Tag Archive | "trade"

Which Group Of Shares Or Currencies Should You Trade In?

Which Group Of Shares Or Currencies Should You Trade In?

Here are questions which should be asked about any stock group you are studying. Some of the answers will be contradictory; the significance of all of them will be relative. But each will contribute a plus or minus factor to your thinking about the industry you may wish to invest in.

1) Does the industry deal in necessities or “postponables”? Does it produce things people have to have in good times or bad—food, drugs, power, or heating supplies? Or can people put off buying its products to another year? There is one investor who holds meat-packing and distillery stocks, not notably high-grade issues, because of his conviction that, come hell or high water, beef and bourbon will be staples of the American diet.

The same question on a different level: Is the industry involved in durable or capital goods, such as locomotives, trucks, freight cars, ships, large buildings? These are expensive items with a long life, and are usually financed with long-term, fixed obligations. In a pinch, they are among the first things customers are prepared to do without.

2)Is the industry depression-resistant? Retail stores, tobacco, metal containers, and, again, food products have a reputation for stability, not only in terms of continuing consumer demand, but in terms of production costs and price structures which make them attractive as so-called defensive issues.

3)Is it an extractive industry? Does it deal in natural raw materials, such as oil, lumber, asbestos, metals? Stocks of these companies are considered good hedges against inflation because they represent a primary material, an asset already owned. The acquisition cost of oil underground, for instance, may already have been rationalized; henceforth all that can be inflated are the extraction and distribution costs.

4)How keen is competition within the industry? Usually competition is keenest where the differences are least. Automobiles, soaps and detergents, drugs, tobaccos, gasolines and motor oils—within these categories the companies all offer the consumer pretty much the same thing. The local power and light company, the telephone company, and the natural gas companies (except for the scramble to run pipelines here or there) are virtually without competition.

Cross-competition between industries is also a factor. This is not the struggle of Coke vs. Pepsi, or Tide vs. All, but whether new office buildings are going to have a skin of brick and mortar, aluminum sheets, or glass panels.

The container and packaging people are a lovely example of round-robin competition, as is perfectly evident from five minutes’ inspection of your supermarket’s shelves. Plastic squeeze-bottles of one sort or another have cut into glass as far as the packaging of cosmetics is concerned.

On the other hand, the appearance of liquid soaps has given glass an opportunity in a field that was exclusively the paper-carton supplier’s. The paper-carton manufacturer, meanwhile, has benefited from frozen foods at the expense of the tin-can producer. But the tin-can man has a new area in the pressure containers now used to dispense shaving cream, toothpaste, hair lotions, and anything else that can be squirted or sprayed—and that isn’t already in a plastic squeeze-bottle.

5) Are wages a big item in the industry? How large a percentage of total sales are they? This, of course, can bear heavily on net earnings and, consequently, dividends. In the chemical industry, the ratio of wages to sales is quite small.

In steel and railroading, which have vast numbers of employees and huge payrolls, it is quite large.

6) Do raw materials come from domestic sources or from abroad? Are their prices traditionally stable or volatile? This, of course, applies to the oil, rubber, and sugar companies, to some of the mining and metals companies, and to a few of the chemicals. This is, possibly, not so important as it once was, considering that few industries are totally dependent on foreign resources, and that political upheavals or wars are so far-reaching these days that almost everyone is affected to some degree, at home and abroad.

The question should also be broadened to include foreign markets: What percentage of income derives from sales abroad? This would affect air and shipping lines, distributors like W. R. Grace and U. S. Industries, and the export trade of the auto, machinery, movie, and electrical-equipment industries.

The investor will have to decide, too, whether he considers foreign trade a positive or negative item. Overseas markets may be uncertain or undependable, but they are also frontier areas of tremendous potentiality for an economy like that of the United States, which has lived so largely off its own people.

With Forex trading economic indicators will have to be studied as well.
Good Forex software can greatly help you with this task.

Forex software has become so good that it has artificial intelligence and can predict future currency movements with some accuracy.

You still need to be aware of the risks involved in any financial investing and only invest what you can afford to lose.

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The Most Profitable Groups Of Shares Or Currencies To Trade

The Most Profitable Groups Of Shares Or Currencies To Trade

In spite of the trend toward diversity, most of the hundreds of stocks in the stock market can be grouped into one product or service category or another.

