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Saturday 30 May 2009
Wealth Dynamics - Eight Ways To Wealth
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Wealth Dynamics - Eight Ways To Wealth
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Friday 29 May 2009
End of week May!
More oil points! I entered the trade at 65.70 and closed on 96 for 26 points. It was hovering around the 66.00 at my dreaded 00 levels.I don't usually mess around with Resistance and support at 00 levels, so took the profits.
Was up 10 points on ftse and got greedy. I now use two strategies and should have got 10, then been back the opposite direction for another 10 pips.
Unfortunately listening to bloomberg can affect your trade. All sectors were up and I was convinced ftse would go long, big time!
So I broke the golden rule of trading (Don't change your exit strategy) and looked for 20 points on ftse! Not good, got out at break even!
Oil was top performing strategy this week. The one loss I had was due to the housing news which made it plummet on Wednesday.
The trade was a long one and I would normally have been out 30 minutes before the news. But bottom line, I wasn't and the affect was more than it should have been on that announcement!
Ftse has been a bit sideways using the strategy, so not played it much this week. I missed a lot of FX pips due to ftse and many announcements.
Market Summary
The market had a buoyant week, Green shoots as they are calling it. Lots of gains across the board. Oil prediction 70 - 75 dollars in opec meeting this week, long term trendies are probably thinking of taking profit now. Also Cable is at the highest level since November.
Have a great weekend!
Monday 25 May 2009
Trading On News Releases - by Kathy Lien
One of the great advantages of trading currencies is that the forex market is open 24 hours a day (from 5pm EST on Sunday until 4pm EST Friday). Economic data tends to be one of the most important catalysts for short-term movements in any market, but this is particularly true in the currency market, which responds not only to U.S. economic news, but also to news from around the world.
With at least eight major currencies available for trading at most currency brokers and more than 17 derivatives of them, there is always some piece of economic data slated for release that traders can use to inform the positions they take. Generally, no less than seven pieces of data are released daily from the eight major currencies or countries that are most closely followed.
So for those who choose to trade news, there are plenty of opportunities. Here we look at which economic news releases are released when, which are most relevant to forex (FX) traders, and how traders can act on this market-moving data.
Which Currencies Should Be Your Focus?
1. U.S. dollar (USD)
4. Japanese yen (JPY)
5. Swiss franc (CHF)
6. Canadian dollar (CAD)
7. Australian dollar (AUD)
8. New Zealand dollar (NZD)
This is just a sample of some of the more liquid derivatives based on the currencies above:
1. EUR/USD
2. USD/JPY
3. AUD/USD
4. GBP/JPY
5. EUR/CHF
6. CHF/JPY
As you can see from these lists, the currencies that we can easily trade span the entire globe. This means that you can handpick the currencies and economic releases to which you pay particular attention.
But, as a general rule, since the U.S. dollar is on the "other side" of 90% of all currency trades, U.S. economic releases tend to have the most pronounced impact on the market.
Trading news is harder than it may sound. Not only is the reported consensus figure important, but so are the whisper number and the revisions.
Also, some releases are more important than others; this can be measured in terms of both the significance of the country releasing the data and the importance of the release in relation to the other pieces of data being released at the same time. When Are News Releases Issued?
Times at which various countries release important economic news.
Country Currency Time (EST)
Times at which various countries release important economic news.
1. Interest rate decision
2. Retail sales
3. Inflation (consumer price or producer price)
4. Unemployment
5. Industrial production
6. Business sentiment surveys
7. Consumer confidence surveys
8. Trade balance
9. Manufacturing sector surveys Depending on the current state of the economy, the relative importance of these releases may change.
For example, unemployment may be more important this month than trade or interest rate decisions. Therefore, it is important to keep on top of what the market is focusing on at the moment.
Keep in mind that U.S. dollar data tends to be the most important in the FX market because the dollar is involved in 90% of all currency trades. (For more insight on these indicators, see Economic Indicators To Know.)
Ranking of the most market-moving data for the U.S. in 2007. Source: DailyFX.com
The study found that the effect on returns generally occurs in the first or second day, but the impact does seem to linger until the fourth day.
The most common way to trade news is to look for a period of consolidation ahead of a big number and to just trade the breakout on the back of the number. This can be done on both a short-term intraday basis and a daily basis.
Figure: 3
In the 17 hours before the release, the EUR/USD was confined within a tight 30-pip trading range. For news traders, this would have provided a great opportunity to put on a breakout trade, especially since the likelihood of a sharp move at this time was extremely high.
This chart shows activity after the same release as the one shown in Figure 3, but on a different time frame to show how difficult trading news releases can be.
On November 4, 2005, the market had expected 120,000 jobs to be added to the U.S. economy, but instead only 56,000 jobs were added.
Figure 4: This intraday chart shows that, while the worse than expected non-farm payroll numbers sent the EUR/USD rate upward for a short period of time, the strong momentum of the U.S. dollar was able to take control and push the dollar higher. Keep in mind that when the EUR/USD rate falls, the U.S. dollar is going upward, and vice versa.
This sharp disappointment led to an approximately 60-pip sell-off in the dollar against the euro in the first 25 minutes after the release.
However, the dollar's upside momentum was so strong that the gains were quickly reversed, and an hour later, the EUR/USD had broken its previous low and actually hit a 1.5-year low against the dollar.
Opportunities were plentiful for breakout traders, but bullish momentum in the dollar was so strong that such a bad payrolls number failed to put a sustainable dent in the currency's rally. One thing you should keep in mind is that, on the back of a good number, a strong move should also see a strong extension.
Can I Avoid Getting Hit by Volatility When Trading News?
The answer to capturing a breakout in volatility without having to face the risk of a reversal is to trade FX SPOT options, which are a new breed of product that traders are just beginning to discover. If you search online, you can find a number of different FX brokers that offer a variety of different exotic options.
This option is great for news traders who think that the economic release will not cause a pronounced breakout in the currency pair and that it will continue to range trade. FX SPOT options are a viable alternative for those who do not care to get whipsawed in the markets by undue volatility before they actually see the spot price move in their desired direction.
If you want to trade news successfully in the FX market, key considerations to keep in mind are knowing which releases are expected when, which ones are most important given current economic conditions and, of course, how to trade based on this market-moving data.
A variety of exotic options are available for traders who want to capture a breakout in volatility without having to face the risk of a reversal; do your research and stay on top of economic news and you could reap the rewards.
