Dynamic Trading Strategy

Dynamic Trading Strategy

Trading without a strategy is like driving without brakes. Any trader going into the markets without a strategy or system is destined to crash and burn.

To be a Dynamic Trader, every trader should know why they are about to enter a trade and the strategy they are applying. In addition they should know where they are coming out of the trade and the reasons behind it.

Entering on a hunch is not trading, it is simply gambling your money away. Without knowing these fundamental basics of trading will make it almost impossible to capture profits from the markets on a consistent basis.

The trader needs to know the strategy he or she is going to use and then stick to it. Many traders chop and change strategies and it is a good idea to use one strategy consistently to identify if it works for you. It is important to not that the same strategy will not neccessarily work for different traders. This is mainly due to the traders profile and as we are all unique our trading will be personalized.

To trade and consistently profit from the currency markets a trader must have discipline. A forex trader especially must trade with discipline and rules. Of course this holds true for any financial market but due to the liquidity in the forex world it is more important for a froex trader to be a disciplined trader. Discipline will help become a dynamic trader by removing the emotion from trading.

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Tools and Tactics of Profitable Forex Trading

Tools and Tactics of Profitable Forex Trading

I wanted to take the time to talk to you about some tools and tactics that will help make you have a more profitable forex experience. I've been in this market for a few years now and it wasn't always profitable for me. I learned a lot of what I know today through some tough losses, so I wanted to pass some of this onto you. There is no need for more people to lose money on learning these lessons.

Watch The News

There is so much good information presented on the news, but most traders ignore it because the content isn't filtered toward a forex trader. It's just generic. You have to start watching it and paying attention to anything that will have an impact on the economy. If it is good for the economy, it is good for the currency. If it is bad for the economy, it is bad for the currency.

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Forex Trading - Among the Best Jobs

Forex Trading - Among the Best Jobs

Forex trading is all about exchange of international currencies. One currency is sold to purchase another. The trader benefits when he chooses to exchange at the right time where the exchange rate is favorable to him. Success depends on his ability to forecast the trend of the market.

One may think how this can be one among the best jobs in the modern world especially because the fluctuation in exchange rates is very minimal. But when it comes to large volume, even a change of one-tenth of a cent can make huge difference.

To consider a career as one of the best, there should be several advantages related to it and not just money. Forex trading is not rocket science. Even those without a specialist background can excel in this career. The learning curve is not steep, though some of the basic qualities are essential while trading in the Forex market.

Forex trading is synonymous with minting money. However, there are certain prerequisites to be met for anyone who wishes to mint money out of Forex trading. The primary ones include a thorough knowledge about the market trend, basics of trading, ability to take risks, and a reasonable financial background. Now don't get afraid and don't back out. One reason that makes it one of the best jobs in today's world is that all help for meeting these prerequisites are available at your fingertips. Lot of online resources on how to set basics right, how to avoid traps and pitfalls, etc.

Another reason why it is one among the best is the scope of frequent fluctuation of currencies. If the fluctuation is in your favor, you can make huge profits. The sky is the limit when it comes to money making through Forex trading. One just cannot predict how much money he is going to make. Also it offers the maximum liquidity. The investor can access his account anytime of the day. Liquidity is perhaps the most important thing in today's world. This is because things happen quickly and liquidity can mean win or lose of a business opportunity.

Perhaps the best thing is that even with a small investment, you can make big money. The investment can be as humble as $50,000. And rich people certainly do not have an upper hand because it is just not the investment that determines success. So, every body has a fair chance.

No doubt, some of the best careers that we see today have an online connection. They can be done from the comfort of your home. Forex trading also does not differ on this. It is a 100% online career. You can choose your timings. No deadlines. No firing from your superiors. You are your own boss. The whole procedure of trading online is simple. Open an account with any authorized provider by filling an application form and sending it to the concerned person. They will take care of the rest. You only need to be ready with your investment.

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Introduction to Commodity Pyramid Trading

Introduction to Commodity Pyramid Trading

This article discusses the how to to profit from commodity pyramid trading.

These key points will help you learn this technique:

1. What is Commodity Pyramid Trading?


2. Commodity Pillar Trading Comparison


3. Commodity Pyramid Trading Comparison


4. Commodity Pyramid Trading Useful Tips

1. What is Commodity Pyramid Trading?

This is a method of trading commodity futures contracts in such a way that when the profit from a single trade equals the current margin for the commodity, the profit is used to self-finance an additional futures contract. This self-financing process can take either of two methods: Pillar trading or Pyramid trading.

The Pillar trading method involves adding one futures contract to your position during each self-finance round, while Pyramid trading adds one futures contract - but from each active futures contract with each self-financing step. This results in a doubling of your position during each self-financing step.

Both pyramid trades and pillar trades (hereinafter referred to as pyramid trades) should exhibit several characteristics which make them high profit potential candidates. These characteristics include:

• The market is quiet and has exhibited low volatility for several months.
• The margin for the commodity is relatively low.
• The market is set up for a major move. This is evidenced by extreme commercial/public signal, as well as a 12-month high or 12-month low on the daily price chart with a likely 1-2-3 Top or Bottom price chart pattern in the process of unfolding.

