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Wednesday, June 17, 2009

5 Tips to Begin Trading Forex

Many investors become ruined and lose all their investment mainly because they don't get enough training on Forex trading. This is a scary prospect when first beginning the currency market, but by following the following straight forward, tips steps by step I will guide you through the whole thing. Currency trading can be an excellent way to make big money if you follow these steps.

1. Be Confident
Being confident in your own decisions is very important and a plus. Once you have been taught the ropes of currency trading and have known how to make smart decisions and investments. Undoubtly so you should trust yourself and don't rely on every tom, dick and Harry opinions or thoughts on investing. Of course, though, this confidence implies that you take trading serious and give proper analysis to a decision before you invest your money.
2. Be ready first before Trying
Its only traders with vast experience can invest without losing cash in the currency market. Many beginners incur losses before they learn the secrets of trading. This fact should not stop you from trying out, but it should give you encouragement. You should wait to trade until you are certain you grasp it all and are ready, you will be ahead of the pack.
3. Determine Your Style
There are many different methods in currency trading. It all depends on whether you are an aggressive, or if you are patient and willing take it slow but sure. In order to get ahead, you have to choose what works perfect for you and compliments your style. A better way to know this to try your hand at trading in a demo account. This way you're experimenting and will not lose your money.
4. Familiarize Yourself with Forex Trading
Even if you're impatient take time to learn the Forex trading system to get the detail and get a firm grip. it is important to have tutoring in Forex trading. Forex seminars are very insightful and will expedite up your learning time by far. You should also find a mentor - someone to share their experiences and guide you on best practices. Be careful when selecting this mentor, for your future in currency trading will depend on his advice and training.
5. Keep informing yourself
The education is never halts. Even after many years and years of trading, there is always something new to equip your self with. This is definitely true of everything you do in life you should always have a continual contact with your mentors and trainers. Your Forex investment will succeed by following these simple guidelines, keep in mind that what makes a professional currency trader from a mediocre trader is the aggressiveness and will to be independent. Many traders are duped by being shown to rely on predetermined strategies, approaches, or signals. Try to do better by not relying on coping other be better than them.

Be cool, clam and intelligent in managing your account and follow these simple steps to achieve your independence in Forex trading.

Kenneth I Ifeany is an expert day time forex traders who offers free online tips and advise to those wishing to perfect the art of forex trading

Free Forex Trading System - Make Big Profits in 15 Minutes a Day!

Here we will look at a Forex trading which is very simple to understand and easy to make money with. We will give you all you need to know about this system in this article and how you can use it for currency trading success...

The Free Forex trading system we are going to look at only has one rule and was devised by trading legend Richard Donchian. The system takes advantage of a simple 4 week cycle which occurs in currencies - Let's look at the rule and its this:

Buy any break to a new 4 week high in a currency and hold it. Simply wait for a new 4 week low to be hit and sell it. Keep doing this as 4 week highs and lows are hit and always maintain a position in the market.

It's incredibly simple but if you test it works and will get you in on all the biggest trends and help you hold them. Breakout trading is logical and always works, as markets always trend in addition, all new trends start and continue from new market highs and lows.

This system has been used by some of the best professional traders and while it's simple, that's an advantage in Forex trading as all the best systems are.

Today, you will see a huge amount of Forex robots and Expert Advisors sold online which claim they can make you money but this system, over the long term will beat them all. Even better our Free system has a real track record, while the new trendy robots just have simulations and back tests on paper so before you spend your money on one of these systems, test this great free one.

The system can trade any financial market not just currencies and works best on a spread of currencies and other financial instruments. You can also restrict drawdown, by adding exit filters based on either a one or two week moving averages.

The system doesn't trade much and it gives you a simple objective signal you follow which will take no more than 15 minutes a day to check. This system is simple, logical, time efficient and can help you enjoy currency trading success.

It's free of course, so you have nothing to lose by taking a look at it; check it out and see for yourself.

4 Reasons Why Forex Trade Remains an Attractive Option

During the whole of the last decade the forex markets were the reserve of the largest corporations and powerful private entities. However, the last few years have witnessed revolution in terms of the people who now engage in forex trade. Independent firms are now accessing the forex updates through the internet. Such convenient trading systems make the entry of individual investors easy.

Internet is just one of the causes of the forex trade revolution. Since forex is like all the other trades which revolve around financial matters, we can figure out some patterns which act as signposts to traders. To begin with, continuity is guaranteed. At any given moment, someone needs to convert a currency of one country into that of another country. Whereas we can draw some connection between forex trade and the stock trade, forex trade remains a much better option.

When fall-outs arise in the global economy, stock markets suffer a lot while forex markets take some time to feel the changes. When it comes to recovery, the forex markets make a quicker come-back.