A double one-touch option has two barrier levels. Either one of the levels must be breached prior to expiration in order for the option to become profitable and for the buyer to receive the payout. If neither barrier level is breached prior to expiration, the option expires worthless.
A double one-touch option is the perfect option to trade for news releases because it is a pure non-directional breakout play. As long as the barrier level is breached - even if the price reverses course later - the payout is made.
A one-touch option only has one barrier level, which generally makes it slightly less expensive than a double one-touch option. The same criterion holds - the payout is only made if the barrier is breached prior to expiration. This is a good option to buy if you actually have a view on whether the number will be stronger or weaker than the market's consensus forecast.
A double no-touch option is the exact opposite of a double one-touch option. There are two barrier levels, but in this case, neither barrier level can be breached before expiration - otherwise the option payout is not made. This option is great for news traders who think that the economic release will not cause a pronounced breakout in the currency pair and that it will continue to range trade.
FX SPOT options are a viable alternative for those who do not care to get whipsawed in the markets by undue volatility before they actually see the spot price move in their desired direction.
Conclusion
As we've seen, the currency market is particularly prone to short-term movements brought on by the release of economic news from both the U.S. and the rest of the world.
If you want to trade news successfully in the FX market, key considerations to keep in mind are knowing which releases are expected when, which ones are most important given current economic conditions and, of course, how to trade based on this market-moving data.
A variety of exotic options are available for traders who want to capture a breakout in volatility without having to face the risk of a reversal; do your research and stay on top of economic news and you could reap the rewards.
by Kathy Lien
With at least eight major currencies available for trading at most currency brokers and more than 17 derivatives of them, there is always some piece of economic data slated for release that traders can use to inform the positions they take. Generally, no less than seven pieces of data are released daily from the eight major currencies or countries that are most closely followed.
So for those who choose to trade news, there are plenty of opportunities. Here we look at which economic news releases are released when, which are most relevant to forex (FX) traders, and how traders can act on this market-moving data.
Which Currencies Should Be Your Focus?
The following are the eight major currencies:
2. Euro (EUR)
3. British pound (GBP)4. Japanese yen (JPY)
5. Swiss franc (CHF)
6. Canadian dollar (CAD)
7. Australian dollar (AUD)
8. New Zealand dollar (NZD)
This is just a sample of some of the more liquid derivatives based on the currencies above:
1. EUR/USD
2. USD/JPY
3. AUD/USD
4. GBP/JPY
5. EUR/CHF
6. CHF/JPY
As you can see from these lists, the currencies that we can easily trade span the entire globe. This means that you can handpick the currencies and economic releases to which you pay particular attention.
But, as a general rule, since the U.S. dollar is on the "other side" of 90% of all currency trades, U.S. economic releases tend to have the most pronounced impact on the market.
Trading news is harder than it may sound. Not only is the reported consensus figure important, but so are the whisper number and the revisions.
Also, some releases are more important than others; this can be measured in terms of both the significance of the country releasing the data and the importance of the release in relation to the other pieces of data being released at the same time. When Are News Releases Issued?
Below is a list of the approximate times (EST) at which the most important economic releases for each of the following countries are published. These are also the times at which you should be paying extra attention to the markets, if you plan on trading news releases.
Country ,Currency,Time (EST)
U.S. USD 8:30 - 10:00
Japan JPY 18:50 - 23:30
Canada CAD 7:00 - 8:30
U.K. GBP 2:00 - 4:30
Italy EUR 3:45 - 5:00
Germany EUR 2:00 - 6:00
France EUR 2:45 - 4:00
Switzerland CHF 1:45 - 5:30
New Zealand NZD 16:45 - 21:00
Australia AUD 17:30 - 19:30
Japan JPY 18:50 - 23:30
Canada CAD 7:00 - 8:30
U.K. GBP 2:00 - 4:30
Italy EUR 3:45 - 5:00
Germany EUR 2:00 - 6:00
France EUR 2:45 - 4:00
Switzerland CHF 1:45 - 5:30
New Zealand NZD 16:45 - 21:00
Australia AUD 17:30 - 19:30
Times at which various countries release important economic news.
What Are the Key Releases? When trading news, you first have to know which releases are actually expected that week. There are many ways to do this, but Daily FX provides a very comprehensive calendar.
Country Currency Time (EST)
U.S. USD 8:30 - 10:00
Japan JPY 18:50 - 23:30
Canada CAD 7:00 - 8:30
U.K. GBP 2:00 - 4:30
Italy EUR 3:45 - 5:00Japan JPY 18:50 - 23:30
Canada CAD 7:00 - 8:30
U.K. GBP 2:00 - 4:30
Germany EUR 2:00 - 6:00
France EUR 2:45 - 4:00
Switzerland CHF 1:45 - 5:30
New Zealand NZD 16:45 - 21:00
Australia AUD 17:30 - 19:30
France EUR 2:45 - 4:00
Switzerland CHF 1:45 - 5:30
New Zealand NZD 16:45 - 21:00
Australia AUD 17:30 - 19:30
Second, it is key for you to know which data is important. The Daily FX calendar bolds the important releases and also lists the "consensus" figures. Generally speaking, these are the most important economic releases for any country:
1. Interest rate decision
2. Retail sales
3. Inflation (consumer price or producer price)
4. Unemployment
5. Industrial production
6. Business sentiment surveys
7. Consumer confidence surveys
8. Trade balance
9. Manufacturing sector surveys Depending on the current state of the economy, the relative importance of these releases may change.
For example, unemployment may be more important this month than trade or interest rate decisions. Therefore, it is important to keep on top of what the market is focusing on at the moment.
The list ranks the most market-moving data for the U.S. in 2007, on both a 20-minute and a daily basis. The difference in reaction is generally attributed to the depth of the data. Some releases provide barely more information than the headline number, while others provide extensive tables that can be subject to different interpretations.
