10 Golden Rules for Stock Trading Success - how to understand forex trading charts

10 Golden Rules for Stock Trading Success ~ how to understand forex trading charts

Your stock trading rules are your money. When you follow your rules you make money. However if you break your own stock trading rules the most likely outcome is that you will lose money.

Once you have a reliable set of stock trading rules it is important to keep them in mind. Here is one discipline that can reap rewards. Read these rules before your day starts and also read the rules when your day ends.

Rule 1: I must follow my rules.

Naturally if you develop a set of rules they are to be followed. It is human nature to want to vary or break rules and it takes discipline to continue to act in accordance with the established rules.

Rule 2: I will never risk more than 3% of my total portfolio on any one stock trade.

There are many old traders. There are many bold traders. But there are never any old bold traders. Protecting your capital base is fundamental to successful stock market trading over time.

Rule 3: I will cut my losses at 5% to 15% when I am wrong without question.

Some traders have an even lower tolerance for loss. The key point here is to have set points (stop loss) within the limits of your tolerance for loss. Stay informed about the performance of you stock and stick to your stop loss point.

Rule 4: Never set price targets.

This is a style that will allow me to get the most out of rising stocks. Simply let the profits run. Realistically, I can never pick tops. Never feel a stock has risen too high too quickly. Be willing to give back a good percentage of profits in the hope of much bigger profits.

The big money is made from trading the really BIG moves that I can occasionally catch.

Rule 5: Master one style.

Keep learning and getting better at this one method of trading. Never jump from one trading style to another. Master one style rather than become average at implementing several styles.

Rule 6: Let price and volume be my guides.

Never listen to any opinion about the stock market or individual stocks you are considering trading or are already trading. Everything is reflected in the price and volume.

Rule 7: Take all valid signals that show up.

Dont make excuses. If an entry signal shows up you have no excuse not to take it.

Rule 8: Never trade from intra-day data. There is always stock price variation within the course of any trading day. Relying on this data for momentum trading can lead to some wrong decisions.

Rule 9: Take time out.

Successful stock trading isnt solely about trading. Its also about emotional strength and physical fitness. Reduce the stress every day by taking time off the computer and working on other areas. A stressful trader will not make it in the long term.

Rule 10: Be an above average trader.

In order to succeed in the stock market you dont need to do anything exceptional. You simply need to not do what the average trader does. The average trader is inconsistent and undisciplined. Ask yourself every day, "Did I follow my method today?" If your answer is no then you are in trouble and its time to recommit yourself to your stock trading rules.

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10 Good Reasons why YOU should jump into Trading FOREX - how to read forex trading charts

10 Good Reasons why YOU should jump into Trading FOREX ~ how to read forex trading charts

Foreign Exchange Market is a market where traders buy and sell currencies with the hope of making a profit when the values of the currencies change in their favor. People are making vast amounts of money from Forex trading. The Forex Market has a big potential for everyone, ranging from large corporate firms to ordinary, everyday people like you and me.

It is a very exciting trade with a huge money-making potential. Just imagine yourself sitting comfortably in your pajamas at your computer… you turn on the internet and make a few quick transactions and by the time that you get up to get a cup of coffee, you are several hundred dollars rich! Would you like that? I would!!

I can hear you say, “Wait a minute!!  This sounds just like another one of those confusing markets like stocks, options or traditional futures, so what makes this market any different?”

Aaah! Good question! So, in answer to your question, here are 10 good (if not great) reasons to enter the Forex Trade:

1. First and foremost, Forex trading allows for small investments. You do not have to be able to invest thousands of dollars to get started with this trade. You can start trading Forex with as little as $300 to $350 and could be well on your way to earning more than that on your first day.

2. The Forex markets are always open! You are able to trade anytime and from anywhere in the world. No waiting for the stock exchange to open. The market is ongoing, with generally only minor breaks on the weekends.

3. The funds that you invest are liquid; you can cash them anytime you want. No waiting for days to get your stocks converted into hard cash.

4. The value of the Forex Trading market is COLOSSAL: it is 30 times larger than all of the US equity markets combined. It is the largest market in the world with daily reported volume of 1.5 to 2.0 trillion dollars. This massive value makes it a lucrative and desirable trade to invest in.

5. It is a highly stable trade and offers greater strength over other markets. Countries and people are ALWAYS going to need currency. Although the value of different currencies goes up and down, the fluctuations are not as dramatic as stock prices and generally follow a predictable trend.

