How Can I Become A Forex Trader And Make Money?

By John Eather

There are many things to learn about how to become a Forex trader, and you will need to master the art of putting knowledge into practise with confidence and without fear. By educating yourself thoroughly, you will be able to trade confidently and successfully through the fluctuations of a volatile market.

Trading in foreign currencies is not for everyone, so think about whether it is something you really want to do. You need to be totally committed or you will succumb to fear and hesitation that could be disastrous during times of downturn. Forex trading requires courage and strong nerves.

Educate yourself fully before you try to get started. Knowledge is vital to your success, and there is plenty of information available on the internet and in bookstores. Make sure you fully understand the potential of this lucrative industry by asking questions and watching the market. Watch the strategies of the successful traders and large companies.

There are tools you will need to become a successful Forex trader. These include a computer and high speed internet and data feed connection. Having a bank of multiple monitors lets you watch multiple charts; this helps you make intelligent trading decisions.

The next step is to create some strategies for yourself. Use the knowledge you have acquired to formulate trading strategies which you can then try out in the live simulations that are available online. Even experienced traders use these demonstration accounts when they want to test the effectiveness of a new trading strategy.

Once you have tested a couple of your strategies, you are ready to open your own account. You can have confidence in your ability to make money because you will base your trading account on the demo accounts that you have already tested.

Start a trading journal to keep track of what works and understand why certain strategies do. Record your progress in your journal and you will have a permanent record to refer back to. Continue to trade with your winning strategy and watch your bank account increase. - 23217

About the Author:

Sign up for John Eather's Free eCourse on Online Forex Trading. Keep informationrmed with the most recent information regarding Automated Forex Trading. Click on MoneyMakingFxTrader.com to get more details.

Stock Market Ticker Tape

By Gilbert Stockton

The origination of the stock ticker tape name came from the fact that long ago the stock market symbols were printed out on a piece of paper from a ticker tape machine. Now this computerized unit gives information on the stock symbol, price, and volume.

The stock ticker-tape machine was invented in 1867 in the aftermath of the development of the telegraph machine. In those days, "pad shovers" were employed to feed the tape to brokers in their offices; brokers would set up offices as near as possible to the New York Stock Exchange, etc, so that they could get the feeds via wire as quickly as possible. With globalization and computers this sort of setup is clearly no longer needed.

When a new company goes public for trading they pick letters or symbols for their stock symbol. These symbols help businesses and investors avoid confusion and allow for public trading. The symbols help to avoid confusion from investors.

MSN and other tv shows run the ticker tape at the bottom for investors. It is difficult to read at first but as soon as you know what companies you wish to follow becomes a lot easier.

Stocks symbols are one of the most recognized form of symbols. Stocks on the NYSE have three letters. Stocks on the Nasdaq have 4 letters. Mutual funds have even more.

Ticker also means that when a stock goes up or down it ticks in a direction. This shows whether the stock is moving up in price or down in price. - 23217

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Find out What is Penny Stock Trading. You too can learn what is Penny Stock Trading.

Directions For Framing And Executing A Good Trading Strategy

By John Eather

An excellent trading strategy is determined according to the type of planning that is performed. To determine a trading strategy it is necessary to study the practise and what is happening in trade. The initial strategy that needs to be set out is the basic standard of profit to be attained daily which consequently will lead to large annual return. The basic point to keep in mind is that always avoid loss in the trade.

The strategies are considered on the basis of the period of trade whether it is for short term or long term. According to the requirements we have to amend our strategy as well. For instance if we are involved with stock trading then it is essential to hold stocks that yields high profit and it is better not to retain those that has an average growth prospect.

It is essential that we analyse the expected returns in terms of the transaction cost and make sure whether the expected return is greater than the transaction cost. Following the above strategy will avoid all types of losses arising in trade. We need to consider and analyse aspects such as what trade we are about to perform and what are the returns that we are expecting form such trade.

Make sure to avoid risks as much possible in the highly variable trading environment. It is prudent to invest your wealth in investing in more than one entity rather than invest in one entity. Never trade according to guesses. To attain success and make profit, try to minimise your risk.

Traders who trade with lesser capital need to be well aware of the current market situations. It is ideal to have two accounts for such traders as well as avoid stocks of entities. Such strategies would help you overcome your probability.

Whatever strategy you are following your own or someone else, make it a point to study it thoroughly, specifically in case of an entry and exit. Do not be dumb fold over immature trading advices and tips, new techniques and ideas.

Education and training play a vital role in the molding of a successful trader strategy. Day trading is a very risky venture if you have limited knowledge, weak discipline, and/or poor money management. However, if you approach day trading correctly, armed with extensive knowledge, a sound strategy, and the drive to succeed .