As of 2007 (20-Minute): As of 2007 (Daily):
1. Unemployment (Non-Farm Payrolls) 1. Unemployment (Non-Farm Payrolls)
2. Interest Rates (FOMC Rate Decisions) 2. ISM Non-Manufacturing
3. Inflation (Consumer Price Index) 3. Personal Spending
4. Retail Sales 4. Inflation (CPI)
5. Producer Price Index 5. Existing Home Sales
6. New Home Sales 6. Consumer Confidence
7. Existing Home Sales 7. U of M Confidence
8. Durable Goods 8. Interest Rates (FOMC)
9. Non-Farm Payrolls 9. Indutstrial Production
1. Unemployment (Non-Farm Payrolls) 1. Unemployment (Non-Farm Payrolls)
2. Interest Rates (FOMC Rate Decisions) 2. ISM Non-Manufacturing
3. Inflation (Consumer Price Index) 3. Personal Spending
4. Retail Sales 4. Inflation (CPI)
5. Producer Price Index 5. Existing Home Sales
6. New Home Sales 6. Consumer Confidence
7. Existing Home Sales 7. U of M Confidence
8. Durable Goods 8. Interest Rates (FOMC)
9. Non-Farm Payrolls 9. Indutstrial Production
How Long Does the Effect Last? According to a study by Martin D. D. Evans and Richard K. Lyons published in the Journal of International Money and Finance (2004), the market could still be absorbing or reacting to news releases hours, if not days, after they are released.
The impact on order flow, on the other hand, is still very pronounced on the third day and is still observable on the fourth day. How Do I Actually Trade News?
Figure: 3
This chart illustrates the indecision of the market leading up to the October non-farm payroll numbers, which were released in early November. Note the increase in volatility that occurred once the worse than expected news was released. We mentioned earlier that trading news is harder than you might think.
Why? The primary reason is volatility. You can be making the right move but end up being stopped out, or the market may simply not have the momentum to sustain the move. Let's look at the chart in Figure 4 as an example.
Figure:4
Why? The primary reason is volatility. You can be making the right move but end up being stopped out, or the market may simply not have the momentum to sustain the move. Let's look at the chart in Figure 4 as an example.
Figure:4
This chart shows activity after the same release as the one shown in Figure 3, but on a different time frame to show how difficult trading news releases can be.On November 4, 2005, the market had expected 120,000 jobs to be added to the U.S. economy, but instead only 56,000 jobs were added.
Figure 4: This intraday chart shows that, while the worse than expected non-farm payroll numbers sent the EUR/USD rate upward for a short period of time, the strong momentum of the U.S. dollar was able to take control and push the dollar higher. Keep in mind that when the EUR/USD rate falls, the U.S. dollar is going upward, and vice versa.
This sharp disappointment led to an approximately 60-pip sell-off in the dollar against the euro in the first 25 minutes after the release.
However, the dollar's upside momentum was so strong that the gains were quickly reversed, and an hour later, the EUR/USD had broken its previous low and actually hit a 1.5-year low against the dollar.
Opportunities were plentiful for breakout traders, but bullish momentum in the dollar was so strong that such a bad payrolls number failed to put a sustainable dent in the currency's rally. One thing you should keep in mind is that, on the back of a good number, a strong move should also see a strong extension.
Can I Avoid Getting Hit by Volatility When Trading News?
The answer to capturing a breakout in volatility without having to face the risk of a reversal is to trade FX SPOT options, which are a new breed of product that traders are just beginning to discover. If you search online, you can find a number of different FX brokers that offer a variety of different exotic options.
Exotic options generally have barrier levels and will be profitable or unprofitable based upon whether the barrier level is breached. The payout is predetermined and the premium or price of the option is based on the payout. The following are the most popular types of exotic options to use to trade news releases:
Double one-touch option
One-touch option
Double no-touch option
A double one-touch option has two barrier levels. Either one of the levels must be breached prior to expiration in order for the option to become profitable and for the buyer to receive the payout. If neither barrier level is breached prior to expiration, the option expires worthless.
Double one-touch option
One-touch option
Double no-touch option
A double one-touch option has two barrier levels. Either one of the levels must be breached prior to expiration in order for the option to become profitable and for the buyer to receive the payout. If neither barrier level is breached prior to expiration, the option expires worthless.
A double one-touch option is the perfect option to trade for news releases because it is a pure non-directional breakout play. As long as the barrier level is breached - even if the price reverses course later - the payout is made. A one-touch option only has one barrier level, which generally makes it slightly less expensive than a double one-touch option.
The same criterion holds - the payout is only made if the barrier is breached prior to expiration. This is a good option to buy if you actually have a view on whether the number will be stronger or weaker than the market's consensus forecast.
A double no-touch option is the exact opposite of a double one-touch option. There are two barrier levels, but in this case, neither barrier level can be breached before expiration - otherwise the option payout is not made.
A double no-touch option is the exact opposite of a double one-touch option. There are two barrier levels, but in this case, neither barrier level can be breached before expiration - otherwise the option payout is not made.
This option is great for news traders who think that the economic release will not cause a pronounced breakout in the currency pair and that it will continue to range trade. FX SPOT options are a viable alternative for those who do not care to get whipsawed in the markets by undue volatility before they actually see the spot price move in their desired direction.
Conclusion As we've seen, the currency market is particularly prone to short-term movements brought on by the release of economic news from both the U.S. and the rest of the world.
If you want to trade news successfully in the FX market, key considerations to keep in mind are knowing which releases are expected when, which ones are most important given current economic conditions and, of course, how to trade based on this market-moving data.
A variety of exotic options are available for traders who want to capture a breakout in volatility without having to face the risk of a reversal; do your research and stay on top of economic news and you could reap the rewards.
A double one-touch option has two barrier levels. Either one of the levels must be breached prior to expiration in order for the option to become profitable and for the buyer to receive the payout. If neither barrier level is breached prior to expiration, the option expires worthless.
A double one-touch option is the perfect option to trade for news releases because it is a pure non-directional breakout play. As long as the barrier level is breached - even if the price reverses course later - the payout is made.
A one-touch option only has one barrier level, which generally makes it slightly less expensive than a double one-touch option. The same criterion holds - the payout is only made if the barrier is breached prior to expiration. This is a good option to buy if you actually have a view on whether the number will be stronger or weaker than the market's consensus forecast.
A double no-touch option is the exact opposite of a double one-touch option. There are two barrier levels, but in this case, neither barrier level can be breached before expiration - otherwise the option payout is not made. This option is great for news traders who think that the economic release will not cause a pronounced breakout in the currency pair and that it will continue to range trade.
FX SPOT options are a viable alternative for those who do not care to get whipsawed in the markets by undue volatility before they actually see the spot price move in their desired direction.
Conclusion
As we've seen, the currency market is particularly prone to short-term movements brought on by the release of economic news from both the U.S. and the rest of the world.
If you want to trade news successfully in the FX market, key considerations to keep in mind are knowing which releases are expected when, which ones are most important given current economic conditions and, of course, how to trade based on this market-moving data.
