Old School New Body

Sunday, 29 September 2013

Make Money Scams: Is the Forex Included?

by: Michael A Jones

The internet and make money scams - what a duo! It's true, the internet is an amazingly useful tool. At the same time, the anonymous nature of the internet makes it very easy for less than honest individuals or companies to make misleading claims and draw in unsuspecting victims.

Scam - A Definition

Broad Definition: A scam is a dishonest attempt to get you to part with your money by making exaggerated claims or by failing to deliver the goods promised.

Specific Definition: According to Merriam-Webster's dictionary, a scam is "a fraudulent or deceptive act or operation".

Some make money scams currently circulating on the internet are paid survey schemes, home typing schemes, and pay to join affiliate programs. Not all enterprises going under those categories are scams but many are and you need to be careful. So the question arises: Is Forex trading just another 'make money scam?'

The question arises because anyone who browses the internet will see numerous adverts making all sorts of claims. Some promise huge returns on investment in a short time. Does the Forex make money? Absolutely! The question is, for whom? The daily turnover by some estimates is around $1.8 trillion. Anyone with a computer and internet connection can go online and participate in the marketplace.

Is the promise of profits from the Forex just a scam then? No, thousands are making good money. There are so many advantages! Working from home, with just a small starting investment, a steady income stream can be created. Of great importance however are realistic expectations and a practical approach. First realize you are going to have to do your homework, get a good education, and then spend months developing the mental disciplines necessary for online trading.

A Major NO! NO!

DON'T, repeat, DON'T, sign up with an online broker and sink thousands of dollars into your account. You will ended up getting slaughtered, almost guaranteed. And if you are currently out of work you have even added reason to proceed very, very cautiously. Some unscrupulous companies do catch the unwary in Forex based money making scams.

If large returns are promised if you invest a large amount of money, and pressure is exerted to get you to sign on the dotted line, just listen to the alarm bells ringing. The Forex is an extremely risky business and no one can give any guarantees or make any sound promises as to what you are likely to make. In the majority of cases, Forex novices lose, many not making it past the first 2 or 3 months.

A Realistic Approach

If you are tempted to try out Forex trading to see if it can work as an additional income stream for you, then research online and get free information on how to trade the Forex. Educational materials abound on the internet. Fire up Google and put "Forex tutorials" or something similar in the search field and start reading. Then open a demo account (which won't cost you anything) at a popular broker and start getting used to the trading platform.

After practicing for a while, find a broker that allows you to trade micro lots in a mini trading account which gives you the option of trading at the 10 cent (micro) level. With some brokers you just need $250 to open an account. That will be the maximum you will risk.

At 10 cents per trading unit you can be forgiven for thinking it will take some time to get into steady income. You will be surprised! Start slowly, learning the ropes, and then, once your account starts compounding, it can begin to grow at a surprisingly fast rate. But be patient, this is not a get-rich-quick-scheme. The learning process can take a long time.

It's understandable if up to now you have relegated Forex trading to just another one of those make money scams. Regretfully, that is one unsavory side of the Forex online trading market. However, there are a large number of reputable brokers out there, offering excellent facilities and advice to help you get started. Don't rush, just ease yourself in gradually.

To Sum Up

Remember, the single most important factor in avoiding a make money scam related to Forex trading, is to do your homework and keep these key factors in mind:

Be prepared for a lengthy learning curve.

Don't commit large sums of money to your training period.

The lion's share of your time should be devoted to mind skills, namely, developing the right psychology and self-disciplines necessary for trading successfully.

Don't get caught in the net of make money scams. Always research thoroughly. If you do that with Forex trading, it is unlikely you will regret it. There is the possibility you will see a handsome return financially.

