4x Currency Trading: Forex Money Management Basics

By Phil Jarvie

is 4x trading easy? Or is it hard? It really is neither. 4x trading is just different. It is nothing like trading stocks, bonds, shares, options or warrants. It is 4x trading. It is the home to emotional investing, 4x gambling losers. So, to protect yourself you need to understand the rules of Forex Money Management, and the first rule is:

Forex Money Management means not losing money. Forget for now all issues of making huge profits. The first rule is all about not losing money.

The 4x market turns over more cash in 1 week than the whole USA economy does in 1 year. But add to that concept, how much does every up and down tick in the market all add up to? How many pips movement in a day do we miss? Forget about it. There is no such thing as Albert Einstein and the theory of everything with 4x trading. No super computer can help you. 4x robot software is useful but clumsy at the micro level. Missing opportunities is a big part of forex trading. The real heart of the matter is not losing money. Profit is about making profitable trades only.

Forex money management is essential to protecting us from our emotions and it quite simply means we never risk more than 2% of our trading account.

But let's get creative with our highly leveraged 4x trading and our forex money management rule. I have a $10,000 trading account. That means I am only allowed to risk $200 of my account on any trade. If I am trading full lots, that means I must set my stop losses at 20 pips. But on extra wildly fluctuating days, I like to trade 5 lots. That means I must set my stops at 4 pips to follow the forex money management rules. How to give the trade room to breath?

I'm sure you think I am crazy, but hear me out. Open up your forex platform software of choice - metatrader is fine. You want H1 hourly chart for EURUSD on the 19th of August, 2009. Note the huge rise of the Euro from 1.4111 to 1.4265 in 3 hours - all of which happened after bad USA economic data and a billion dollar trader from the Middle East put his weight behind the Euro at the same time.

Not even a super computer could predict to buy at 1.4111. News traders would have got on board based on the USA problems sure. But actually, I was lucky enough to be already long a few hours earlier. But with only a 4 pips stop loss? Luck or stupid?

Fact is I was going out shopping with the girlfriend and I had trading signal software telling me I should be long. So I had placed 2 pending orders. The first was a 5 lots pending buy limit order at 1.4080 (in case of a dip in my favor), and to cover this potential and to obey forex money management rules, I also placed a 5 lots pending sell short order - one cancels the other out should they get executed.

As it turned out, the market did dip down to 1.4069 and I was in for both buy and sell orders cancelling themselves out. When I got home the sell stop order was in profit, and my buy was at a loss. But the net effect to my account was only the 0.9 pips spread. I waited for an hour, the Euro rebounded, I closed my sell trade at break even and let the buy trade continue. Joy oh joy it then went seriously into the money a few hours later on the USA's bad news.

After an exciting few hours at the screen I watched that long position go crazy into profits, and so I switched it to a 20 pips trailing stop, which it did do at 1.4245. That was a tidy, ultra low risk, $8,250 profit on the day. 82.5% profit on a $10,000 trading account while I went shopping. The first rule about forex money management was never broken. I was never at risk of losing 2% of my account.

First rule of Forex money Management: Don't Lose Money. Never risk more than 2% of your capital. Hedging. - 23217

About the Author:

Phil Jarvie is a professional forex trader expert in 4x trading, 4 software and using 4x hedging for forex money management and may wish to visit his website to consider his reviews on trade foreign currency

Are You Aware Of Some Bankruptcy Alternatives To Keep From Filing Bankruptcy?

By Emma Elvie

When people are struggling with their finances are they are searching for some bankruptcy alternatives they usually find themselves coming to the internet. We all want to know what we can do about our finances that will help us get back on our feet.

If you have found this article then most likely you are seeking some bankruptcy alternatives that will help you save your credit. Even though bankruptcy seems like the only choice you have the truth is that it will ruin your credit very quickly.

We are well aware that some people have absolutely no choice but to file bankruptcy; however we wanted to make people aware that there are some alternatives to bankruptcy that they can look into before they make the decision to file.

It is extremely important if you are struggling with your finances that you find someone that you can talk to about your situation. We as a society seem to put off all our financial issues until it is too late and then we find ourselves trying to find ways to overcome bankruptcy.

One of the best things that you can do to get back on your feet financially is to find ways to begin making more money and saving more on a monthly basis. One of the main reasons that people who struggle with their finances is because they do not make enough money.