A variety of exotic options are available for traders who want to capture a breakout in volatility without having to face the risk of a reversal; do your research and stay on top of economic news and you could reap the rewards.
by Kathy Lien
Friday 22 May 2009
Trading - Friday 21st May
Friday was a slow day, due to the holidays across the globe. I am also looking forward to the bank holiday weekend. Ftse if you played the strategy would have lost today but there was an opportunity to gain some back on the reversal.
In total ftse delivered four wins and one loss, this was a net gain of 60 points for the week! Oil is roaring at the moment. Its having good up and downs, as we push towards the annual July high! Perfect for spread betting!
In total ftse delivered four wins and one loss, this was a net gain of 60 points for the week! Oil is roaring at the moment. Its having good up and downs, as we push towards the annual July high! Perfect for spread betting!
Wednesday 20 May 2009
Finding Your Forex Brokers
The forex (FX) market has many similarities to the equity markets; however, there are some key differences. This article will show you those differences and help you get started in forex trading.
Choosing a Broker There are many forex brokers to choose from, just as in any other market. Here are some things to look for: Low Spreads - The spread, calculated in "pips", is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time.
Forex brokers don't charge a commission, so this difference is how they make money. In comparing brokers, you will find that the difference in spreads in forex is as great as the difference in commissions in the stock arena.
Bottom line: Lower spreads save you money!
Quality Institution - Unlike equity brokers, forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required (leverage they need to provide). Also, forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You can find this and other financial information and statistics about a forex brokerage on its website or on the website of its parent company.
Bottom line: Make sure your broker is backed by a reliable institution!
Extensive Tools and Research - Forex brokers offer many different trading platforms for their clients - just like brokers in other markets.
These trading platforms often feature real-time charts, technical analysis tools, real-time news and data, and even support for trading systems. Before committing to any broker, be sure to request free trials to test different trading platforms. Brokers usually also provide technical and fundamental commentaries, economic calendars and other research.
Bottom line: Find a broker who will give you what you need to succeed!
Wide Range of Leverage Options - Leverage is necessary in forex because the price deviations (the sources of profit) are merely fractions of a cent. Leverage, expressed as a ratio between total capital available to actual capital, is the amount of money a broker will lend you for trading.
For example, a ratio of 100:1 means your broker would lend you $100 for every $1 of actual capital. Many brokerages offer as much as 250:1. Remember, lower leverage means lower risk of a margin call, but also lower bang for your buck (and vice-versa).
Bottom line: If you have limited capital, make sure your broker offers high leverage.
If capital is not a problem, any broker with a wide variety of leverage options should do. A variety of options lets you vary the amount of risk you are willing to take. For example, less leverage (and therefore less risk) may be preferable for highly volatile (exotic) currency pairs.
Account Types - Many brokers offer two or more types of accounts. The smallest account is known as a mini account and requires you to trade with a minimum of, say, $250, offering a high amount of leverage (which you need in order to make money with so little initial capital).
The standard account lets you trade at a variety of different leverages, but it requires a minimum initial capital of $2,000. Finally, premium accounts, which often require significant amounts of capital, let you use different amounts of leverage and often offer additional tools and services. Bottom line: Make sure the broker you choose has the right leverage, tools, and services relative to your amount of capital. Things To Avoid
Sniping or Hunting - Sniping and hunting - or prematurely buying or selling near preset points - are shady acts committed by brokers to increase profits. Obviously, no broker admits to committing these acts, but a notion that a broker has practiced sniping or hunting is commonly believed to be true.
Unfortunately, the only way to determine which brokers do this and which brokers don't is to talk to fellow traders. There is no blacklist or organization that reports such activity. Bottom line: Talk to others in person or visit online discussion forums to find out who is an honest broker.
Strict Margin Rules - When you are trading with borrowed money, your broker has a say in how much risk you take. As such, your broker can buy or sell at its discretion, which can be a bad thing for you.
Let's say you have a margin account, and your position takes a dive before rebounding to all-time highs. Well, even if you have enough cash to cover, some brokers will liquidate your position on a margin call at that low. This action on their part can cost you dearly. Bottom line: Again, talk to others in person or visit online discussion forums to find out who the honest brokers are.
Signing up for a forex account is much the same as getting an equity account. The only major difference is that, for forex accounts, you are required to sign a margin agreement. This agreement states that you are trading with borrowed money, and, as such, the brokerage has the right to interfere with your trades to protect its interests. Once you sign up, simply fund your account, and you'll be ready to trade!
Define a Basic Forex Strategy Technical analysis and fundamental analysis are the two basic genres of strategy in the forex market - just like in the equity markets. But technical analysis is by far the most common strategy used by individual forex traders. Here is a brief overview of both forms of analysis and how they apply to forex:
Fundamental Analysis If you think it's difficult to value one company, try valuing a whole country! Fundamental analysis in the forex market is often very complex, and it's usually used only to predict long-term trends; however, some traders do trade short term strictly on news releases. There are many different fundamental indicators of currency values released at many different times.
Here are a few: Non-farm Payrolls
Purchasing Managers Index (PMI)
Consumer Price Index (CPI)
Retail Sales
Durable Goods Now, these reports are not the only fundamental factors to watch. There are also several meetings from which come quotes and commentary that can affect markets just as much as any report.
These meetings are often called to discuss interest rates, inflation, and other issues that affect currency valuations. Even changes in wording when addressing certain issues - the Federal Reserve chairman's comments on interest rates, for example - can cause market volatility.
Two important meetings to watch are the Federal Open Market Committee and Humphrey Hawkins Hearings. Simply reading the reports and examining the commentary can help forex fundamental analysts gain a better understanding of long-term market trends and allow short-term traders to profit from extraordinary happenings.
If you choose to follow a fundamental strategy, be sure to keep an economic calendar handy at all times so you know when these reports are released. Your broker may also provide real-time access to such information. Technical Analysis Like their counterparts in the equity markets, technical analysts of the forex analyze price trends.
The only key difference between technical analysis in forex and technical analysis in equities is the time frame: forex markets are open 24 hours a day. As a result, some forms of technical analysis that factor in time must be modified to work with the 24-hour forex market. These are some of the most common forms of technical analysis used in forex:
The Elliott Waves
Fibonacci studies
Parabolic SAR
Pivot points
Many technical analysts combine technical studies to make more accurate predictions. (The most common is combining the Fibonacci studies with Elliott Waves.) Others create trading systems to repeatedly locate similar buying and selling conditions. Finding Your Strategy Most successful traders develop a strategy and perfect it over time. Some people focus on one particular study or calculation, while others use broad spectrum analysis to determine their trades.
