?How To? Start Trading The Forex Market? (part 3)
10 REASONS TO START TRADING FOREX!

More and more well informed investor and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currency because of the following reasons:

1) FOREX is the largest financial market in the world.

With a daily trading volume of over $1.5 trillion, the spot FOREX market can absorb trading sizes that dwarf the capacity of any other market. In fact, when compared with the $50 billion daily market for equities or the $30 billion futures market, it becomes quickly apparent this gives you, and millions of other FOREX traders, almost infinite trading liquidity and flexibility.

2) FOREX is a True 24-hour market.

The FOREX Market never sleeps. Trading positions can be entered and exited at any moment around the globe, around the clock, 5.5 days a week. There is no waiting for an opening bell as in the case of trading stocks. It is a 24- hour, continuous electronic (ONLINE) currency exchange that never closes. This is very desirable for you if you want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or night.

3) There is never a Bear Market in FOREX.

You can have access to a seamless exchange of currencies. Currencies trade in “pairs” (for example, US dollar vs. JPY (YEN) or US dollar vs. CHF (Swiss franc), one side of every currency pair (for example, USD/CHF) is constantly moving in relation to the other. Thus, when you buy a particular currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value versus the other. Of course, it is up to you to choose the correct currency to be long ( you bought) or short( you sold).

4) High Leverage - up to 400:1 Leverage.

You are permitted to trade foreign currencies on a highly leveraged basis - up to 400 times your investment with Fenix Capital Management, LLC and with some other brokers.

Standard 100,000- US$ currency lots can be traded with as little as 0.25% margin, or $250.

Mini FX accounts are permitted to trade with just 0.25% margin, meaning, just $25 allows you to control a 10,000-unit currency position.

Futures traders, who are accustomed to margin requirements generally equal to 5-7%-8% of the contract value, will immediately recognize that the FOREX market provides much greater leverage, and for stock traders, who must post at least 50% margin, there?s no comparison. If you?re looking for an efficient use of trading , trade the Forex Market.

5) Price Movements might be Highly Predictable.

Currency prices in the FX market generally repeat themselves in relatively predictable cycles, creating trends. The strong trends that foreign currencies develop are a significant advantage for traders who use the “technical” methods and strategies.

Unlike stocks, currencies have the tendency to develop strong trends. Over 80% of volume is speculative in nature and, as a result, the market frequently overshoots and then corrects itself. As a technically-trained trader, you can easily identify new trends and breakouts, to enter and exit positions.

6) YOU don’t pay commissions or fees to trade FOREX

When you trade FOREX, through Fenix Capital Management LLC (FCM) you can do it totally FREE of commissions and fees , regardless of your account size.

Fenix Capital Management LLC, requires a very low minimum amount to open a brokerage account, only US$ 200 and they do not charge commissions or fees to trade or to maintain an account, regardless of your account balance or trading volume.

7) YOU don’t have to pay trading fees or exchange fees.

There are none of the usual fees, which futures and equity traders are accustomed to pay:

NO exchange or clearing fees,
NO NFA or SEC fees.

Because currencies trade over-the-counter (OTC), via a global electronic network, in FOREX, what you see on your trading screen, is what you get, allowing you to make quick decisions on your trades without having to worry or account for fees that may affect your profit/loss or slippage.

In the equity and commodity markets, you must pay both a commission and exchange fees. The over-the-counter structure of the FX market eliminates exchange and clearing fees, which in turn lowers transaction costs.

HOW to Forex brokers make money if they don’t charge commissions?

Like all traded financial products, over-the-counter currency trading involves a bid/ask spread, which represents the prices at which your counterpart is willing to trade. Your broker will receive a part of this bid/ask spread.

Because the currency market offers round-the-clock liquidity, you receive tight, competitive spreads both intra-day and night. Stock traders can be more vulnerable to liquidity risk and typically receive wider trading spreads, especially during after-hours trading.

9) Market Transparency.

