Forex Trading Tips for Newbies

By Bart Icles

Everyday, more and more people are joining the profitable world of forex trading. As thousands and thousands of traders go online everyday, perhaps you might be asking how they get to earn money. The truth is, all you need to start a career in forex trading is good research, a bit of nerve, and valuable forex trading tips. Forex trading opens a lot of opportunities that you would not have thought would be possible if you were just sitting in front of your computer the whole day.

If you would browse online, you would come across many different trading tips that you will find helpful. You can easily get overwhelmed with all the pieces of information that will help you learn about forex trading so it is important that you are able to take note of the most essential ones. Foremost of these tips is trade pairs and not currencies. This is one of the most reasonable tips that you will ever learn because just like any other relationship, you will need to know about both sides of forex trading. Your success or failure in the forex market greatly depends on how two currencies affect and have an impact on one another and not just the trend of one.

You also need to understand the power of knowledge. It is vital that you learn about the basics of the market and understand how they affect trading, as well as the different trading signals that you need to keep a close watch on. Your best resource would be the internet and TV - you will need to spare some time to catch up with global news and events.

Unpredictable as it is, you cannot afford to gamble all your money in the forex market. Once you engage in trading, you should learn to make reservations. You have to keep in mind that although the forex market presents a lot of profitable opportunities, market trends can also turn against you in as fast as a few seconds. The key here is to practice a method of trading that is overcautious and not ambitious.

Once you have started to invest in the forex market, you will need to understand the there are only two directions that you can go: up and down. It helps to keep an eye on the long term and to be aware of the real value of strategy. Most forex trading tips will reiterate the importance of strategy and it is vital that you keep this trading roadmap in mind. - 23208

About the Author:

A forex trading system is powerful when coupled with a desire to learn and a drive to become a great trader. Learning forex trading systems takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Types of Market Orders (Part I)

By Ahmad Hassam

Just to remind you that forex markets are open 24 hours a day, five days a week. A market move is just likely to happen while you are asleep or in the shower as while you are sitting in front of your computer screen. Currency traders use market orders to catch market movements when they are not in front of their screens.

Trading can be very difficult without these market orders. Market orders are very critical to your trading success in the currency markets. Think of them as trades waiting to happen. If you enter an order and the subsequent price action triggers its execution, you are in the market so be as careful as possible while playing with the market orders.

Experienced currency traders routinely use orders to implement a trade strategy from entry to exit, capture sharp short term price fluctuations, limit risk in volatile or uncertain markets and preserve trading capital from unwanted loss. Market orders are essential for maintaining trading discipline.

Currency markets can be notoriously volatile and difficult to predict. There can be sudden price swings. Using market orders can help you capitalize on short term price movements while limiting the impact of any adverse price movements.

You probably dont have a well thought out trading plan if you dont use market orders. It will also give you the peace of mind in trading. There is no guarantee that the use of market orders will limit your losses and protect your profits in all market conditions. However, a disciplined use of market orders will help you quantify the risk that you are taking.

A number of different types of market orders are available to currency traders in forex markets. You should add the market orders to the list of questions you need to ask the broker when you open an account with a forex broker because you should know that not all market orders are available at all online forex brokers.

Take Profit Orders: Use the take profit order to lock in profits when you have an open position in the market. An old market saying, You cant go broke taking profits. If you are long EUR/USD at 1.2845, your take profit order will be to sell the position somewhere higher close to 1.2875. Suppose you are short GBP/USD at 1.2354. Your take profit order will be to buy back the position and be place somewhere below 1.2334. Making you a profit of 20 pips!

Limit Orders: Dont forget the saying, Buy low and sell high. A limit order is any market order that triggers a trade at more favorable levels than the current market price. If the limit order is to sell then it must be placed somewhere above the current market price. If the limit order is to buy, it must be entered somewhere below the current market price. - 23208

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Know Forex Scalping. Learn Forex Trading!

Technical Analysis - A Forex Training Guide

By Bart Icles

Being a beginner in the forex trading world can be very challenging. If you are looking forward to participate in actual trading, you might end up frustrated when you learn that you will still need to invest most of your time knowing more about the different factors that affect the market. Learning the basics is gruelling but this is the only way for you to effectively start a successful career in currency trading. In fact, a forex training on the basics of the market is not a guarantee for success, it merely makes it easier for you to understand the market and accept potential frustrations. One important thing that you will need to learn more about is technical analysis. This is a very important topic to know more about, especially if you are planning to participate in day trading.

To start, technical analysis is an effort to calculate currency price movements through an analysis of various market data. These data include volumes, historical price trends, open interests, and a lot others. Technical analysis is pretty much based on a historical principle, where there is always a possibility that things will recur over time. One should take note that although technical analysis involves an evaluation of actual data, it still cannot guarantee an absolute forecast of how things will turn out to be in the future.

If you think that indicators generated from a technical analysis will help you understand what will most likely happen to market prices over a certain period of time, you are more likely to be correct. Technical trading hinges heavily on charts and graphs. If you are looking into participating in day trading, it can be wise to invest on at least one charting or graphing software that can help you better read, understand, and plot data for your own reference.