Most experts suggest trying a combination of both fundamental and technical analysis, with which you can make long-term projections and also determine entry and exit points. But in the end, it is the individual trader who needs to decide what works best for him or her (most often through trial and error).
Things to Remember
Open a demo account and paper trade until you can make a consistent profit - Many people jump into the forex market and quickly lose a lot of money (because of leverage). It is important to take your time and learn to trade properly before committing capital. The best way to learn is by doing!
Trade without emotion - Don't keep "mental" stop-loss points if you don't have the ability to execute them on time. Always set your stop-loss and take-profit points to execute automatically, and don't change them unless absolutely necessary.
Make your decisions and stick to them!
The trend is your friend – If you go against the trend, you had better have a good reason. Because the forex market tends to trend more than move sideways, you have a higher chance of success in trading with the trend. Conclusion The forex market is the largest market in the world, and individuals are becoming increasingly interested in it.
But before you begin trading it, be sure your broker meets certain criteria, and take the time to find a trading strategy that works for you. Remember, the best way to learn to trade forex is to open up a demo account and try it out. Here are some useful resources:
Economic calendar: http://mam.econoday.com/index.html
FOREX brokers: http://www.fxstreet.com/nou/brokers/senseframestaula.asp
FOREX forum: http://moneytec.com/
FOREX news: http://forexnews.com/
by Justin Kuepper, (Contact Author Biography)Justin Kuepper has many years of experience in the market as an active trader and a personal retirement accounts manager. He spent a few years independently building and managing financial portals before obtaining his current position with Accelerized New Media, owner of SECFilings.com, ExecutiveDisclosure.com and other popular financial portals. Kuepper continues to write on a freelance basis, covering both finance and technology topics.
Choosing a Broker There are many forex brokers to choose from, just as in any other market. Here are some things to look for: Low Spreads - The spread, calculated in "pips", is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time.
Forex brokers don't charge a commission, so this difference is how they make money. In comparing brokers, you will find that the difference in spreads in forex is as great as the difference in commissions in the stock arena.
Bottom line: Lower spreads save you money!
Quality Institution - Unlike equity brokers, forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required (leverage they need to provide). Also, forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You can find this and other financial information and statistics about a forex brokerage on its website or on the website of its parent company.
Bottom line: Make sure your broker is backed by a reliable institution!
Extensive Tools and Research - Forex brokers offer many different trading platforms for their clients - just like brokers in other markets.
These trading platforms often feature real-time charts, technical analysis tools, real-time news and data, and even support for trading systems. Before committing to any broker, be sure to request free trials to test different trading platforms. Brokers usually also provide technical and fundamental commentaries, economic calendars and other research.
Bottom line: Find a broker who will give you what you need to succeed!
Wide Range of Leverage Options - Leverage is necessary in forex because the price deviations (the sources of profit) are merely fractions of a cent. Leverage, expressed as a ratio between total capital available to actual capital, is the amount of money a broker will lend you for trading.
For example, a ratio of 100:1 means your broker would lend you $100 for every $1 of actual capital. Many brokerages offer as much as 250:1. Remember, lower leverage means lower risk of a margin call, but also lower bang for your buck (and vice-versa).
Bottom line: If you have limited capital, make sure your broker offers high leverage.
If capital is not a problem, any broker with a wide variety of leverage options should do. A variety of options lets you vary the amount of risk you are willing to take. For example, less leverage (and therefore less risk) may be preferable for highly volatile (exotic) currency pairs.
Account Types - Many brokers offer two or more types of accounts. The smallest account is known as a mini account and requires you to trade with a minimum of, say, $250, offering a high amount of leverage (which you need in order to make money with so little initial capital).
The standard account lets you trade at a variety of different leverages, but it requires a minimum initial capital of $2,000. Finally, premium accounts, which often require significant amounts of capital, let you use different amounts of leverage and often offer additional tools and services. Bottom line: Make sure the broker you choose has the right leverage, tools, and services relative to your amount of capital. Things To Avoid
Sniping or Hunting - Sniping and hunting - or prematurely buying or selling near preset points - are shady acts committed by brokers to increase profits. Obviously, no broker admits to committing these acts, but a notion that a broker has practiced sniping or hunting is commonly believed to be true.
Unfortunately, the only way to determine which brokers do this and which brokers don't is to talk to fellow traders. There is no blacklist or organization that reports such activity. Bottom line: Talk to others in person or visit online discussion forums to find out who is an honest broker.
Strict Margin Rules - When you are trading with borrowed money, your broker has a say in how much risk you take. As such, your broker can buy or sell at its discretion, which can be a bad thing for you.
Let's say you have a margin account, and your position takes a dive before rebounding to all-time highs. Well, even if you have enough cash to cover, some brokers will liquidate your position on a margin call at that low. This action on their part can cost you dearly. Bottom line: Again, talk to others in person or visit online discussion forums to find out who the honest brokers are.
Signing up for a forex account is much the same as getting an equity account. The only major difference is that, for forex accounts, you are required to sign a margin agreement. This agreement states that you are trading with borrowed money, and, as such, the brokerage has the right to interfere with your trades to protect its interests. Once you sign up, simply fund your account, and you'll be ready to trade!
Define a Basic Forex Strategy Technical analysis and fundamental analysis are the two basic genres of strategy in the forex market - just like in the equity markets. But technical analysis is by far the most common strategy used by individual forex traders. Here is a brief overview of both forms of analysis and how they apply to forex:
Fundamental Analysis If you think it's difficult to value one company, try valuing a whole country! Fundamental analysis in the forex market is often very complex, and it's usually used only to predict long-term trends; however, some traders do trade short term strictly on news releases. There are many different fundamental indicators of currency values released at many different times.
Here are a few: Non-farm Payrolls
Purchasing Managers Index (PMI)
Consumer Price Index (CPI)
Retail Sales
Durable Goods Now, these reports are not the only fundamental factors to watch. There are also several meetings from which come quotes and commentary that can affect markets just as much as any report.
These meetings are often called to discuss interest rates, inflation, and other issues that affect currency valuations. Even changes in wording when addressing certain issues - the Federal Reserve chairman's comments on interest rates, for example - can cause market volatility.
