which starts at Sydney and ends in New York, trading is not centralized in one location. You can trade whenever you want regardless of the local time.

In the past, Forex trading was only offered to large financial institutions, like banks. And, it was also only offered to large companies, multi-national corporations and large currency dealers. This is because of the large and extremely strict financial requirements imposed. This means that individual traders and small businesses are not able to participate in this liquid market.

However, in the late 90s, Forex was made available to individual traders and small businesses. This is due to the advances in the communications technology. High speed internet made it possible for people to enter the market and have become one of the best make money at home businesses.

It is getting more and more popular each day. Besides, who wouldn't want to trade in the largest and the most liquid financial market in the world? Trading in Forex will certainly give you the opportunity to earn a lot of money. However, trading in this ever liquid market also has its risk. It is a fact that many people who lost a substantial amount of money and some of these people are seasoned traders.

This is why it is very important for you, as a beginner trader, to have the proper knowledge and education on how to trade in the market. Firstly, there are hundreds or even thousands of available websites in the internet that offers relevant education. Some of these websites offer dummy trading accounts where you can practice trading using dummy money.

These programs will really take you closer to actually trading. Many experts say that you'll never really understand how it really works until you traded in the market. So, if you want to learn how to do it, you may want to sign up for a dummy account that numerous websites offer.

With a dummy account, you can trade by not using real money at all. With this program you can practice your knowledge and skills in trading in the market and not waste money.

To get started in trading in this market, all you need is a computer with a high speed internet connection, a funded account, and a trading system. These three simple things are enough to get you started in trading.

In order for you to minimize the risk of losing money, you need to have some basic knowledge in charting before you start trading. In most trading systems, charts are there to assist you with your trades. Charts are a visual representation of the exchange rates of currencies. This is where you will mostly base your decisions to buy and sell currencies. You have to learn how to read the different charts in order for you to successfully trade in the market.

Each chart is different although they represent the same fluctuations. For example, in the daily chart, you can evaluate market trends in the past 24 hours to help you make decisions on the next 24 hours of trading. In the hourly chart, you can use this chart to spot trends within the day. And, in the 15 minute chart, where it can help you recent currency fluctuations in a 15 minute interval to help you decide on which currency to buy and sell. Sometimes, there are 5 minute chart available to better help you get closer to the action.

These are the basics on how to trade in the market. Always remember that aside from the promising earning potential that you can have in the market, there are also underlying risks that you have to consider. It is therefore wise to trade in this market with a proper investment plan and strategy. If you are just starting out to trade in Forex, consider opening a dummy account to help you practice trading without risking money.

Chande Momentum Oscillator - Technical Indicator

The chande momentum oscillator (CMO) was developed by Tushar Chande andis a technical indicator that attempts to capture the momentum of a security. Chande discussed this and many other indicators in his book "The New Technical Trader". The chande momentum oscillator differs from other technical indicators like the RSI and MACD, because it uses up and down days in both the numerator and denominator.

Chande Momentum Oscillator Overbought/Oversold Levels

The CMO is a unique oscillator, but like all other oscillators, it has overbought and oversold levels. Since the indicator is based on previous closing prices, it will oscillate between +100 and -100. Traders use a general rule of thumb that when the chande momentum oscillator is greater than +50 the security is said to be overbought, while a reading below -50 is considered oversold. Traders should not simply buy or sell a security because the indicator crosses these thresholds, this is a sure way to lose money.

Trading with the Chande Momentum Oscillator

Trading with the chande momentum oscillator as a standalone indicator can prove a challenging task. Since the indicator will oscillate between +100 and -100, a break of +50 could mean that it is overbought, but remember the indicator has another 50 points it can run. What many traders do is to apply a moving average to the indicator and will use crosses of the CMO and a simple moving average to generate trade triggers. Another approach is to trade a security when the chande momentum oscillator has reached extreme readings. Extreme readings are an indication that a strong trend is in place, and traders will add to their positions on any minor corrections.

Forex Day Trading Strategy - Which One Is The Best For You?

Many currency exchange traders have developed their own forex day trading strategy to ensure their success in this field. However, there is no general method or rule that can be conceptualized since currencies are greatly dependent on the condition of the market on a "per day" basis.

Hence, to develop the best forex day trading strategy possible, it is essential that you understand these 3 different strategies that the industry experiences.

1. Slow Trending Day

The market experiences a slow trending day when the price of currencies start at 200ma, extends no greater than 20pips, then retraces to 200ma within the same trading day.

This situation often leads to a normal trending day. Knowing this, you can adjust your strategy correspondingly. Bear in mind that it often indicates stability of the currency's value.

2. Normal Trending Day

The market experiences a normal trading day when the price of the currency starts slightly above or below 75ma, extends a little, then retraces to 75ma.

This indicates that a particular currency is stable and shows the least signs that you should adjust your positions.

3. Fast Trending Day

The market experiences a fast trending day when the price of the currency is slightly above or below 21ema, ascends or descends, then reverts back to 21ema.

This will indicate bullish movements of the factors affecting the currency's mother country. Such movements can be for the better, or for worse. A closer study of the trends in the currency's motherland is needed to determine the next course of action.

4. Big Range Day

This is when the highs and lows of the subject range are 20pips apart. It indicates instability in the currency. Again, this may be good or bad. Your strategy should be flexible enough for any eventuality.

Your forex day trading strategy should be anchored on vigilance, flexibility and caution. A news day can be a window to great things, or it can be a hole that will make your entire portfolio crumble.

Playing Your Risk Right - Day Trading By Proper Education

Trading can be a risky activity. There is no doubt about that! However, so is driving a car to work, but the risks of getting from A to B on four wheels are well understood and are managed accordingly, to the point where we do not think twice about getting behind the wheel.

And in the same way, provided a trader is disciplined in his approach to the job at hand, and understands the associated risks of the work, those risks can be managed and a trader could well be on his way to good profits.

On the subject of risk in day trading, it is almost unique, in that it can be learned and practiced with absolutely no financial risk at all. One way is by means of paper-trading - that is - trading using freely available simulation software. Thus in the same way a trainee airline pilot won't be let loose into the skies without having learned and rehearsed their skills in a simulator, so a new trader can employ the same technique before they start trading real money. "Sim-trade" before you give up the day-job.

Most of us may rely on experience as a teacher, reading the charts and relying on gut feel. Your experience may be a master teacher but it can be very costly and if we go through too many failing experiences, we will be out of the game altogether. We need to understand the risks involved in every trade to succeed.