Which group is for you? Well, there are about fifty clearly defined industries in this country, even more if you are particular enough to separate aircraft manufacturers from airline operators, or natural gas from oils, or Class 1 railroads from lesser lines. Even these groupings are by no means complete. The list could be fleshed out with banks, insurance companies, leather-products companies, glass and container manufacturers, shipbuilders and fleet operators, textile millers, sugar growers, and radio and television manufacturers and broadcasters.

All of this reflects the wonderful and confusing diversity of American industry. Among it all there should be a few good stocks to buy. Indeed, there are. But it will not take much investigation to learn that each of these industrial groupings has a reputation, and that even the best reputations may be subject to cyclical slumps. These reputations are variously described, but roughly they can be said to follow the gradations given to stocks. There are Blue Chip industries, there are “businessmen’s risks,” there are out-and-out speculations. Or, you might say, there are industries of investment caliber, those of good quality, those responsive to abrupt up-and downswings, or, again, those which are speculative. Some are growth industries, some have hit then: peak and leveled off on a comfortable plateau, some are on their way down and out.

As always, generalities must be taken with a grain of salt. Within a group, one stock or another may run entirely counter to the general trend, either up or down. (And it is precisely this sort of contrary action that occasionally enables shrewd traders to buck the trend and come up with a winner.)

Among the industries of solid reputations, you would have to put the utilities first. This has not always been so. Manipulation with public-utility holding companies was one of the skyrocketing scandals of the days before the Crash. In the 30 years since then, however, utilities have regained status among the solid rocks of the securities markets. They are rarely spectacular performers.

Rate regulation by state power commissions permits—and even maintains—a reasonable return on utility operations, but curbs all chance of runaway profits. All estimates of future power needs and consumption point upward. Many utilities are in the forefront of atomic-energy development. Conservative management, steady expansion of plant and generating capacity, and temperate market action maintaining yields at 4 to 5 per cent are factors which currently give the better utilities a Blue Chip rating.

Food production and packaging is another sound and basic industry. Processors of grain—the flour millers, cereal producers, and syrup manufacturers—dairymen, and frozen-food packagers are all steady performers and likely to remain so, as the population increases and the nation’s diet continues to improve. Strangely, despite America’s passion for beef and pork and lamb, the meat packers do not enjoy the same level of prosperity.

The drug manufacturers generally are a conservative group with an impeccable reputation and an enviable profit record. (You will see them classified as producers of “ethical” or “proprietary” drugs. The former are the medicines or medical ingredients that can be dispensed only by a doctor’s prescription. The latter are the drugstore items—cough syrups, cold tablets, vitamins, ointments, and pills—that health conscious America doses itself with to the tune of more than three billion dollars a year.) Competition among the drug companies is fairly fierce.

The company that comes up with a new antibiotic or tranquilizer enjoys a keen competitive edge. And so does the one whose trade name for a standardized product becomes more popular than the rest. As suppliers of a basic American necessity, however, the drug group ranks with the food and power producers.

Chemicals must also be near the top of any quality list. Certainly, few industrial groups have such a high percentage of truly outstanding companies or such a basic and vital economic function to perform. Interestingly enough, as this is written, they are just beginning to come back into favor. Several years ago they were among the bluest of Blues. Then overexpansion, overproduction, and similar corporate imbalances began to plague them, and took the bloom off the rose.

Earnings fell off. The performance of chemical stocks as a group lagged behind that of other industries. Now they are picking up again, and brokers’ letters are rediscovering opportunities in chemicals. Such short-term reactions are not serious enough to weaken the fundamental stability of the chemical group. But one of the points to be made about the reputation of any category of stocks is that it is never invincible.

Choosing pairs of currencies to trade against each other is another interesting study.
Here are some of the best: The Euro and the Swiss Franc. The British Pound and the Japanese Yen.

These are best traded with the U.S. dollar. So we could trade the U.S. dollar against any of the above currencies for a good return on our investment.

Using good Forex software will also help you considerably.

