Forex Trading & Dirty Harry

In the Film "Dirty Harry" starring Clint Eastwood, the character Dirty Harry has a villain in the sights of his famous magnum hand gun.

A few inches away from the villains hand is the villains gun.

It's a tense moment in the film while the villain decides whether to go for his gun on the assumption that Dirty Harry's gun is empty - or to surrender.

Dirty Harry then utters the immortal line "Are you feeling lucky punk, well are you?"

Of course, Dirty Harry knows that he [Dirty Harry] has an extremely high probability of a successful outcome to this encounter.

A common thread amongst many novice (and some not so novice) traders is that have been placing trade after trade and at the end of the day/week/month they are not doing as well as they expected.

Does this ring a bell?

One of the greatest myths in trading is that an "active" trader is one who spends their entire trading day placing trade after trade.

Some even believe that the "active" trader places trades on several different currency pairs simultaneously and as soon as one trade closes they open another.

Many novice traders spend their whole time looking for trading opportunities and become very dismayed if they cannot find one - believing that the market should somehow provide the ideal opportunity for them whenever they desire to trade.

These are the very myths and miscomprehensions that cause many novice traders to produce poorer results than they would have wished for.

In truth, the active and successful traders are the ones who spend their trading time studying the charts, assessing the possible impact of pending news releases and watching for all of their indicators to move into perfect harmony.

Then they start looking for reasons NOT to trade.

Yes, I'll say that again - They start looking for reasons NOT to place a trade!

If after looking for reasons NOT to place the trade, they cannot find any, then they know that this will be a high probability of success trade.

Then, and only then, they enter that trade. Successful active traders understand that opportunities need to be watched and waited for.

They understand that great opportunities regularly come along, they just need to be ready to take advantage of them when the time is right.

Successful traders know that they cannot force the pace - the market dictates and they respond, but they only respond when the conditions are as near perfect as can be expected in the forex market.

Does this take a lot of self discipline and self control? Yes.

Does it make a lot of difference to their overall trading performance? You bet it does.

Next time you believe that you are ready to place a trade, try looking for reasons NOT to place that trade. You will be amazed at the difference that this procedure will make to your trading.

In future, before you pull the trigger, you need to have the assurance of knowing that you have the highest probability of success - just like Dirty Harry had - and to not be asking yourself "am I feeling lucky punk, well am I!!!"

By:

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Martin Bottomley is a full time professional forex trader, acknowledged author, forex tutor and co-developer of forex trading software including The Amazing Stealth Forex Trading system. You will find more information at: www.stealthforex.com

Advantage of Online Auction Site

By: Jason. Campbell.

Online auctions have become a way of life for internet users. Websites like eBay have pioneered the concept of online auctions and people from all over the world have started buying and selling products on eBay. Compared to traditional e-commerce sites, the auction based e-commerce model has certain advantages:

Worldwide Access

The biggest downside of traditional e-commerce sites is that they are usually restricted to a particular geographic location. For example, an Indian buyer can only buy US products if he pays hefty international shipping, and there is a chance that the US seller does not offer international shipping. Online auction sites are the ideal ground for people to meet buyers that are from the same country or offer international shipping. For example, an Indian buyer can find other Indian sellers through online auction sites, something that was not possible with e-commerce sites.

Another advantage of online auction sites is that there are no geographic limitations whatsoever. People from all over the world can access online auction sites and buy and sell products and the reason for the phenomenal success of online auction sites is their amazing world wide coverage.

No time constraints

Since online auction sites are accessed by people from all over the world, there are no time constraints whatsoever. A user from India does not need to wait for the US office to open before putting up a product for auction. Similarly, a person does not need to wait to place a bid and like the forex market, online auction sites are open 24x7 the year round.

No restrictions on products

Unlike traditional e-commerce sites, auction sites are not restricted to a particular group of products. Users can buy and sell anything from teddy bears to cars on online auctions sites. Traditional, e-commerce cannot compete with online auctions sites as it would require a considerable amount of money to stock and store such a wide variety of products. Online auctions sites epitomise the term ‘one stop shop’.

Competitive for both buyers and sellers

Online auctions are advantageous to both buyers and sellers. Buyers can find the most competitive deal possible. Most online auction sites have more than one seller offering the same product, and buyers can buy products from a seller that is offering the most competitive price. Similarly, a seller can choose to auction products at a minimum price and anything over and above the price is a bonus for the buyer.

Interestingly, a seller can choose not to sell a product if the minimum auction price is not met and many sites allow sellers to retract their auction if they feel the transactional will be ‘counter productive’.

Better than traditional buying and selling

Users of online auction sites enjoy the thrill involved in winning an auction, and auction sites are far more interesting and competitive than usual e-commerce sites. Since, auction sites are not gambling sites; people that enjoy using their wit to find a good deal are thoroughly enjoying the online auction process.
For online auctions in the UK visit www.endlineauctions.com

Jason Campbell is the author of this article on online auction site. Find more information about auctione here.

An Introduction to Forex Currency Trading

Are you thinking of investing in the Forex Market? Here's a basic introduction to get you going.