Two important meetings to watch are the Federal Open Market Committee and Humphrey Hawkins Hearings. Simply reading the reports and examining the commentary can help forex fundamental analysts gain a better understanding of long-term market trends and allow short-term traders to profit from extraordinary happenings.
If you choose to follow a fundamental strategy, be sure to keep an economic calendar handy at all times so you know when these reports are released. Your broker may also provide real-time access to such information. Technical Analysis Like their counterparts in the equity markets, technical analysts of the forex analyze price trends.
The only key difference between technical analysis in forex and technical analysis in equities is the time frame: forex markets are open 24 hours a day. As a result, some forms of technical analysis that factor in time must be modified to work with the 24-hour forex market. These are some of the most common forms of technical analysis used in forex:
The Elliott Waves
Fibonacci studies
Parabolic SAR
Pivot points
Many technical analysts combine technical studies to make more accurate predictions. (The most common is combining the Fibonacci studies with Elliott Waves.) Others create trading systems to repeatedly locate similar buying and selling conditions. Finding Your Strategy Most successful traders develop a strategy and perfect it over time. Some people focus on one particular study or calculation, while others use broad spectrum analysis to determine their trades.
Most experts suggest trying a combination of both fundamental and technical analysis, with which you can make long-term projections and also determine entry and exit points. But in the end, it is the individual trader who needs to decide what works best for him or her (most often through trial and error).
Things to Remember
Open a demo account and paper trade until you can make a consistent profit - Many people jump into the forex market and quickly lose a lot of money (because of leverage). It is important to take your time and learn to trade properly before committing capital. The best way to learn is by doing!
Trade without emotion - Don't keep "mental" stop-loss points if you don't have the ability to execute them on time. Always set your stop-loss and take-profit points to execute automatically, and don't change them unless absolutely necessary.
Make your decisions and stick to them!
The trend is your friend – If you go against the trend, you had better have a good reason. Because the forex market tends to trend more than move sideways, you have a higher chance of success in trading with the trend. Conclusion The forex market is the largest market in the world, and individuals are becoming increasingly interested in it.
But before you begin trading it, be sure your broker meets certain criteria, and take the time to find a trading strategy that works for you. Remember, the best way to learn to trade forex is to open up a demo account and try it out. Here are some useful resources:
Economic calendar: http://mam.econoday.com/index.html
FOREX brokers: http://www.fxstreet.com/nou/brokers/senseframestaula.asp
FOREX forum: http://moneytec.com/
FOREX news: http://forexnews.com/
by Justin Kuepper, (Contact Author Biography)Justin Kuepper has many years of experience in the market as an active trader and a personal retirement accounts manager. He spent a few years independently building and managing financial portals before obtaining his current position with Accelerized New Media, owner of SECFilings.com, ExecutiveDisclosure.com and other popular financial portals. Kuepper continues to write on a freelance basis, covering both finance and technology topics.
Trading Diary!
Took 15 points off ftse and oil rose again like a salmon and hit a high of the year so far!
Oil is following what most see as a regular pattern.
As the summer comes into affect oil prises rise due to higher consumer consumption.
But also due to the various oil manufacturers sticking together to keep the price high!
The huge red candle with wick is due to the crude inventories announcement. Its too volatile to trade which is a shame!
Ftse Strategy delivered another 20 points. It is fast becoming my favourite to trade and has the potential to get 30 - 40 points per day without trading FX or oil!
Tuesday 19 May 2009
Trading Diary!
Nice 35 points on oil today! Oil moved to 61 Dollars per barrel, before dropping back down to 55. Entered at 60.67 and took 35 pips! New strategy is working well especially now oil is at a stronger price!
Started to look at a comprehensive back testing facility for all the strategies.
This will give even more confidence to trading group. It will also look at the changing trends of the market and how the strategies perform around periods of announcements!
Monday 18 May 2009
Wednesday 13 May 2009
Trading Diary!
10:30 GBP BOE Gov King Speaks
10:30 GBP BOE Inflation Report
The announcement today made cable bounce up and down wildly finally dropping over 100 points...
The first big huge red candle you see actually dropped 50 points alone! This is why a lot of experts advise not to trade around announcements. As an individual at home you are at the mercy of huge corporations.
Whatever indicators you use may be of no use to you. I initially had a sell signal before the first 9.30 announcement and cable went long!
The 10.30 announcement then dropped it like a rocket. If you are brave and have a trader profile by definition of wealth dynamics? Then you may have used it to your advantage!
I am of the belief that you should avoid it at all cost, the big boys no the information up front and use it to their advantage!
The morning ftse trade delivered 20 points again!
On to tomorrow!
Tuesday 12 May 2009
Trading Diary!
The pound looks set to go back to previous high levels. Many, including the experts on bloomberg, are now predicting that the dollars bullish run has come to an end.
The only currency the dollar did not gain on in the last 8 months, has been the yen. This is due to the Yen being counter cyclical. Basically if the world is doing well then Japan and the Yen is doing bad.
The opposite applies as we have seen with the strength of the yen in the last 8 months. There was 150 points available today on a two hour trade using the 1 hour strategy on FX taught by Investment mastery https://wealth.infusionsoft.com/go/SMP/KO/
But I also got into oil and took 32 pips and an additional 15 points on the Ftse. The markets did not move at all yesterday. But this morning crude oil woke up angry and all currencies had major moves.
I hope you caught some!
The only currency the dollar did not gain on in the last 8 months, has been the yen. This is due to the Yen being counter cyclical. Basically if the world is doing well then Japan and the Yen is doing bad.
The opposite applies as we have seen with the strength of the yen in the last 8 months. There was 150 points available today on a two hour trade using the 1 hour strategy on FX taught by Investment mastery https://wealth.infusionsoft.com/go/SMP/KO/
But I also got into oil and took 32 pips and an additional 15 points on the Ftse. The markets did not move at all yesterday. But this morning crude oil woke up angry and all currencies had major moves.
I hope you caught some!
Friday 8 May 2009
Make 500 - 10,000gbp per week!
Give Me Just A Few Minutes of Your Time, And I'll Show You..
"How To either Add a Steady Second Income OR Dramatically Grow Your Current Savings Through the Real Secrets of Stock Market Investing"
There are two basic requirements for every successful stock market investor. I believe you may already have one of them.
The first requirement is the right attitude. If you’ve got it, you’re halfway there...