Knowing your risks and knowing the right information in the right time is the key to success or failure. Note that in trading, sometimes that knowledge can be hard to find or intentionally kept secret.

It takes a lot more than getting lucky and common sense to break even in day trading. But who wants to just break even? If you are hitting a bad trade day, why not take a break and look into day trading tutorials. These tutorials are one way traders can shorten the learning curve and have greater odds of hitting more than losing.

Per Trade Profit Target - Day Trading Money Management Technique

Per Trade Profit Target - Introduction

When a trader first starts out in their day trading activities, they will usually start out with little or no idea of their trading style. The trader will enter the market with no fear and will achieve moderate success. Then the unthinkable happens. The trader is slapped with their first major hit. This setback will discourage the trader and will ultimately force them into analytical mode to figure out why they took such a hit. This cycle of small wins, small losses, and more analysis will go on until the trader is either out of money, or comes up with sound money management techniques. There are some traders who simply trade the charts and do not focus on the money. The choice to trade the charts exclusively, or to include money management in your trading techniques is totally up to you.

Set a Per Trade Profit Target or Trade the Charts?

If you are wondering if you should trade the charts or set a per trade profit target, answer the following questions:

The first step in setting a per trade profit target is to analyze your last three months of day trading activities. Next, observe the maximum profit you would have made per trade with the highest frequency. For my personal day trading activities, I began to notice that my trades generally went in my direction two percent of the time on 2/3 of my trades. You will have to be honest with yourself throughout this process. Remember, the key is not setting some arbitrary profit target, but one that fits your trading style and risk profile.

Executing the Trades

So far we have only discussed the profit target, the flip side to this is that you will have to set a stop limit order as well. There is a general rule in the market that you should set a 3-to-1 profit to risk ratio; however, if you notice that your trades require more room for you to hit your profit target, give them the space they need. The first challenge you will face in this new day trading style, is to actually let the trades play out. As you approach your per trade profit target, you will feel the urge to close the trade out early. You must fight this emotion and let the trade play out. After the first month of this new approach, take a look at your trade log and compare it against your previous three months of trading activity. If you see that your results are not improving, you will have to adjust your per trade profit target.

Summary

Day trading can be a complicated or simple exercise. By reducing trading to a per trade profit target, you are in essence taking the ambiguity out of trading. Remember, the goal in trading is to make money.

See You At the Top,

mysmp.com

How to Set Your Per Trade Profit Target

Online Forex Trading Software Reviews and Backgrounds

There are many sites that offer online forex trading software. However, it is always your choice to check out for the best one that suits your specific and unique needs. It is a good idea to browse through the multiple features that are being offered. Check for a platform that has a good credibility and promises easy interface with features that can bring you great benefits.

Easy Forex is one of the leading names when it comes to online forex trading software. There is no need to download for their software and you can start trading for as little as 100 dollars. Easy Forex also provide special terms for individuals who trade frequently. All of these plus other great features such as live quotes, real time.

ACM Forex Currency Trading offers all the tools that any trader needs to become successful in trading in the forex market. They offer 4 platforms for 1 account. This means that you can access variety of features based on your preferences. They claim to be providing an unbeatable execution of online currency trading for 24 hours since the year 2002. They also promise a fully secure and cutting-edge technology in Forex Trading.

Another company the offers risk-free online forex trading software is CMS Forex. This company welcomes both small and large accounts. They also take pride on their excellent customer service. Their powerful trading software features more than 100 indicators and they can assist you in identifying Market Movements.

Online forex trading software provided by FXDD offers various features to address a trader's needs. They have the MetaTrader 4 which is highly user-friendly and provides technical analysis and charting. It allows you to build your own trading strategies. For those with higher volume of clientele, the Power Trader is an excellent choice of online forex trading software. It has a long-standing and stable relationship with global banks making it ideal in meeting the demands of big-time traders.

Other online forex trading software Platforms by FXDD include MetaTrader Mobile, FXDD Trader and FXDD Auto. A better understanding of which one best meets your needs can be achieved by studying individual features and specific indications. Moreover, FXDD features outstanding technical support and customer services.

There are many other companies and sites online that provide unique features to address your trading need. It would work well to your advantage if you will choose an online forex trading software that is easy to use, suits your personal trading preferences and one that offers a platform that is ideal for traders like you.

Find out which is the best online forex trading software from the resource below.

Forex Day Trading - Analyzing The 2 Major Risks Of This Lucrative Business!

Like other kinds of investments, forex day trading is laden with risks.

This, however, doesn't mean that the foreign exchange market ceases to be a highly lucrative opportunity. When you understand the brilliant statement below, you will become a smart trader...

Success is not a matter of avoiding risks altogether, after all. Success is a matter of studying risks and conquering them.

Now, let's have a quick overview of the three major risks that plague any investor who wants to try his hands on forex day trading.

Risk No. 1: The Exchange Rate Risk

This is the first and bigger risk that a foreign currency exchange investor has to contend with.

To protect himself, a trader will need to use the position limit and the loss limit as well.

These two concepts are so easy to implement, yet many people do not use the tools at their disposition.

Risk No. 2: The Interest Rate Risk

To avoid being victimized by interest rate risks, the trader needs to pay attention to the interest rate trends.

Just be sure to read and watch programs like bloomberg and other forex news sites.

Now that you know the two major risks, let's talk about risk reversal In Forex Day Trading

This tips will allow you to play the game safer.

The first advice I can give you is that you need to invest your profits immediately. It's counter intuitive and that's why many other fail. This is compounding.

Also, be sure that you don't make any impulsive decision. You may need to read some books on forex psychology to understand how human mind work.

Forex Autopilot Review - The Automated Trading Robot In Forex Trading?

Need a review of the Forex Autopilot software? Having tested this trading robot for a few weeks now, I believe that more and more people will be using robots to automate their currency trading in the near future. So, was this trading robot profitable for me?

1. Benefits Of Using A Trading Robot

If you have tried trading the currency market before, I am sure that you will agree that the worst part of it is to have to spend time in front of the computer screen waiting for your opportunity to buy, and you may not even get the opportunity sometimes! Forex Autopilot has freed me from being stuck with my computer all day, while automatically buying and selling for me when the right opportunity arises.

2. How Does Forex Autopilot Work?

It is programmed by an expert trader to generate its own buy and sell signals. This means that not only is the whole process automatic, you will never miss another profit opportunity again. This means that Forex Autopilot can do 24 hour market observation on your behalf, as long as you leave the software up and running.

