A Forex Tutorial on Opening a Forex Account

By Bart Icles

Before you can start trading in the foreign exchange market, you must first be able to open and setup an account. Any forex tutorial will tell you that having a forex account is a prerequisite to trading. Very much like in trading in the equity market, currency trading will require you to open a trading account.

Each forex account, as well as the services that come with it, is different. Therefore, it is important that you are able to determine which one would best suit you. One of the things that will tell you more about the account you are about to open is leverage. Leverage is simply the ability to manage and influence large sums of capital using a relatively small amount of your own capital. One has to remember that the higher leverage means higher levels of risk.

Nevertheless, many forex investors see leverage as a major currency trading benefit because it can allow you to reap large gains even with just minor investments. On the other hand, leverage can also make you lose more than what you have invested if trading moves against you. Although there are firms that have protective stops to keep an account from going negative, it still helps to exercise extra caution. It also helps to remember these two contradicting scenarios when you try to determine your desired leverage when opening a forex account.

Commissions and fees also make trading accounts different. Major forex accounts normally allow you to trade without having to pay a commission fee to the broker. This is possible because in forex trading, you are dealing directly with market makers and you do not need to go through brokers. However, this does not mean that market makers do not earn money each time you engage in trading. When a trade is made, market makers gain the difference between the bid and ask prices.

There are many ways in which forex firms and the accounts that they offer can differ from one another. It is therefore recommended that you carefully evaluate each firm that you potentially would want to deal with before you commit to them. If you look back to your forex tutorial, it will remind you that each firm will deliver different programs, levels of services, and fees that can be above and beyond the actual trading costs. What is important is that you are able to review them well before making a decision, and when you do, see to it that you are dealing with a reputable firm. - 23222

About the Author:

Using forex trading signal software starts with a desire to learn and a drive to become a great trader. Learning to use forex signals is a powerful technique, it takes a good teacher and mentor. But once you learn how to trade using them your life will change and you have options and financial resources you never had before.

9 Criteria Which Automated Forex Trading Software Must Meet

By Richard U. Olson

If you're interested in trading on the Forex market even while you sleep, work or any other tie when you cannot be in front of a computer, automated Forex trading software is for you. Thanks to technological advances, software such as this which once cost thousands is now available for as little as $100! Best of all, you can immediately begin using this software on the popular trading platforms used by hundreds of Forex brokers all over the world. All of this is possible thanks to automated Forex trading and the software is being used by the pros and newcomers alike.

What you can gain from automated Forex trading software?

- Forex trading robots can conduct trades around the clock in all currency pairs and in all the important markets. Try as you might, you could never do this on your own.

- Trading robots are available for less than $100. There are a number of automated Forex trading packages which interoperate with Meta Trader 4, a platform used by hundreds of currency trading brokers all over the world.

- Forex trading robots make trades based on mathematical models (the Fibonacci formula), not emotional responses.

- You can use demo accounts to familiarize yourself with the market and to adjust the software settings for the best performance before you start risking real money on trades.

Any automated Forex trading software you are considering should have certain features. There is a lot of confusion among Forex traders regarding what Forex trading software needs to be able to do. You should never buy automated Forex trading software which does not meet the following criteria:

1. The ability to give you an edge in trading through thorough analysis of current market conditions.

2. The software should use the Fibonacci formula to predict market movements to ensure making trades which give you the highest probability of making a profit.

3. The software must have an integrated money management system which will make the right decisions to make profitable trades for you, even when the market conditions are unfavorable.

4. Your automated Forex trading software should be able to decide exactly when to make trades to maximize your profits by looking at the big picture of the currency markets to identify trends.

5. Automated Forex trading software should leave your position open for as long as you are still making money on a trade - and know when to close the deal.

6. Monitors currency pairs in several markets simultaneously and watches massive amounts of trades over time easily.

7. It has to work on the industry standard Meta Trader 4 platform.

8. The software is user-oriented and follows the "Keep it Simple Stupid" approach for effective and profitable trades.

9. It should have a demo mode. If you're not ready for live trading, then use a demo account to make any adjustments needed on the software and to familiarize yourself with the settings offered by the trading software.

The automated Forex Trading software is for everyone, whether you're at the beginner level or an expert in Forex trading. You're not required to have any trading experience or knowledge in the Forex market to start using the Forex robot software. However, it is still good to familiarize yourself in a Forex course at the link below; especially you're taking Forex trading as a business venture. - 23222

About the Author:

Richard U. Olson uses the state of the art Forex Expert Advisor and he recommends it to make consistent profits in the Forex markets. Grab his FREE e-course on How To Succeed In Forex Trading to achieve your financial freedom.

Foreclosures In California: Do They Affect You?

By Pam Mckee

With this economy, people are facing risks all across the nation. Foreclosures in California are becoming more common than ever. No matter whether you're worried about your home or are interested in ones that are already available through this process, you must understand what's going on.