Copyright (c) 2009 Michael A Jones



"Does Forex Make Money?" That's the question answered in this article:
http://www.realisticforex.com/forex-trading-psychology/does-forex-make-money.html

You can trade the Forex for just a few minutes a day and make good profits. This page explains how:
http://www.realisticforex.com/forex-on-minutes-a-day.html


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Stock Market Investing Tips : Online Stock Trading Advice


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Saturday, 28 September 2013

Stock Trading Courses Can Increase Your Opening Of Accomplishment In The Stock Market

by: Richard Roberts

A stock market course is for anyone who needs to speculate within the stock market, since obtaining started is sometimes a little difficult. Mistakes are straightforward to make thus it might be wise to get some skilled facilitate in http://www.stockmarketcrashing.com/2010/07/stock-market-course/ before jumping in and risking savings on shopping for the incorrect reasonably share. With this in mind, there are some online trading classes which show folks how to undertake a stock market technical analysis of what is on provide and whether it's a sensible get or not. The stock trading system has indeed made fortunes for individuals, however where there's an up, inevitably there also needs to be a down so care ought to be taken until the method of the exchange is understood.

Of course, in any exchange of shares there will naturally be rises and falls occurring on a daily basis. The concept is that the individual should purchase low, or within the trough thus to speak, and sell high, additionally called the peak. Getting this right is not a matter of obtaining out the crystal ball! What it takes is some finding out of the corporate, how it's doing over the course of a collection time, and what it's going to try to to within the future.

Inevitably, some firms will not do also others. However if the company is, as an example, and up and coming back dot com company with one thing new to offer, the percentages are that it will build cash for anyone who is owning equity in it. However there are some clever computations that experts apprehend that can show the likely trend for that company. Trends are normally not short term investments so it's the clever entrepreneur who will get nowadays at a low worth and sell tomorrow creating millions. This is highly unlikely of course.

For instance, the recent downturn in the world economy played some very cruel tricks on those that had invested. But those that were money made took great advantage of this and purchased shares at the bottom prices. The world economy should come back back at it slow, and when it does, these individuals can surely create a killing.

This is often a brave factor to do, but for those who like living on the edge, this was the proper likelihood to create mega cash with little risk. The sole downside is that they may have to wait some time to recoup their initial investment.

In stock broker classes, profit curves also are explained in great detail and can show that folks should not be impatient when trying this type of investment program. Indeed, by gaining as a lot of knowledge as potential from these stock trading classes, the individual is a smaller amount doubtless to make a horrendous mistake when shopping for shares. By applying the set formula to every individual situation, the learner can actually pick up some terribly relevant points from stock trading classes.

http://stockcourse.net/welcome

If you're still fascinated by stock market training a stock market course may be for you. Get access to a gratis http://stockmarketcrashing.com/ webinar and e book

Learn To Trade Binary OptionsLearn from the people who know the right strategies to
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Thursday, 26 September 2013

Commodity Trading Explained

by: Michel

Many traders around the world indulge in buying and selling of different commodities. Global commodity exchange plays a major role in the buying and selling different raw commodities including crude oil, metals, food grains etc.

Bforex commodity trading has gained immense popularity in the recent times. It facilitates trading of three different things including crude oil, silver and gold. The website is putting in a lot of efforts to find the importance of trading different commodities that can be profitable for the customers relying on the platform. The customer can indulge in online commodity trade with the help of bforex. Bforex commodity trading can be much easier than what you think it is. The quality in the forex trading platform is maintained in the commodity trade too.

Bforex can be the best option for both beginners and experts. Both the classes can make huge profits out of the commodity trade market as the platform is simple to understand and easy to use. The website makes special efforts to make the deals become more profitable for you. The analysis and news offered by the website will act as a backing up factor for the commodity trading strategies formulated by you.

The traders will have the option to go for either short or long on commodities. This is the reason why the traders is said to get a great exposure to some among the most profitable commodities available in the market. Bforex will also offer regular updates from the top feed providers.

Bforex can make the commodity trading much easier for the people. Of you rely on the commodity-trading platform offered by the website; you will also get the option of trading mixed commodities.

The website concentrates on the trading of commodities by offering latest technology and the updates from the market to the customers. This will help you make the most out of all the opportunities that come your way. The traders will be offered the opportunity to trade the top commodities in the world.

The market is growing a rapid pace and it attracts more people to the market. However, if you are planning to make it bog in the commodity trade, you will have to gain in-depth expertise in the subject. If you have a clear understanding about the dynamic nature of the foreign exchange market, you can make huge returns from the commodity trading market too.

