Archive for February, 2009

by Zubair Ahmed
If you want to become successful and survive in forex trading then there are some essential traits that you need to adopt. These traits are the characteristics of the most successful traders who have made millions in the forex market:

Discipline

Discipline is one of the top qualities that you will find in any successful forex trader. They always stick with their system and follow a plan. Discipline protects you from greed and fear by constantly keeping a proven trading strategy.

Acceptance

Acceptance of inevitable wins and losses is a valuable trait in forex trading. A successful trader develops a detachment from the market and remains calm no matter which way the market moves. He accepts losses as lessons and looks forward to future trading opportunities.

The successful trader realises that it is impossible to control the market and that losses will happen despite the best plan. Successful traders understand that a loss is not a market conspiracy, incompetence on behalf of the broker but is the reality of trading.

Mind control

A successful trader never gets driven by greed or fear but keeps his mind under control and follows the system that he has tested and proven to work. He avoids being impetuous and chasing market fluctuations, or giving up in the event of losses. The successful trader has developed detachment and treats trading as a game rather than an emotional matter.

Playfulness

To successful trader, trading forex is an intricate and challenging game. Money is not the goal, but only a way of keeping track of success.

The best traders revel in pitting their mind against the market. They apply their skills in a similar way to how a top ranked golfer tackles a new golf course. Top traders love trading, and they live, eat and breathe the market. This enthusiasm is what sustains their involvement in trading, even after they have attained massive financial rewards from the market.

Accountability

A successful trader accepts responsibility for his trading results. He never blames a third party for any losses. This means that he is open to learn lessons from the market. Refusal to accept responsibility and attempting to blame someone else would deny the trader the opportunity to fine tune his trading strategy and personal response to the market.

Follows long term trends

Following long term trends is the basic strategy for a successful trader. If you trade short term market movements then you will find it very difficult to survive in the market as these movements are very much random and can reverse any time. But the long term trends show much more consistency so they are the safest option to trade.

Jubair Ahmed is a senior writer/analyst for My Forex Trading Help, an information site offering free tutorials on becoming a successful forex trader.

Article Source: Traits of Successful Forex Traders

by Mozo Articles
As the name suggests, a term deposit is a deposit held with a bank for a fixed term. They are an increasingly common method of saving money by investing it at a low risk for a certain period of time.

In the present day, with people who have made potentially more rewarding investments only to see a negative result, it is becoming a very common approach to set aside cash where it cannot be touched for a period. If you have a lump sum and want to invest it, you could put it into a hedge fund and witness as the roller coaster takes the worth of your money up and down at the mercy of the markets, often taking your sanity with it. A much easier and stable that guarantees profits is to put it in a term deposit account.

When stock and property markets are booming, many people rightly prefer to invest their money into something more risky, as opposed to a term desposit. However, it is clear to anyone who has an eye on today’s unstable economies that a term deposit is a very wise investment at the moment. By putting your money out of commission for an amount of time, you are admittedly affecting your immediate bottom line. But the fact that you have stored it away for that duration, without any demand attached to its return, means that you have a guaranteed profit - often a greater earning than a basic savings account.

Deciding between a savings account and a term deposit is a simply a question of: do you most prefer flexibility, or do you feel it is better to wait for an attractive return? Answering this will depend on a simple question: can you afford to put this money out of reach for a spell? If you believe the answer is “yes” then you are the ideal candidate for a term deposit. If you compare term deposits to savings accounts then you will discover that the payoff is your reward for patiently waiting and believing that your investment has been the right one.

Alternatively, if you are in a position where you need to have fluid assets at all times, it does not help you to have amounts tied up in term deposits. You can essentially take out some money from a term deposit before term’s expiry period, but you will negate at least a percentage of the interest earned, and in some cases, some of the money you actually put away. Term deposits are not ideal for the kind of saver who is likely to get nervous with their money being out of commission for a spell. But, if you possibly need the money returned in twe months, or a year’s time, it would be wise to put that kind of term on it, and reap the extra money that you’ve earned while patiently waiting.

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Article Source: What Are Term Deposits - Term deposits Explained

by Moby Waller
Much has been made about the Dow Jones Industrial Average (DJIA) touching the key 7,500 level this week. Why is this level considered important from a historical and technical basis? And what are the other major indices, such as the S&P 500 Index (SPX), NASDAQ 100 Index (NDX), and NASDAQ Composite Index (COMP) showing on a long-term basis?

