Monday, 30 January 2017

Discover the Biggest Trading & Investing Mistake

Any online investor / trader seeks an excellent off or online future trading career opportunity. Despite this goal, did you know 95 percent of all traders go broke within the first two months? Why do investors lose vast amounts of wealth in one or more of the following markets - option trading, forex trading or currency trading, stock trading, future or commodity trading etc... in such a short amount of time?

Discover the Biggest Trading & Investing Mistake
Most online investors / traders interact in devastating forms of thinking, which convinces the mind to the point where the trader believes that an educational enhancement ability that develops superb market research skills is not important. On the contrary, if trading is not treated as other business opportunities, the new sales and trading job will cripple the trader. You must develop a purposeful or industrious undertaking to learn how it works. Would you conduct business as a brain surgeon with out a college or university degree? I do not think so; similarly, the same course of action holds true for trading success.

The secret of my success required an earnest and conscientious effort on my part. This action accomplished something to the point of pure boldness; in other words, no matter how boring or non-important you think learning how to trade may be, it must be done to insure a success story.

Every successful company needs a business plan. Yet, when most people take a gamble on the securities industry, they fail to put a trading plan into place. In other words, they end up going on an emotional roller coaster, governed by how the market performs.

Without a trading plan, the majority of traders approach the financial market in an inconsistent manner - i.e. they follow their whims. The typical pattern may include the following:

Day 1 - experiment with trading
Day 2 - randomly select any online trading brokerage firm.
Day 3 - try out future trading
Day 4 - read about oriental trading then decides to go into that direction
Day 5 - change mind completely and try currency trading or forex trading
Day 6 - try day trading then in midstream chooses to hold trade for the long term
Day 7 - venture off into stock trading
Day 8 - dabble in commodity trading
Day 9 - give up because you think it is a hopeless cause.

This example is meant to look confusing. Similarly in the illustration above, this trader may use one set of indicators one day, and the next day they will throw these indicators out the window and take on a completely set of new rules.

Unfortunately, with no consistent approach, your trading decisions, governed by emotions, are doomed to failure ......... here is why.

When faced with losing money in the market, what do traders do? Usually, they end up rationalizing to hold on to a losing stock. The driving force behind this is that they do not want to be wrong. They let their ego get in the way of making profits.

LOOK! Let us set the record straight. THIS IS A FIRM FACT - not every trade will be a winner. You will not make the maximum profit out of every trade. There is no Holy Grail trading system! You just need a trading plan, which matches your personality.
When I say trading plan, I am not talking about fundamental analysis or technical analysis specifically, I am talking about setting up a simply a set of guidelines to follow regardless of what stock selection method you use.

In fact, through a study of successful traders, I found there are many different trading methods for entering a security. I have seen people use technical analysis; fundamental analysis even astrology to determine when to enter a trade. Despite these varied entry methods, one component remains the same among successful traders... they all have a trading plan that suits them.

In fact, successful traders have a written plan and my friend this is the essential component to their success. I guarantee that investors who stick like glue to a trading plan are the ones who make NOT LOSE MILLIONS of dollars in their activities of online investing.

Wednesday, 25 January 2017

5 Critical Success Factors For A Winning Forex Trading System

To help avoid the losses from hastily diving into forex trading, it is imperative that a trader have a reliable forex trading system to help them. There are many vendors selling forex trading system and many retail traders are at a lost of which ones to select. There are basically 5 important factors to consider when selecting a winning forex trading system.

 5 Critical Success Factors For A Winning Forex Trading System

When it comes to forex trading, retail traders are often unprepared for what lies ahead and many end up losing their first account. Then they either give up, or they take a step back and do a little more research and open a demo account to practice. 

Those who do this practice on demo account will often eventually open another live account, and experience a little more success , either breaking even or turning a profit. To help avoid the losses from hastily diving into forex trading, it is imperative that a trader have a reliable forex trading system to help them. There are many vendors selling forex trading system and many retail traders are at a lost of which ones to select. There are basically 5 important factors to consider when selecting a winning forex trading system:

1. The risk reward ratio - this is a pretty simple method and almost self-explanatory. A good ratio to use when involved in Forex trading is 1:2. In other words for every dollar that you risk your looking to get two dollars back in return. If you do anything less you're setting yourself up for failure as you would have to have successful trades over half the time. This method allows you the luxury of breaking even with a 33% success ratio.

2. The win loss ratio - this method is to be used in conjunction with the risk reward ratio. Your goal is that you'd want to produce profit for at least the same amount trades that you are producing loser. Going with anything more would mean that your risk reward would have to be higher.

3. Drawdown - this is based on the amount of losses that would consecutively occur. In most cases you should not saying any more than three, but if you have a higher risk reward ratio, this number could be greater and still not affect your overall situation.