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How To Trade Successfully In The Forex Market

How To Trade Successfully In The Forex Market

To trade successfully in the Foreign Currency Exchange (Forex) Market, there are certain principles that must be adhered to at all times. There are a lot of investors who have made some really questionable trades when everything looked so good. The investors and speculators I’m referring to have sunk good money into investments and lost it within days, weeks or months. Some have done their homework and still received the short end of the stick, but the vast majority who turn what looks like a good investment into something that a savvy investor can smell a mile away, more times than not haven’t done their homework. This article talks about the Forex (Foreign Currency Exchange) Market and lists key elements needed to make money effectively.

Liquidity is Key:

Believe me; I know from personal experience how to lose good money after bad…as do many in my family. I keep telling myself it must be genetic. One way to really get yourself in deep is to play the pink sheets, also known as penny stocks. These are the stocks which typically have very low trading volume each day and if you have enough shares it is nearly impossible to trade them without severely affecting the price of the stock. And the more volume you trade the more you begin to affect your own price whether you are buying or selling. Needless to say, I have crossed those investments off my list as of a few years ago. They just don’t have the liquidity you need to give yourself an advantage. Sure, you can find a needle in the haystack, that one in a million stock, but for every successful penny stock, thousands go under or don’t return much if any on your investment.

This brings us to the Forex Market. What better market to get the best liquidity possible. With my days of trading penny stocks, complete with their thin trading volumes, over, I am naturally attracted to trading which takes place in an arena where the definition is liquidity. When a trading arena is liquid, you can always trade your investment without affecting other positions you want to buy or sell. You don’t have the problem like you would trading penny stocks where a small move here or there dramatically affects the price of the stock you are trading. The Forex Market is too big and too many governments, organizations, funds and individuals participate.

Perfect Your Strategy:

Some of the most successful Forex Trading occurs when a person perfects their strategy and executes it to perfection each and every time based on the core belief that their strategy is the best for them. It takes practice to perfect a strategy, but most successful Forex Traders have one. They don’t simply jump on every new “potential strategy” or “tip” that comes along. From time to time it is good to try new aspects of other strategies to see if you can improve on a good thing, but to know your strategy inside and out and be able to duplicate it makes all the difference. A good rule of thumb to use is when you aren’t sure of a trade, do nothing. Don’t trade if you are not positive it fits your strategy. It also helps if you concentrate on one market at a time. Like the old adage, you literally don’t want to be a “Jack of all trades and a Master of None”

Go Long:

Trading successfully in the Forex is about longevity. The longer you can keep trading the Forex, the longer you have to perfect your strategy and the longer you can stay in the game. It reminds me of craps when I occasionally have time to play. I have friends that can blow through ,000 in an hour or two and then they have to take the rest of the day off so they can have enough funds left to try it again another day. I take a different approach. I can survive all day long on 0 and most of the time I can double or triple that amount and be able to stay at the table all day if I want. It is both entertainment and profit that I am after. If I stay entertained longer, I have the chance to make more money.

The reason I can last longer is because I have perfected “My” strategy and I don’t try every new one that comes along in the multitudes of craps books that my friends read. The point I am making is this: Staying power is key with any investment. The longer you can “hang in there” to increase your education and perfect your strategy, the more you will enjoy the Forex Market and the more you will profit from it. And speaking of profit, you will want to remember to keep your profitable positions for a longer time than you keep your losing positions. Let your profits ride and you will be more successful. Fight the urge to get out of a position when it makes you a quick profit. Getting out of a losing position takes brute courage, but you will thank yourself for getting out quick if the position is not going the way you would like. You should always check your pride at the door when trading any market. Many of us don’t want to admit defeat, but it is necessary to be successful. It can really get in the way of successful trading.

Foreign Currency Trading (Forex) Trading is exciting. With the tips and thoughts above, hopefully you will feel right at home trading the currencies of the most powerful nations in the world. As long as you stick to your strategy and make sure you let your profits ride and cut your losses, you will become successful in Forex Trading.

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When To Buy Shares Or Trade The Forex For Maximum Profits

When To Buy Shares Or Trade The Forex For Maximum Profits

Ideally, you buy stock or currencies at its lowest price and sell at its highest.

Practically speaking, you do the best you can between these unpredictable extremes.

For, as you will see, the low does not become apparent until your stock begins to rise above it, the high is not established until your stock begins to drop away.

Although all of us could wish it otherwise, no bells, no flashing lights, no 21-gun salutes ever mark the bottom or the top.