Market transparency is highly desired in any trading environment. The greater the market transparency, the more efficient the market becomes. Unlike other markets where transparency is compromised (like in the many recent scandals), FOREX markets are highly transparent (i.e., analyzing countries, and having access to real-time research / news, is easier than analyzing companies).

Because of this transparency, as an FX trader, you will be able to apply risk management strategies in accordance to your fundamental and technical indicators.

10) Instantaneous Order Execution

The FX market offers the highest level of market transparency out of all the financial markets. Because of this, order execution and fill confirmation usually occur in just 1-2 seconds.

In Forex, order execution is all-electronic and because you’ll be trading via an Internet-based platform, instantaneous execution is routine.

There are no exchanges, no traditional open-outcry pits, no floor brokers, and consequently, no delays.( will be continued )

Veteran Trader Martin Maier is the Founder of Fenix Capital Management, LLC, <a href="http://www.fenixcapitalmanagement.com" target="_blank">http://www.fenixcapitalmanagement.com</a>. He is the developer of various futures and commodities trading programs and his systems have been ranked and rated by various large American Investment Profile Rating Companies such as STAR and MAR.

The Importance of a Trading Plan
Trying to win in the stock market without a trading plan is like trying to build a house without blueprints - costly mistakes are inevitable. Why do you need a Trading Plan? 1 - During trading hours, emotions will turn smart people into idiots. Therefore, you have to avoid having to make decisions during those hours. For every action you take during trading hours, the reason should not be greed or fear. The reason should be because it is in the plan. With a good plan, your task becomes one of patience and discipline. 2 - Consistent results require consistent actions - consistent actions can only be achieved through a detailed plan. What should be in your trading plan? 1 - Your strategy to enter and exit trades You have to describe the conditions that have to be met before you enter a trade. You also have to describe the conditions under which you will close a position. These conditions may include technical analysis, fundamental analysis, or a combination of both. They may also include market conditions, public sentiment, etc… 2 - Your Money management rules to keep losses small - the goal of money management is to ensure your survival by avoiding risks that could take you out of business. Your money management rules should include the following: - Maximum amount at risk for each trade. - Maximum amount at risk for all your opened positions. - Maximum daily and weekly amount lost before you stop trading 3 - Your daily routine - after the market closes, before it opens, etc… 4 - Activities you carry out during the weekend. 5 - I also like to include reminders that I read every day I will follow a trading plan to guide my trading - therefore my job will be one of patience and discipline. - I will always keep my trading plan simple. - I will take actions according to my trading plan, not because of greed, fear, or hope. - I will not deceive myself when I deviate from my trading plan. Instead I will admit the error and correct it. I will have a winning attitude. - Take responsibility for all your actions ” don t blame the market or world events. - Trade to trade well and for the love of trading, not to trade often and not for the money. - Don t be influenced by the opinions of others. - Never think that taking money from the market is easy. - Don t try to guess the future ” trading is a game of probabilities. - Use your head and stay calm ” don t get excited or depressed. - Handle trading as a serious intellectual pursuit. - Don t count how much money you have made or lost while you are in a trade - focus on trading well. A trading plan will not guarantee you success in the stock market but not having one will pretty much guarantee failure. For an example of a trading plan, visit http://www.TradingFramework.com/tradingplan.htm

Yves Mailhot A Disciplined and Organized Approach to Trading http://www.TradingFramework.com