A VERY IMPORTANT NOTE: The biggest danger in any futures trade is a limit move which goes against your position. With a single futures contract, this is risky enough. With multiple futures contracts, this risk is seriously compounded. However, if you monitor the market conditions (both technical and fundamental market conditions) and the financial news on a daily basis, you will generally receive a timely warning of an impending limit move which may go against your position - giving you time to close out your position before that occurs.

The Pyramid Trading Form

The Pyramid Trading Form is at the heart of helping you to successfully implement and manage these trading strategies. It contains areas that will let you monitor and track up to three commodities using this trading strategy. Each area allows for up to 7 futures contracts to be held in the pillar trade position, and up to 64 futures contracts in the pyramid trade position.

How To Identify A Good Pyramid Trade Candidate

At any point in time, there will be several commodities with differing degrees of profit potential. However, it is important that you identify the commodity which has the best chance of being a profitable pyramid trade. This means that you must perform a current analysis of all commodities to identify the commodity that meets the following requirements.

a. You must first use the Commercial/Public selection tools to identify the commodities that appear to be ready to make a major move.

b. Of these commodities, identify those that appear to be making either a 1-2-3 Top or 1-2-3 Bottom in the daily price chart. Calculate the daily 50% retracement target for each one. Also calculate the dollar amount the move represents.

c. Where applicable, use the weekly chart to calculate the weekly 50% retracement target for each commodity. Again, calculate the dollar amount the move represents if the weekly target is attained.

d. Identify the margin requirement for each commodity. The ideal pyramid trade will be one with a relatively small margin requirement and with a dollar amount profit potential that is at least three times the margin requirement for the commodity.

e. The commodity that you select must be a quiet commodity - that is, one which does not have wild price swings.

f. The commodity you ultimately select as the best pyramid trade candidate must also have enough time to allow the move to unfold. This means you need to get into a more distant month to minimize loss from commission switch requirements (which can be expensive with 16 or more contracts in your position). Select the more distant commodity contract month that has 120-180 days available until the Last Trading Day (LTD).

g. The commodity which you have selected must have a daily volume of at least 10,000 contracts for adequate liquidity. Open interest should also be 10,000 or more.

It's important to remember that once you are in a trade, you must religiously perform an analysis on a daily basis so as to identify any changes in the original analysis that may adversely impact your trade. In addition, you should always monitor fundamental "news" which will affect the price of the commodity. For example, if you're short Orange Juice - and Florida has a freeze warning - close your position fast!

2. Commodity Pillar Trading Comparison

The commodity pillar trading strategy is the least risky of the two strategies because you only acquire one contract with each applicable price (profit) increase.

An example pillar trade resulted in $12,650 profit (before commissions). During the trade, your total risk was confined to $400 or less. If you had traded only one futures contract (with a 93.79 entry price, and a 94.92 exit price), your gross profit would have been $2,825. The pillar trading strategy produced the additional profit.

3. Commodity Pyramid Trading Comparison

The commodity pyramid trading strategy is the most risky of the two strategies because you acquire two contracts with each applicable price (profit) increase. This results in a risky "inverted pyramid" position which, if not intelligently managed can produce significant losses.

An example Pyramid Trade resulted in $72,200 profit (before commissions). During the trade your total risk was confined to $4,600 or less. Again, if you had traded only one futures contract, your gross profit would have been $2,825. The pyramid trading strategy produced the additional profit.

4. Commodity Pyramid Trading Useful Tips

There are several things which you must do when using the commodity pyramid trading technique described in this course. Failure to do so will likely invite grief into your life.

* You must perform an analysis of the markets to identify an ideal pyramid trading opportunity. Having done that, you need patience and commitment to wait for the inevitable move in price. Your previous efforts at paper trading have given you the confidence and skills to identify major moves. Trust your skills.

* Get into the more distant futures contract to avoid the need to "switch" contracts. The commission on 64 contracts at $40 per contract will cost you an extra $2,560 in commissions each time you switch.

* You must monitor your position daily. This involves being aware of what the analysis "tools" (described in my complete Commodity FUTURES Trading Course) are telling you about the current state of the market.

* Be aware of any "news" items which would have an impact (positive or negative) on the commodity you are trading. For example, if you are short in Orange Juice, a "freeze" warning in Florida will cause price to move against you, and can likely result in a limit move - a catastrophe you should immediately take steps to avoid!

* A price move generally results in a series of minor retracements; leaving a support point during an increase in price, and a resistance point during a decrease in price. It is a sensible strategy to place the stop-loss a little below the support point for the uptrend and above the resistance point for the downtrend.

* Timing of the order entry is critical. You need to predefine what your entry strategy will be during each phase of pyramid trading.

Closing Advice

You must do your homework and try different strategies using various price charts. By covering the price chart with a sheet of paper so you can't see price action beyond the entry point, you can slowly move the sheet of paper rightward exposing subsequent price action. This technique lets you retroactively "simulate" various strategies and react to market changes. Of course, you should also be entering the applicable data into your Pyramid Trading Form to track your "simulated" trade. This will give you skills and confidence to use this pyramid trading technique.