The second requirement is the right knowledge. This is something I can give you. Actually, it’s something a group of stock market millionaires can give you because I’ve brought all of their knowledge together in an exceptional event that I’d like to tell you about... Best of all, you can check it out completely FREE!
Stock Market Seminars Just Simply Don't Work
Here's just three of those problems...
1. TOO MANY PEOPLE: Having to sit with hundreds of people in one massive room (this makes the learning curve very difficult. I mean, how can you ask questions confidently in front of hundreds of others and then expect one-on-one attention ... it won't happen! )
2. NO COMPUTERS TO PRACTISE ON: If you don't practise right there and then with the instructor in the room, when ARE you going to practise? Not at home on your own. You won't know how to look at charts, place orders, get in and out of trades: you won't know how to trade!
3. CAN'T GET ALL YOUR QUESTIONS ANSWERED: Have you ever tried raising your hand to ask a question with hundreds of other people in the room? It's scary and most people don't do it, so they leave with all their questions unanswered. Even if every person were to ask just ONE question a day, that would be hundreds of questions being asked - it would totally disrupt the seminar.
And you know what I truly, honestly now believe? 99% of stock market seminars just don't work, will NEVER work and are a total waste of your time and cash!
Because every single one of us is very special, including you. Your learning speed is unique. Your ability to soak in and apply what might seem like heavy information, like investing strategies, can freeze you with fear if not handled right.
Now...
Imagine this. I mean really, truly use your imagination. Think about this.
Imagine buying and selling shares with confidence, knowing EXACTLY what you are doing by following a trading system that works. And all because you received that 1-on-1 attention, had all your questions answered and really understood what was being explained to you.
Our Stock Market Workshop is Proven to Work
Let me tell you, when I decided to set up Investment Mastery I really wanted to create something very special. I wanted to take on all the problems I and others have seen at Trading and Investing seminars and hit them head on with a very unique approach. And that's exactly what we did.
Myself and my team have created something so unique and special I can say this with confidence...
Unless you have been to one of our classes you really haven't experienced true Trading or Investment education...
My Team Specialise in Small, Private Hands On Trading and Investment Classes That Have an 80% Success Rate (unlike the less than 10% from a big seminar!) So...
Attend the free seminar:https://wealth.infusionsoft.com/go/SMP/KO/
For the homestudy course:https://wealth.infusionsoft.com/go/SMDVD/KO/
Marcus de Maria
Monday 4 May 2009
FX Scalping Universal Rules!
Fellow trader,
If you are currently scalping FX markets (or are planning to), there are certain
universal rules that you simply need to know to survive. Beyond these rules exist
another level of knowledge that very few traders possess...
This private document will begin to shed some light on what you likely don’t know
about how to successfully scalp the Forex markets in such a way that puts the
market at the mercy of your trades…not the other way around, as is so often the
case.
Scalping the Forex market brings certain challenges that you don’t have when
trading on larger time frames. For example, if you are trying to take 100+ pips out of
the market with a spread of 2 pips, the cost of this trade is only 2% of the total. Now,
if you are scalping for 10 – 15 pips with a 2 pip spread, the cost of this trade is as
high as 20%.
So, if you are going to be scalping the Forex market you need to be very strategic
with your approach, or you will get eaten for breakfast. There are literally hundred
of sharks out there in the form of highly skilled professional traders, and large
banks that are waiting to prey on the individual retail trader like you, who so often
have no clue what they are doing.
For the sharks, you are easy prey, and easy profit, and your loss is always their gain.
They literally profit on all of your losses, and for them it's like shooting fish in a
barrel.
So in order to avoid being the prey, you need to have a solid understanding of how
the markets work. Armed with the knowledge you are about to receive, you will not
only be protected from sharks, you will also be in a power position that will allow
you to consistently scalp profits out of the market over and over again...just as I do.
If you are currently scalping FX markets (or are planning to), there are certain
universal rules that you simply need to know to survive. Beyond these rules exist
another level of knowledge that very few traders possess...
This private document will begin to shed some light on what you likely don’t know
about how to successfully scalp the Forex markets in such a way that puts the
market at the mercy of your trades…not the other way around, as is so often the
case.
Scalping the Forex market brings certain challenges that you don’t have when
trading on larger time frames. For example, if you are trying to take 100+ pips out of
the market with a spread of 2 pips, the cost of this trade is only 2% of the total. Now,
if you are scalping for 10 – 15 pips with a 2 pip spread, the cost of this trade is as
high as 20%.
So, if you are going to be scalping the Forex market you need to be very strategic
with your approach, or you will get eaten for breakfast. There are literally hundred
of sharks out there in the form of highly skilled professional traders, and large
banks that are waiting to prey on the individual retail trader like you, who so often
have no clue what they are doing.
For the sharks, you are easy prey, and easy profit, and your loss is always their gain.
They literally profit on all of your losses, and for them it's like shooting fish in a
barrel.
So in order to avoid being the prey, you need to have a solid understanding of how
the markets work. Armed with the knowledge you are about to receive, you will not
only be protected from sharks, you will also be in a power position that will allow
you to consistently scalp profits out of the market over and over again...just as I do.
Ten Steps to Building a Winning Trading Plan
Ten Steps to Building a Winning Trading Plan
by Matt Blackman (Contact Author | Biography)
There is an old saying in business: "Fail to plan and you plan to fail." It may sound glib, but those who are serious about being successful, including traders, should follow these eight words as if they were written in stone. Ask any trader who makes money on a consistent basis and they will tell you, "You have two choices: you can either methodically follow a written plan, or fail."
by Matt Blackman (Contact Author | Biography)
There is an old saying in business: "Fail to plan and you plan to fail." It may sound glib, but those who are serious about being successful, including traders, should follow these eight words as if they were written in stone. Ask any trader who makes money on a consistent basis and they will tell you, "You have two choices: you can either methodically follow a written plan, or fail."
If you have a written trading or investment plan, congratulations! You are in the minority. While it is still no absolute guarantee of success, you have eliminated one major roadblock. If your plan uses flawed techniques or lacks preparation, your success won't come immediately, but at least you are in a position to chart and modify your course. By documenting the process, you learn what works and how to avoid repeating costly mistakes. Whether or not you have a plan now, here are some ideas to help with the process.