Others factors which make the forex trade attractive include:

1. High level of leverage
2. One needs not worry about lack of enough finances. The introduction of leverage brought the forex trade closer to the smaller investor. Leverage enables one to make deposits which are up to a thousand times the actual amount one has put in the trade. In the event of losses and drops in currency exchange trade, the investor suffers smaller losses. It appears as if the trader has a strong investment base while this is not the case. The last decade has proven that leverage is an idea whose time has come Convenient schedules and strategies
3. In forex trade, one has the freedom to lay out plans and schedules of maximizing profits. All the changes that prove vital to the retention and retention of profits are solely governed by the trader. The opinion of market readers and brokers must seek the approval of the broker. The only situation where a broker can go against the decisions of the investor is if the forex trading system has not been automated. When this goes on for a long period of time, negative effects can harm the trader to the extent of spelling doom somewhere along the way High trade volumes
4. More than $3 trillion is traded on a daily basis in the forex markets. In any case this is a positive indication for anyone whose investment future is headed into the forex trade. Such a high volume of trade comes with a high number of popular currencies to choose from. In case one currency appears to weaken against another, you can make changes in terms of choice of pairs. This can be done without suffering from instability in terms of operational disturbances. Global nature of forex trade.
The currency pairs can be chosen from a wide range of economies from different parts of the world. In other words, wherever you are you can monitor the goings on in the market trends. Supply and demand patterns for currency pairs can be predicted using the prices of goods whose demand and supply in the whole world is always known, such as oil.

4 Reasons Why Forex Trade Remains an Attractive Option

During the whole of the last decade the forex markets were the reserve of the largest corporations and powerful private entities. However, the last few years have witnessed revolution in terms of the people who now engage in forex trade. Independent firms are now accessing the forex updates through the internet. Such convenient trading systems make the entry of individual investors easy.

Internet is just one of the causes of the forex trade revolution. Since forex is like all the other trades which revolve around financial matters, we can figure out some patterns which act as signposts to traders. To begin with, continuity is guaranteed. At any given moment, someone needs to convert a currency of one country into that of another country. Whereas we can draw some connection between forex trade and the stock trade, forex trade remains a much better option.

When fall-outs arise in the global economy, stock markets suffer a lot while forex markets take some time to feel the changes. When it comes to recovery, the forex markets make a quicker come-back.

Others factors which make the forex trade attractive include:

1. High level of leverage
2. One needs not worry about lack of enough finances. The introduction of leverage brought the forex trade closer to the smaller investor. Leverage enables one to make deposits which are up to a thousand times the actual amount one has put in the trade. In the event of losses and drops in currency exchange trade, the investor suffers smaller losses. It appears as if the trader has a strong investment base while this is not the case. The last decade has proven that leverage is an idea whose time has come Convenient schedules and strategies
3. In forex trade, one has the freedom to lay out plans and schedules of maximizing profits. All the changes that prove vital to the retention and retention of profits are solely governed by the trader. The opinion of market readers and brokers must seek the approval of the broker. The only situation where a broker can go against the decisions of the investor is if the forex trading system has not been automated. When this goes on for a long period of time, negative effects can harm the trader to the extent of spelling doom somewhere along the way High trade volumes
4. More than $3 trillion is traded on a daily basis in the forex markets. In any case this is a positive indication for anyone whose investment future is headed into the forex trade. Such a high volume of trade comes with a high number of popular currencies to choose from. In case one currency appears to weaken against another, you can make changes in terms of choice of pairs. This can be done without suffering from instability in terms of operational disturbances. Global nature of forex trade.
The currency pairs can be chosen from a wide range of economies from different parts of the world. In other words, wherever you are you can monitor the goings on in the market trends. Supply and demand patterns for currency pairs can be predicted using the prices of goods whose demand and supply in the whole world is always known, such as oil.

Forex Trading Weekly Forecast - 03.30.09

Forex Trading Advice - How Much Can You Make Per Annum Trading Forex?

This is the question many novice traders ask and of course it depends on numerous variables, some of which include your starting amount of capital, your risk tolerance etc, but if you were to make 100% per annum you would be up there with the very best.

Drawdown periods vary from trader to trader but typically you will face a drawdown of 30% from your peak equity at some point and you will face a drawdown period of a few weeks.

There is a huge industry in automated Forex robots that tell you that you can double your money each month, make a regular income and experience no real drawdown but this is pure fantasy and not the reality of Forex trading.

So what is a realistic amount you can make per annum in Forex trading?

When I say 100% per annum is a realistic annual return to traders, many look disappointed but this is a huge gain! If you look at it in business terms (and Forex trading should be seen as a business) any business that returns 100% per annum in profits would be seen as very successful. Furthermore, think of the compound affect of your capital and you will see this will see your money grow very quickly over time.

Many traders want to make money too quickly and they see there broker will give them 200:1 leverage or more, so they want to use it - but over leverage destroys more novice trader accounts than any other factor.

The risk of course increases when you leverage up your capital but most traders forget the impact of transaction costs. The transaction cost may look small on un-leveraged amounts but on a leveraged sum in relation to your account equity it's huge and traders trading 100:1 leverage can very often see an impact of 10% or more on their accounts ( depending on pip spreads) so you have to make that amount just to break even.