The traders should also be aware of even the minutest changes that are happening in the market so that they can make huge profits by taking advantage of every opportunity that comes their way. Gold is considered a currency in the forex market. Silver can only be traded against USD in bforex.

The bforex trading scenario has been revolutionized by the advent of internet. When it comes to commodity trading, the attitude of people varies from one another. You must have a proper awareness of the commodity market if they have to make commendable profits from it. Bforex commodity trading platform can be the best option for you when all the aforementioned things are taken into consideration.

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Wednesday, 25 September 2013

Online Stock Trading terminologies made easy.


Learn more about what's on offer

Stock Trading Courses Can Increase Your Opening Of Accomplishment In The Stock Market

by: Richard Roberts

A stock market course is for anyone who needs to speculate within the stock market, since obtaining started is sometimes a little difficult. Mistakes are straightforward to make thus it might be wise to get some skilled facilitate in http://www.stockmarketcrashing.com/2010/07/stock-market-course/ before jumping in and risking savings on shopping for the incorrect reasonably share. With this in mind, there are some online trading classes which show folks how to undertake a stock market technical analysis of what is on provide and whether it's a sensible get or not. The stock trading system has indeed made fortunes for individuals, however where there's an up, inevitably there also needs to be a down so care ought to be taken until the method of the exchange is understood.

Of course, in any exchange of shares there will naturally be rises and falls occurring on a daily basis. The concept is that the individual should purchase low, or within the trough thus to speak, and sell high, additionally called the peak. Getting this right is not a matter of obtaining out the crystal ball! What it takes is some finding out of the corporate, how it's doing over the course of a collection time, and what it's going to try to to within the future.

Inevitably, some firms will not do also others. However if the company is, as an example, and up and coming back dot com company with one thing new to offer, the percentages are that it will build cash for anyone who is owning equity in it. However there are some clever computations that experts apprehend that can show the likely trend for that company. Trends are normally not short term investments so it's the clever entrepreneur who will get nowadays at a low worth and sell tomorrow creating millions. This is highly unlikely of course.

For instance, the recent downturn in the world economy played some very cruel tricks on those that had invested. But those that were money made took great advantage of this and purchased shares at the bottom prices. The world economy should come back back at it slow, and when it does, these individuals can surely create a killing.

This is often a brave factor to do, but for those who like living on the edge, this was the proper likelihood to create mega cash with little risk. The sole downside is that they may have to wait some time to recoup their initial investment.

In stock broker classes, profit curves also are explained in great detail and can show that folks should not be impatient when trying this type of investment program. Indeed, by gaining as a lot of knowledge as potential from these stock trading classes, the individual is a smaller amount doubtless to make a horrendous mistake when shopping for shares. By applying the set formula to every individual situation, the learner can actually pick up some terribly relevant points from stock trading classes.

http://stockcourse.net/welcome

If you're still fascinated by stock market training a stock market course may be for you. Get access to a gratis http://stockmarketcrashing.com/ webinar and e book

Learn To Trade Binary OptionsLearn from the people who know the right strategies to
profit almost daily, listen and learn from expert traders
everything you'll need for a profitable future
http://jackson69.8153.clicksurecpa.com/

Compare The Best Discounted Hotels Deals
Looking for a great deal on hotels see what's on offer
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ATTENTION Online Marketers Listen Up

This is where you will find all the latest trends and niches to help you
 success with your marketing campaigns This is where all your  needs
are met. Find the latest hot selling products learn what's selling what's
not this site saves you time and money this is a great valve product to
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Monday, 23 September 2013

Forex Broker Tricks

by: Ahmad Hassam

Many people start trading forex without knowing the games their forex broker can play with them. Choosing a right forex broker is very important for you. Dont get stuck up with an unscrupulous forex broker. Know the tricks a forex broker has for you.

Retail forex market where small traders like you and I trade forex is different than the interbank forex market. Interbank forex market is where big banks, corporations, hedge fund and other institutional investors exchange currencies. It is only open to big players.

With the advent of internet, retail forex trading became popular. Forex brokers work as intermediaries between the retail traders and the interbank market. Forex brokers popularize retail fx trading by offering online margin accounts. But beware retail forex market is not highly regulated. Due to poor regulation forex brokers can do what they want with immunity.