Timing your stock transactions, therefore, is perhaps the most delicate element of investment, the decision requiring the keenest judgment and the surest touch. Experience helps, although success is not necessarily proportional to it. Veterans of the market, men who have been buying and selling for 30 or 40 years, sometimes seem to have a sixth sense about turning points, up or down, for individual stocks, or industrial groups, or the market as a whole.

On what seems to be no discernible evidence, they will mutter, “Well, I think the market’s going to fall out of bed,” and, sure enough, within a week there is a 9 or 10 point reaction. Yet newcomers may also acquire this skill with surprising speed.

Since judgment is a subjective quality, there are no firm rules for applying it. But there are generalities that can begin to define objectives and delimit areas of choice. And there are a number of techniques which attempt, more or less successfully, to better the average results obtained from trying to calculate timing arbitrarily.

Most professionals will tell you, right off, not to try for the extremes. The surest way to miss tops or bottoms is to wait for that last extra point of gain, that one more point of drop. Usually, an investor is considered to have done very well if he buys or sells within 5 points of the limit on a moderate-to-wide swing, within a point or two over a narrow range.

Another way of looking at the ideal objective is to reverse it: try to avoid selling at the low or buying at the top. This may seem to be superfluous advice, but both have happened many times when emotion entered heavily into judgment. Buying near or at the top is a temptation when a stock has been rising swiftly and steadily and the investor is eager to get aboard. The top, after all, is only relative.

New tops may be within reach which will make the current one seem a reasonable buying level. Selling near or at a low is tempting when a stock has slid downward and the holder has become disenchanted with it. The impulse is to sell out, take the loss, avoid further trouble, and be well rid of the dog.

The correctness of these decisions cannot be judged in the abstract. They depend, first, on your objectives (See Chapter 3) and on how closely or satisfactorily you have realized them. And they depend on your analysis of the several dimensions of highness and lowness involved.

Buying for income is relatively easy. The indicated dividend divided by the current price will give the yield in percentage terms. If the yield suits you, and investigation suggests that it is likely to be maintained, the price is right, whether it is in the high, middle, or low range for the year.

The problem of the buyer-for-income in recent years, of course, has been the fact that a rising market has reduced yields to some very uninspiring levels. The average yield of 10 big oils in the first quarter of 1959 was 3 per cent. For five chemicals it was 2.24 per cent. For seven steels it was 3.85 per cent. Only the better railroads were around 5 per cent, as a group.

Strictly on an income basis, the investor would do better at the savings bank than in oils and chemicals, and might be considered to have missed his market in these categories. The choice then is whether to argue himself into accepting 3 or 3.5 per cent (or 2.2 if he wants G.E., 1.5 if he wants Dow) in a sought-after category, whether to switch categories, or whether to ignore the market until conditions are more to his liking. There may also be a temptation to jump into a stock that for some reason is still yielding 5 or 6 per cent, although it would be foolish to do so without determining why it has maintained a high price/dividend relationship when everything else is low.

If the objective is capital gain, timing becomes more crucial. Somehow you must determine how many more points above the current price your stock is likely to go, and whether this will be a satisfactory profit, considering that possibly 25 per cent of it will go for taxes.

All rises must be predicated on earnings, or the expectation of earnings. Take, for instance, a stock selling at 50 and paying . This is a 4 per cent yield, which, we’ll say, is about average for this market this year.

Now, news gets out that it is possible that the company will earn per share by year’s end. Since a 50-per cent payout is the general practice, a dividend rise to is indicated.

Naturally, there will be a small rush toward the stock and a rise in the market price, probably to 75, or the new equivalent of 4 per cent.

This is the simplest sort of cause-and-effect relationship, so simple, in fact, that it practically never happens just this way. If prices reacted exclusively on good or bad dividend news or expectations, the market would be far more static than it is. Still, earnings and the benefits there from that shower down on the stockholder are the basic premise of stock activity.

The biggest complicating factor is the general absence of hard information. It’s rare that a jump in earnings can be positively pin-pointed, or pin-pointed before a market rise has taken effect. As a result, most investors have to contend with a vast range of other investors’ hopes, guesses, anticipations, and facts.