The Forex Market, also referred to as FX or foreign exchange trading, is potentially the most lucrative market that you can trade in. The Forex market is huge, with a turnover of around $4 trillion dollars every day.

How it works is that one currency is exchanged for another in the hope of making a profit when the exchange rates changes. The exchange rates are constantly changing and can be affected by national events, market news and even the stock exchange.

Until recently FX trading was almost entirely in the hands of banks and institutions with large investment funds. With the rise of the internet in recent years ordinary people can now also access the market.

Currencies (each represented by 3 letters - e.g. US Dollar is USD) are traded in pairs. Every trade involves the buying of once currency pair and the selling of the other currency pair. The eight most popular currencies pairs are:

EUR /USD: Euro / US Dollar

GBP/USD: Pounds Sterling / US Dollar

USD/JPY: US Dollar / Japanese Yen

USD/CHF: US Dollar / Swiss Franc

USD/CAD: US Dollar / Canadian Dollar

AUD/USD: Australian Dollar/ US Dollar

NZD/USD: New Zealand Dollar/US Dollar

The benefits of trading on the Forex market are:

• You do not need a large amount of capital. You can do leveraged trading through a brokerage where you invest a small amount and can then trade with tens of thousands of dollars.
• The cost of trading is low as brokers do not charge a fee or commission, but instead earn their money on the spread (the difference between the buy and sell prices of a currency).
• The Forex market is very easily accessible as it is open 24 hours a day, 5 days a week and you can trade in your own time zone, whenever it is convenient for you.
• You are not limited to trading in your own country. You can trade any two currencies no matter where you live.

Please remember that as with any investment there is also the risk of losing money. You have to accept before you start that you will lose some trades. Therefore it is important that you never trade with money that you don't have. Only trade with money that you can afford to lose.

You can minimize the risk of losing your money by finding a profitable trading system with clear strategies and then to stick to the system and your decisions. Keep clear records of all trades and try to learn from your results. It might also be a good idea to invest in a forex robot, which will do trades for you according to its programmed system.

If you want to learn more about forex trading, please visit my site at: http://www.helpmetradefx.com. Articles are added almost on a daily basis. You can also check out my review on the new Forex Megadroid.

How to Find a Forex Advisor

If you're interested in foreign currency trading it's important that you find a Forex advisor. When looking for a one there are several things you need to be aware of.

You need to be aware of how long they have been trading on the foreign currency market, what their overall profit is throughout the years they have been trading, and you should probably also know about their trading strategy.

When looking for Forex advisor you need to check their past history. Paying a Forex advisor that is only been active in the market for a year or two is not a suggested idea. With the volatile market the way it is today, things are happening very quickly and it's all new to most Forex traders.

Choose a Forex trading adviser that has been in business for at least 10 years. This tells you that they have an overall profit over the years that is in the black. While this success over a 10-year period is advisable it is no guarantee of you making a profit.

Your Forex trader also should have a strategy in place for the short term as well as for the long term. It's all up to you and how you'd like to trade your money, as a day trader, or as a long-term trader.

Your Forex trader should reflect your interest in how you trade. In other words, don't choose a long-term Forex trader advisor if you want to trade on the short term.

Many people wind up jumping into the Forex market without really knowing what they're doing, and of course, they lose their money. If you are considering the Forex market as a way to invest your money make sure that you choose the best Forex advisor for your own personal strategy.

Sign up for John Eather's Free eCourse on finding a Forex advisor. Keep up to date with the latest info concerning Automated Trading. Go to http://www.moneymakingfxtrader.com to get more details.

Basic Terms in FOREX Trading

The trading mechanisms of the FOREX market are similar to other major financial markets (such as the stock and commodities market). The purpose of investors and speculators in such markets is to make a profit, by buying low and selling high. The case in FOREX markets is no different.

Nevertheless, there are certain trading terms that are distinct to the FOREX market. Here is a short list of some common terminologies used. In the FOREX market, currencies are traded in pairs, where investors and speculators invest on the value of one currency against another. The currencies traded in the market are usually paired with the US dollar. For online trading, these currency pairs are represented by 6 letter codes, representing both currencies. The first three letter of the code is represents the stronger currency and the last three represents the other currency. If a trader trades on the value of the British pound against the US dollar, the code used would be GBPUSD.

The value between the two currencies is represented by a five-digit number. For example, if the current value of the GBPUSD = 1.6266, it represents that 1 British pound is worth 1.6266 US dollars. The change in the smallest unit in this figure is called a point. For example, if the value between the two currencies have changed to 1.6268, this means that the value have moved by 2 points.

In FOREX trading, traders enter the market as either a buyer or a seller of selected currency. The price that the seller is willing to sell at is known as the 'Ask' price while the price that the buyer is willing to buy at is known as the 'Bid' price. There can only be a successful trade where the Ask and Bid price is the same.