Typical indicators involved in a technical analysis include simple moving averages, relative strength indices, moving average convergence or divergence, parabolic SAR, and Fibonacci numbers. You can find a forex training course on such factors in many online resources.

You might think that there is security in technical analysis because it takes into account historical market trends. However, you must remember that engaging in forex trading based on technical analysis alone can be risky because not everything that has happened in the past will happen the same way in the future. On the other hand, you cannot disregard a forex training on technical analysis, especially if you believe you will be making more short-term decisions than mid- or long-term calls in your forex career. Still, using a balance between technical and fundamental analyses appears to be the safest way to make investment decisions. - 23208

About the Author:

Forex Trading are powerful when coupled with a desire to learn and a drive to become a great trader. Learning with a Hedging Forex strategy takes away from your education, learning an honest strategy takes time but once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

IRS And Doeren Mayhew Provide Guidance on New COBRA Rules

By Doeren Mayhew

The bureau recently free guidance, in a question and respond format, addressing how employers are to lot and essay recovery of the new COBRA payment subsidy enacted under the American ecovery and Reinvestment Tax Act of 2009 (P.L. 111-5). The Act provides that an individual who has been involuntarily terminated on or after September 1, 2008, through the end of 2009 is required to clear only 35% of the group health shelter payment to bonded COBRA continuation coverage (up to nine months).

The new guidance focuses on digit broad areas: Form preparation - the mechanics of how an employer recovers the COBRA payment subsidy through a payroll credit claimed on bureau Form 941, and administration and eligibility. The guidance also addresses common inquiries surrounding the timing of when the subsidy begins and ends.

How The Subsidy Will Work: Former employees and their family are "assistance eligible employees" if they are eligible for COBRA health insurance continuation coverage as a result of any involuntary termination occurring from September 1, 2008, through December 31, 2009. Those individuals are required to pay only 35% of the group health insurance premium that would otherwise apply.

Under the IRS Act, the "person to whom the premiums are payable" - generally, the employer - pays the other 65% of the COBRA continuation premium. The employer module then be reimbursed by means of a federal payroll tax credit claimed on Form 941.

Payroll Credit Usually, an employer can claim the payroll credit for the COBRA premium subsidy on Form 941, Employer's Quarterly Federal Tax Return. To do so, the employer should enter the amount of any COBRA premium assistance payments paid on behalf of employees for that quarter on Line 12a. The amount entered should equal 65% of eligible workers' total COBRA premium payments - not amounts received from former employees.

In its Guidance, the IRS indicated that there has been some confusion surrounding the proper number of individuals to be reported on Line 12b as having received COBRA premium assistance reported on Line 12a. The guidance clarifies that only one individual should be counted for Line 12b purposes in a situation where a former employee has also secured coverage for other qualifying individuals such as a spouse and/or children.

Timing Issues: The IRS has also clarified that the COBRA premium reduction applies as of the first period of coverage beginning on or after February 17, 2009, for which a qualifying involuntary terminated employee is eligible to pay 35% of the premium. The exact date of coverage is contingent upon the period to which premiums are charged to the plan. The 35% premium subsidy generally applies until the earliest of three events: (1) when the former employee secures other health insurance coverage; (2) the date that is nine months after the first day of the first month for which the special COBRA premium subsidy provision applies; or (3) the date the individual is no longer eligible for COBRA continuation coverage. - 23208

About the Author:

Visit Doeren Mayhew online for more information. Doeren Mayhew is located in Troy, Michigan.

Tips for Trading Descending Triangles Short

By Jeff Cartridge

The descending triangle can be traded very successfully on the short side entering the trade as the stock breaks out of the pattern to the downside. The pattern forms when the two boundary lines that contain the price movement converge to a point. The top line slopes down toward the bottom line which is horizontal.

Descending Triangles, One Of The Best

Most descending triangles would be expected to break down and in fact 57%, break out to the downside making this pattern best when traded on the short side. 45% of these breakouts are profitable and on average the profit per trade is 0.92% over a period of 9 days. A good proportion, 12.1% of these breakouts make a profit of 10% or more. The descending triangle is one of the best chart patterns when it breaks to the downside and applying some filters makes this pattern even more attractive to trade.

Refine Your Entries

A break to the downside works better in a falling market or sector environment. By using filters that require the market to be in a consolidation or a down trend you can improve the results. The sector should also be in a down trend for the best results. Strangely a sector that is in a down trend at the beginning of the pattern produces better results than a sector in a down trend when the breakout occurs.

Breakouts can occur anywhere along the length of the descending triangle pattern. Another key to picking successful short breakouts from descending triangles is to look for a turning point up from the lower boundary that fails to reach the upper boundary and then falls away.

If the volume supports the breakout the results are better. Supportive volume means the volume on the way down is higher than the volume on the way up.

Trading Descending Triangles Can Be Profitable

You can improve your trading results by using a series of simple filters that have been outlined here. This select group of descending triangles delivers an average profit of 2.55% in 10 days and is profitable on 48% of the trades. Overall this makes descending triangles extremely attractive to trade.

Statistics for this article have been provided by Patterns Trader after analyzing over 60,000 chart patterns on the Australian market from 2000 - 2008. - 23208

About the Author:

Jeff Cartridge is a private trader and created the website LearnCFDs.com My Results with This Controversial Pattern Strategy