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Tuesday, November 3, 2009

Managed Forex Trading Is Now Easy

By Scott McDonald

Well managed forex trading was not how I started out. Once I found out how to manage it correctly and adapt this one amazing method, everything came together. A common mistake that is made when starting in forex is putting all your account in one trade; this is never a good move. The best move I ever made was using this one method that has led to record profits for myself!

Well managed forex trading is not something that the beginner trader is thinking about, and If you never thought about it, it is about time. Once I found out how to properly manage my trades, the profits became more regular. The profits were good, but not good enough. I needed something that would give me an edge over the average trader. This one method was the key to that, and I have made money hand over fist since!

Training with well managed forex trading in mind is something that a lot of the programs on the market don't teach. Once a trader integrates a system that they can follow that is strategically planned, success will come. If there is no structure to follow, it is a sure way to be lost. The first thing a trader falls from is proper structure. Once I added this one method to my trading, it was all laid out for me and success soon came!

When comparing managed forex trading training to the non-managed, it was obvious that the trader on the managed system would prevail as more successful. After discovering this one method that the big traders try to hide, things just made sense and it was laid out easier than I have ever seen. This method is a sure way to forex success!

Poorly managed forex trading is no key to success. Random trades without a structure I have found leads to a long road of learning. After incorporating proper management of my trades and this one trading secret, the trades became more profitable day after day. In as little as 2 months, my trading account was four times what it started at once this method started there was no turning back! - 23208

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Make Trading Easy With A Forex Trading Course

By Bart Icles

The Forex trading market is undeniably one of the biggest and most promising investment market in existence today, with its potential to generate very large amount of profits in a very realistic and achievable manner, and in the shortest time possible to the player who plays his cards right. Everyone engaged in it - even the most experienced and well-trained traders have incurred losses at some point in their trading, especially when they fail to follow up on the set guidelines and principles essential to Forex success. So, before anyone commits one's self and one's money to the market, one must first learn how to play the game correctly in order not to get wiped out on the first day of trading by way of a Forex Trading Course.

A Forex Trading Course simply works by instilling within the student/trader all the needed information regarding currency trading, what rules and methods apply for certain trade transactions, and to know the many different strategies to use to help reach favorable trade decisions that ultimately will lead to certain profits. Doing the needed research to help any new trader enter the market easily is fairly easy to do and within anyone's reach as information and many technical data on the investment market has already been done for many years now.

With a good Forex trading course as your guide, one can progress through the entire process of learning easily and confidently as your growth and development expands and improves with each passing day. It will greatly sharpen your mind and trading skills to the point of making your capabilities as a trader more rounded. You will also be introduced to some of the markets trading software programs that will be essential to your trading activities, and to let you operate the market with ease and confidence.

There are many types of Forex trading softwares online, with some of them being offered for free by some providers, that let you test and practice your new-found skills. Others may offer home training programs that help ease your transition into the real world of Forex trading as simply and easily as can be.

It is vital for those new to Forex trading to get a good education regarding the market and the principles of Forex currency trading, and to know to it by heart, if they want to succeed in it. Once the book learning phase has been duly accomplished, the trader can and should by now know and able to do basic trade analysis of currency fluctuations, make a fair conclusion based on the learned and act on it accordingly. A Forex Trading Course will also provide the trader the know-how on how to manage one's funds effectively, risk management and many other skill-enhancing plans and strategies to apply in the road to becoming a good, if not, an excellent trader. - 23208

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Option Credit Spreads Destroyed My Life

By Morris Puma

Hello option traders and welcome to this discussion about credit spreads. In a few words today we'll be discussing why it's so important to have adjustment plans before you enter into a short-term credit spread options trade. Although the credit spread is very popular amongst option trading community the high risk in the trade is not always talked about. Credit spreads can be very risky trades if they are not being hedged by other option strategies, and being that most option traders do not know how to hedge this position, many of traders are losing their trading capital on a daily basis.

The credit spread is one of the most popular option spreads traded today. The reason is because the credit spread is simple, it makes money over time and it is a trade with a high probability. But this probability rating can be very misleading. The dangers of the credit spread are rarely addressed in books and online credit spread courses. The sad truth is that most people teach the credit spread because it's a good business, but not because it's a good option strategy. It's actually a very risky trade and very directional.

It's well known that an option trader can enter into a credit spread with a 90% probability that he will make money on the trade. That is well known. That is the popular belief, especially amongst beginning option traders. This is true, but do not ignore the other side of the picture. Even though you have a 90% probability to make a profit on the trade, you must consider what goes on while the trade is in play. People don't talk about the level of stress involved.