Thomas Strignano is a retired Chief Foreign Exchange Trader for a major Italian Bank. His 20 plus years of trading(Market Making) in the commercial Forex market makes him an expert in the field. He has developed his own proprietary trading systems and tested them real time in the interbank market. He has trained a number of Forex traders to be profitable, some who are still active at Major International Banks. Tom s major focus is on market timing techniques with technical analysis, forecasting(future) pivot points for major market moves. His overall objective in trading Forex, is use of good Money management, low risk, high reward positions. Please see http://www.forexconfidant.com

Forex Market Quick Guidance

Forex (Foreign Exchange) is the name given to world market changes. It should be noted in this context that market changes can be defined as a place where there are exchanges of currency exchange rates that can sometimes be fickle. This object follows the forex market that is, in general, interbank. The main feature of the Forex is the overall volume of transactions that occur within it. This volume is indeed very high: a factor which gives the status of the Forex market second in the world. Attention is also drawn in the wake, a large part of the total volume of transactions in London.

Advantages of Forex:

Forex has many advantages. This helps to increase its reputation among investors. Thus we note that the financial market does not require from investors pay brokerage commission. However, there are transaction costs which are calculated from the difference between the selling price and the purchase price. These transaction costs include the name of bid-ask spread on the Forex.

At the same time, its position as largest in the world financial market allows investors to acquire the certainty that the Forex has a continuous liquidity important for spot transactions. This liquidity available on the Forex also allows to reduce significantly a change of course by their manipulation. This offers, in addition, the possibility of preventing the volatile nature of exchange rates. Forex also has the advantage of always allow investors to make foreign exchange transactions. It is worth mentioning in this context, the fact that the financial market remains open from Sunday to Friday 23h to 22h. and it follows that the Forex is open almost 24/24 to offer those who wish to invest.In addition to these advantages, the Forex offers many advantages.

One can, in general, three distinct types of Forex products on the spot, foreign exchange futures and options exchange. The first product is formed from parities treated on the financial market and the second term consists of dry and foreign exchange swaps. The options exchange, in turn, offer the possibility to find a range of options.

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Forex Investment - The Risks

Forex investment is being advertised across all forms of media right now as a great way to make money. The advertisers imply that it is an easy and profitable way to invest your money and let's face it under the current economic climate we are all looking for an easy low risk option to make some extra cash. So let's take a closer look at forex, understand what it is and evaluate the true risks.

Forex is an acronym for 'foreign exchange' and forex investment trading is a form of investment by taking advantage of the movements or exchange differences between foreign currencies.

Because the rate of exchange between a pair of currencies is constantly changing, it is possible for a shrewd trader to make a lot of money by accurately predicting these changes. It's very similar to trading in stocks and shares on the stock market, you buy when the price is low and sell when the price is high.

As is common with investing in the stock market, forex traders can take a medium to long term view based on a steady drift in currency prices over a period of time. However, the advertising suggests short term gains and to be fair, this is what most forex traders do. They use trading skills and techniques to make relatively small gains over a short period and repeat the process over and over.

A forex trader will buy a currency when he thinks it will rise in price. This is called opening a trade. A closing trade is when he sells a currency because he thinks it price is about to fall. Often he will open and close a trade within minutes. The skill is in watching the markets and recognising a pattern developing which he knows from experience will lead to an upward or downward trend and thereby chooses to jump in and open or close a trade.

Many traders use a system which either they have developed themselves over many trades or they buy an 'off the shelf' system which can provide a short cut through the learning curve to becoming a successful trader. This is what most of the advertisements are trying to sell and it is necessary to be very wary about some of the claims made with some of these systems. There is also software available which automate the whole process and robots open and close the trades for you based upon parameters built into the software. There are one or two of these robot systems emerging in the marketplace now which look very promising (I post monthly reviews of such products on my blog).

With the ever increasing accessibility and popularity of the internet, brokers have seized the opportunity to attract a lot of a new breed of investor to the forex investment market - people with relatively small funds can begin with just a few hundred dollars. Many are encouraged to think that they can make a lot of money in a short time and are often disappointed. It is necessary to learn some specific skills and require a lot of self discipline to be successful. It takes time, motivation and commitment.

Some people take up forex investment simply because they are looking for a new challenge. Maybe they already invest in the stock market and are looking at other ways of increasing their portfolio of investments. These people are more likely to succeed because they have a better understanding of the risks and are prepared with sufficient funds to lose from time to time. The skill comes in making more gains than losses over a period of time.

There are many influences on the market and some of them completely unpredictable even to the most experienced trader. Take disasters such as the terrorist attack on the Trade Center in New York on 11 September 2001 for example. It is wise to set up an automatic stop loss if things suddenly turn against the trade. A stop loss is a pre-determined amount your trade is allowed to lose before it is automatically closed. A very sensible precaution.

In summary, forex investment has risk attached to it but it is a risk that can be controlled and managed provided you learn the skills, tricks and techniques required before becoming heavily involved.

Richard Meade is a forex trading consultant and publishes articles daily on his blog http://forexinvestmentmarket.blogspot.com/. He also publishes a monthly review of the latest and best forex trading products on the market. Visit http://forexinvestmentmarket.blogspot.com/ for a free review of the brilliant new Forex Megadroid software.