Novice traders should really start trading with no leverage, until they are comfortable with what their doing and my own view is - that a leverage of 10 - 20: 1 is plenty for most traders.

Money management and preservation of equity, is the key to making money long term In Forex trading. Always assume the worst first on your positions and things can only get better! As the old gambling saying goes:

If you want to win you need to bet but you can't bet without chips"

It's a fact that professional poker players make excellent Forex traders. The reason for this is they always have their eye on equity preservation and are not bothered about taking losses. They know they have to pass hands by and fold hands, if the odds are against them. Compare this to the average Forex trader, who takes losses personally, runs them hoping they might turn around and lets his emotions get involved and lack discipline.

If you want to win at Forex trading base your Forex trading strategy on sound money management and protect your equity and you will get the opportunities to trade the odds for big profits and be on the road to triple digit gains.

GBP-USD Trade Results (26 May 2009)

Trade results for Pound-Dollar pair as of today and yesterday trade observation. Taking some chances from the minor correction. It is currently moving at the support resistance level on hourly time frame. I expected the market to make correction further to 1.5743 but it did not happen today. So this is what we got for today's scalping trade




GBP-USD Technical Analysis (19 May 2009) - READ | GBP-USD Technical Analysis (6 May 2009) - READ

GBP-USD Trade Results (26 May 2009)

Trade results for Pound-Dollar pair as of today and yesterday trade observation. Taking some chances from the minor correction. It is currently moving at the support resistance level on hourly time frame. I expected the market to make correction further to 1.5743 but it did not happen today. So this is what we got for today's scalping trade




GBP-USD Technical Analysis (19 May 2009) - READ | GBP-USD Technical Analysis (6 May 2009) - READ

Forex Trade Result (29 May 2009)

Today is the last day of trading for the month of May and next week we are entering month of june where bearish sentiment is very much likely to happen. Therefore today the overall expectation for GBP-USD, EUR-USD, USD-CAD will still be bouncing ups and downs within the support resistance level. At this point usually there are three time frames mainly the 4 hourly, 1 hourl, and 30 minutes where indicators like slow stochastic will have strong impact on the market expected directions.



Just a short recap from all the previous analysis as long as the month of May not yet ended the bullish sentiments for GBP-USD, EUR-USD, AUD-USD, GBP-JPY is still steaming high. So 4 hourly time frame support is believe to be strong.
Once again the candlestick counting method seems to work perfectly according to plan. It was 23 days ago (Read...), i have discussed about the possibility that the GBP-USD is going to form another white candlestick (monthly time frame) in the entire month of May. And now is the 29 May 2009 and it happens perfectly. This may seems to good to be true but yes it is and you can see it yourself on your trading chart. The white candlestick formed perfectly like a full eclipse without much wastage (see chart below).





The most perfect part of it is that on the 19 May 2009 (Read...) which is 10 days ago we are expecting the market to break resistance level 1.5385 to move towards 1.5729 (344 pips away) and yes it does. In fact the market is now currently at 1.5963 which is 200 pips more than the expected movement.



The expectation is 100% according to analysis of candlestick counting.

Forex Trading Styles: Choosing The Forex Style That Suits You

When you start out in Forex currency trading you will be faced with deciding which of the two main styles to use. Of course, you could combine both styles but there are only so many hours in the day, so it is likely that you will choose one or other of them.

We will explore the main elements of these Forex trading styles below.

Fundamental Forex trading

As a beginner, this is probably the least likely style that you will use. Fundamental trading is based on the examination of economic data. That said, you may indirectly use fundamentals as some of the data used is covered in the day to day news bulletins and in newspapers.

Fundamentalists analyze government reports, current events, news coverage, political events, changes in interest rates, GDP (Gross Domestic Product) changes, inflation predictions, retail price data, unemployment levels and any other factors that they consider important in currency fluctuations. This can extend to political elections, attacks by terrorists, military conflicts, earthquakes, hurricanes, etc.

Technical Forex trading.

This is the most likely tool for the beginner Forex trader. Charts are used to analyze what has happened in the particular currency market you are interested in and then to predict what is likely to happen in the future, based on past events.

At their most basic, charts display the historic relationship between the two currencies you are interested in. This will show the peaks and troughs in the relationship and when you become sufficiently proficient, a chart should be able to help you predict future currency movements.

If you are new to technical Forex trading then the amount of information available to you may appear overwhelming. Take the time to study what you are looking at and make sure that you trade "on paper" before spending your own money.

There are a number of services online who provide chart data in real time. If you decide to trade on the Forex markets as a day trader, such information is essential. A lot can happen during the course of a day and you need to make sure that you stay on top of any fluctuations. This is especially important since the currency market is open 24 hours on weekdays and is a global marketplace.

Wednesday, January 21, 2009

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