188pips - Forex Garage

Khas untuk kiwi "trader"

2009-05-28T02:55:00.000-07:00

Forex Scalping - How to Find a Winning Forex Scalping System

2009-02-27T00:33:00.000-08:00

Forex scalping is a short term method of day trading and forex scalpers are looking to take small profits regularly by timing moves on hourly charts. The idea is to only take small profits but get lots of them, to build profits over time and earn a big consistent income. There are lots of forex scalping systems for sale but how do you pick a winner?

The first thing you need to do, is look at the track record of the scalping system presented to you and check for a disclaimer. If you see the one below ( or one with a similar wording), you need to forget the system and look at others. Here it is read it carefully:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

Basically, the above means the forex scalping system has not been traded and the vendor has simulated the track record in hindsight. A disclaimer like this, tells you nothing about the profitability of the system, as of course if we all knew tomorrow's price today, we would ALL be rich!

Making money in hindsight is easy, but we don't have that advantage in the real world.

Now you may be thinking well that's obvious enough - I Will just find a real time track record of forex scalping profits.

Get ready for a long search then! Why?

Well I have been searching for 25 years and not found a real time track record and the reason is:

Forex scalping doesn't work over the long term, because the logic it is based upon is fundamentally flawed.

The logic is, you can predict where prices will go in just a few hours - but of course you can't do this.

Volatility in short time frames is simply random.

Volatility can go anywhere in a few hours (and does) so, all that happens is stops get hit and you end up with lots of small losses. Because you are not running profits to cover them, you are simply destined to lose.

You can't win long term, as even if you are lucky - luck doesn't last forever!

Vendors know it's a good and appealing story - but that's all it is.

You never see a real time track record of gains and you have to wonder why a vendor if he really believes forex scalping works, doesn't have the track record to prove it.

About the Author: NEW! 2 X FREE TRADER PDFS
& PROFESSIONAL FOREX COURSE

For a wealth of forex education and some FREE Forex Trading Guides visit our website at:
http://www.learncurrencytradingonline.com

Berrie White Capital: How To Invest in the Credit Crunch

2009-01-29T23:56:00.000-08:00

Don't Fear The Credit Crunch

Despite what your financial advisor tells you, luck and attrition are not the only ways to build or maintain your portfolio in a credit crunch. There are many tried, tested and true paths to profit in troubled times.

Precious metals are safe. Gold in particular has been used by monarchs and capitalists for two millennium to protect wealth. Gold is a market indicator. With gold prices starting to recover while oil prices slump, confidence is slipping in the global economy and uncertainty is the order of the day. Gold prices have fallen only because traders sold to cover their losses. People who invested with borrowed money sold their gold, even though most believed they would indeed make money if they held on, but they couldn’t. Some investors sold on the way down, and then bought again on the rallies. Despite the volatility, gold's overall decline has been small, especially compared with other commodities. Some believe gold is simply a counter to the US dollar, or something that will rise in the face of inflation. But this also protects you during deflation.

Gold Is Not an IOU and is saleable anywhere in the world, for cash. And like cash itself, gold gains value as everything else drops. Just look at the volatile Dow versus the steadiness of gold in the face of forced selling.

Why Gold Rises During A Deflation? Gold is a protection against uncertainty. When the basis for determining the value of paper assets, including money, becomes unclear, discredited or confusing, gold is a solid, nationality-free asset, a shelter-from-the-storm investment. When the old, relied-upon approach ceases to work properly, demand for gold will skyrocket, and so will the price. And right now, as forced selling dwindles and uncertainty rises thanks to deflation attacked by insane spending by governments, we will see gold's value rise.

Making Big Money in the Forex Market

2009-01-16T01:10:00.000-08:00

By Maceo Jourdan

Follow me; I love this stuff. This is something once I showed it to the propriety traders in the last trading room I was in, they couldn’t believe it. In fact, one of them couldn’t believe it so much he refused to trade it because he thought he was seeing things.