3. Never Be Influenced By Your Emotions When Trading Again

The thing I love most about this system is that I never have to deal with my intuitions and emotions when trading again. When particular conditions are met, the robot will buy and sell quickly, and it will not be influenced by any other factors. I know I have personally made huge losses when I do not sell, even though I have met my stop loss goals.

4. Conclusion

It is worth noting that not all Forex robots can help you make money. Different robots are programmed with different trading strategies, and therefore their results will vary. This is one robot that has given me good profits for a few weeks now, and I would recommend it to traders who wish to automate their trading process.

Day Trading Basics - Do You Know The Forex Fundamental?

Being a $2 trillion a year industry, many people want to try the foreign exhange market to earn an extra income from home. The sad truth is that most of them will fail because they overlooked the day trading basics.

There is a lot of money to be made in the forex market, but it's not really, what we can call as a newbie-friendly business.

Let's take a short day trading basics lessons...

There are 4 kinds of forex trading setups. Each of them has its own pros and cons. Essential in day trading basics is determining which of these systems is the right one for the novice investor.

Setup 1: Currency Spot Trading

With this method, you trade currency on the spot. It's the most popular setup accounting for 37% of the total number of transactions in the industry.

Basically, an investor agrees with another investor to trade currencies during the course of trading hours. Spot trading involves the trading of currencies deliverable within 2 days,

Setup 2: Forward Currency Trading

This kind of trading involves the trading of currencies the delivery of which can be effectuated somewhere between 3 days to 3 years.

This kind is for investors who want to take the speculative game a little further, by investing on currencies now and reaping its benefits later on.

Setup 3: Future Currency Trading

Future currency trading is somewhat similar to forward currency trading.

So what is the difference?

Whereas in forward currency trading, the parties have to exchange currencies based on their values at the time the trade is consummated, in future currency trading, the trade will depend on the value of the currencies at the time the agreement is made.

We can say, for the sake of this lesson on day trading basics, that future currency trading is a combination of spot currency trading and forward currency trading.

Setup 4: Options Currency Trading

In options currency trading, the buyer buys the "option" to trade a particular currency for a particular price at a particular period he will name. The seller will be obliged to deliver the particular currency in accordance with the terms provided by the buyer.

Indeed, options currency trading is a forex exchange system that involves options to purchase currencies at "preserved" prices.

Stock Picking - The Key To Making Money

You probably know by now that if you choose the right penny stock it could lead to you making a lot of money. The question is how do you choose the right ones? It can be a fairly simple and straightforward task.

Penny stock websites that are subscription based is where you will have the best chances of finding that magical stock. In reality, would you give away your best penny stocks for free? Probably not and that's why when you are paying for the information you are probably getting the real deal versus a free stock pick list that could wipe away your whole investment.

Many stock picking services are somehow affiliated with the stocks that they are pushing. If they are a legit service they will have to disclose this on their website or they are in violation of federal law. If they are affiliated with the stocks they are picking for their customers this is not always bad. The bottom line is if you have people paying a company to pick stocks and they are on the average making money from this, then people don't really care about affiliations. These people are in the business of recommending stocks so if they are recommending bad stocks nobody will buy the service or continue to use it. Look at the company as a whole and look at how their customers are doing with the service, are they making money? You usually can find out by using google to search for information.

To sum things up, beware of using free information on picking stocks. Subscription based stock picking services on average are making people more money than other free alternatives. To learn more about stock picking and find out about some stock picking programs that seem to be working for people,

Swing Trading For a Living - 5 Things Not to Expect

Yes, you CAN trade for a living. But you need to know what to expect. Unrealistic expectations can frustrate your efforts and adversely impact results. Here's what NOT to expect:

1) Do not expect trading to pay your bills.

This is not just dangerous, it is downright suicidal. You are likely to take above average risks if you are under pressure to produce enough by a certain date. If the trade goes against you, you will take even more risk to recover the loss and still make the quota for the month - a process that can easily degenerate into a death spiral. You should have at least 3-6 months of living expenses stashed away in cash/CDs to take the pressure off trading, or find a way to trade part-time while you are going through a learning curve. Some stocks are difficult to own unless you can watch them throughout the day, others are best left alone to do what they set out to do.

2) Do not expect a regular paycheck.

Many traders expect successful trading to generate regular monthly income. This expectation is reinforced and magnified by TV infomercials where dumb looking people "making $1,000 per day by 9 am" day in and day out make you think: "If THEY can do it, I sure can."

The market is not linear. It typically presents 3-5 great buying opportunities a year, when multiple stocks break out. Fast runners also tend to top out around the same time, when market conditions deteriorate. Your annual income is therefore more likely to come from 3-5 lump sums per year interspersed with many small losses in between.

3) Do not expect to beat the professionals at their own game.

Any stock you touch is likely to be traded by a handful of professionals who know more than you do, have more capital than you do, and have been doing it longer than you. Do not expect to outsmart them. Instead, find a method that will give you an edge. There is more than one way to trade.

4) Do not expect complete clarity.

As a matter of fact, expect the unexpected. No amount of due diligence will protect you against sudden losses and setbacks. No system works 100% of the time. Expect things to go wrong and be prepared to deal with it. Trading is not an exact science. Expect to operate on incomplete information and contradicting signals.

And finally:

5) Do not expect to make a killing.

The amount of money you can take out of the market depends on the amount of time and effort you are willing to put into this business. There are no short cuts. Instead of focusing on "how much you should expect to make," focus on how good you can get. If you follow a good system and are disciplined, profits will follow, almost as an afterthought.

Stock Trading - Can You Get Rich Day Trading?

Can you get rich day trading stocks? Well, let me ask you this. Can you get rich picking garbage up?

The answer, yes. (I know some people who own garbage companies and they do very well for themselves).

So what's my point?

My point is if you can get rich picking up garbage, you can get rich doing just about anything. And that would include day trading. I bet you can guess what I think of day trading now. Look at it this way. One of the biggest enemies of a trading system is transaction costs.

It's the reason trading isn't a sum zero game. It isn't because of transaction costs. That makes it a negative sum game. In day trading, you rack up many more transactions than anyone else ever would just trading normally. So you have a huge thing to overcome there. But it gets even worse. You have less opportunity to profit.

The price swings that happen in a day are relatively small compared to the price swings that happen over time (say over a week). So you have less opportunity to profit, and you have many more transaction costs.

Now if you approach day trading as say a way to get a better fill in a trade, but it's a trade that you will hold for a period of time (again say a week or more), then yes that is viable and can work. The key with trading is to give yourself a chance, and you really don't with traditional day trading.