You need to know the games; a forex broker can play with you. If you dont know what games a forex broker can play with you, you will never succeed at forex trading. Understand how the broker can trick you:

Pricing is Not Transparent: Being an OTC (Over the Counter) market, forex broker can quote prices that may not be fair but you have accept them or choose another broker. The prices that your forex broker is going to quote to you, is the price that you will get. You cannot do anything about it.

Use of Leverage: Your forex broker will love you to use a high leverage like 100-1 or 200-1 in your trading. Since most of the small forex traders are unsophisticated, they easily overexpose themselves and get wiped out in the market making gains for the broker in return.

Brokers try to trade against you: Forex brokers act as an intermediary between the retail trader and the interbank forex market. Since most of the retail trades are too small in size and cannot be immediately offset in the interbank market, forex brokers get the opportunity to trade against you. If you go long, the broker will go short and if you go short, the broker will take the long position. As most of the retail traders are not good traders and lose most of the time, forex brokers make profit from this.

Practices that are unfair: Forex brokers and Casinos have the same mentality: they dont like winner. If you are winning too much, the house will be stacked against you. Your forex broker may make the execution of your trades very difficult or start denying the service to you. Your trade may not execute due to slippage. There are many games the broker will play against you so beware.

Once you know these facts, you can use a scorecard for evaluating different forex brokers. Bill Poulos, a veteran forex trader has developed one for you. Visit my Blog to read about it.



Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in stock and Forex Trading. Read more about Forex Broker Scorecard: http://forex-or-stocks.blogspot.com/2009/03/forex-broker-scorecard.html


Learn To Trade Binary OptionsLearn from the people who know the right strategies to
profit almost daily, listen and learn from expert traders
everything you'll need for a profitable future
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Looking for a great deal on hotels see what's on offer
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ATTENTION Online Marketers Listen Up

This is where you will find all the latest trends and niches to help you
 success with your marketing campaigns This is where all your  needs
are met. Find the latest hot selling products learn what's selling what's
not this site saves you time and money this is a great valve product to
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Pokemon Trading Card Game Online - Let's Play - Part 17


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Sunday, 22 September 2013

Following Other Stock Market Traders

by: Joel Weihe


With all of the trading websites, services, blogs and chat rooms available these days on the Internet it can be a trick to decide who you want to trust and follow. Following someone refers to watching them trade and making the same trades they do in the hopes of becoming profitable.

Some traders post their trades on their blogs at the end of the day. This works if your swing or long term trading. There are stock people that start and run services where you can pay to have access to their trades. Lots of chat rooms exist where traders post their trades throughout the day as they make them. Internet sites such as Covester and Stocktwits are two such places. Many bloggers are now setting up chat rooms within their sites to attract visitors. Any number of ways to follow someone exist.

Opportunities present themselves in many different places throughout the online world to take the easy way out and shadow someone else's trades. The problem lies in finding traders that are good and consistently make money. There are literally thousands of people online trading these days. Finding the good ones is not always easy.

The braggarts are the most tempting, and usually the most dangerous. If you fall in with one of these you could lose big. Some of the really good guys are braggarts in their own right, it's just a matter of trial and error finding out who's real and who's not. Best to work on that in a paper account. Some post their winners and not their losers, so you can be drawn in by a false pretense of high percentage winners. There are those that make a trade and wait to see which way it goes before posting and let you know about the good ones loudly. Do your research and be careful.

Pay sites sometimes started out as free blogs or a good trader posting trades in chat rooms. These are the business persons. Like the dealer on the street, they get you good and hooked on following them, then announce that they are going to start offering a premium membership. In my experience these are usually some of the best traders out there. They have to be to get and keep any business. At least in this case you know what your getting. Most of the time they try and keep their other thing going, but usually it is just to much. Some of these fail as the trader wasn't really good enough to pay for his service, and sometimes their followers are just offended. If your making money consistently you don't have a bad deal as long as your profits outweigh your costs.

The worst, and some of the ones you can make money following, are the copiers. The ones that take trades from other good traders and then post them as their own. You may never know the difference.