Furthermore, the stocks believed to have the greatest potential for growth usually vary the general pattern. The Dows, Minneapolis Honeywells, Owens-Cornings, and Minnesota Minings have long since been pushed to levels where their dividend returns are virtually meaningless, and where perhaps even their growth potential has been completely discounted.

Still, these extremities were more marked when stocks generally were yielding 5 and 6 per cent. Now that so many yield 3 and under, the growth specials do not seem so unreasonable at less than 2.

If you are trading shares or Forex you can also benefit from software that can help you time your purchases and sales for maximum profit.

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Tips That Help Your Trade Forex Like A Pro (2)

Tips That Help Your Trade Forex Like A Pro

Even though there are many financial markets and stock-trading platforms accessible via the web, Forex is above and away, the most popular. Maybe it’s that trillions of dollars exchange hands daily. Or maybe, it’s that you can get in with only a few hundred dollars. Whatever draws you to Forex, make sure you use these tips to learn about the market before you gamble.

If you plan on participating in forex trading, one great tip is to never count the profits made on your first twenty trades. Calculate your percentage of the wins. Once you figure this out, you can increase your profits with multi-plot trading and variations with your stops. You have to get serious about managing your money.

Don’t over trade. Over 90% of experienced forex traders would probably be profitable if they made just one trade per month. Trying to create opportunities to enter the currency market when there aren’t any is a sure fire way to lose money. Be patience and wait for the right market conditions before taking a position.

Set out a time frame for forex and stick to your plan. The second you deviate you’re leaving all of your research and chart reading behind, risking everything you have in the trade. Instead, pull out when the time comes and re-evaluate the trade and if you wish to continue put in new money and trade on that.

Never abandon a simple Forex strategy just because a more complex one comes along. Even if the complex strategy’s potential profits are attractive, a simple strategy that works (that pays modest profits reliably) is a very valuable resource. The real profit in Forex is not made in giant windfalls but in little daily steps forward.

In order to maintain a focused, objective approach to FOREX trading, you must first accept the fact that you will have losses, especially if you are a beginner trader. Losses are inevitable, but how you handle these losses is what keeps you in the “game” – or not. Accept your mistakes, but strive to learn from them.

A lot of business opportunities will require that you take on a partner to share the financial load, but forex is not one of these opportunities. You do not want to have a business partner in forex, unless we’re speaking about someone who is strictly investing money. Two account users is a really terrible idea. You can lose your money in an instant.

Begin trading only in your own currency. The world market, though potentially profitable, can be extremely confusion and difficult to navigate as a newbie. If you start out only with your own currency, you’ll give yourself a chance to get used to the market terms and conditions, better preparing you for more diverse trading in the future.

Whatever has brought you to Forex, make sure you use those same motivating factors to motivate you to learn how to trade, as well. It’s not enough just to create an account here. If you hope to win in the long run, you’ll need the tips you learned above. Don’t forget to use them where applicable.

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How do you Maximise your Profits in Any Trade on the Stock Market?

How do you Maximise your Profits in Any Trade on the Stock Market?

In trading the stock market, no-one has a crystal ball. The price of stocks can go down, as well as up. What is needed is an exit strategy that will enable you to survive the bad stocks, and make a good profit on the good stocks.
The method that I have found to work the best is a trailing stop loss. For those who don’t know what a stop loss is, I shall explain briefly. A stop loss is an order for your stock broker to sell your shares if the price dips to the level that you have specified.

There are two ways of doing this. The simplest method is to decide on how much you are willing to lose as a percentage of your investment. A good rule is not to go less than 10%. Work out the price of the stock at this level and set that as your stop loss. As the price of the stock increases, keep moving the level of the stop up to keep the percentage gap the same. Some brokers offer a trailing stop loss service, where you tell them what percentage to set the loss at and they do it for you.

The second method is slightly more complicated, and comes from “Nicolas Darvas” in his book “How I made ,000,000 in the Stock Market”. The markets tend to flow in stages. a stock on the rise will reach a peak, and then dip back down. It may do this several times at each stage. The idea is to follow the chart of the stock and see where the dips are the lowest, and set the stop loss just below them. A second part which Nicolas propounds is that when the stock breaks out of the sideways trend, to buy more of the stock, and when the stock starts going sideways again to move the stop loss up again to just below the lowest part of the dip.