Even if you were a day trader and you can see a repeatable pattern which is, when the market participants get to a major resistance area, whether it is on the chart like this line here or whether it is on price like this two dollar level, they take a pause; don’t you think that you can expect to see certain things even all the way down to an hour bar. I mean, you are just looking at snapshots of an hour at a time? The answer is absolutely. That’s the whole idea and the whole premise behind short term trading. We can see these areas on the chart where professional traders are going to pause. There are a lot of reasons why they are going to do it.

George Soros is not a trader. George Soros hired a guy to do all his trading for him. George Soros was the strategist. He was the brains behind the operation but Niederhoffer was actually the guy who actually executed the trades. What Niederhoffer is going to see is either the chart pattern, meaning he is going to see that there is resistance here; he is going to see the chart or he is going to be watching every single trade and he’s going to see, wow, the British pound is having a hard time over here and he’s going to call George and say, hey Georgy boy, let’s stop buying for a little while. Let’s see what happens to the market.

Then after he sees that buying is starting again, he will say hey George, now we can buy. So he is going to tell George; okay, let’s start going in again. That’s where the big money comes is and they start pushing the market up even more.

About the author:
Mac X is recognized as a forex expert trainer, forex trader and author of three best-selling forex trading books and Home Study Courses including "How To Get Filthy Stinking Rich Trading The Forex" book and Home Study, "How To Trade The Harmonics of The Foreign Exchange Markets". Mac X has trained over 1,300 students in large forex seminars, one-on-one and small groups. Read Mac's Forex Blog for more Forex Trading information at TheInsiderCode.com.

Article Source: http://www.Free-Articles-Zone.com

The Problem With Hedge Funds

2008-11-13T18:53:00.000-08:00

By Kristian Rasmussen

Are hedge funds a suitable investment for you? Hedge funds are an appropriate investment for qualified purchasers with a net worth above one million dollars and an annual income exceeding two hundred and fifty thousand dollars. Purchasers are often required to sign an acknowledgement confirming their qualifications to invest in hedge funds. However, just because one is qualified to invest in a hedge fund doesn’t necessarily mean they should do so. There is a major problem with this type of investment. Oftentimes, the risk associated with the fund is misrepresented, leading to investors being misguided into skewing their qualifications.

The term “hedge fund” is a generic term used to describe many unique investments. Put simply, the phrase is derived from the purpose – hedging the risk of investing. Hedge funds provide lower long-term returns in exchange for less volatility. The form of investment is not new, but their popularity certainly is. The newfound popularity of hedge funds has left many investors wondering what they are all about.

To shed a little light on a decidedly illusive investment tool, a quick run down is necessary. A hedge fund is typically a privately organized pooled investment fund, predominately invested in publicly traded securities. They are normally created as limited partnerships, consisting of one general partner and up to one hundred limited partners. The general partner usually receives a management fee and 10-20% of the profits from the fund. The success or failure of a hedge fund is often dependant on the competency of the fund manager, since they are more aggressively managed and traded than traditional mutual funds.

It should be noted that hedge funds have a higher failure rate than traditional funds. Numerous hedge funds fail by the second or third year of operation. Also, hedge funds are less transparent than traditional funds because some hedge fund managers do not reveal the securities they hold, or the extent to which they are leveraged. Hedge funds may have a higher turnover rate and be less tax efficient than traditional funds.

Along with the aforementioned downfalls associated with hedge funds, several more negatives should be noted. The management and performance incentive fees charged by the hedge fund manager, together with the trading costs and administrative fees can quickly add up, making B share mutual funds seem like a bargain. As stated earlier, only “qualified” purchasers are eligible to invest in hedge funds, leaving many would-be investors out in the cold. And liquidity, if available, is limited to quarterly release, and even then, investors are left at the mercy of the hedge fund manager.

The bottom line is, when dealing with hedge funds, get educated about your investment before jumping in. Discuss the option, both pros and cons, with your dealer, and know what you are getting into.

For more information on hedge funds and hedge fund attorneys, please click here.

