Developing Trading Discipline

By Ahmad Hassam

You need to develop trading discipline. If you come to a point in your market analysis in a trading session when you have no confidence on the accurate direction of the market forecast, choose not to trade. Always remember, a lost opportunity is better than lost capital.

Wait for the market conditions to become clearer. Increase the probability of success by trading when the trade setups are strong. This is far more important in forex trading than in stock trading. The forex markets move a lot.

High leverage gives you the opportunity to make a lot more money much faster. If you don not clearly see an opportunity, try to sit on the sidelines and wait for the market conditions to become clearer. Let the market come to you. Learn to be a patient trader.

You need to learn that leverage is a wonderful money making weapon. It is the essential key to making money in the currency markets as no other markets allow high leverage that this market allows. A leverage of 100:1 means that with a $1000 deposit, you can trade $100,000. This huge amount of leverage will give you the opportunity to make the kind of returns on your investment that you want.

But using high leverage can be dangerous. It has the potential of making you lose some or all of your capital if you trade foolishly. Take the example of credit cards; the bank lets you borrow huge sums of money using your credit card on the promise that you will pay it back. You should use your credit card responsibly.

But in case you abuse your credit card. It can lead you into heavy debt and even bankruptcy. Like you manage your credit card, you should manage leverage in forex trading. Just because you have $10,000, it does not mean that you should trade 10 lots and use all your capital. Using all your capital in one trading session would be foolish.

A very conservative yet very effective method would be to never leverage more than 20% of your account. Thus, you should only trade two lots with a $10,000 capital. Using good money management and discipline, you grow your account successfully in a short period of time.

Understand the power of compounding. The compounding factor applied to your capital can make it grow fast in a short period of time. Many people want to get rich quick and take unnecessary risks while trading. They think that a few big wins will make them rich. They dont focus on proper trading principles or rules. You need to develop trading discipline. Follow simple money management rules consistently and persistently.

Suppose you open a mini account. Start by trading one position of a tenth of a lot. You will not make much money in the beginning. The position size is only one tenth of a normal lot. Be patient! The percentage of returns will compound over time. You will trade a much larger sum of money with the passage of time.

As a trader, you should make realistic goals that can be achieved over time. You should always trade with the money that you can afford to lose! Never ever trade with money that you cannot afford to lose! It is foolish. You should never borrow money to trade. You should not use money that you would use to pay monthly utility bills. You should not use your life savings. You should not think like a gambler. - 23208

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Know Swing Trading. Learn Forex Trading!

Different Types of Market Orders (Part II)

By Ahmad Hassam

Stop Loss Orders: Stop loss orders are critical to your trading survival. The traditional stop loss order does just that. It stops losses by closing out an open position that is losing money. Stop loss orders are used to limit losses if the market moves against your position. If you dont use stop loss orders, you are leaving yourself at the mercy of the markets. A dangerous proposition!

Your stop loss order would be to buy but at a higher price than the current market price if you are short. Your stop loss order would be to sell but at a lower price than the current market price if you are long. Stop loss orders are on the other side of the take profit orders but in the same direction.

Trailing Stop Loss Orders: A trailing stop loss order is a stop loss order that you set at a fixed number of pips from your entry rate. The trailing stop order adjusts the order rate as the market price moves but only in the direction of your trade.

Suppose you are long on EUR/USD at 1.2654. You set the trailing stop loss order at 30 pips. The stop will initially become active at 1.2654-30=1.2624. If the EUR/USD rate goes up to 1.2674, the stop adjusts itself and will become active at 1.244. The trailing stop loss order continues to adjust itself higher as the market moves higher.

When the market puts in the top, your trailing stop will be 30 pips below the top. If the market ever goes down by 30 pips, the trailing stop loss order will be triggered and your open position closed. So in our example, you are long at 1.2654. You set the trailing stop loss at 30 pips and it became active at 1.2624.

Suppose the market never ticks up and instead the market goes straight down. You will be stopped out at 1.2624. Instead suppose the market first rises to 1.2664. Then the market declines 40 pips. Your trailing stop loss order will first rise to (1.2664-30=) 1.2634. It is at 1.2634 that you would be stopped out now.

Did you hear the saying while trading: Cut your losses and let your winners run? A trailing stop loss order allows you to do exactly that. You wait for the market to stage for a reversal in case of a possible winning trade. Instead of you picking the right level to exit on your own, the trailing stop loss order takes you out of your trade.

Use of stop loss orders is critical in money and risk management. Never ever, trade without the stop loss orders! So the key to successful trading is to cut losing positions quickly and let winning positions run. This function is nicely performed by the trailing stop loss order. - 23208

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading and currencies. Discover a revolutionary new Forex Robot. Learn Forex Trading!

Multi-Million Dollar Trader Reveals Favorite Stock Market Analysis Tool

By Shawn Tilman

Ready to learn how to ethically steal TONS of money from other stock market traders with this one indicator?

Steve Cohen, a master trader, is known to use this indicator for his billion dollar hedge fund company. Mr. Cohen's trading profits average over 50% a year!

Over 50 stock traders work for him. He is a guru of following a stock's volume.

More amateur traders overlook volume than any other technical indicator.

Even if you think you understand volume, you owe it to yourself to read this article to make sure you understand how to correctly interpret volume for massive profits.

Think of each tick in the volume as a temporary meeting of two minds: a seller and a buyer. Shares or contracts that have exchanged hands are measured by volume. Volume is usually represented by a histogram bar. The volume reveals secret motives and psychology of bear traders as well as bulls. Increasing volume verifies trends while decreasing volume questions the longevity of the current trend.