If it's from a site you don't know or use you could go on forever following this guy, the whole time thinking how good he is, and never knowing the truth.

Gurus come and Gurus go. Some have a nice spurt because of some factor or another and then fade into oblivion. There are those that are OK traders and just happened to have that one super year. Of course a lot are steadily consistent and make a good living. There is the flash in the pan, one hit wonders and even just great story tellers. Sometimes an exceptionally long trend is caught and can make someone look a lot better than they truly are. Point is Gurus have their streaks. I find it better to pay for a service I want to try by the month. That way I can find out if it's the real thing, or just another flash in the pan, and if I am convinced I can always take him or her up on the savings per year deal.

Whatever you decide to do, the best thing is to know what your doing. Accomplish this by educating yourself and learning how to do it on your own. Then follow someone for the convenience of it if you should so chose to do so.



Joel Weihe. Trading stocks, forex and futures.
Selling real estate in the great state of Kansas.
http://elditto.blogspot.com/


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ATTENTION Online Marketers Listen Up

This is where you will find all the latest trends and niches to help you
 success with your marketing campaigns This is where all your  needs
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not this site saves you time and money this is a great valve product to
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 How Much Dose It Cost If It’s FREE? I’ll show you how to make $10,000 + a month for
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Friday, 20 September 2013

Beginners Guide for Trade Stocks

by: Manseo Sharma

Such bargaining is traditional and mostly not that large volume of transactions occurs almost every second of the country and the world.

Stock markets and facilitate trade or exchange of securities, including stock. There are two types of scholarship, primary and secondary. Primary market is the case of a public offer of shares is made. During an IPO, the company that the stock's name is involved in the negotiations. Secondary market is made when the stock is sold or resold, bought and sold again.

Trading securities involves large sums of money and risk. It is therefore important that buyers and sellers of stock are well informed about the quality of the stock before making a transaction. They must also investigate the reliability of the business brokers and other participants from the community to ensure that the transaction is valid and offers the best outcome for the parties. Because of the Internet and computers, making informed decision regarding stock trading is possible. Online resources about movement and other key factors affecting the stock are easily accessible and available.

Listed companies of their actions at different exchanges. These exchanges compete with each other to attract more stock recruitment. Their income comes from stock recruitment. Stocks of the company are affected or ticker symbol, usually three or four letters to distinguish them from other traded stock.

The awards are good sources of information on the various actions listed. Exchanges in the United States these sites also provide tips and guides on stock market transactions. To protect the traders and investors, the U.S. Securities and Exchange Commission was established to oversee and regulate trading in securities. Other awards in the various countries are also in place where the stocks of foreign companies and multinational corporations can be traded. Each country has its own regulatory agency that oversees trading.

In the United States, the SEC is currently in partnership with other government agencies such as the Federal Bureau of Investigation, the Federal Reserve, and the Attorney General offices in the various states to investigate and punish fraud and the company vol. Fraud and theft has become rampant and currently, more than many business executives and government officials were indicted and convicted.

Online trading is fast becoming a lifestyle for many people, and in late May to make obsolete securities brokers, with several online companies opening their doors to meet growing customer demand. These sites are usually stock a large number of additional services on their websites, and are able to provide market operators in line with an overview of markets, and many more.

The famous Bear Stearns Companies, for example, has experienced unprecedented financial crisis due to slowdown in the mortgage, housing and financial markets. Two former Bear Stearns executives have been convicted of fraud and charged with several years' imprisonment. They have been defrauding customers, and providing misleading information to investors.



Manseo with spider logics is an Seo Services Company and author of whisperfromwallstreet.com consultant for Penny Stock Broker, Penny Stock Market, buy penny stock online and more.

http://www.spiderlogics.com
http://www.whisperfromwallstreet.com


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ATTENTION Online Marketers Listen Up

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 success with your marketing campaigns This is where all your  needs
are met. Find the latest hot selling products learn what's selling what's
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Thursday, 19 September 2013

EvE Online | Station Trading | pt 1 | tutorial

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The Holy Grail of Day Trading

by: Linda Wainman

New traders search for their Holy Grail because they get a sense of control when they use entry signals to open their positions. They want the point they choose to enter the market to be the point at which the market is doing exactly what they want it to do. If they can find this point, a novice trader will often feel like they have some sort of control, not just over the entry, but also over the market. Unfortunately, there is never a time when a trader has control of the market.