Good to Know Stock Trading Information
Stock trading is a complex process that may be quite confusing and deceitful to a new trader. Therefore, if you plan to start investing your money in shares, you should first choose a stock trading strategy that is most suitable for yourself. The major difference between stock trading strategies is based on timeframe. It means that an active day investor will act and react differently than a long term trader. Any stock trading strategy has its own pros and cons so analyse them carefully before starting investing your savings in stock shares. The day trader is an active player; he is always buying and selling shares inside the timeframe of a day. This kind of stock trading has to advantage of saving you the trouble of facing any overnight risk. If a share’s price is experiencing a sudden rise or drop, he can immediately take advantage of the situation. A day trader is usually targeting to get quick profits while facing small risks. The bad thing about this type of stock trading system is that it is very time consuming, you have to be permanently alert and focused on the stock trends. But the trading costs represent the worst thing. The commission tends to be very large when you sell and buy several times a day. The swing trader is an investor who is focusing on longer periods of trading, meaning a few days or even weeks. This method has the advantage of having few commissions to be paid and the opportunity to experience some important changes in share’s price. The main downside of this method is its higher risk due to the longer trading period. The long term swing trader is an investor much alike the swing trader above. The difference between these two is the longer period of time, several weeks, he is targeting. This method has a good aspect: the long term swing trader is avoiding the inconvenience of being affected by minor trading swings. And the profit is bigger; experienced traders target even a 50% profit using this method. But bigger profit brings bigger risks; you will be trading over a longer period of time, therefore you will be exposed to bigger trading risks. And it is likely for you to miss many short-term trend changes. The buy and hold trader is the investor who is buying stocks and hold them for a very long period of time, even for years. This type of stock trading can bring you a very good profit with a small effort. But be careful when you choose to use this method as it may turn against you if you don’t have a good, strong investment strategy. This means that the secret to earn money out of this method is not just holding to the stock and hope for the best, but to analyse the stock trend, the market evolution and to set a profit target. In conclusion, there are methods of stock trading for any type of person. You just have to analyse every type of method and use the one it represents you best. And remember that making profit on the stock market requires brains, instinct and luck!

For a Stock Trading system and investment strategy that is simple and easy to follow just visit http://www.mytradingsystem.net Portfolio management strategies that work in all types of stock market.

G7 forex trading system: A boon to the trading sector.
The Forex market is different from any other stock market. It is a fast, highly volatile and massive market which is prone to risks. In this industry, while trading, there are lots of fluctuations in the value of the currencies. Hence, it is very difficult to predict forex signal system trading with certainty. Forex- science has come up with a revolutionary system that can help you achieve your financial dreams and minimize your losses. This system is popularly called the G7 signal time trading system. G7 is a unique forex real signal time trading system which has been created by the pioneers of the Forex science. This day forex mhv signal trading system has been developed after thorough financial research and meticulous testing in a live trading environment. This system is relatively an uncomplicated one which can be easily used by amateurs, intermediates and professionals. One can even be a novice trader, invest a paltry sum of $100-300 and become successful. The main advantages of this system over other competitive systems are: The foundations of this system are based on comprehensive research. Several good trades as well as time to rest are possible. Sound principles and clear rules. Simple to use ” even a novice can use G7 system without difficulty Scientific and sophisticated with an excellent risk/reward ratio. Strong risk control mechanism leading to lowest possible risks. System created by proficient traders and traded with actual money. Besides the above advantages, there are several other benefits and offers to be availed once you sign up. For instance, an exclusive E-book describing the entire working of the G7 Forex real signal time trading system in detail is made available to you. This E-book contains a step-by-step guide into forex trading. This alert forex signal system asserts that this E-book contains all the vital elements that are needed to be taken into account in order to maximize your ROI and minimize your losses. The E-book also gives you various tips on Forex trading. Therefore, it is a must have book for all those who are interested to trade safely and earn profits out of this signal time trading system. You also get a 4 week FREE subscription of the G7 analysis services which will provide you with extensive detail information which is essential for you to understand the fundamentals of day forex signal strategy. In case you are a novice trader, then there is no need to be apprehensive of this Forex signal system trading as you will be put with the best in the business and learn the intricate technicalities while earning substantially at the same time.

James was born in London, UK in 1966. James began trading the Forex markets in 1997, when it first became available to retail traders via the internet technology developing at the time. James has since gained enormous experience in Forex trading.

Option Trading ? Thinking ?Outside The Box?
Wouldn’t it be great if we could buy an option with five months left until expiration and sell an option with 2 months left until expiration for the same price? You couldn’t lose. Well we can’t. I love options spreads so much I realized something very important.

We can buy a spread that has a lot of time value left at almost the same price as we can sell one with less time value left. The reason really opened my eyes and gave me new insight into options. Here is what I came to realize.