As a society we are well known for being impulse buyers and spending money on things that we really do not need. In fact most of us find ourselves spending money on things that we really do not need and we do not really care if we have the money in the bank account or not.

We all know how difficult it can be to save money or make your monthly payments when you are not making enough. This is one of the main reasons that you should visit the site below to find some information that you can use as bankruptcy alternatives and get your finances back on track. - 23217

About the Author:

Alternatives To Bankruptcy Stop Before It Is Too Late! Declaring Bankruptcy And Still Working

Currency Market Trading: Forex Currency Trading - What Is The Difference?

By Phil Jarvie

Many variations on the terms exist, including 4x trading, fx currency trading, forex currency trading, currency market trading, fx exchange and the list goes on and on. The main point is that it is all about buying and selling international currency, and the forex currency market is where the price is constantly being set in real time with each country being paired with another.

Confusion about the long list of names for it comes from the fact that not many people know about it. With the Internet, investors became active and excited for share trading, options trading, warrants trading and even futures trading. However most people/investors have not really (yet) expanded their horizon to include forex currency trading.

Most people did not really notice the liberation of forex currency trading from the clutches of the banks and large corporations. The big boys had a monopoly on forex since the dawn of International trade, until the Internet also gave way to Forex currency trading by small and micro-sized currency market trading.

I find it interesting and ironic that so many people have not yet discovered forex currency trading and yet they know the stock market so well. After all, the forex currency market turns over more cash in one week when the entire USA economy struggles to do a similar amount in the entire year.

Besides the sheer size of the forex currency trading market, well maybe because of its size and International, cross-borders nature; it is beyond the ability of any nation to control it with useless regulation and price fixing. There is no way to centrally control forex currency trading. Like, if/when the USA make new rules to try to control or manipulate forex, people simply move their cash to another jurisdiction. The operation a free market only truly exists with currency market trading.

Stocks and shares have mostly been manipulated and are only slightly influenced by the operation of the free market. Law and lawyers, misleading press releases by big business and/or outright fraud will always be found in the boom or bust cycle of share trading. Forex currency trading on the other hand is simply too big. Governments cannot write laws which can be manipulated by lawyers. Big business is tiny by comparison, and can only report their forex gains or losses to their own balance sheets; none of which could influence the total currency market trading system.

5 billion Euros is a lot of money. Let's assume a very large player or even Government steps in to the forex currency trading market and lends support to the Euro. Unless the USA at the same time announce some poor economic data at the same time, that 5 billion Euro would have little or no effect when you consider that 2,500 billion Euros are traded on every normal day. Currency market trading is honest because it is too big to fool the free market's operation.

Given that big business and Governments are powerless to control or corrupt the forex currency trading market, what chance does the little guy or gal have? Every chance and the same chance as the large player does, simple as that. The only difference you will find is the points spread that bigger and smaller forex traders pay. I pay 0.9 pips anyway, so I am not concerned about that at all. My main concern is that currency market trading is a level playing field that cannot be rigged - and it cannot. So, that leaves the very smart 4x trading software like metatrader and forex robots we all have available, and the best of proven forex strategies we all have the ability to learn. We all have the power to work to a successful money management plan.

Feel free to visit my website where I go into great detail about currency market trading, the many forex robots and expert advisors available, and also what forex strategy can do for your forex currency trading. - 23217

About the Author:

Phil Jarvie writes extensively on 4x trading related matters and is an experienced forex trader. Feel free to visit his free website for details on forex robots, expert advisers, 4x trading, 4x trading software and currency market trading and forex currency trading articles.

Decreased Volatility Breakout Strategy (Part II)

By Ahmad Hassam

Third Stage-Aging Trend: Aging trend is the period of consolidation as the trend comes to maturity. This is the period where lot of profit taking will take place. As the momentum of the trend exhausts itself, volatility tends to decrease at this stage of the trend.

Both the bulls and the bears are hesitant to make daring moves at this stage of the trend. Experienced traders now know that the trend has aged and it is the best time to get out of the trend. They try to get out of their trades at this stage of the trend by closing their positions. This satisfies the appetites of inexperienced traders as they consolidate their positions by taking on the positions abandoned by the experienced traders.

This is the period of consolidation and the prices tend to stay calm during this period. Currency prices have moved by a large amount in the previous period of high volatility. The trend takes a short break and the volatility is low during this stage of the trend.