Looking For Trades In All Of The Wrong Places

Have you ever just sat there, staring at the computer monitor, wishing for a trade set-up? You sit there minute after minute, watching the bars form until finally... you can't stand it any longer. You make up a trade. Yes, all of us have done it. We are, after all, traders, aren't we? Are job is to trade, isn't it? So what happens when you take a trade that does not fit your trading plan? Do you exit immediately? Do you "hope" that the "trade fairy" will be good to you and deliver you with a nice big profit or do you think that the "trading gods" are against you when you end up with a loss? All traders face the dilemma of getting bored and taking trades that they shouldn't be in.

It Is How You Deal With That Situation That Determines Profitability

One can argue the point that the journey to profitability is more about the trading system that you use than the way that you manage the trade once your are in it. Obviously, it is made up of both components, but most traders need to only look inside themselves and develop a solid belief and conviction about whom they are and how they are going to deal with the constant barrage of information that they face on a daily basis. It is not only having the trading system in place but also having the integrity and conviction to follow that system that separates the good or break-even trader into a consistently profitable one.

Which Category Do You Fit Into?

So the question is, which category do you fit into? Becoming profitable is not impossible, but it does require the trader to do some real sole searching...to find out who the person is inside you that controls your trading actions. Is it a person who is timid and careless or a person that is confident and in self-control. If you are a timid type person, work on becoming more confident and visa versa. A word about being overconfident. To a certain extent, confidence is a good thing. A trader has to have confidence if they are going to be successful. It can also work against you. There have been many occasions where overconfidence or ego has caused a trader to violate their rules because they knew that they were right. The only thing right is the market. It doesn't care if you make a profit or not. So finding the right balance between self-confidence and overconfidence is vital to trading.

In Summary

The active trader has many types of obstacles to keep their minds busy. If there is one piece of advice that traders needs to adhere to it is to keep true to their trading plan. Letting your emotions take control of your trading is a sure fire way to lose money in a business that takes no prisoners. Working consistently toward the process of training the traders mind to follow their plan no matter what is the only way to consistent profitability.

This is not a solicitation to buy or sell.

There is a risk in any investment

How To Get 85-90% Winning Trades

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

Learn Discount Daytrading

People who want to get into daytrading often say, "I want to learn daytrading but I don't have the funds necessary to meet the daytrading requirements. Remember daytrading stocks requires a minimum of $25,000 in your account.

In today's world, with foreclosures at an all time highest ever, with the unemployment rate skyrocketing, etc., coming up with $25,000 can be a huge amount of money.

Hmmmmm...

Well, there is a way for you to be part of the daytrading world without having $25,000 in your account. You can learn to daytrade E-Mini Futures. E-Mini daytrading allows you to open an account with as little as $2,500. And you can daytrade with just $500. What stock could you daytrade for $500 (since you have to buy 100 shares)?

Daytrading the E-Mini S&P 500:

The E-Mini S&P 500 is known as a Future. It trades in "Contracts" instead of shares. The E-Mini S&P 500 Future symbol is "ES". The E-Mini S&P 500 Future is like daytrading all of the top 500 stocks that make up the S&P 500 Index at once, with just 1 chart. The E-Mini S&P 500 Future trends up and down matching the S&P 500 Index.

To buy 1 E-Mini S&P 500 contract you will need about $500, depending upon the broker. E-Mini S&P 500 Futures trade on margin. Each broker decides the margin for his customers. Most Futures brokers will let you trade 1 contract for $500. It is always better for you to trade Futures through a Futures broker instead of a broker who primarily trades Stocks and also trades Futures. Futures Brokers provide cheaper commissions and better margin rates.

The E-Mini S&P 500 trades in 25cent increments. Stocks trade in 1cent increments. Each 25cent increment is known
as a tick.

Each Contract trading the E-Mini S&P 500 will make you $12.50 a tick. There are 4 ticks in 1 point. So for every point that the E-Mini S&P 500 Future moves in your favor, you make $50.

Example: Lets say you bought one contract to go long (you want the E-Mini S&P 500 Future to go up), at 1350, if the S&P 500 E-mini does go up to $1350.25, you will make $12.50. It will cost you $500 to trade that one contract.

But you say...$12.50 is not much money. Well.....

If you bought 2 contracts you would make $25. Remember to buy 2 contracts you would need $1000 in your account.

How many contracts can you buy? It depends entirely on your risk model. When you first start daytrading, you start

Per Trade Profit Target - Day Trading Money Management Technique

Per Trade Profit Target - Introduction

When a trader first starts out in their day trading activities, they will usually start out with little or no idea of their trading style. The trader will enter the market with no fear and will achieve moderate success. Then the unthinkable happens. The trader is slapped with their first major hit. This setback will discourage the trader and will ultimately force them into analytical mode to figure out why they took such a hit. This cycle of small wins, small losses, and more analysis will go on until the trader is either out of money, or comes up with sound money management techniques. There are some traders who simply trade the charts and do not focus on the money. The choice to trade the charts exclusively, or to include money management in your trading techniques is totally up to you.

Set a Per Trade Profit Target or Trade the Charts?

If you are wondering if you should trade the charts or set a per trade profit target, answer the following questions:

The first step in setting a per trade profit target is to analyze your last three months of day trading activities. Next, observe the maximum profit you would have made per trade with the highest frequency. For my personal day trading activities, I began to notice that my trades generally went in my direction two percent of the time on 2/3 of my trades. You will have to be honest with yourself throughout this process. Remember, the key is not setting some arbitrary profit target, but one that fits your trading style and risk profile.

Executing the Trades

So far we have only discussed the profit target, the flip side to this is that you will have to set a stop limit order as well. There is a general rule in the market that you should set a 3-to-1 profit to risk ratio; however, if you notice that your trades require more room for you to hit your profit target, give them the space they need. The first challenge you will face in this new day trading style, is to actually let the trades play out. As you approach your per trade profit target, you will feel the urge to close the trade out early. You must fight this emotion and let the trade play out. After the first month of this new approach, take a look at your trade log and compare it against your previous three months of trading activity. If you see that your results are not improving, you will have to adjust your per trade profit target.

Summary

Day trading can be a complicated or simple exercise. By reducing trading to a per trade profit target, you are in essence taking the ambiguity out of trading. Remember, the goal in trading is to make money.