As you can see in the following chart, this area on DJIA marks the previous lows from November 2008 and 2002-2003 and was also an important technical level in 1997-1998, so it can be considered a strong support level. As you can see the following chart, if we do break sharply below 7,500, we are basically going back to mid-1990s levels in the Index.

The S&P 500 Index (SPX) has breached the 800 level which was significant in the past, but the 750 area is perhaps more important, and we have not yet touched that level this month. We are currently about 5% above that level.

The NASDAQ 100 Index tracks the performance of the biggest NASDAQ stocks — this Index almost touched the key 1000 level in November 2008, but currently is about 15% above that level, due to the recent general outperformance of NASDAQ stocks. Some of this is due to the lack of Financial and Energy weighting in NASDAQ Indices.

The NASDAQ Composite encompasses almost 3,000 NASDAQ listed stocks. The COMP is the Index that famously hit 5,000 in March 2000 at the height of the parabolic uptrend now known as the “Internet Bubble”. This Index bottomed around 1,100 in 2002/2003, and thus far we have remained above that level, both currently and in the November 2008 plunge. We currently stand about 25% above 1,100 on the COMP.

The bottom line is that we are dangerously close to making 12 year+ lows on two of the most widely followed indices, the DJIA and the SPX. However, we do we established support around and just below the current levels which one would anticipate is likely to hold (at least for a trading range consolidation). The NASDAQ indices have withstood the 2008/2009 drop much better … but from the bearish perspective, they indicate a potential 15% to 25% more downside to their key levels. Of course, these are very long-term charts — within the big picture multi-year trends are many short-term great trading opportunities on both sides of the market for option traders.

Moby Waller,
BigTrends Portfolio Manager & Analyst

At BigTrends.com, we monitor the stock market to provide you with the best trading results possible. At a minimum, that means helping you outperform the major market indexes. www.bigtrends.com

Article Source: Key Levels for the Major Indices

by Scott Downing
The Average Directional Index (ADX) and the Directional Movement Index (DMI) are technical indicators developed by J.Welles Wilder in the 1970s. DMI measures the strength of a stock’s current trend, positive or negative. Basically, DMI is an oscillator, which bounces between 0 and 100. DMI is usually broken down into DMI+ and DMI-, which are the postive and negative (bullish and bearish) readings. There are many ways to analyze DMI readings, but the most common include crossovers (of postiive over negative and vice-versa), movements from extreme levels, and the difference between DMI+ and DMI-.

Another use for the DMI is to identify potential changes in a stock, from trending to non-trending. An illustration would be a stock’s DMI strengthens from lower than 20 to more than 20 - this could be read as a sign that the stock is about to break out of its trading range and start a trend. Which direction? That is often where other technical indicators come into play (such as Moving Averages, Percent R, etc).

Where does the ADX come from? It is derived from the Positive Directional Indicator (DMI+) and the Negative Directional Indicator (DMI-). The ADX melds these two indicators and smooths out the data with a moving average, which gives the analyst an idea of the strength of the trend. Many think that crossovers of the 40 level on ADX indicate a strengthening or weaking of the underlying trend. Remember this does not determine the trend itself, only the strength of the trend.

In the chart below, the green line is DMI+ and DMI- is red, ADX is the black line.

Don’t let all the abbreviations confuse you, most refer to this indicator as the ADX/DMI, but you may see these indicators listed under their individual names or DI+/DI-, Wilder’s Directional Movement Index, etc. Bottom line: this tool is valuable because it can indicate the strength of an overall trend (remember the old adage “the trend is your friend”). In addition, it can indicate when a stock may be snapping out of a trading range, or when it is entering a trading range. Also breaking down the strength of the positive trend versus the strength of the negative trend (and crossovers, difference range, etc) can be valuable. DMI can be used by itself, as can ADX, and they also can be utilized in conjunction with each other and/or with other technical indicators.

Scott Downing, Analyst & Coach
with BigTrends Research

At BigTrends.com, we monitor the stock market to provide you with the best trading results possible. At a minimum, that means helping you outperform the major market indexes. www.bigtrends.com

Article Source: The Basics of ADX/DMT

by Sheryl Polomka
While day trading is potentially a great way to make a large amount of money, there is a high amount of risk involved and the potential to face a loss. Day traders have a high reputation for losing money, but using the following day trading strategies can help reduce your loss potential.