End of Trend: This is the time when the prevailing trend ends and reverses itself after some new information is revealed about a currency that changes the mass opinion. This results in the rapid adjustment of prices within a short time as the market players tend to absorb the information.

Many stops will get triggered during this stage of the trend. Especially if they have been caught on the wrong side of the market, traders become desperate to get out of their positions. Most know that the trend has come to an end. The best way to preserve their profits is to get out of the trend as early as possible. Experienced traders had already gotten out of the trend during the aging stage of the trend. Most of the traders who are trying to get out now are inexperienced traders.

There is a sharp follow through of the prices in the reversed direction during this stage of the trend. Now you know and understand that within a trend, currency prices can experience decreased volatility followed by increased volatility as the crowd psychology keeps on changing.

Decreased volatility can be found during trending or ranging phases. Traders with open positions during this low period of volatility are the most vulnerable to unanticipated news.

When the market shift from high volatility to low volatility or vice versa, this time can be used to profit from the change in volatility. During this time gains can be made from the unsuspecting players and this is known as the Decreased Volatility Breakout Strategy. Deceased volatility provides an excellent opportunity to traders to prepare and profit from an imminent change from low to high volatility.

But the success of this strategy lies in measuring the volatility of the forex market correctly. There are several technical indicators that can help you visualize the volatility in the currency prices.

You can use triangle patterns as one of the best indicators of decreasing price volatility in the currency price charts. Combine the triangle patterns with technical indicators to confirm or deny decreasing price volatility. Two of the most useful indicators that can help you measure the volatility of the currency prices are: 1) Moving Averages and 2) Bollinger Bands.

When a particular type of triangle has been identified by the trader, a high probability trade may be in sight. All triangles show decreasing price volatility in the forex market. You can take advantage of the decreasing price volatility in the forex market through identifying the triangle formations. - 23217

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Get Netpicks Forex Signals Free. Learn Forex Trading!

Important Penny Stock Info

By Rashel Dan

Operating penny shares is like going into an auction. How does it start? An asking price is set at the lowest value and then when the bidding starts, the price rises. If you're the seller, you check your starting price and compare it with the current bid. If your selling price is met, you trade and then the transaction is closed. The difference with an auction is that the price doesn't go down. Stock prices do. Today there a number of techniques being developed to monitor your penny stock info and bidding.

Doing Research - Any active stock investor would tell you that you have to do your own research. While penny stock advisors and brokerage firms help in facilitating your sale, it is always helpful to have your penny stock info ready when needed. The more you know, the better your opportunity to gain profit. The more you understand the trade, the lesser your chances of falling into the pit.

But sometimes, because of the availability of free information in the internet, it can be a bit difficult to make decisions. Especially if you are new to the business, experience is your better half. Be attentive and be very alert about fabricated information. This is a trading business and it involves money. You have to be able to know which penny stock info is reliable for your use.

Softwares are being developed to help small cap investors and stock brokers monitor the stocks. The moment your stocks are pegged, it can be a roller coaster ride. Thus you need to stay close to the facts and observe your investment in the penny stock market. Here are some tips and information about how the transactions are made:

- Buying Penny Stocks - Set your funds ready and be sure you'll be able to pay the shares and your stock broker's commission.

- The Ticker Symbols - These are initials or abbreviations of companies that are selling their shares to the public stock exchange. This is standardized for easy management, inventory, and recall.

- Stock Exchange - The more dependable stocks are being traded in major stock exchange. Examples are NASDAQ, NYSE, and AMEX.

- Volume of Shares - Of course, you must be clear on your penny stock info sheets how much of the shares you want to buy or sell. But beware and don't fall into extra commissions being charged to you.

- The Open and Closing Dates. These are dates that you set your stock to be available for sale. This must also include active dates (dates when your shares are still open for bid) and the date when you hope to close your stocks.

- Selling The Penny Stocks - It is important to take note of the above mentioned - the volume of shares to sell, ticker symbol, names of the stock and the stock exchange.

- The Share Price and the Dates - Again it is important not to miss out the selling price and the time span to which your stocks are active and open for bidding.

This isn't all. But this article doesn't intend to give you any penny stock info overload. Too much technical knowledge may not be a good practice. Take this investment carefully. Your penny stocks are good money and therefore delicate. Make haste slowly. - 23217

About the Author:

Begin your career in penny stock trading. Find reliable penny stock pick online.