A home will first become at risk of foreclosure when it goes into default. This means that they've missed a payment on their mortgage. Obviously, almost nobody's going to leap on them right away, but it does mean financial institutions will start to keep a close eye on their future habits.

If you then miss three or four payments, things will start to be put in action. You'll receive something called a record of notice of default within ten days from when this document is first written. When you get it, you'll know you have to take immediate action in order to save your home.

You will still be able to intervene, though. In fact, you'll probably be given several months in which to pay back what you owe. In special circumstances, you might well even be allowed to work out a loan in addition to the back payments. You'll often find a way out of the situation.

Sometimes, though, no solution can be found, and in that case things will start moving directly towards foreclosure. A notice is sent, and during a period on hold, the IRS is typically notified as well. From there, there are twenty five days before the house goes on sale - for twenty of those the owner will be able to make a last bid.

Five days before that sale is the last chance the owners have to make a bid for their residence. You should keep this in mind in case you have your eye on a home that is about to go on sale. Take a look at what's available, and look into public auctions, where these homes are available. - 23222

About the Author:

For more information on foreclosures in California, to viewtotally free foreclosure listings and get to our free foreclosure investing newsletter, visit us at: http://www.foreclosuresincalifornia.us/

Secrets Of The Stochastic Oscillator

By Sam Nielson

The Stochastic oscillator will move between 0 and 100. Low readings mean an oversold market while high readings mean an overbought market. Oversold means the market over reacted on the sell off and is ready to bounce upward. Overbought means the market over reacted on the buying and is ready to turn down.

Buy when the Stochastic oscillator is low. Sell when the Stochastic oscillator is high. The idea is to take advantage of other traders when they are emotional: either fearful or greedy. Selling when the Stochastic is high is difficult because you'll want to hang on longer: greed. Buying when the Stochastic is low is difficult because you'll want to sit on the sidelines longer until the chart looks better.

New traders mess up by trying to over simplify trading. They pick just one indicator and use it because it's all they can conceptually understand. Don't do this. The Stochastic indicator needs to be used with other indicators. Why? Consider this. In a sudden buying frenzy, the Stochastic becomes overbought too quickly and will give a premature sell signal. In sudden panic selling, the Stochastic becomes oversold too quickly and will give a premature buy signal. Always use the Stochastic with other indicators.

Should a trader wait for the Stochastic indicator to turn up to recognize a buy signal? Should he wait for it to turn down to recognize a sell signal? Not really, because by the time the Stochastic indicator turns, a new move is usually under way. If you are looking for an opportunity to enter, as soon as the Stochastic indicator reaches an extreme you enter.

Go long when the Stochastics traces a bullish divergence, that is, when prices fall to a new low but the indicator makes a more shallow low. Go short when the Stochastics traces a bearish divergence, that is, when prices rise to a new high but the indicator ticks down from a lower peak than during the previous rally. In an ideal buying situation, the first Stochastics low is below and the second above the lower reference line. The best sell signals occur when the first top of the Stochastics is above and the second below the upper reference line.

Do not buy when the Stochastics is above its upper reference line and do not sell short when it is below its lower reference line. This is probably the most useful way to use the Stochastic. Moving averages are better than the Stochastics at identifying trends, MACD-Histogram is better at identifying reversals, channels are better at identifying profit targets, and the ADX is quicker at catching entry and exit points. The trouble with them is that they give action signals most of the time. The Stochastic identifies no trade zones. - 23222

About the Author:

May this lesson helps you understand how to use the Stochastic Oscillator better and make a lot of money. For more trading tips on the Stochastic go to stochastic oscillator

Intro To Trading Systems

By Maclin Vestor

A good trading system is about much more than just selecting stocks. Certainly that is important as well. However, a good trading system will provide the ability for you to protect against losses, manage your money, add proper leverage when necessary, and also select a stock selection maximizing your reward and minimizing your risk.

The guess work is taken out of the way for you. The stock is purchased when criteria is met, the amount of stock purchased is also based on certain criteria. The stock is sold when criteria met, and there are protective measures against a stock's demise, and where possible and appropriate leverage is created to maximize the returns without taking on more risk than you can handle.

This trading system will be talked about in 5 additional parts in addition to this intro. This post is designed to explain the trading system, its functions and how it operates.

1) Exit strategy. Every good system trader will first know the exit strategy. It doesn't matter what vehicle selection you use, if you have no exit strategy, you're stuck. The trick is to understand that unless you want to get trapped in an investment you have to know when you're getting out.

A good exit strategy has both loss protection, and profit taking, and sometimes even a 3rd stop. The first 2 might be a maximum loss, and a maximum gain before taking profits, while the 3rd one will be a trailing stop that rides the gains up, and will sell the remaining shares. There are other exit strategies such as hold forever and write covered calls against it to collect income, or protective puts in place of a stop-loss.