Every profitable trader will tell you that the key to trading success is an effective, reliable trading strategy. You, as a trader, need to identify a winning system, implement it, and have the discipline to stick to it. And we should follow the same. - 23217

About the Author:

Before you begin trading forex online, please check out John's fantastic ecourse and reports about Online Forex Trading. Get the latest info concerning trading forex online. Go to MoneyMakingFxTrader.com to learn more.

Moving Average Convergence Divergence (MACD)

By Ahmad Hassam

Moving Average Convergence Divergence, acronym MACD and pronounced Mac Dee is one of the simple and most reliable technical tools in your trading arsenal as a currency trader. MACD is a trend following momentum oscillator or indicator and is used often by most of the traders.

MACD is a lagging indicators and it shows the relationship between two moving averages of recent prices. Most technical indicators used in technical analysis are lagging. This means they are slow and they just tell you after the fact what just happened.

Learning technical analysis is essential for you as a currency trader. Technical analysis is based on the premise that past price action can be used to predict the future prices in the currency markets.

Many chart types are used in the technical analysis. Technical analysis helps you to read your charts and analyze the price action with technical indicators. Learning how to use technical indicators is the key to understanding the market behavior.

MACD is calculated by subtracting a slow exponential moving average (EMA) like 55 from a fast exponential moving average like 21. Signal line is calculated by the taking the EMA of MACD for a number of bars like 8. The Histogram is the difference between the MACD and its signal line. 55 and 21 are the number of periods that you use.

MACD is one of the most popular indicators used in currency trading. However, beware that MACD is often misunderstood and misused. Like any other technical indicator you should use it in conjunction with other technical indicators.

Crossovers: When MACD falls below the signal line from above, it is a bearish signal. It indicates the time to sell. Conversely, when MACD rises above the signal line from below, it is a bullish signal. It indicates that you should buy.

Divergence: Divergence takes place when the price diverges from MACD. Divergence indicates the likely end of the current trend. Negative Divergence is when both the price action line and the MACD line are diverging and the price action is rising and MACD is falling. Thats right! The lagging indicator that is supposed to follow the price is predicting future behavior of the prices in the market. It is an indication of the change in the currency trend.

When MACD expands dramatically, this happens when the shorter moving average pulls away from the longer moving average. It is an indication that the currency is overbought/ oversold and may return to normal soon.

One thing should be very clear. All the above three cases are important and should not be overlooked. However, none of them are signals for a trade. For example, MACD Divergence is tradable when confirmed by other indicators. If you simply start trading on MACD Divergence, it may not yield a profitable trade.

However, when confirmed by other technical indicators, success is more likely. This is because of the fact that several things are happening at the same time. Each is attracting the same bulls and bears into the trade that you are planning to make. So you have to confirm your finding with other technical indicators.

When you use MACD, crossovers and dramatic rises are easy to spot. However, spotting MACD divergence comes after a little practice. - 23217

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Learn Forex Nitty Gritty. Try Netpicks Forex Signal Service.

Forex Megadroid Review Automated Forex

By Frank Rivera

Since the successes of the FAPTurbo, there have been many scalping robots released into the market that are little more than cheap copies. The majority of them don't have the track record of successfully profitable trades and this has led people to avoiding them, believing they were rip-offs. Unfortunately the Forex Megadroid was released at a similar point in time and people instantly assumed it was just another knock-off robot. The truth is there is a lot more substance behind the Forex Megadroid robot than meets the eye.

What makes Forex Megadroid stand out from the others? This expert trader is able to be used with any MetaTrader 4 forex trading platform, so this gives you plenty of options for choosing your broker.

This robot trades in the pre-Asian trading session and you'll find that it offers one extra currency pair than FAPTurbo can offer. The EUR/USD can display reasonable spreads throughout the pre-Asian session so you'll find that there are frequent opportunities for trades.

One of the biggest stand-out features of this robot is the level of trading accuracy offered. It boasts a higher accuracy rate than the FAPTurbo and many of its other competitors of up to 95%. The difference in trading strategy is also noticeable. Instead of placing several smaller trades each day, you may only see one or sometimes two. While this may seem as though it's trading less, the higher level of accuracy means your profits are higher overall.

The major difference is that it places noticeably fewer trades, but the win percentage is also reported quite a lot higher too. At a reported 95% trading win percentage this is quite an impressive robot.

This robot doesn't have a lot of customization like FAPTurbo, which makes it the perfect robot for beginners. You just enter in your receipt number and what you're willing to risk per trade, and it does the rest. It will even factor in the risk percentage into the stoplosses, so it won't lose more than you're willing to risk.

If you've never traded on the forex market before, then this robot is ideal. The easy to follow guide can show you how to get your account up and running with your robot so you could be making profits within minutes.

In conclusion, the Forex Megadroid is a quite effective trading robot that has a few similarities to the FAPTurbo, but also has the notable difference of having a higher accuracy rate and uses a different currency pair. While the amount of trades might be lower, the win rate is higher for those trades is does place. - 23217

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