I started comparing how expensive options were in relation to the other strike prices in the same month and to the other months. I wanted to know based on the price per day which options were more expensive.

The first 1 or 2 option months, as everyone knows loses time value quickly. The at the money strike prices are very expensive compared to the out of the money strike prices. Since there is not that much time left, how much can they charge for an out of the money option? Not much.

The next several months, the opposite is true. Compared to each other, the strikes that are closer to the money are cheaper in terms of price per day than the options further out of the money. Let me explain it another way using the S&P market.

6 days left at the money option cost 12 points
6 days left out of the money option cost 2 points

70 days left at the money option cost 43 points
70 days left out of the money option cost 29 points

There is more than 10X the time left but the 70 day at the money option (43 points) is only less than 4X the price than the 6 day at the money option (12 points).

The 70 day out of the money option (29 points) is almost 15X the cost of the 6 day out of the money option (2 points) but only has 10X the time value. We will buy the cheaper per day options and sell the more expensive per day ones.

Sell 6 day at the money and sell 70 day out of the money. Buy 6 day out of the money and buy 70 day at the money. This will be done for a 4 point debit. We are now buying a spread that has 10X more time value than the one we are selling and are only paying 4 points for it.

When the 6 day options expire we can sell the next month to take in more premium, still keeping the 70 day option spread.

What goes up, must come down! We have all heard this before in reference to the laws of Gravity. We have laws in the commodity markets as well. What comes down, must go up! The greatest traders of our time like Warren Buffet know this. He is perhaps the greatest Stock trader ever. He had never traded commodities until a few years ago. He bought silver in the futures market. When the market went even lower he bought more.

The ?smart money?, commercials will not be scared into selling when a market they have purchased drops even further. They know better than anyone that a commodity has real value and will always be worth something.

There is a famous book, ?You Can’t Lose Trading Commodities?. The author buys commodities and then just waits for the market to go higher. He would purchase more as the market fell.

You need a big bankroll for this. Personally I know corn won’t go to $1.00 but what if it did? I want to minimize the risk in case I want to end the trade.

I started trading the Soy Complex this way several years ago. Not with options. Strictly futures. I bought what was similar to a crush spread. I increased the contracts as the market went against me until the spread rebounded a little. Since I increased the contracts I didn’t need the market to come back to where I started. It only had to rebound to the next level.

Black Jack players did this until Casinos caught on and put limits on bets. It is a known fact that futures traders make good gamblers and professional gamblers make good futures traders. I am against gambling but even gambling done with a system is not really gambling.

These card players would bet something like this: $5 lose, $10 lose, $20 lose, $40 lose, $80 win. The losses add up to $75. They would win $80, so the profit is $5. Not a lot, but they would do this all day. Black Jack is just under 50% probability for the player.

The problem is there is a slight chance that you could lose 40 times in a row. Now with Commodities we have a 50% probability and we won’t lose 50 times in a row because the market can’t go below zero.

Now before I go any further, I need to tell you that I am not recommending you double down on your trades. What you can find are markets that are near their lows where you can do a small scale trade. Spreads offer even better opportunities. They have a closer range (high to low).

By now you can see we only use this to go long a market since we can never be sure how much a market can go higher. First we need to find a market that is low already so we won’t have to wait that long and also so there will be less capital needed.

I prefer to trade this using options. There are many ways to do this. You could buy an option in a market like soybeans and choose how many cents the market will drop before you buy more. The problem is, an option is a wasting asset. The Theta (time decay) would cause you to lose money.

I use spreads so I am not paying for time decay. I will probably sell more Theta than I buy, so if the market does nothing I will make money just on time decay.