Option courses pushing credit spreads do not tell you about the risk. They do not tell you how far you can be behind on this trade just a few days after you enter it. They don't value how you can lose 90% of your trading capital in one month. They don't tell you how this 90% probability trade can lose the very first month of its existence. Just because the trade has a 90% probability, doesn't mean it makes money nine times before it loses once. This just means that it makes money 90% of the time out of a lot of trades. You might have to do 1000 trades before his trade averages its 90% probability.

Those who tell you that credit spreads are non-directional trades are not telling you the whole truth. It's true that a credit spread can make money in any direction, but the direction cannot be very far. Also, if the trade goes the wrong way from the beginning, you will be in a very dangerous position, and you will be way behind on the trade. If you are trading short-term credit spreads, you often times find yourself standing at the edge of a cliff and very close to losing all of your trading capital.

In conclusion I would just like to say that the credit spread definitely has a place in my options trading portfolio, but I only use credit spreads in conjunction with other option strategies. As a standalone strategy the credit spread can expose your trading capital to enormous risk. So if you insist on trading credit spreads, then please make sure you are trading safely by hedging them with other option spreads. - 23208

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How To Make Money From Currency Option Trading?

By Maggie Glynani

Currency trading is a huge market around the world due to globalization. As the trading in this market has increased it has caused the interest in currency option trading to grow as well. Options on currencies give the holder the right to buy(call) the currency at a set price called the strike price. The option has a set expiration date. If the currency price moves higher before expiration the option can be exercised. The currency is purchased to be resold in the market at a higer price. Put options are purchased if the currency price is expected to fall. If it does, the holder can purchase the currency in the market and put(sell) it at the higher strike price.

One type of option contract used by speculators and hedgers is the traditional option. This contract requires the trader to set a strike price and an expiration date. These two factors along with the currency volatility level are used to determine the premium the broker charges for the option. If the premium is agreed upon the transaction is completed. If the currency pair being traded is the USD/CHF and the trader thinks the Swiss franc will move up against the dollar he/she will purchase a put on the dollar. If the prediction is correct in the set time frame, the trader will purchase the dollar and put(sell) it at the strike price realizing a profit.

SPOT contracts are used to make trading a bit easier. The actual purchase of the currency is not required in this type of contract. If the currency you purchased a call on moves up the profits from the trade are credited to your account automatically. The same thing happens with the put. The profit is simply determined and the amount deposited into your trading account. If your trade does not work, the only amount you lose is the premium.

If the current price of the currency in the market is close to the strike price of the option the premium will be higher. The more time until expiration date the higher the premium will be. Volatility in the underlying currency price is also a factor in determining premiums. The higher the volatility the higher the premium.

One reason people get involved in currency option trading is simply to speculate on the price movements of the currency. These people are solely profit driven. This is the largest part of the market.

Hedging is a common use of currency option trading. People or corporations doing business with companies in foreign countries can purchase options to protect themselves from loses they may incur on in-process business. If prices fluctuate on currencies to much before transactions are completed they may lose the profits generated by them.

A riskier strategy of trading currency options is selling options short with the intention of covering them when the price moves in the correct direction. Since loses are not limited in this style of trading. brokers typically require large cash deposits to secure these trades.

Currency option trading can be a hugely profitable experience if your predictions are correct because premiums are lower than deposits for the actual currencies. The time frame restraint is a challenge though. If your learn to make accurate calls on price movement however, you can make large profits. - 23208

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Testing Forex Trading Robots For Seek And Scalp Profits

By John Eather

Forex trading robots are programmed to seek and scalp small profits during day trading. This done on a long term basis is able to grown some considerable profits. Day trading in forex is not a huge challenge. Millions of traders are doing the same things at the same time of day, and a robot can look at these trends to build income in a relatively risk free manner. What may be a challenge is finding the right robot product.

All traders have different skills, aims and trading systems in place, as soon as you understand this you will be able to see how predictable they are. It is a little bit of a challenge to undertake this yourself however, because of the randomness of volatility in short time frames. Support and resistance levels are therefore not valid and using a robot could mean losses to the trader.

Forex trading robots come in all shapes and sizes, there are loads of these products available. While day trading can mean the trader earns regular small profits which add up in the long terms. Most day trading robots have simulated "back tested" data available. This is base on historical information which may not apply in a real time situation. The only way for the trader to know if these products perform is to test them with real data in real time.

Testing a forex robot in this way is called a "forward test" as apposed to a "back test". It has to be able to adapt to changing market circumstances while performing on a broker account. The test should reveal that the robot shows consistent trades, meaning more winning trades. And most vital of all is money management, the robot has to be able to protect the account equity without allowing any large draw-downs.

Ideally these robots should be tested against one another during the same or similar market conditions, with and identical capital deposit amounts. This is the only sure fire way to receive a true indication of whether a product is comparable or not. For vendors to cash in on day trading by means of a forex trading robot, don't rely solely on the hype of historical price data and tested performance analysis. This is marketing speak from the people who sell these products. Be prepared to test and compare products yourself. - 23208

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