See You At the Top,

mysmp.com

How to Set Your Per Trade Profit Target

Chande Momentum Oscillator - Technical Indicator

The chande momentum oscillator (CMO) was developed by Tushar Chande andis a technical indicator that attempts to capture the momentum of a security. Chande discussed this and many other indicators in his book "The New Technical Trader". The chande momentum oscillator differs from other technical indicators like the RSI and MACD, because it uses up and down days in both the numerator and denominator.

Chande Momentum Oscillator Overbought/Oversold Levels

The CMO is a unique oscillator, but like all other oscillators, it has overbought and oversold levels. Since the indicator is based on previous closing prices, it will oscillate between +100 and -100. Traders use a general rule of thumb that when the chande momentum oscillator is greater than +50 the security is said to be overbought, while a reading below -50 is considered oversold. Traders should not simply buy or sell a security because the indicator crosses these thresholds, this is a sure way to lose money.

Trading with the Chande Momentum Oscillator

Trading with the chande momentum oscillator as a standalone indicator can prove a challenging task. Since the indicator will oscillate between +100 and -100, a break of +50 could mean that it is overbought, but remember the indicator has another 50 points it can run. What many traders do is to apply a moving average to the indicator and will use crosses of the CMO and a simple moving average to generate trade triggers. Another approach is to trade a security when the chande momentum oscillator has reached extreme readings. Extreme readings are an indication that a strong trend is in place, and traders will add to their positions on any minor corrections.

Day Forex Trading Training - The Features You Need To Get Up To Speed

Day forex trading training can be a mouthful to say but is absolutely essential for individuals looking to invest in the forex market, whether extensively or choosing to dabble every now and again. Day forex trading is one of the most popular types of training and thus there is a whole host of information around about it, but there are very few decent day forex trading training courses that are comprehensive and deal with everything that an individual needs to know.

Day forex trading is defined as the purchase of foreign currency being followed by its sale in the same day. This is generally done for a quick profit, which is why it is so popular. Individuals can see how well they have done on a particular day, every day! This is why the day forex trading training is extremely important.

A good day forex trading training course will give you the following to prepare you for the exhilaration of forex day trading:

1. Technical analysis skills - The first thing a good day forex trading training course will teach an individual is the ability to analyze trends in the marketplace. A currency may fluctuate during any given day, but a day trader has to be able to predict when it would be best to buy and sell. Without the ability to analyze that the day forex training can give, it would be impossible for an individual to know. It would be guess work and that can ultimately lose and individual a lot of money.

2. Software knowledge - There is very little point in day trading if an individual cannot use software to his or her best advantage. As there are so many types of software, day forex trading training will give a general overview of the software types, a demonstration and practical experience on a specific one and the details of different things to look out for.

3. Trading strategies know how - To be a day trader, and a successful one at that, an individual would have t know all about strategies. The day forex trading training will give an overview of what strategies exist so an individual can go away and apply one or two before evolving them to suit his or her own experience and style.

4. Trend analysis skills - Trade analysis skills are extremely important to a day trader because, as with technical analysis, an individual must have a good grasp on them to be able to predict changes every single day. Day forex trading training will certainly focus on this area by pairing it with charts, graphs and news items. When added to the other three features, this makes day forex trading training well worth a little effort for the profit that one could ultimately benefit from!

How Long Should I Backtest An Online Daytrading System?

I am frequently asked how long one should backtest a online daytrading system. Though there's no easy answer, I will provide you with some guidelines. There are a few factors that you need to consider when determining the period for backtesting your online daytrading system:

Trade frequency

How many trades per day does your daytrading system generate? It's not important how long you backtest a daytrading system; it's important that you receive enough trades to make statistically valid assumptions*: If your online daytrading system generates three trades per day, i.e. 600 trades per year, then a year of testing gives you enough data to make reliable assumptions*. But if your trading system generates only three trades per month, i.e. 36 trades per year, then you should backtest a couple of years to receive reliable data.

Underlying contract

You must consider the characteristics of the underlying contract. The chart below shows the average daily volume of the e-mini S&P:

It doesn't make sense to backtest a trading system for the e-mini S&P before 1999, because the contract simply didn't exist! In my opinion it doesn't make sense to backtest an e-mini trading system before 2002 because at that time the market was completely different; less liquidity and different market participants. I believe that a reliable testing period for the e-mini S&P are the years 2002 - 2004.

The problem is that many traders over-use the functions provided by the different backtesting software packages and think more is better. Many so-called system developers try to imply that the longer you backtest the better and more robust your system will be. That's not always true.

Conclusion

When backtesting you need to know these things. It's not enough to just run a system on as much data as possible; it's important to know the underlying market conditions.
In non-trending markets like the e-mini S&P you need to use trend-fading systems, and in trending markets like commodities you should use trend-following methods.

Why So Many Day Traders Lose?

Most trading is done emotionally charged where traders find themselves overwhelmed with information from all directions.

In this mood, you can feel out of control - not knowing where the markets and stocks will take you or do to you next.

Unlike the tech rally days, where winning was virtually effortless and all you needed to do was get on the bus for the ride, winning in the current market is rare. Rather than winning a lot, you now experience losing a lot - for many, losing over and over, it seams, without end.

Or, if you are one of those who choose to stand aside, not really knowing what or when to trade, you find yourself bored, trying not to fall asleep at the switch. And, at the center of all this, as you try for any bit of success, you often feel drained - stressed, too frequently getting upset then angry.

Over the long run you begin to feel demoralized and deenergized - with a sense of embarrassment (as you think about how you will explain your plight to others), feeling like you are a failure as you reflect on the past months/years - you frequently think, your dream of success may never be realized. Not a pretty picture.

The Old School Trading Game:

Listen carefully to what I want you to hear: the old trading Game, as you and I know it, has gone the way of the Model A (Model A Ford, that is).

The old school, obsolete trading game is still used by most. Did I say over 90% of the traders out there? It's offered in all the day trading courses, seminars, and Web sites - you name it.

Yet losers (innocently, stubbornly, and arrogantly) persist in playing an obsolete trading game - thinking, hopefully (as usual), that somehow they will be able to win again. Losers are completely unaware that their old trading game, has changed to their guaranteed disadvantage.

You need evidence, proof? You don't need proof. Just look carefully at your bottom line resultsafter overhead, after paying yourself, of course.

The old school trading game, as you and I know it, is dead. The difference between winners and losers? Losers are blindly refusing to accept their fate.

It's time (actually, long overdue time) for losers to move on to the new day trading game, a new trading system, trading approach and perspective, and the trading tactics winners use to play to consistently win. But, losers have no where to turn for help. Not any more.
Hedge Funds, the Winners, & all the Losers:

OK, I'll tell you why you lose so much.