Article Source: http://EzineArticles.com/?expert=Kristian_Rasmussen

ASX vs AUDUSD - Any comments

2008-10-29T19:05:00.001-07:00

Using Metatrader 4 to Trade Forex Robots

2008-10-21T21:57:00.000-07:00

By John S Stevenson

O.K if you have ever purchased or intend to purchase a forex robot (expert advisor or ea) then you are well on your way to making money. It's true the forex robot can and will make you money once set up but that is where some people fall down, not all are technically minded and have immense trouble actually setting up there robot. Don't give up though it really is quite easy and once you get the hang of it all are basically the same.

So once you have purchased your forex robot you will need to find a broker who supports metatrader 4, there are plenty around and can be found through Google (although make sure you do your research). Once you have your brokers metatrader 4 platform installed the next thing you need to find is the .ex4 file that you received when purchasing your forex robot, now I suggest saving this to your desktop so you can actually see the .ex4 icon (do not try and open this as you will get an error message).

Now we need to navigate to the experts folder for your metatrader 4 brokers account, so we goto start (bottom left of most computers), click on 'my computer', now double click on local disk c:/, now double click program files, now navigate to your metarader 4 brokers account and double click on this, now double click on the experts folder. You will now have your experts folder open which we need to drag and drop the .ex4 file that is sitting on your desktop into. Once you have done this close down all the open windows and start your metatrader 4 platform, you will now see the forex robot sitting under the experts tab and you can now let the robot begin trading and making you money

Take a look at this metatrader 4 forex robot here http://www.therobotrader.com

Article Source: http://EzineArticles.com/?expert=John_S_Stevenson

Simple Tips to Become Wealthy Trading Forex

2008-08-28T00:41:00.000-07:00

You can easily become wealthy by trading successfully in any market but by understanding the Forex market and using it properly, you would be surprised with the amount of money that it is possible to make. You would probably be surprised to learn that a lot of the tips that will help you to become wealthy trading Forex are similar to the ones that you would use within any financial system. Since many of them are really just a matter of common sense, it just pays to understand what you're getting into before you actually jump in. That being said, here are some tips to help you to become wealthy trading Forex.

First of all, you should make sure that you never invest any money into any exchange market if you cannot afford to lose it. Even though this is a worst-case scenario, you would be surprised with the number of times that it happens. If you can only afford to spend a little bit of money at first, forex is an excellent place for you to do this as you can generally get involved with a smaller investment instead of really sticking your neck out there before you truly understand what you're doing.

You should also try to avoid guessing too much as far as which direction things are going to go. The Forex market is particularly volatile and any news event can really send currency in a number of different directions. It is better if you buy at the brakes, instead of looking for trends in this way. Forex is not about buying low and selling high such as it is in other markets. You really need to understand what you're doing before you jump into this market with both feet. This leads us into our next tip.

Before you do anything in the Forex market, make sure that you have some help. In order for you to work within the market, you're going to need to do so through a broker anyway. Even though you may be able to make automated trades on the Internet, you still need to do so through brokerage website. Make sure that the person that you have in your corner is knowledgeable enough to walk you through the process until you feel comfortable branching out on your own. Some people that have been doing this for years still rely on the help of their broker on a regular basis.

Finally, you need to make sure that you're avoiding any of the Forex trading scams that are out there at any given time. If somebody is guaranteeing that you will profit in the Forex market by using their system, they are stretching the truth at the very least. Approach anyone that is making these claims with caution. After all, you don't want your first trade on the Forex market to be one that can possibly make it your last.

About the Author: You can find more about Trading Forex as well as the newest and most advanced forex trading software at http://www.ForexTradingProgramsInfo.com

28/7/08 to 1/8/08: Scary direction?

2008-07-27T21:21:00.000-07:00

24/07/08 - Tokyo ---- last week expectation

2008-07-23T19:25:00.000-07:00

down to 1.5670 level!

EURUSD on 23 July, Euro market open!

2008-07-23T00:25:00.000-07:00

EURUSD - Moving down for a week (21 - 25 July 2008)?

2008-07-18T21:18:00.000-07:00

What would happen next week? Any comments on this?