Using the stop loss as an exit strategy, only works if you stick to it, and not lower it, thinking that the price will go up again in a few days. In a few cases you will be right, but what usually happens is the price keeps moving against you, and you loose even more money. As a secondary to this, the money still tied up in the first stock that is falling can’t be used on another trade.

Finally, a word of warning about using the stop loss system to protect your capital. There are times when the markets undergoes a fast fall in price, there are regulations about how far a price can fall in one-day. If it falls this maximum distance, it can bypass your stop loss, and you may be unable to sell. Although these situations are rare, it is better that you know about them. So that they are not a shock when they do happen to you.

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You Don’t Have To Be A Pro To Trade Like One

You Don’t Have To Be A Pro To Trade Like One

You’ve been looking all day for good tips on Forex but have found nothing of use so far. It can be frustrating with the amount of unverified information out there. Pay close attention to the tips provided in this article and you should find plenty of good information to help you on your way to being an expert in the subject.

Try to have “buy” trades open during rollover, which occurs at 5pm EST unless you are trading USD/CAD. This provides a bit of free profit for your trade as the rollover fee is in your favor. This will either mitigate a loss or add to a win, either way it is good for your portfolio.

Your best bet in forex trading is to learn a currency pair and work from that pair until you know the system. You can run yourself ragged and make yourself poor by trading in currency you do not understand or spend little time focusing on. Keep to what you know and have learned about and you will build knowledge and success.

The Fibonacci Method is a solid mathematical forex method, but this method should not be used in a vacuum. Combine the Fibonacci method with charts, current news and your own instincts to create a method that is unique. Combining a popular, somewhat successful method with other methods or knowledge leads to larger wins.

Do your best to learn how to read charts because that is a huge part of forex trading. Being able to read the currency’s pair charts is very important and it could mean the difference between you making a ton of profits and you making absolutely nothing at all.

Do your homework when choosing a Forex broker, not all are legit. Make sure any broker you deal with is registered by the National Futures Association (NFA). And if dealing with a broker in the Bahamas or offshore, beware, none are NFA registered. The most fraud related to Forex comes from outside the U.S, South California, Boca Raton, Florida, and Russia. Remember if it sounds to good to be true, it probably is.

Try out your own theories. If you believe the market may be going in a certain direction, try to follow that. Many methods have been tried, and while some work, others do not. There is no harm in trying out your theories, as loss as you make sure you can do it with minimal risk.

If you want to be a forex trader, you need to choose a forex broker. To make the best decision possible, you’ll want to check online reviews of prospective brokers, as well as checking their background and regulatory agency. Selecting an ideal broker is the first step to making a fortune with forex.

In conclusion, it can take a lot of time out of your day trying to find good information about Forex. This article has compiled some of the best information available. Follow what is mentioned carefully and you will be in great shape for whatever you were hoping to accomplish.

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Teaching You The Tricks Of The Forex Trade

Teaching You The Tricks Of The Forex Trade

Foreign exchange, also known as Forex, is a dynamic and complicated process of trading foreign currencies. For the most experienced traders of foreign exchange, leveraging the most current information and techniques is crucial for success. This article provides you with some of the tips and tricks needed to succeed in today’s foreign exchange market.

When it comes to trading, all brokers are not created equally. Ideally, your broker should share your basic philosophy on forex trading and should also demonstrate a clear understanding of your risk tolerance, boundaries, and financial limitations. Your broker should also be able to provide the additional services and options that you are most interested in.

There’s absolutely nothing wrong with questioning the legitimacy of any work-from-home method, so be sure that you read plenty of real information about Forex that was written by real Forex users. This is how you find out if the platform is legitimate or not. The dollar signs can be enticing, but the actual users will tell you what you need to hear.

Using a betting firm to trade on the Forex market is becoming increasingly popular with traders. However, before you jump on the bandwagon, you should be aware that this method has its shortcomings. Primarily, if you consistently win money from your chosen bookmaker, the company will begin to decrease the amount you can bet and may even close your account. A safer “bet,” It is to stick with a Forex broker or a spread betting firm, especially if you depend on your market earnings for a living.