Come up with a plan and follow it. It is wise to come up with a solid but lucrative method and then become an expert at it. Without a set plan, day trading is no more than making a bet and at some point you run the potential of facing great loss.

You need to remember than day trading is a profession and treat it that way. You are not guaranteed that you will earn large sums of money. It is imperative that you get good instruction and keep developing your skills. This is really the best way to increase your chances of earning a profit.

Keep a good solid record of your trades. This day trading strategy will help you see where you may have made errors and help prevent you from repeating them again.

Keep your feelings out of it. Distress, greediness, panic and frustration do not help you make good decisions. In fact, they can hinder your trading and those that tend to be overly emotional people fold when things get tough. It’s important to always keep yourself composed and follow your plan.

Set aside money that is safe for you to potentially lose. Don’t use money that must be used to make your house payment or pay for monthly expenses. Day trading can be risky and you do not want to jeopardize your home or posessions.

Avoid overtrading. This is a sure sign of someone who either does not know what they are doing or are new to day trading. This error is made often when someone is trying to make up for a loss, but it has the potential to be devastating.

Following the above day trading strategies combined with obtaining good knowledge on handling risk and evaluating market trends will set you well on your way to becoming a profitable day trader

To find out more about how you can become successful at Day Trading visit DayTradingRobot.com

Article Source: Day Trading Strategies Can Help You Become A Successful Day Trader

by Sheryl Polomka
Unfortunately not everyone who trades in day trading is successful and a big part in how successful you are is your attitude. So today’s day trading tip is all about having the right frame of mind when trading in the stock market.

The stock market fluctuates a lot every single day and people have wins and people have losses. Some will have more wins than others and some will just keep on losing and the big difference between the stock market winners and losers is their attitude.

Day Trading Tip - Adust Your Attitude!

Your attitude will determine how you will react in certain situations. Your attitude can be what decides your success or failure not only in the stock market but in life in general.

A successful trader has the right attitude to know when to quit. He will know if he loses that he must cut his losses and move on. A trader with the wrong attitude is likely to want to make his money back immediately and rush into another bad trade.

A successful trader with the right attitude will realise if his strategy isn’t working and will make the necessary changes to become successful. A trader with the wrong attitude will just continue to make the same mistakes and therefore continue to lose.

There is more to trading on the stock market than just rushing in and buying shares and selling them. A good trader will study the market and have a strategy and will continue to improve his strategies until he is having the wins that he is aiming for.

So remember our day trading tip for today and adjust your attitude to one of a successful investor.

Having a day trading software program can greatly benefit your trading and increase your number of wins. To find out more about day trading software visit Day Trading Robot

Article Source: Day Trading Tip - Having The Right Frame Of Mind

by forexpros
Rate extends lows to marginal weekly low but attracts bids; traders say large names and official buying seen overnight. Rate fails to hold firm on the 1.2600 handle but dips appear to be a test of support rather than a move lower so far. Aggressive sellers likely to try and cap above 1.2700 area ahead of key 1.3030 area; failure to hold 1.2900 likely to signal a further test of the lows but be patient. The dip is a buy opp but be nimble. Cross-spreaders likely pressure as crosses are unwound. Close above key 1.3030 area needed for further upside until then rallies likely to be sold into support around 1.2620/30 (?).Bulls are still attempting to find a bottom. 50 bar MA failed now likely to offer resistance and a close above suggests the bottom will be in. Technical levels around the 1.2920/50 area now likely to offer resistance so expect two-way action and consolidation underneath.

Data due Thursday: All times EASTERN (-5 GMT)

4:00am EUR Italian Trade Balance

Resistance 3: 1.3080
Resistance 2: 1.3020/30
Resistance 1: 1.2990/1.3000
Latest New York: 1.2590
Support 1: 1.2550/60
Support 2: 1.2500
Support 3: 1.2480

http://www.forexpros.com

Article Source: EUR/USD Daily Analysis

by forexpros
Rate consolidates off the 1.4135 level after [pressing slightly higher overnight; release of MPC minutes encourages a sell off for new lows. Traders report stops in-range under the 1.4170 area and rate presses into 1.4090 area before rebounding and recovering the 1.4200 handle. Large names on the bid also reported. Rate needs to return to the 1.4500 area fairly fast and a close above 1.4700 area to keep bulls happy near term. Traders note stops above the 1.4310 area likely in size if late shorts active. Long-term tech resistance now at 1.5000 area likely to cap near term but stops are building above and the 1.5000 handle is a big psychological number. 23 year lows are very likely to hold on any break. Two-way action continues suggesting that shorts are aggressively adding and longs are trying to find a bottom.