David Rivera has traded commodities and options for one of the largest cash trading firms in the world. He has written a course on futures options which contains 2 specific trading techniques. You can find the above 2 techniques in depth at: <a href="http://www.deltaneutraltrading.com" target="_blank">http://www.deltaneutraltrading.com</a>

The most Liquid Market in the World?
The Forex Market, foreign exchange market, has become the worlds largest financial market with over US$2 trillion traded daily. Forex trading has been growing rapidly among day traders since the 1990s, as day traders have seen the advantages that trading currencies can have over trading stocks.
The first principle of Forex trading is to understand that trading is an investment, not an income. If you are looking for “buy and sit-on-it” profits, like new stock offerings, then you may need to do a reassessment. Forex Trading does require a basic understanding of the markets and how they work. It also requires daily attention, albeit only an hour or two each day, to make profits. With a minimum of time and resources invested many are making what could be considered “an income” in the Forex Trading arena.
Until recently, the Forex market wasn’t for the average trader or individual speculator. Large minimum transaction sizes and often-stringent financial requirements prevented the small investor from participating. This has changed thanks to various services offered that allow smaller (than traditional) transactional sizes. It is now possible for the small investor to participate in one of the most liquid markets in the world, the “foreign currency exchange” or Forex Market.
Gaining an understanding of the Forex Trading Markets is easy. There is a wealth of information on the internet for the taking. One only has to do “search” for Forex Trading on the Web to see thousands of links to all kinds of information on it, much of it is free. In addition to free information some services let you open a “demo” trading account. With a demo account you can practice what you have learned before actually investing. I would strongly suggest that you take this path if you are new to “market” investing.
Here are some advantages of the Forex Trading Market:
The Forex market is open 24 hours a day, 5.5 days a week. Because of the decentralized clearing of trades and overlap of major markets in Asia, London and the United States, the market remains open and liquid throughout the day and overnight.
It is the most liquid market in the world eclipsing all others in comparison.
Forex traders can leverage their capital more efficiently with as high as 400-to-1 leverage. This allows for effective Risk Management.
Very low account balances required through most services as compared to other markets such as Stocks or Commodities.
Give the new investor the ability to refine market skills in “real time”" using Demo Accounts before actually investing.
So, all things considered, Forex Trading can be an excellent addition to your investment strategy. With what amounts to a little research on your part and some practice with a Demo account you may find that you are very good at Forex Trading.
You can find more information and articles at: http://forexmoney.inform-me.net/
To your Success,
Layard

Copyright Mind Farms 2007 http://forexmoney.inform-me.net

A Forex Trading system that works
Before using a Forex trading method, whatever it is, it is essential to test it on a virtual Forex account, but more especially, to check its effectiveness, look at the past charts and check how many winning orloosing trades the method generates.

No method is effective at 100% and all those who try to sell you this type of method get rich by the sales of their expensive ebooks, rather than by Forex. If I would hold a method as effective as affirmed by certain salesmen, I would not waste my time in intensive marketing to sell it, I would apply it with a real account at the forex!

I personally apply a method which gives me good results: an average of approximately 70 % of winning trades over a month. I will not sell this method to you, but quite simply will offer it to you. If it succeeds for me, it can to also bring the success to you, but there is no guarantee of success. I have to specify that Forex implies financial risks, and that the amount which you engage on Forex can bring back money to you, but you can also lose all your money.

This article does not represent an incentive to invest on Forex or any other system, and you must be conscious that you assume your own risks as soon as you invest on a market like Forex.

And now, about the method…

In order to apply my Forex Method, you need to have a minimum knowledge about how to read charts, or how to set indicators.

First Step:
You need to set your chart to a 30 minutes timeframe
Second Step:
Set up 2 indicators: one simple moving average (MA) set to 4 period - one MA set to 75 period
The method is quit simple, and gives you BUY or SELL signals:
- If MA4 crosses MA75 upwards, then BUY the pair
- If MA4 crosses MA75 downwards, then SELL the pair
Does it seem to easy to work?? Take a look at the history of charts, you will be amazed by the results!
Some important tips about this method:
- Protect your trade with a Stop Loss, set at 25 pips from the entry point
- Try to get quick profit from your trade: do not wait for a +150 pips result, +15/25 pips is a good level!
- Do not trade against the trend: if all indicators are “up”, do not trade “down”, you will never change the market, even you think you are right!

Daily Forex Trader, giving away trade ideas, NO signals!! Please, visit http://forex.webophil.net