In a downtrend, rising volume shows that panic is setting in as people run for the exists. It also shows the foolish buyers stepping in to buy betting that the market is going to turn around. Remember, in order for a sell order to execute, there has to be a buyer somewhere. Buying into a downtrend is also known as trying to catch a falling knife. It is usually a bad idea to bet that the current trend is going to change. Don't bet against the wisdom of the crowd. Let some other fool do that. When all the sellers get out, the volume on the downside falls as the downtrend runs out of steam.

During an uptrend, look for rising volume. Rising volume in an uptrend means that greed has firmly gripped the crowd that is trading the stock. More and more greedy traders will dog pile into the stock. Selling into an uptrend should only be done if your profit thesis has been fulfilled. When fear begins to replace the greed, the volume on the upside begins to fall as the upward move runs out of steam.

Volume gives you useful clues in addition to telling you the conviction of a given trend.

If the volume spikes on a single day, it often means that a new trend is about to start, especially if it happens on a breakout from a previous trading range. If the volume spikes 300 percent or more above the average it often means that market hysteria has set in. This occurs when fearful bears decide that a downward move has broken key support and rush in to sell short or when bulls decide that an uptrend is for real on a resistance break and rush in to buy.

When price and volume diverge the stock is usually at a turning point.

If price rises while volume falls, it is a signal that the uptrend is not attracting very much interest. If price falls to a new low and volume falls at the same time, it is a signal that the downtrend is not attracting very much interest and an upside reversal is likely. Price is more important than volume but a master traders knows how to analyze volume in order to gauge the psychology of market participants. - 23208

About the Author:

Written by Shawn Tilman. I hope this article helps you better your trading and make a ton of cash. For more FREE master stock trading tips and advice see stock market

Silver Spinner Rings Meditation

By George Petronis

The latest fad in the fashion accessory world is silver spinner rings. These accessories have been in and out of the fashion lovers list for generations but have recently made an appearance on the global fashion scene.

These rings are a marvel of craftsmanship and quality! They have a unique design feature in which the main silver band has another band attached to it but this can be manually moved around the ring base.

Although these rings are fashionable and chic, the main aim is to provide a calming effect to the wearer when they manually spin the outer band against the base ring.

Quite similar to other stress reducing gadgets, like worry beads and the Chinese balls, silver spinner rings have been used to relieve the negative emotions and emotional baggage that the owner might want to let go of.

If you or anyone you know suffers from serious anxiety and worry about various things then a silver spinner ring may be just the thing for you. The look itself perks up the spirit and when you have something on hand to help calm you down and de stress, then you will automatically feel better.

The various kinds of rings available in the market today are trendy and stylish enough to be worn discreetly and not give away the real purpose. They look as normal and stylish as the accessory rings so you can wear them with comfort.

You will be able to find silver spinner rings in simple designs that are very cost effective. On the other end if you are looking for an unique expression then designer silver spinner rings are also available in the market.

The fact that they are made of silver makes them all the more worth while. This is because silver is generally cheaper as compared to other rare metals. At the same time however silver has a very rich appeal which can produce an admiration inspiring effect.

Hence with silver spinner rings you can make the ultimate fashion statement while relieving yourself of your worries as well.

Another good advantage of using silver is that it becomes extremely tensile when mixed with other metals. This makes it long lasting and a worthy investment.

Jewelry aficionados are well aware that 100% silver cannot be used for jewelry making as it is very malleable to mould on its own. However sterling silver is a good option to create great designs and add durability to these precious metal rings without compromising on the look. - 23208

About the Author:

Nowadays there is a growth in the popularity of silver purity rings. If you would like to know more about spinner ring design follow the links above.

Benefits of Recycling Gold

By Morgan Robinson

There are many benefits to recycling gold. You can sell gold jewelry that is just sitting around collecting dust and make some money. Recycling gold is also good for the environment. Recycled gold is melted down to liquid form and then molded into a new product or piece of jewelry. Gold prices are at a all time high so you will be surprised at what you can get for the old pieces of jewelry that you have been saving.

The demand for metals is increasing at a faster rate than the mining industry can supply. Recycling of gold and other precious metals helps fill the gap between the growing demands and decreasing supply. When you recycle you also help save the environment by the not depleting more of our natural resources.

When they mine for gold it waste a lot of water; not only does it take an enormous amount of water it also contaminates the water sources it draws from. The majority of gold that is mined in the United States comes from Nevada. The Nevada Gold Mines consume more water every year than all of the population of Nevada combined. One gold mine can consume 100 million gallons of water every day. The harsh chemicals that are use to refine the ore further pollute the ground and destroy local ecosystems.

The mining process that is used to extract the ore from the surrounding rocks amount to a huge amount of waste; a large part of it is in the form of discarded rock that is saturated with chemicals and solvents. This means for every ton of pure gold that exists there is three million tons of waste to dispose of. Eventually the chemicals and solvents in the discarded rocks will find their way into our ecosystem. This in turn will affect native plant life and the animals in the area of the mines.

The end goal of any mining company is to process as much gold as possible and this means that the more they mine the further underground they have to go. This makes mining a determent to our natural resources. The profit is huge for gold so the mining companies use the last technologies and processes to get as much gold as quickly as possible. Even though they are mining more efficiently they are still depleting our natural resources. This is why recycling everything and anything we can, including precious metals is becoming more important every day. You can help to do your part for the environment by recycling you precious metals and looking for jewelry that is made with recycled metals. You can clean out your jewelry box and get rid of things you never wear and it will give you more space. You can always take the money from the gold you sell and purchase a piece of jewelry you have had your eye on. Gold recycling is a easy and fast way to recycle your unwanted gold jewelry and make some money at the same time. - 23208

About the Author:

The best online resource to sell gold or sell gold coins can be found at http://www.refinity.com