Disaster Avoidance 101…Trading is a business, so you have to treat it as such if you want to succeed. Reading some books, buying a charting program, opening a brokerage account and starting to trade is not a business plan - it is a recipe for disaster. "If you don't follow a written trading plan, you court disaster every time you enter the market," says John Novak, an experienced trader and developer of the T-3 Fibs Protrader Program. John and his wife Melinda, who is also his business partner in Nexgen Software Systems, run a number of educational trading chat rooms to help traders learn how to use their software and, more importantly, learn how to trade.
In a nutshell, their software identifies Fibonacci areas of support and resistance in multiple time frames and provides traders with specific areas to enter and exit the market. Once a trader knows where the market has the potential to pause or reverse, he or she must then determine which one it will be and act accordingly. "Even with the best program, market data and analysis, odds for consistent success range from slim to none without a written plan," says Novak.
The Nexgen website offers examples of trading plans and useful market information for the benefit of both clients and non-clients alike. "Like the markets, a good trading plan evolves and changes, and should improve over time," says Melinda Novak. A plan should be written in stone while you are trading, but subject to re-evaluation once the market has closed. It changes with market conditions and adjusts as the trader's skill level improves. Each trader should write his or her own plan, taking into account personal trading styles and goals.
Using someone else's plan does not reflect your trading characteristics.Building the Perfect Master PlanWhat are the components of a good trading plan? Here are 10 essentials that every plan should include.
Skill assessment - Are you ready to trade? Have you tested your system by paper trading it and do you have confidence that it works? Can you follow your signals without hesitation? If not, it's a good idea to read Mark Douglas's book, "Trading in the Zone", and do the trading exercises on pages 189–201. This will teach you how to think in terms of probabilities.
Trading in the markets is a battle of give and take. The real pros are prepared and they take their profits from the rest of the crowd who, lacking a plan, give their money away through costly mistakes.
An Introduction to Investing, What do you need to start investing?
1) Decide on what type of investor you want to be
Active investor or passive investor (There are many types of investors - each with a different style and time frame. Investors can be long-term or short term or even active traders. On-line traders are more common now.)
2) Evaluate your capital
How much money do you have to invest? What are your net earnings? What is your net worth? It is important to know how much you have before deciding how much of it you want to invest. This will in turn affect what type of investor you become or how much risk you take.
3) Set up a Broker account
There are many types of brokers: full service, deep discount, execution only, discretionary dealers, spread betting service providers etc. with different services and prices. On-line brokers are more cost-efficient and common.
4) IT Facilities
A fast computer with high-speed internet broadband connection, preferably wifi compatible.
5) Market Analysis Tools
There is a wide range of tools available for investors depending on the type of investors they are. Long-term investors may rely more on fundamental analysis and use annual reports, economic data and news information while traders may rely more on charting packages. For shares look at free US charting web sites like http://www.advfn.com/ or http://www.bigcharts.com/ and for UK look at http://www.ft.com/ and also http://www.advfn.co.uk/ . For currency trading free packages include Metatrader, FXpro and some Brokers have good charting software incorporated with real-time live data like www.fxcm.com.
6) Set up book marks for useful websites
a) http://www.iii.co.uk/ (UK market general information)
b) http://www.ft.com/ (UK general + charting)
c) http://www.selftrade.co.uk/ (Uk fundamentals + charting)
d) http://www.digitallook.com/ (UK fundamentals + Charting)
e) http://www.bankofengland.co.uk/ (UK economic data)
f) http://www.bankrate/ (US economic data)
g) http://www.moneyam.com/ (general + charting)
h) http://www.advfn.co.uk/ (Live UK charts)
i) http://www.smartmoney.com/ (US fundamentals + Charting)
j) http://www.bigcharts.com/ (US Charting)
7) Decide your strategy and time frame
Depending on the type of trader you want to be. Do you want to be a Scalper, Day-trader, a Swing Trader (from 2/3 days to 2/3 weeks), Position trader, Momentum trader or a long-term investor, and how much time are you willing to spend in your trading every day/week.
8) Practice virtual trading
Start with paper trading or virtual trading in order to build a routine and develop a style, then progress to live trading with small capital to get a feel for the market. Keep a record of how long as it takes, to make sure that when you put real money into the floor, you already have a winning strategy. Look at it is as a business; you have to invest your time to make money.
Active investor or passive investor (There are many types of investors - each with a different style and time frame. Investors can be long-term or short term or even active traders. On-line traders are more common now.)
2) Evaluate your capital
How much money do you have to invest? What are your net earnings? What is your net worth? It is important to know how much you have before deciding how much of it you want to invest. This will in turn affect what type of investor you become or how much risk you take.
3) Set up a Broker account
There are many types of brokers: full service, deep discount, execution only, discretionary dealers, spread betting service providers etc. with different services and prices. On-line brokers are more cost-efficient and common.
4) IT Facilities
A fast computer with high-speed internet broadband connection, preferably wifi compatible.
5) Market Analysis Tools
There is a wide range of tools available for investors depending on the type of investors they are. Long-term investors may rely more on fundamental analysis and use annual reports, economic data and news information while traders may rely more on charting packages. For shares look at free US charting web sites like http://www.advfn.com/ or http://www.bigcharts.com/ and for UK look at http://www.ft.com/ and also http://www.advfn.co.uk/ . For currency trading free packages include Metatrader, FXpro and some Brokers have good charting software incorporated with real-time live data like www.fxcm.com.
6) Set up book marks for useful websites
a) http://www.iii.co.uk/ (UK market general information)
b) http://www.ft.com/ (UK general + charting)
c) http://www.selftrade.co.uk/ (Uk fundamentals + charting)
d) http://www.digitallook.com/ (UK fundamentals + Charting)
e) http://www.bankofengland.co.uk/ (UK economic data)
f) http://www.bankrate/ (US economic data)
g) http://www.moneyam.com/ (general + charting)
h) http://www.advfn.co.uk/ (Live UK charts)
i) http://www.smartmoney.com/ (US fundamentals + Charting)
j) http://www.bigcharts.com/ (US Charting)
7) Decide your strategy and time frame
Depending on the type of trader you want to be. Do you want to be a Scalper, Day-trader, a Swing Trader (from 2/3 days to 2/3 weeks), Position trader, Momentum trader or a long-term investor, and how much time are you willing to spend in your trading every day/week.
8) Practice virtual trading
Start with paper trading or virtual trading in order to build a routine and develop a style, then progress to live trading with small capital to get a feel for the market. Keep a record of how long as it takes, to make sure that when you put real money into the floor, you already have a winning strategy. Look at it is as a business; you have to invest your time to make money.
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