Special Note: There is substantial risk in trading commodity futures and options.

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Automatic Income Generation Through Forex Trading

Automatic Income Generation Through Forex Trading

Automatic income generation through forex trading is not as difficult as people usually consider it to be. Anybody who is "educated enough" can participate in this type of investing and generate profits. The key here is to be educated enough. Like any professional trader, you can also make handsome income through such investments, but you must have the correct knowledge to do that. You must be aware of the tools and strategies that can make the big difference for yourself. Let me share some of the important factors that might play an important role in documenting your success story as a forex trader.

The Right Form Of Education

Always remember that forex trading is an automatic income generation method but only for the educated traders. Therefore, it is very important for you to attain the right form of education. However, you must keep yourself away from the infomercial Forex riches classes. They may not be very helpful for the beginners. You will only end up spending lots of money with little or no return at all. Word of mouth recommendations are perhaps the best way to find the right training program regarding automatic income generation through currency trading. You should also note that there are hundreds of such training courses and materials available in the market. Therefore, it definitely pays to shop around.

Understanding The Use Of Forex Tools

Different Forex tools also play a very important role in determining the amount of profit in your venture. Some of these tools can even send you important trading signals through the email or SMS. Likewise, some tools are capable of sending you various buy and sell alerts. Most of these tools are software programs. You can get these tools from your favorite Forex trading sites on the Internet. However, make sure that your decision should not be based only on the information that is provided by these tools. In order to make the best use of the automatic income generation method, you must also do a technical and fundamental analysis thoroughly in order to decide whether you should buy or sell or simply stand aside.

Your Customized Trading Strategy

It is good that you are careful and are using tried and tested strategies, but at the same time, it is also important for you to develop your own personal trading strategy. It is, in fact, not very prudent to always rely on the suggestions of your broker. If you are capable enough, you must include your own personal game plan to ensure better automatic income generation. Always remember that a Forex trading strategy cannot be something generic. Last, but not the least, you also need to be very careful while you are setting up an account with a FOREX broker.

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Currency Trading Made Easy

Currency Trading Made Easy

Currency trading made easy is my objective for this article. I want to help you look at trading, not as an over complicated gamble, but an easy to understand routine of behaviors. If you learn to harness specific behaviors over the long term, you'll some day find profit.

• You're Trading Pairs: You got to always remember that. You're not trading the US dollar or the Canadian dollar. You're trading pairs of currency. The value of a currency is only useful to you if it is compared (or contrasted) against another currency. When you see USD/CAD = 1.0150, you know that is the value of the US dollar compared to the Canadian dollar.
• Cheap Trades Are A Fallacy: As regular consumers in society, we are always looking for a good buy, but in that case we're buying to use for ourselves. In currency trading, you're buying with the intention of selling. Therefor your main concern should be the exit(sell) price in comparison to the buying price. For example, a very high priced currency that is expected to go up 10% more in value is better to buy than a cheap currency that "might" go up 1%. It's like flipping houses. A cheap house is a good buy, but if you can't get a good selling price in a few months, than there really is no point in buying.
• Be A Confident Trader: This is tough at first because you don't usually get confident until you have had some positive experiences with it. The best thing you can do to get in that state is to practice with your demo account. These demo accounts allow you to make trades without using money. It's the best way to get a real life simulator without investing a cent. Now, you should be able to do hundreds of trades to gain confidence, than use your real money.

Currency Trading Terminology

Currency Trading Terminology

When you first start out in this business, it may seem like you're hearing a foreign language, but currency trading terminology is quite unique. I'm going to take the time and break down as many of the common terms, so you know what they mean.

* Base Currency: When you see currency quoted, you're going to see it like USD/CAD. Basically it is the value of a currency with respect to another. In this case, the base currency would be USD.
* Quote Currency: In the same scenario as above the quote currency would be CAD or the second currency listed.
* Long Buy: A long buy is when you plan on buying the base currency and selling the quote currency.
* Short Buy: A short buy is when you plan on selling the base currency and buying the quote currency.
* Bid: The "bid" is the price a dealer is willing to buy the base currency, in exchange for the quote currency.
* Ask: The "ask" is the price the dealer is willing to sell the base currency in exchange for the quote currency.
* Pips: Pips are the smallest decimal point a currency has. If the price is USD/CAD = 1.0001, than the pip would be 1.
* Leverage: Leverage typically refers to a type of an account a broker gives you. Basically instead of putting money into trade, you put a deposit into your broker and you're allow to trade 10-100 times more money (which the broker owns). This allows you to make much more profitable trades, since you can trade more. Both you and the broker make more money. If you start losing, the broker will cut you off when your original deposit is lost.

For years now we have been using our successful strategy to place trades day in and day out. We have mastered a system that scalps the market whenever there is any price movement, and its 100% programmed and ready to begin trading for you. It’s true…. The IvyBot is one of the most revolutionary automatic robots to hit the market.