Data due Thursday: All times EASTERN (-5 GMT)

4:30am GBP Public Sector Net Borrowing
4:30am GBP Prelim M4 Money Supply m/m
12:00pm GBP MPC Member Gieve Speaks

Resistance 3: 1.4450
Resistance 2: 1.4380
Resistance 1: 1.4310/20
Latest New York: 1.4209
Support 1: 1.4090/1.4100
Support 2: 1.4000
Support 3: 1.3950/60

http://www.forexpros.com

Article Source: GBP/USD Daily Analysis

by Sheryl Polomka
Day Trading can be a fantastic way to earn money but it is not as easy as some people make it out to be. Don’t let that turn you off though, if you want to learn day trading then by all means do it, if you learn how to trade wisely it can pay off nicely.
In fact there are people who do so well with day trading that it has become their job, they make a full time income trading on the daily stock market. Although a challenging job, if you dedicate yourself to it then it can be a very profitable one.

If you are on your quest to learn day trading, then these following tips will help you.

1. Have good time management. You want to know your gameplan early in the day, even before the stock market opens. You need to be out of bed and ready to go when the market opens and stocks start moving. The stock market opens at 9am in New York so it is a must to be up and ready by that time. If you live in a different country or state then it is even more important to manage your time well to know the opening times for your time zone.

2. Practise your analysis skills. When investing in the stock market you are going to be watching many figures moving up and down and you will need to chart figures and find trends. Having good, fast analysis skills is a huge advantage so you can look at figures and be able to make a reasonably quick decision.

3. Be calm. If you lose money on a trade don’t fly off the handle and get all stressed about it, you wont win all the time and so there will be some losses. You need to let them go and move on. You need to use that loss and learn from it. If you get stressed over it you will lose your focus and probably go on to make bad decisions. Likewise, you need to stay calm when you have good wins, don’t let a win go to your head or this can also result in getting carried away and then making bad judgements.

4. Lastly, learn to research the market. Researching the stock market is vital to being a successful trader. You need to follow trends and chart results to be able to predict a profitable stock pick. Always do your research ahead of time and be prepared for your daily trades.

If you think that you will be able to do the above tips well then day trading may be for you, so go ahead and start to learn day trading and I wish you very much success in your investing.

Learn Day Trading and start investing wisely and you can soon be the expert at picking profitable stocks. To find out more about day trading visit Day Trading Robot

Article Source: How To Learn Day Trading - Some Quick Tips!

by Sheryl Polomka
Stock Day Trading can be a great way to make some money but with any investment there is some risk involved. It is vital to have a strategy and stick with it when trading on the stock market.

The reason that investors can trade and make profit in just a single day is that the stock market is very volatile and has many ups and downs all within a day. This allows some traders to be able to buy stocks and sell them in the same day for a profit.

When investing in stock day trading though, you can’t just jump in and buy any stock on any given day, it is important to study the movements of the market and watch stocks closely so that you can find any trends that occur. You need to monitor a companies stock closely and chart its movements so that if a trend occurs you will see it. Of course this all takes time and effort and so trading on the stock market isn’t as easy as it may seem.

While stock day trading can be quite profitable, you can also lose a lot of money with it if you just rush in and don’t research the market before buying stocks. Those investors who gain maximum profits with day trading are the one’s who do this - who study the market closely and when they see a trend happening, then they can predict that the companies stock is potentially profitable.

The secret to successful stock day trading is to buy stocks low and sell them high, usually in the same day. Good judgement and good timing are vital to being successful. A good stock market software program such as Day Trading Robot can help increase the chance of good stock picks as it is programmed to study the market and chart the trends for you, saving you a lot of time and effort and using a software program is probably much more accurate than charting trends by hand.

With stock day trading always remember to only ever invest what you can afford to lose. You don’t want to take big risks and lose money that you can’t afford to lose. Be wise and you’ll be fine.

Using a stock day trading software program can give you good, accurate results and will increase the percentage of profitable trades. Click Here to find out more about stock day trading software

Article Source: Stock Day Trading - How Profitable Can It Be?