Those who know first hand about the game winners play are those who in fact invented it -the hedge fund managers.

Quant funds run by top names (Goldman, Renaissance Technologies, D. E. Shaw, to name a few).

Some of the biggest names in hedge fund investing Renaissance Technologies, D. E. Shaw, AQR Capital Management practice what is called quantitative investing, using computer models to buy and sell thousands of stocks (and bonds and derivatives and commodities and currencies and country indexes and just about anything else that can be traded).

These funds use these quant models to run what are called in the business market neutral hedge funds, meaning that their gains (or losses) are not dependent on whether the market goes up or down.

Big money, billion dollar hedge funds, at the top of the trading food chain, hire brilliant scientists, quants, to design quantitative software (using mathematical models) to take out the little guys, the crowd of losers, like you and, at one time, all the traders here at Day Traders Win, especially me.

The real fun happens when these hedge funds go at it head to head, feeding off each other, causing highly volatile markets and wild swings in stock prices.How can they do this, you ask? I just told you. Let me go into more detail. Big money uses what all of what losers knowagainst them.

Huh?

Hedge funds, knowing what you know, knowing even what other hedge fund managers know, design their software for the kill.

What they do is quite simple. They design their software to take out those who continue rely everything taught in all the books, courses, and workshops - all the so-called valuable knowledge being offered and digested from a myriad of sources.

Hedge fund software designers use this knowledge base of information and experience to take out the crowd of losers, over and over again. Their advantage has little to do with fundamentals and all to do with the technicals, or should I say, taking advantage of the technicals every one commonly relies on to win - but mostly lose.

Losers don't have a chance of winning against this new hedge fund trading game. While losers go on trying to figure out why they lose so much, the big money traders go on winning. Hedge fund software designers have them in their sights for their next kill.

Most losers appear blind to this "software is king" phenomenon, without a clue about how the hedge funds' software Kings have change all forms trading (extremely short term day trading to long term investing). In just the past few years the trading game has been turned on it's head.

The trading game has been changed - forever.

Losers push on, relying on their obsolete trading game (their biased trading perspective, their sick trading systems, and execute their trades with dreadful outcomes) - yet continue to be killed by the big boys.

Losers refuse to accept the fact that their game is a trap for more boredom, frustration, losing, and both personal and financial suffering.

For those blind to this phenomenon, losing goes on unabated. For those who wake up to what's really going on, they need to learn to trade to win all over again.

The question for losers - what can I do about all this.

Comments, questions, suggestions, and more information: www.daytraderswin.com

Forex Day Trading - a 100% Way to Lose ALL Your Money Quickly

Having been a forex trader for 25 years it amuses me when I see writers defend day trading. They say it really can make money! - Of course they have no track record to back it up just empty words. Fact is you are guaranteed to lose in day trading for one simple reason:

All Movements in Short Time Frames Are Random

Trillions of dollars trade hands each day and million of trader's trade, all with different objectives and opinions and to say that you can predict what they do in a few hours or a day, is ridiculous. You can't.

Volatility takes prices anywhere in a day and support and resistance levels are meaningless, so you would have the same success rate flipping a coin.

It's absolutely impossible to get the odds on your side PERIOD

This is of course why you NEVER see any of the vendors selling these systems give you a real time track record Why?

Because they don't dare trade it!

They would rather write some enticing copy and appeal to the greed and naivety of traders and make their money selling you the system they win you lose period.

But I have seen a track record you may say and yes will have, but it's NOT real.

If you check the disclaimer on it you will see there all hypothetical!

What does that mean?

It means done in hindsight knowing the closing prices!

Now who can't do that it's not exactly hard.

If we all knew tomorrows price today we would all be millionaires but we don't and neither do we know what will happen tomorrow, so there not worth the paper their written on.

Day trading is a good story but the logic doesn't add up and the biggest lie about day trading is you can make money at it longer term.

If you could you would see a track record or the vendor would shut up and trade it himself and not need your few hundred dollars.

If you want to win

Appreciate that trading is an odds game and to trade the odds you need to trade over longer periods, where the data is valid and you can have a chance of getting the odds on your side.

Finally

Don't day trade, get real and trade with the odds on your side.

How to Develop a Profitable Day Trading System

In this article I will explain to you how to develop a profitable day trading system in five steps:

Step 1: Select a market and a timeframe

Step 2: Define entry rules

Step 3: Define exit rules

Step 4: Evaluate your day trading system

Step 5: Improving the day trading system

Let's take a closer look at these steps.

Step 1: Select a market and a timeframe

Every market and every timeframe can be traded with a day trading system. But if you want to look at 50 different futures markets and 6 major timeframes (e.g. 5min, 10min, 15min, 30min, 60min and daily), then you need to evaluate 300 possible options. Here are some hints on how to limit your choices:

Though you can trade every futures markets, we recommend that you stick to the electronic markets (e.g. e-mini S&P and other indices, Treasury Bonds and Notes, Currencies, etc). Usually these markets are very liquid, and you won't have a problem entering and exiting a trade. Another advantage of electronic markets is lower commissions: Expect to pay at least half the commissions you pay on non-electronic markets. Sometimes the difference can be as high as 75%.

When you select a smaller timeframes (less than 60min) your average profit per trade is usually comparably low. On the other hand you get more trading opportunities. When trading on a larger timeframe your profits per trade will be bigger, but you will have less trading opportunities. It's up to you to decide which timeframe suits you best.

Smaller timeframes mean smaller profits, but usually smaller risk, too. When you are starting with a small trading account, then you might want to select a small timeframe to make sure that you are not overtrading your account.

Most profitable day trading systems use larger timeframes like daily and weekly. These systems work, too, but, be prepared for less trading action and bigger drawdowns.

Step 2: Define entry rules

Let's simplify the myths of entry rules:

Basically there are 2 different kinds of entry setups:

Trend-following

When prices are moving up, you buy, and when prices are going down, you sell.

Trend-fading

When prices are trading at an extreme (e.g. upper band of a channel), you sell, and you try to catch the small move while prices are moving back into normalcy. The same applies for selling.
In my opinion swing trading is actually one of the best trading strategies for the beginning trader to get his or her feet wet. By contrast, trend trading offers greater profit potential if a trader is able to catch a major market trend of weeks or months, but few are the traders with sufficient discipline to hold a position for that period of time without getting distracted.