6. You do not have to worry about commissions, exchange fees nor any hidden charges when you trade Forex.  Forex brokers make only a small percentage of the bid and there are very respectable and free brokers available as well. Is that not wonderful for you?

7. You make profits no matter which way the currency is going. You will not worry about a falling currency value if you know what to do with it and make good gains.

8. Forex is a very transparent market. Unlike equity markets, where analysts have an unfair advantage over the layman because of their insider knowledge, the relevant information for Forex is equally available to every one through international news. Therefore, all Forex traders are in a position to make pertinent decisions according to the current market situations.

9. Forex market is extremely quick! It takes not more than 1 to 2 seconds to complete your transactions because it is all done electronically, online and in Real Time.

10. The final good news is that you do not need any formal education, licensing, diploma or degree to trade Forex. All you need is the know-how of how it works, trading strategies and some tips and techniques and you can be on your way to earn big profits.

Forex trading online may be the fastest path to financial freedom and an end to all your financial worries. It truly is an excellent, if not THE best home business opportunity for ordinary people.
You owe it to yourself to give it a try!!!
Prosperity and happiness to all!

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Week of October 04 to 10 (updated) High Impact News Calendar - forex trading tutorials+free download

Week of October 04 to 10 (updated) High Impact News Calendar ~ forex trading tutorials+free download

Week of October 04 to 10 , 2015 | High Impact News Calendar

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Forex Technical Indicators Revealed - forex trading four hour chart

Forex Technical Indicators Revealed ~ forex trading four hour chart

The forex market is said to be one of the largest places known to the business people. Trading has become a part of mans life since time immemorial. Needless to say, it is an opportunity that provides better earnings in relation to the released investment. Hence, it is an endeavor which requires you to gain an in-depth knowledge regarding the types of technical indicators that basically prove to be really useful. By combining two or more of them, you increase the probability of obtaining a full knowledge of the steps which you need to take on as you continue with the opportunity of earning a generous profit.

Technical Indicators and their Advantage

Many of the traders are encouraged to make use of the technical indicators. Even more, the pros still trust them. How much more for a beginner like you? They are the mathematical formulas that govern the respective indicators. Studies reveal that they are very accurate too only that they dont really come up with a complete analysis. What these tools can do is to show you the tendencies in the market.

Your mere presence in the stock market suggests that you have a perfect goal and that is to earn money and generate a great deal of profit. You should not forget though that the market is volatile. Meaning, its instability paves way to a number of changes that may occur at any time. Thus, these indicators are the perfect tools that can tell you as to whether it is good enough to buy or sell commodities or securities.

As you opt to utilize the indicators, it is likewise very pertinent to remember that many of the formulas include jotting down the derivatives. This goes to show that the data is not obviously direct. That is why it is often helpful to consult more than one indicator to be able to draw a clearer picture. After all, it will never hurt to check out the accuracy of your conclusion.

Four Basic Classifications of Technical Indicators

Whether you prefer to trade forex, stocks, or other commodities, it pays off to think about obtaining a solid foundation that may serve as your guide. Again, it is very significant to pick out those which you know are already proven to work and those that you can comfortably use.

The trend indicators. Moving averages, Parabolic SAR, and MACD are just some of those that make up this group. By looking into the movement of the trends, you can decide on the level at which you can start trading.

The momentum indicators. These are considered to be the oscillating indicators and are most clear-cut in pinpointing the overbought as well as the oversold positions. Similarly, they show the signals for any new trend. Stochastics, RSI, and CCI are just some of those momentum trend indicators.

The volume indicators. The name itself tells you that the price movement is very much dependent on the volumes of the trades. Generally, the price movement which is rooted from a high volume gathers a fairly stronger signal compared to one which is inspired by the low volume. Examples of which include the force index, money flow index, ease of movement, Chaikin money flow, and many others.

The volatility indicators. They normally look into the ranges that define the volume that lies beneath the movements and the price behavior. The common examples include the average true range, Bollinger bands, and the envelopes.

There you go with the four groups of technical indicators that will steer you as you work on achieving the best of the profits from the forex market.

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10 Advantages Savings Plans Have That The Forex Does Not - how to learn forex trading charts

10 Advantages Savings Plans Have That The Forex Does Not ~ how to learn forex trading charts

1. Safety. In general an investment paying 12% interest is not as safe as one paying 6%, but it is doubtful if the 12% investment involves twice the risk.

If the income offsets the additional risk or provides a reserve against which to write off losses when they eventually come, then high yield investments justify themselves, and they do when they are chosen with intelligence, with information at hand on the investment and when they are administered carefully, as we will see.