Once you are in a position in the market, the market is going to do whatever it wants to do. No one can control the direction of the market, or the extent of its movements. There is only one component of your trading system that you do have control over, your money management. Here is the true Holy Grail of trading.

Money Management:

Van K. Tharp, PhD, a world renowned leader in the unique area of professional trading says that 'Perhaps the greatest secret to top trading and investing success is appropriate money management'.

The most important factor in successful futures trading is money management.

The ability to take a loss and trade another day is the key to survival--and ultimate success-- in the futures trading arena.

A successful futures trader should be more an act of survival in the early going than scoring winning trades.

Successful traders set tight stops to get out of losing positions quickly; and they let the winners ride out the trend. On the balance sheet, a few big winning trades will more than offset the more numerous small losers. Good money management allows for that to happen.

Day trading is not a get rich scheme. It is serious business where you could lose everything within minutes because of wrong information. Before jumping into day trading, remember to do your homework first. Go to seminars on day trading, use simulations if possible and practice reading market indicators. To be a successful day trader, you do not just need luck. Knowledge and experience counts.

Pick a few classical chart patterns and specialize in trading with them. You must have discipline and patience to wait for the patterns to develop correctly using only markets suitable for you size account. Additionally, you must apply strict risk management and have great tenacity to let your profits run on the good trades.

Since strings of losses are inevitable regardless of your approach, you must control risk so you are not wiped out by consecutive losers. Experts agree that for proper risk management, you should limit risk to no more than about 1-2% maximum of your account equity. Make sure that no one trade is really going to affect your day trading float, positively or negatively.

While novice traders spend all their time working on entries, seasoned traders know that the really difficult decisions in trading involve exiting profitable positions. Letting profits run on good trades is absolutely essential to long-term success.

Winning traders understand that winning in the markets means "cash flow". More cash must come in than goes out, and anything that affects this should be considered.

ANYTHING that affects bottom line profitability should be considered as a viable area of study to improve performance.

The single best way to protect your profits is to lock them in. Really, you can either lock them in, or you can lose them.

Sometimes, if you think the market could travel a long way, some good money management advice you might want to follow is to plan several levels where you'll take profits. Firstly, take off half at a given target, and move your stop to entry. Alternatively, take off half your position and hold your stop at break even point, so nothing is lost and you also may not be taken out of the trade too early.

Always have your exit strategy in place before you make a trade.

Never, never, never add to a losing position, and every trade should be taken with professional care and planning.

Losing traders focus on winning trades and high percentages of winners. Winning traders focus on losing trades, solid returns and good risk to reward ratios.

When winning traders have a bad trade they spend time figuring out what happened and then they adjust their current methodology to account for this possibility next time.

Keeping losses small keeps your capital intact so that when a trade does become profitable, you can make big gains.

A winner runs his trading business wisely-carefully managing his fixed and variable costs of doing business and making capital investments which provide a worthwhile return to his business.

A loser is sure he's almost worthless as a person after 5 losses in a row.

The most successful traders have a methodology or system that they use in a very consistent manner. Often, this revolves around one or two techniques and market approaches that have proven profitable for them in the past.

You need to make protecting your capital and developing money management strategies your priorities if you want to be successful.

While successfully trading commodities with limited capital presents the highest challenge in trading, you can do it if you recognize the problems and construct a trading plan to accommodate the realities.

You need to position yourself so that you can endure long strings of losses, and maintain your day trading system.

If you can survive some losses in your day trading, the profits will come.

CONSISTENCY is a key factor to profitability.

Money management rules include defining your trading float, setting your maximum loss, calculating your stop loss, and most importantly learning how to choose your position size. Once these rules are in place in your system it's important to follow them. They are a critical part of any effective trading system. Money Management rules are the Holy Grail, the magical object that will bring you success in the market.


Linda Wainman is author of the "Keeping It Simple Day Trading System".

Get the exciting details from http://day-online-trading.com.