Most indicators that you will find in your charting software belong to one of these two categories: You have either indicators for identifying trends (e.g. Moving Averages) or indicators that define overbought or oversold situations and therefore offer you a trade setup for a short term swing trade.

So don't become confused by all the possibilities of entering a trade. Just make sure that you understand why you are using a certain indicator or what the indicator is measuring. An example of a simple swing daytrading strategy can be found in the next chapter.

Step 3: Define exit rules

Let's keep it simple here, too: There are two different exit rules you want to apply:

Stop Loss Rules to protect your capital and

Profit Taking Exits to realize your profits

Both exit rules can be expressed in four ways:

A fixed dollar amount (e.g. $1,000)

A percentage of the current price (e.g. 1% of the entry price)

A percentage of the volatility (e.g. 50% of the average daily movement) or

A time stop (e.g. exit after 3 days)

We don't recommend using a fixed dollar amount, because markets are too different. For example, natural gas changes an average of a few thousand dollars per day per contract; however, Eurodollars change an average of a few hundred dollars a day per contract. You need to balance and normalize this difference when developing a day trading system and testing it on different markets. That's why you should always use percentages for stops and profit targets (e.g. 1% stop) or a volatility stop instead of a fixed dollar amount.

A time stop gets you out of a trade if it is not moving in any direction, therefore freeing your capital for other trades.

Step 4: Evaluate your day trading system

The first figure to look for is the net profit. Obviously you want your system to generate profits. But don't be frustrated when during the development stage your day trading system shows a loss; try to reverse your entry signals. On our website www.rockwelltrading.com you already learned that trading is a zero sum game: So if you are going long at a certain price level, and you lose, then try to go short instead. Many times this is the easiest way to turn a losing system into a winning one.

The next figure you want to look at is the average profit per trade. Make sure this number is greater than slippage and commissions, and that it makes your day trading worthwhile. Day trading is all about risk and reward, and you want to make sure you get a decent reward for your risk.

Take a look at the Profit Factor (Gross Profit / Gross Loss). This will tell you how many dollars you are likely to win for every dollar you lose. The higher the profit factor the better the day trading system. A system should have a profit factor of 1.5 or more, but watch out when you see profit factors above 3.0, because it might be that you over-optimized the system.

Here are some more characteristics you might want to consider besides the net profit of a system:

Winning percentage

Many profitable day trading systems achieve a nice net profit with a rather small winning percentage, sometimes even below 30%. These systems follow the principle Cut your losses short and let your profits run. However, YOU need to decide whether you can stand 7 losers and only 3 winners in 10 trades. If you want to be right most of the time, then you should pick a system with a high winning percentage.

Number of Trades per Month

Do you need daily action? If you want to see something happening every day, then you should pick a day trading system with a high number of trades per month. Many profitable day trading systems generate only 2-3 trades per month, but if you are not patient enough to wait for it, then you should select a day trading system with a higher trading frequency.

Average Time in Trade

Some people get really nervous when they are in a trade. I have heard of people who can't even sleep at night when they have an open position. If that's you, then you should make sure that the average time in a trade is as short as possible. You might want to choose a system that does not hold any positions overnight.

Maximum Drawdown

A famous trader once said: If you want your system to double or triple your account, you should expect a drawdown of up to 30% on your way to trading riches. Not every trader can stand a 30% drawdown. Look at the maximum drawdown the system produced so far, and double it. If you can stand this drawdown, then you found the right day trading system. Why doubling? Remember: your worst drawdown is always ahead of you.

Most consecutive losses

The amount of most consecutive losses has a huge impact on your trading, especially when you are using certain types of money management techniques. Five or six consecutive losses can cause you a lot of trouble when using an aggressive money management.

In addition this number will help you to determine whether you have enough discipline to trade the system: Will you still trade the system after you have experienced 10 losses in a row? It's not unusual for a profitable trading system to have 10-12 losses in a row.

Step 5: Improving your system

There is a difference between improving and curve-fitting a system. You can improve your day trading system by testing different exit methods: If you are using a fixed stop, try a trailing stop instead. Add a time stop and evaluate the results again. Don't look at the net profit only; look also at the profit factor, average profit per trade and maximum drawdown. Many times you will see that the net profit slightly decreases when you add different stops, but the other figures might improve dramatically.

Don't fall into the trap of over-optimizing: You can eliminate almost all losers by adding enough rules. Simple example: If you see that on Tuesdays you had more losers than on the other weekdays, you might be tempted to add a filter that prevents your day trading system from entering trades on Tuesdays. Next you find that in January you had much worse results than in other months, so you add a filter that enters trades only from February December. You add more and more filters to avoid losses, and eventually you end up with a trading rule that I saw recently:
IF FVE > -1 And Regression Slope (Close , 35) / Close.35 * 100 > -.35 And Regression Slope (Close , 35) / Close.35 * 100 < .4 And Regression Slope (Close , 70) / Close.70 * 100 > -.4 And Regression Slope (Close , 70) / Close.70 * 100 < .4 And Regression Slope (Close , 170) / Close.170 * 100 > -.2 And MACD Diff (Close , 12 , 26 , 9) > -.003 And Not Tuesday And Not DayOfMonth = 12 and not Month = August and Time > 9:30 ...

Though you eliminated all possibilities of losing (in the past) and this trading system is now producing fantastic profits, it's very unlikely that it will continue to do so when it hits reality.

Online Day Trading - Free Helpful Tips for Beginners

Day Trading is a very lucrative field and there are many millionaires that have made their money by trading stocks, currency, bonds, and investing in mutual funds. Day Trading is clearly a phenomenon of our times. It is one of the most popular forms of trading because the only components you need are a computer and an Internet connection.

Important: The tips presented in this article mainly applies to online day trading. But these info can also be used for commodity trading, penny stock trading and currency trading.

What is Day Trading?

Day trading simply means not holding any position beyond the current trading day; i.e. closing all outstanding positions by the end of the session putting you 100% into cash overnight. Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures.

But don't be fooled by all the glory of day trading. Day trading is extremely risky and can result in substantial financial losses in a very short period of time. You won't learn online day trading in a single day.

Trading is like most business: it requires commitment and perseverance. It is necessary to plan your trading business and prepare a proper strategy for achieving success at online day trading.
Here are some tips that will help you to succeed with online day trading:

• Never get emotionally involved in your trades.


• Go to seminars on online day trading, use simulations if possible and practice reading market indicators.


• Don't make the mistake of plunging into any form of online day trading without spending the time to learn what you're doing.


• Make sure that no one trade is really going to affect your day trading float, positively or negatively.