Forex Trading Robots - 4 Key Points Which See the Majority Destroy Equity

2008-07-18T05:05:00.000-07:00

Forex trading robots are promoted as the way to financial freedom but common sense tells you they are unlikely to do this for you otherwise the whole world would use them and they don't. Here are 4 reasons why you will probably lose your money.

- The Track Records are Not Real Trading

The track records look wonderful. Huge gains with little or no drawdown but of course there is a catch - It's not a real track record at all its just paper trading.

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading"

Look in the disclaimer and you will normally see the above, of course the fact you can make money backwards means nothing in terms of what you could make with the forex trading robot in real time trading.

You also have to question the vendor - if the system is as good as he says where the track record of real money is?

Maybe he simply doesn't have confidence the system will make money and with good reason, he knows its curve fitted.

- There Curve Fitted

Most Forex Robots are curve fitted and this means the rules have been fitted to the data.

If the rules don't work first time around, keep changing them and bending them until they do.

This of course is flawed logic, as no two segments of data are ever going to repeat exactly again and the system collapses in real time trading.

If you look backwards and know the history of course you can become rich beyond your wildest dreams - but it's only on paper and you can't buy anything with paper money.

- Test With a Demo Account

Most of the vendors who sell these systems say you have no risk as they will refund your fee and you can test it in a demo account first.

I often see people proudly saying they made money in a week in a demo account and the system must work in practice - again this shows basic lack of understanding on behalf of the user.

You judge systems over months or years and any system can be lucky in a few weeks - you would need to paper trade for 1 or 2 years to get a real insight into the system and by the end of that period you will either get bored and probably see it lose.

- Drawdown

While the vast majority of forex trading systems have curve fitted track records, it's also interesting to see the amount of money that is recommended to start with and this can in many robots cases be $100 - 200!

The chances of you winning on this amount even with a good system are doubtful, as you don't have enough to cushion losing periods and a few bad trades will wipe the account.

Leverage combined with tiny account balances means a wipe out.

If you want to win at forex trading get a proper forex education and don't believe the sales copy telling you that you can get rich without knowing what you're doing - you can't.

Be realistic and work on the basics and learn currency trading the right way and you can make a lot of money but it's not easy and you would hardly expect it to be with the rewards you can make.

If however you learn the right education and have the right mindset, you can forget about forex trading robots and losing and focus on winning in the worlds most exciting business global forex trading.

About the Author: NEW! 2 X FREE ESSENTIAL TRADER PDFS

ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info and more on Currency Trading Systems visit our website at: http://www.learncurrencytradingonline.com.

How To Trade Forex The Easy Way

2008-07-15T19:34:00.000-07:00

How to trade forex is far more simple than you might think. Chances are, you may have already traded forex without even realizing it. If you ever went away on a vacation to a foreign country and exchanged your home currency for the local money, then you made a forex transaction. It is as basic as that. However, some say the forex markets are akin to the game of chess. The rules and moves are basic, however it can take a lifetime to master.

When you seek to profit from the forex markets it entails buying a given foreign currency for one price and selling it at a higher price. For those currencies you think will fall it is able to sell it first at a higher price then buy it back at a lower price. One is able to trade any currency independent of the direction you think it might go. Some trades can be crafted to capture movement of several different currencies or alternatively use the movement of one currency to trigger purchasing another.

Some strategies can prove complex and difficult to execute. Fortunately, there are now forex trading robots which can carry out your strategy flawlessly. It used to be that a forex trader had to be in front of their computer for long stretches of time. This lends to a freedom of lifestyle with the trader able to spend more time with family or on other pursuits. A robot can be your proxy going into battle with its predetermined mission.

The first step towards profiting on the forex markets is to open a forex brokerage account. There are many options in today's market. There are also good independent review sites which give the pros and cons of each broker. It is important to ensure you are not paying exorbitant fees. Speed of execution and site reliability are also important factors to consider.