Along with this general theory that there is a good deal of merit to investing in high yield opportunities, safety should be stressed. This leads us to the second characteristic of the investments we are going to examine.

2. Collateral or guarantees. A home owner may show you his bank account and also prove that he owns his home free and clear, so that you conclude that he is a good risk whose signature on a note is as good as gold but it is far wiser for you to take a mortgage on his home. Or if he has securities it is better to have him assign the securities to you than just to take his promise to pay.

If a dealer sells you a customers conditional sales contract on an automobile he sold on which the customer is obligated to pay in time payments over a given number of months or years, it is well, if possible, to have the dealer guarantee the contract in case the customer defaults. Two people are obligated to pay, and certainly two are better than one.

3. Provision for easy repayment. If someone borrows $2000 from you at an attractive rate of interest and promises to repay it at the end of 12 months with 15% interest, the proposition on its face is a bad one. If he needs the $2000 now, what assurance is there that he will have it to repay at the end of 12 months? Such a sum is not small. Does he intend to borrow from Peter to pay Paul at the end of a year? In New York City a seemingly very substantial man did just this for years and got away with it until he died. That was over two years ago and the creditors are left holding the notes.

Periodic, small payments are a sensible requirement, and it must be demonstrated that the debtor can make these payments out of his income when all of his obligations are taken into consideration, and these obligations must be known.

4. Responsibility for payment. Some individual or individuals, or a corporation composed of very distinct individuals must be obligated to pay in the type investment we are talking about. Unimproved land on the edge of the city may be a fine investment. Some day it may double or even triple in value, but what we are trying to emphasize is the type of investment in which there is an obligation on the part of a person or persons to pay a given amount at a given time or in time payments, and you as the investor must look to this person or these persons to pay you on the due date.

5 .Liquidity. The longer a contract runs the less liquid it is and generally the less desirable. You cannot get your money out of it for a long time, and then the business or the business climate may change. The person who lent $10,000 in 1928 for five years in all probability had difficulty in collecting in 1933. A demand note is certainly preferable to a five year note. You may have need for the money sooner than you thought when you made the investment, and if you are tied up for five years you cannot get your funds back. Perhaps better opportunities will present themselves. Stay as liquid as possible.

6. Spreading of the risk. If you have $10,000 to invest it is best not to put it all in one place into a mortgage for instance. It is far better to put it into five mortgages of $2,000 each. The $10,000 mortgage could be defaulted, but there is not so great a probability that all five mortgages will be defaulted.

7. Part time administration. We are not writing for the purpose of getting a person to quit his job in order to devote all of his time to his investments. We are writing for the person who wants to invest in his spare time and look after his investments in his spare time. The investments described here may in some cases require more watching than others he has made, but by definition they must require a minimum of administration on the investors part. Payments must be made regularly, and the skipped or late payment must be the exception.

8. Business functions performed by someone else. You as the investor should not undertake to perform any business function. The only function you should perform, once the investment is made, is to receive the payments, and in the event that payments are not made, you should be able to resort to a simple procedure at law to retrieve your money. If you invest in a filling station you should not have to hire a manager and then proceed to sell gas and oil yourself, under our definition of the type investment discussed here. The filling station should be leased to a major oil company for a fixed rental, and the oil company should perform all of the business functions.

9. Investment not subject to litigation. When a debtor cant or wont pay, the first thing he thinks of generally is some defense (and his imagination is unlimited on this point) against paying you: you had agreed to lend him more at the end of a year, and because you did not lend more his business failed. Or the rate of interest you charged was usurious and thus contrary to law; or you really owed him something before you ever lent him the money, and this should be an offset against what he owes you. These defenses are used almost every day.

If he signs a note, he should sign a waiver of judgment note (in states which recognize such notes) and such a note will be described later. Your investment should not be subject to litigation, and you must be sure of this fact before you make it.

10. Tax advantage. The Internal Revenue Code and Regulations state what the obligations of a tax payer are and what they are not. You are obligated to pay every cent you owe, and you are not obligated to pay what you do not owe.

Certain types of investment are more heavily taxed than others. There is nothing the matter with investing in state and municipal government bonds just because you do not pay any federal income tax on the interest. This is the law, and it works to the advantage of the investor in government bonds and incidentally makes it less difficult for the state and municipal governments to finance their operations. Investments with a tax benefit or tax shelter are more desirable in many cases for the investor than those without such a benefit or shelter.

However the Forex can make you rich within months instead of years.

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