NOTE: You have full permission to reprint this article within your website or newsletter as long as you leave the article fully intact and include the "About The Author" resource box. Thanks! :-)


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Tuesday, 17 September 2013

Day Traders Afraid of Pulling the Trigger?

by: Linda Wainman

Fear...implies anxiety and usually the loss of courage. This definition of fear is useful in helping define the issues that traders face when coping with fear.

All traders have fear, but winning traders manage their fear while losers are controlled by it.

Winners take positive action in spite of their fears.

Fear of loss tends to make a trader hesitant to execute his trading plan. This can often lead to an inability to pull the trigger on new entries.

When fear of loss holds you back from taking action, you also lose confidence in your ability to execute your trading plan. This causes a lack of trust in your method as well as in your own ability to execute future trades.

You can see how fear can set in place a vicious cycle of recurring doubt and, in turn, reinforce a traders' lack of confidence in executing new positions.

Thus begins the analysis paralysis, where you are merely looking at new trades but not getting the proper reinforcement to pull the trigger. In fact, the reinforcement is negative and actually pulls you away from making a move.

In poker lingual.... you can't win what you don't put in the pot. You can be the tightest player in the world. You won't lose any money. But you definitely won't make any money.

Our minds automatically avoid pain for pleasure. This is how our brain is programmed. New traders who have the trouble of pulling the trigger associate a trade with a potential loss that can cause financial or emotional pain.

Do you imagine taking the trade and never pulling the trigger? Are you right on your analysis but are unable to execute just to watch the markets runaway from you? The biggest conflict that is causing this is your belief in pain.

This may be caused by your pain for loss or your need to be right. The need to be right is associated with the need to be perfect every time. If you are a perfectionist there is a conflicting belief that you must eliminate to trade successfully. Perfectionists believe that there is a "correct way" and a "wrong way". Taking a loss is considered the wrong way to them. Trading is a game of probability. And it is not about being wrong or right. It is about making money.

You must get used to dealing with uncertainty. There is no exact science in trading and nothing can be predicted in advance. However, with enough experience in the markets you will be able to smell market weakness from market strength.

For those who are having trouble taking losses, you are overweighing the loss. If you know your risk parameters there should be no problem taking a trade. Perhaps you are not confident in your own trading methodologies. Have you tested your setups? If you have a strategy that is 70% profitable, take the trade. Once again trading is a game of probabilities. If you have a proven setup with strict money management, you will be profitable. Have faith in your methods.

When you're having trouble pulling the trigger, realize that you are worrying too much about results and are not focused on your execution process.

For some people they are unaware that the markets they are trading does not fit their personality. If you like a slow market you should stay away from the S&P. Trade corn instead. Know your personality and find the market that suits you. This is one mistake a lot of traders make. Thus, trading is not only about understanding the markets. It requires self-understanding as well.

If you have a perfectionist mentality when trading, you are really setting yourself up for failure, because it is a given that you will experience losses along the way in trading. Again, you have to think of trading as a probability game. You can't be a perfectionist and expect to be a great trader. The objective should be excellence in trading, not perfection.

You will be better off seeing trading as a series of opportunities. and your task is to create a plan that finds opportunities with potential rewards that are several times greater than the risks you incur.

Setups will never be perfect, and that's okay, as long as you exit trades when things don't go your way.

Use a clearly-defined set of entries and trade them exclusively. A lack of disciplined entries brings fear. Have confidence in your entries and trade them exclusively and give them time to earn your confidence.

Remember this, it's better to trade a set of mediocre entries with discipline and great exits than to trade excellent entries without discipline and first-rate exits. Changing your entries continually, tinkering with them, wasting time and money hunting perfect entries, will never give you confidence.

There are no perfect entry strategies

Consider trading smaller positions to get the fear of losing out of your system and get yourself focused on execution.

And to conclude:

Practice does not make perfect. Only perfect practice makes perfect.


Linda Wainman is author of the "Keeping It Simple Day Trading System"

Get the exciting details from http://day-online-trading.com.

NOTE: You have full permission to reprint this article within your website or newsletter as long as you leave the article fully intact and include the "About The Author" resource box. Thanks! :-)


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