• If you profit large sums of money, stop trading. Do not gamble it away by trying to gain even larger profits.

Characteristics of Successful Traders

If you want to succeed with online day trading, then you should do exactly what the professional traders do:

• Winning traders understand that winning in the markets means "cash flow".


• Successful traders use different online day trading strategies are on different days and on different markets.


• Successful traders know that trying to hit a home run is a sure way to get burned.


• Successful traders make decisions based on fact and analysis.


• Most successful day traders have a true love or passion about their online day trading activities.

In Conclusion

Although online day trading is risky, it does have big rewards if you know how to play in this game. Plan your trade and trade your plan. Cut losses short. Learning the technicalities of trading takes time but it's possible to master it.

Trend Lines - Identifying Existing Price Trends

Trend Lines - Overview

Trend Lines are one of the oldest technical indicators. Trend lines are used to identify and confirm existing price trends. They can be drawn on any timeframe and can be used on any price chart. The key to using trend lines effectively is the methodology used to draw them on the price chart. Simply put, a trend line is a straight line that connects two or more swing points. A positive sloping line is defined as an uptrend. A negative sloping line is defined as a downtrend.

Positive Trend Line

A positive uptrend is when there are higher highs and higher lows on the price chart. If the price is contained by this upward sloping line, the trend is assumed to be intact. This means that there is more demand than supply as the price heads higher. Many new traders make the mistake of assuming that a break of a trend line is going to lead to a steep sell off. While this is potentially true, traders will have to assess the volume and price action on the break of the trend line. Often times the price will have a false break of the trend line only to continue higher. One method for trading positive trendlines is to buy each successful test of the trend line at support.

Downtrend Line

A negative downtrend is when there are lower highs and lower lows on the price chart. If the price is contained by this downward sloping line, the trend is assumed to be intact. This means that there is more supply than demand as the price heads lower. Traders should look to short each failed test of the downtrend line.

Slope of Trend Line

The slope of the trend line is a key component of analyzing the strength of the primary trend. Newbie traders will often look at a steep incline and use the first break of the line to sell short the security. The steeper the slope of the line, the less reliable is the signal generated from the break of that line. When going counter to the primary trend, you will want to wait for both the trend line and the previous swing point to be broken. Remember, that a trend line break does not equal a new trend, it could just mean the slope of the trend is slowing up.

Drawing a Proper Trend Line

A valid trend line is comprised of two or more points on a price chart connected by a straight line. The origination point of the trend line is not necessarily the high or low point of the price move. A proper trend line starts from when the actual move begins. The two points on the trend line should be between two pivots. These swing points should have enough price movement to construct a trend line capable of containing the trend. The last component of a trend line is the third point, which is contained by the trend line constructed by the first two points. Trend lines are like every other indicator in that it may not work as intended for every security. So, if you find that the price continually breaks the trend line, do not force it on the chart. Use some other indicator to gauge the direction and trend of the security.

See You At the Top,

mysmp.com

Day Trading From Home

Day trading is buying and selling stocks in the course of a single day. This typically is done in large volume orders to make more money from smaller moves. This can definitely be a very profitable hobby if you do your homework.

The most common question that is asked about day trading is: Do I have to sit in front of the computer all day to make money?

In short, no. You do not have to slave over your keyboard for hours upon hours. You mainly just need to trade when the biggest volume is happening. Which is in the morning hours. So most day traders spend just about 4 hours really watching the computer. Plus, they do not trade on the weekend. Which makes day trading so appealing.

If something is an investment, then it has risk. If there was anything that was 100% everyone would be doing that. So consider day trading the same way. You can make plenty of money, but you are guaranteed to lose some as well. Accepting losses when they come is something you better get used to because nobody bats 1000 at this game.

However, day trading does have a slight advantage in some ways. The fact is that it is very rare that stocks lose a lot of value in just one day. If a stock is going at $74.50 at 9:30 am, then it is doubtful it will tumble all the way down to $50 in just a couple of hours.

If you only have a little bit of money to work with then it will be slow going at first. Simply put it is hard to make $2000 in one day when you are only working with $5000. However, if you have $30000 to work with then you have the potential to make that kind of money.

One more important thing to remember is stock trading is to pay attention for the amount of shares, this is the biggest factor when it comes to day trading. If you are not paying attention to both, you will not make the money that you are shooting for.

Finally, with all investments. Take your time and learn. There are demo accounts out there where you can practice with real stock info, but not lose your kids college fund in the process. So make sure to take full advantage of the chance to "learn before you buy".

Forex Strategy Course Online Lesson - Basics of Forex Trading

Forex, short for the Foreign Exchange market, is the largest financial market in the world. More money changes hands on the Forex market each day than on the stock market for an entire month! With the right forex trading strategy, you can become a successful forex investor. However, before you can learn real Forex trading strategies, you need to learn the basics of forex trading. This online forex lesson will teach you the elementary concepts.

The Forex market trades money, or currency, between different countries. You can think of it as a currency exchange market where people exchange large sums of, say, US dollars for British pounds. There are many currencies traded on the Forex market, and the most popular to trade are the US dollars, British pounds, European euros, Japanese yen, Swiss franc, Canadian dollar, New Zealand dollar, and Australian dollar. The symbols for these currencies on a Forex chart are USD, GBP, EUR, JPY, CHF, CAD, NZD, and AUD, respectively. A successful Forex strategy involves predicting how the relative strengths of the currencies will change in the future.

There are many reasons why investors prefer the Forex market to the stock market. Here are a few:

1) Because the Forex market is a global market, it is open 24 hours a day. Major centers are located in NY, London, and Tokyo, so there will always be an institution ready to process orders. Unlike stocks, you can buy and sell at any time.

2) Trillions of dollars trade hands every day in the Forex market. This means that the market has high liquidity, and your orders are usually instantly processed. Another side effect is that no single institution can use unethical Forex strategies ("game" the market) since the market is enormous.

3) Forex offers high leverage or margins than stocks. With stocks, you cannot have a leverage of more than 2:1, which means you can only borrow a small amount of money from your broker. Forex brokers can offer up to 200:1 leverage, which means a small amount of cash can go a long way. A successful Forex trading strategy will increase your portfolio much, much faster than with stocks. On the flip side, though, it is also much easier to lose all of your money in Forex markets.

In summary, the Forex market gives investors an opportunity to profit from currency exchange. Forex strategies can take advantage of fast-paced, highly-leveraged trading to generate rapid profits, but this comes at the price of higher risk.