2) Protection. Although #1 covers most of the protection, there are several other ways to protect yourself. Protection is vital to allow you to stay in the game. Many people know that if you lose 20% you need a 25% gain to make up for it. Losses not only can result in a series of losses that wipe you out, but they also hinder your ability to gain in the future. a 95% loss for example requires a 2000% nearly impossible goal to make up for this loss. So even if you flip a coin and have a 50% chance of gaining 200% or 50% chance of losing 95% of it, you should probably not take it if all your money is at risk, because it doesn't have the downside protection A series of wins followed by 1 loss would prevent your ability to stay in the game. Even though those odds SEEM fair, they are not without proper protection. Protection ensures that you won't have that 95% loss, and it absolutely restricts that loss to a fixed amount, rather than take 100% risk.

Such forms of protections are writing calls, in this situation you are given a premium so if the stock tanks to zero in a worst case scenario you'd still end up with the premium, this is minimal protection, and only protects a marginal amount of decline before the losses continue. The other form of protection would be buying a protective put. This actually in fact does protect against catastrophic losses. The lower your stock goes if/when it crashes, the more you make from your put or puts. You are the one paying a small amount in order to protect against any sort of decline below the designated price. The lower this price, the cheaper the option. If a stock is at $50 and you buy a protective put at a strike price of 40, you will NOT be protected against losses from 50 to 40, but beyond that you will be protected to the downside.

These are somewhat more sophisticated forms of protection. Basic forms of protection are diversifying, and perhaps being short. If you buy a stock at $100, and you short one in the same sector at $100, if the whole sector goes up, you are betting not that the market will go up, not that the sector will go up, but that stock A that you are long will outperform stock B in a bull market, and stock B will under perform stock A in a down market. This offers protection although it may limit the gains as well, Plus, you actually have to be right in your thesis.

In addition, if you are short, and the stock market booms, you may get a margin call and be forced to sell. Also, if you do not use money management, you are at risk of a short term swing requiring you to sell all of your shares of the stock that went up, in order to pay for those that you were short that went up, and if you can't cover your short, your entire account is in jeopardy of being wiped out.

So rather than being short, I recommend replacing it with buying put options, although this has lots of risks involving time decay as well that you must understand before investing. Using a business entity such as a C Corp or a LLC is another form of protection that can protect you potentially against higher taxes, and personal financial trouble such as a bankruptcy on your record if you intend on using forms of leverage such as loans.

3) Money Management and Control. A good trading system will have a form of control. it will allow you to not give up that control when things go bad. In other words, it allows you to manage your money. Money management is very important. Perhaps one of the most important things is position sizing. If you buy $10,00 of stock for one stock when you only have $10,000 in your account this is very poor money management. Continue to do this, and eventually you will suffer a large loss which will be great, and it will be very difficult to gain enough to make up for it. In addition, if the price goes lower depending on your system, you may want to give yourself flexibility. Extra cash on the sides is another form of money management. It doesn't have to be cash per say, but some form of safety. Various forms of currency, sometimes some gold, bonds, and money market accounts that are all fairly liquid would be a few examples.

4) Leverage Leverage is about using your abilities to gain, the strength of your trading system and various tools to minimize risk, and increase gain. When you take on leverage, you should be able to reduce your position size in comparison to your capital, and still have a similar reward or gain.

Forms of leverage include options, the further out of money option you purchase, the more leverage you have if that stock does make a strong move. You can also sell options to raise capital to invest in some cases.

Another from of leverage is a loan. Whether it's a credit card, a home equity loan, going on margin, or a business loan for an asset holding company, or even taking a company public and using the capital to invest, the idea is to gain money at x% and to invest it and make a greater return than x%. if you can do this, and manage money well, and protect yourself, Your gain is only limited to the amount of capital you can borrow at the maximum of slightly less than what you expect to gain. Generally however, if you use a loan, you should have a form of cash flow or income that will cover the costs of the loan just in case your investment goes wrong. That's another form of money management while using leverage. Money management should be treated much differently under different forms of leverage.

5) Finally, the stock selection vehicle. You need some method to select your vehicle, based on this and your other factors you will determine time horizon and a methodology of trading. The system will help you choose your trading stocks, and exactly what to do with them. You can play around with different trading systems, but generally you should first attempt a good exit strategy and make sure your controls on parts 1-4 of your trading system are sound, and try tweaking them

Stock Trading Systems that are well defined will leave very little room for error. If you learn to use a trading system, you can choose to enhance the essential skills it takes to making your trading system better.

Unfortunately, many day traders are slaves to the computer screen and can miss a moment. Focus on building the better trading system, and not placing the better trade, and you will give yourself some valuable time. If you are really using a system, you don't need to be the one to place the trades, and can instead higher someone to do the work for you. You can use that extra time to improve your system, or find new ways to invest, or learn how to become a better trader.

You can learn other tips like this at the System Trading|Stocks Trading Systems blog, which is full of tips for day trading, options, swing trading, momentum trading, and advice on building a trading system. - 23222

About the Author:

Maclin Vestor teaches about varioustrading systems and teaches you system trading skills that can make you a better trader.