Most forex accounts today come with a practice mode. You should definitely select one with this feature. This enables you to test your proposed strategy without risking any of your bankroll. It is far better to experience any initial losses in practice mode then tweak your formula accordingly before engaging in real trading. Smart traders both back test as well as examine their strategies in real time market conditions.

Once you have selected a forex brokerage account the next step is to select your trading software. Some traders attempt to trade on their own. This often devolves to guesswork and arbitrary trading decisions. Occasionally traders do get lucky going this route. However, without the assistance of sophisticated software one is put at a serious disadvantage in today's markets.

A forex autopilot robot can make you a stronger trader in several respects. Firstly, it excises emotions and prevents you from acting out of fear or greed as opposed to objective underlying trading facts. It also ensures you stick to your risk limits never overexposing yourself on any one trade. The human mind can be a forex trader's worst enemy. A robot's mind can be their best friend.

You'll quickly find out how to trade forex is quite easy. After you select your brokerage account the most important step is securing the right software. With a forex robot at your behest you won't go into battle alone. Sophisticated software can often level the playing field between new traders and lifelong forex participants. Learning how to trade forex never became any easier than this. For more please visit this forex review.

Forex Charts - a Simple 3 Step Method for Huge Gains

2008-07-10T22:30:00.000-07:00

Author: Sacha Tarkovsky

On any Forex chart, you’ll see repetitive patterns that you could have traded for profit. This article is about spotting these repetitive patterns – and using technical analysis to create big consistent gains from them.

Use Forex charts and follow these 3 simple tips for success:

Step 1. Understand Support and Resistance

If you want to make money in Forex trading, you need to understand support and resistance - and incorporate it into of your Forex trading strategy.

An important point to keep in mind is to only trade valid support and resistance - as market participants consider these important.

Firstly, forget about using support and resistance in short time frames – it doesn’t work. All volatility is random in short time frames - so if you’ve been thinking about day trading - forget it.

You need to look at your Forex chart, and see support and resistance that’s held for weeks or months - and already been tested several times. As a general rule look for five tests or more.

You then need to decide whether support or resistance will hold, or break - and this is the difficult bit for any currency trader.

Step 2. Trade with Momentum

Most currency traders simply see prices approach support and resistance - and buy or sell - hoping the levels hold. Try this, and you’re sure to lose money. You’re guessing, and hoping - and the Forex markets will wipe out the equity of any trader that does this!

To be successful with your currency trading system, you need to calculate the odds of levels holding or breaking. This means looking closely at the momentum, and strength of price.

For example, if price momentum weakens into resistance, then you can sell. If however, price momentum accelerates into resistance, then you should hold back - and wait for the break to execute your trading signal. This way you’re always trading with price momentum - and there are several indicators you can use.

Two of the best indicators are the stochastic and Relative Strength Index (RSI) – which we’ve already covered in previous articles.

If you use stochastic and Relative Strength Index in association with your Forex charts, you’ll gain a huge advantage - by getting the odds in your favour.

Step 3. Cutting Losses and Running Profits

Cutting loses is actually the easy bit - you place your stop when executing your trading signal behind the breakout point - nice and simple.

The hard bit is running profits - most traders simply cannot accept big profits. This may sound odd, as all traders want to run profits. However, few traders can manage to run profits - due to human nature. Why? Because Forex traders are so obsessed with not losing money, they can’t make big gains.

A trader will see a profit on his Forex charts and get excited and nervous at the same time – excited they’ve made a profit - and nervous they might lose it!

The Bigger the profit becomes the more tempted they are to take it - so they move their stop up to close - and gets taken out by normal market volatility. The trader may also snatch the profit, when the temptation becomes too much. Do either of these and of you’ll never make big gains.

You need the courage to hold your stop back - and accept dips in your open equity, as part of Forex trading. Sure, it’s not nice losing a thousand or more per day in open profit - but you need to keep your eyes on the bigger prize!

Look at any Forex chart, and you’ll see trends that can, and do, make Forex traders $10,000 to $50,000 – maybe even more. You just need the courage to hold on.