Take the time to learn the essential components of forex trading. If you want to be successful at what you do and be competitive with some of the experts in the field, you must have a clear understanding of everything that it entails. You don’t need a college education, but you do need a desire to learn.

Use short stop losses to ensure you don’t make any mistakes in a Forex trade. Set them at the risk level you are comfortable with and then let them stay put! If you do this every time you trade you will ensure only small loses and permit larger gains over time.

To be at your best in your Forex trading, know what time of day works best for you to work. Some folks are morning people, while others are night owls. The nice thing about Forex is that a currency market is open somewhere on the planet almost around the clock, six days a week. So, you can actually sit down and do this when it best suits you.

The day that you trade is important. You want to avoid days when trading volume is low and days that high numbers of positions are closed. Mondays and Fridays are not ideal trading days. Mondays have been historically inconsistent and Fridays have been too volatile due to the end of the trading week.

As the beginning of the article mentioned, the most current information, tips and techniques are crucial to success as a trader of foreign exchange, also known as Forex. Those without the proper information are sure to fail in this exciting, ever changing field. Use the hints in this article to help you as you begin to explore the Forex industry.

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Want to Trade Stocks? Get Your Free Stock Quote First

Want to Trade Stocks? Get Your Free Stock Quote First

Free stock quotes are valuable for looking at your investments and determining whether or not you want to trade in the stock market. There are several free stock quotes online and one of the most popular is Yahoo Finance. This site will allow you to search your stocks to see the growth or decline and determine if you want to buy or sell. Free stock quotes are ideal for the novice investor. They can practice their skills without investing any money until they are comfortable enough to actually invest. Once you decide to invest, though, you will need to get with a broker and there are additional fees associated with trading. However, there are many do it yourself places that only require a small fee and will often have valuable articles and free stock quotes so you can watch your portfolio continually to ensure you have made sound investments.

Before investing in the stock market, you should be aware of the basics of stock trading. This can be learned by doing some research online or by getting a book at your local library. Once you know the basics, you can start looking for individual investments. It is recommended that the novice investor start off with only the amount of money they can afford to lose. There are no guarantees you will earn money and sometimes you will lose it. So, it is important to carefully watch the stock market by looking at free stock quotes each day. You may want to buy or sell your stocks depending on how well the individual stock is doing and what forecasts are for the stock.

Free stock quotes are also great for classes in finance or the stock market. This is ideal for investor clubs, high school classes or college projects. You can either use mock money to track an investment from start to finish without actually putting in money or you can use pooled money to determine which investment you will watch and what you will do with it. This is a great way to have a bit of fun with a group while learning about investments and possibly making a bit of money.

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Why I trade Forex?

Why I trade Forex?

Many people ask me why I trade Forex, Well I think like most people when I was introduced to Trading I didn’t know about the Forex market. It was just natural to go looking in the stock exchange for trades. However, I found my trading was very limited, by the time I got home from work in the evening all the action was over. I moved to Forex mainly to take advantage of the 24-hour opening hours, I would often be found at my computer in the middle of the night waiting for the next bar to appear.

Unlike Futures, there are no trading exchanges as such. Trading is being done from major banking establishments around the world, With futures you are generally limited to trading only for a few hours that they are open, if major news breaks and the price starts going against you when the market is closed, you could end up losing big time while you are forced to wait for the market to open. With Forex you will always have an opportunity to trade 24 hours per day 5 days a week. As the sun wakes up each country on its journey it also wakes up the markets in New York, London, Europe, Asia, Australia to name a few.

The Currencies of the world are traded against each other, the most popular being the Euro the US and Australian dollar, British Pound, Swiss Franc and the Japanese Yen.
Because of 24 hour trading, it is rare to see large gaps in price like stocks have on the opening and you often see prices in currencies trending more than stocks.

There are many advantages in trading Forex rather than Stocks, expensive Data providers that you need with Stocks is exchanged for free charting software offered by many Forex brokers. With over .5trillion (that’s 46 times bigger than all the future markets put together!) being traded in a single day you are always sure of a trade, With Low transaction costs, no commissions or exchange fees is it no wonder more and more traders are turning to Forex.

Beware though, even with all these advantages trading is a high risk game and should only ever be trading with money you can afford to lose. With a good Trading Strategy and Money Management in place there is no reason not to join many Traders profiting from trading the Forex markets

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