If you check your Forex charts for valid support and resistance, and trade with momentum on your side, and have the courage to run your profits – then you’ll make huge currency trading profits.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-charts-a-simple-3-step-method-for-huge-gains-179142.html

Forex Education - These Traders Became Millionaires Quickly and There Story is Essential Education

2008-07-10T00:17:00.000-07:00

By kelly Price

I have taught traders for 20 years and have always told them to study the "turtle" experiment which took a group of traders who had never traded before and turned them into traders who would make hundreds of millions of dollars, after just 14 days study...

The experiment was devised to show that anyone could learn to trade with the right mindset and education and was conducted by world famous trader Richard Dennis.

Dennis got a group together and was careful that he choose people from all walks of life, varying ages and both men and women. The group included an actor, a couple of professional card players, a woman auditor, a boy just leaving school, an actor and a security guard.

This diverse group were then taught a simple trading system.

Dennis taught them a simple system based upon strict money management rules and long term trend following and he didn't just ask them to follow it. He made sure they had confidence in it, so they knew how and why it worked and gave them rock solid confidence in it.

They started to trade and within 4 years had made $100 million dollars and went on to become legends - so what can you learn from them?

1. It's a fact anyone can learn to trade and be a success they did it and you can to.

2. Simple trend following systems work and are easy to understand

3. It doesn't take long to learn and your education sex or age is no barrier

4. You must accept responsibility and learn your system to have confidence

The other point you can learn from them we will dwell on in more detail, because it's the point where most traders have a problem and that's with discipline.

Trading is as much about having the right mindset as method and Dennis drilled discipline into them, by giving them all the information and making them learn the system so they would have the confidence to trade through long periods of losses until they hit a home run.

Don't believe anyone who tells you, you wont lose for weeks or even months at forex trading you will, even the best traders do and you will to. This is why you need discipline to take loss after loss sort term while the market makes you look a fool and preserve your equity with strict money management, until the market breaks in your favour.

If you can learn one thing from the turtle experiment its how important discipline is to a trader.

Its clear the trading system could be understood by anyone - but it needed the right mindset to apply it.

So if you have the right mindset and a simple trading system you can win and focus more on mindset as this is the hard part the system is the easy part. Make this story part of your essential forex education and you will see the potential of forex trading as a vehicle to seek financial freedom and how you can achieve it too

About the author:
NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info on the Best Forex Trading Systems visit our website at: http://www.learncurrencytradingonline.com.

Simple Tips to Become Wealthy Trading Forex

2008-07-09T01:23:00.000-07:00

First of all, you should make sure that you never invest any money into any exchange market if you cannot afford to lose it. Even though this is a worst-case scenario, you would be surprised with the number of times that it happens. If you can only afford to spend a little bit of money at first, forex is an excellent place for you to do this as you can generally get involved with a smaller investment instead of really sticking your neck out there before you truly understand what you're doing.

You should also try to avoid guessing too much as far as which direction things are going to go. The Forex market is particularly volatile and any news event can really send currency in a number of different directions. It is better if you buy at the brakes, instead of looking for trends in this way. Forex is not about buying low and selling high such as it is in other markets. You really need to understand what you're doing before you jump into this market with both feet. This leads us into our next tip.

Before you do anything in the Forex market, make sure that you have some help. In order for you to work within the market, you're going to need to do so through a broker anyway. Even though you may be able to make automated trades on the Internet, you still need to do so through brokerage website. Make sure that the person that you have in your corner is knowledgeable enough to walk you through the process until you feel comfortable branching out on your own. Some people that have been doing this for years still rely on the help of their broker on a regular basis.

Finally, you need to make sure that you're avoiding any of the Forex trading scams that are out there at any given time. If somebody is guaranteeing that you will profit in the Forex market by using their system, they are stretching the truth at the very least. Approach anyone that is making these claims with caution. After all, you don't want your first trade on the Forex market to be one that can possibly make it your last.

About the Author: You can find more about Trading Forex as well as the newest and most advanced forex trading software at http://www.ForexTradingProgramsInfo.com

First day on the road!!!

2008-07-08T23:59:00.000-07:00