4. Past performance - if you're going to get a good forex trading system, you're going to have to look into the past performances of the system. If you know that the trading system has done well over saying the past 10 years, you can buy with confidence.

5. Average trade drawdown - this may not be a necessity for all forex trading systems but it is still useful. It is the ability to evaluate how long a trade will go down and die before it makes a turn to move to profitability.

A good forex trading system that does not need to involve expensive software. It is actually quite easy to get a grasp of. Have a basic set of trading rules and use the candlestick format on your chart as you make note of profits and losses and entries and exits. Doing this will enable you to see if your system is profitable in the long run.

As you go through this process, you will find a forex trading system that you are comfortable with and have the confidence that it will produce profit. What you do this you need to have the discipline to stay within your system so you can create the same situations that you did while testing it out. By this time, you should have a good feel for how it works and be able to apply it successfully.

Taking these few pieces of advice will enable you to pick a forex trading system that will work for you. If you are still unsure about how all this works, feel free to contact me and I will get back to you as soon as I possibly can.

Monday, 23 January 2017

6 Ways To Improve Your Facebook Advertising

There are more than 800 million people using Facebook everyday and Facebook advertising offers a highly targeted way to reach your prospective customers. But, as with any type of advertising or marketing, you have to make sure that your Facebook advertising is right from the outset or you will lose money.

 6 Ways To Improve Your Facebook Advertising

Facebook advertising is a great way to reach specific prospective customers. With over 800 million people using Facebook everyday, your ads can be targeted to an audience based on their gender, location or their individual preferences within their Facebook profile.

But, Facebook advertising is just like any other type of advertising and you have to ensure that it is right or you will get very few results and lose money.

Here are 6 steps to help your Facebook advertising:
1. Have An Objective
You have to know the objective of your Facebook advertising campaign. Is it sales, sign-ups or perhaps "Likes" of your Facebook Page? You won't know if your campaign was a success or not if you did not have any clear objectives for what you wanted to achieve.

2. Target Your Audience
Facebook advertising allows you to specifically create ads for your target audience. You can reach people based upon where they live, their gender and their age. You can target the interests of your audience and their job titles. The more targeted your ad, the more success you will have.

3. Have A Clear Message
Within the Facebook advertising guidelines, you can have 25 characters for your ad title and 135 characters for your text. That is not a lot of words, so your message needs to be clear and get to the point quickly. Remember that you want your audience to click on your ad, so make the main benefit clear to motivate them into action.

4. Use A Good Image
You have to include an image. The size is a landscape shape at 110 pixels wide x 80 pixels high. Make sure that your image connects with your text and that it is not too busy so that your audience cannot see what it is.

5. Carefully Consider Your Landing Page
Have a consistency between your ad and the page that you send somebody to when they click on it. You can send people to a landing page outside of Facebook, or to a specific Facebook Page, Event, Application or Group. The more consistency between your ad and your click-through page, the more likely that your audience will respond to your ad.

6. Know Your Budget
Have a set budget and time-frame for your campaign. You can set a daily budget or allocate funds for the period of the campaign. When you set you bid price you can enter a specific maximum bid price, or you can opt for Facebook's suggested bid price. You can pay via cost per thousand impressions (CPM) or cost per click (CPC).

Monday, 16 January 2017

The Right Way to Use Moving Averages in Forex Trading

Moving averages are fast rising in popularity nowadays and if you use it properly, you will surely gain huge amount of profits. However, a lot of forex traders commit critical errors in using it wh... 

 The Right Way to Use Moving Averages in Forex Trading

Moving averages are perhaps the most commonly used technical indicators in forex trading. MAs are used primarily as trend indicators and also identify support and resistance levels. In forex trading, the 50-day, 100-day, and 200-day MAs are considered to represent significant support and resistance levels. The two most frequently used MAs are the simple moving average (SMA), which is the average price over a given number of time periods, and the exponential moving average (EMA), which gives more weight to recent prices.

Moving averages are fast rising in popularity nowadays and if you use it properly, you will surely gain huge amount of profits. However, a lot of forex traders commit critical errors in using it which make them lose more often.

Moving averages have the same goal. They are the ones who identify the forex trends in a particular period and they iron out the price fluctuations day to day. The equation they use is adding the closing price and dividing it by the period where it is calculated. This is mostly used by technical forex traders since it is a great tool in identifying trends.

The problem arises when forex traders tend to misuse the moving averages. One example is that, most traders believe that it is a leading indicator-it is not. It is actually a trend line that simply gives direction to where the trend is going at the period they are calculated. Another problem that occurs is that most traders believe that the short time periods most likely to indicate more. Well the truth is, it really doesn't indicate anything. 

The volatility in short term periods is random, thus, there is no trend. Day trading traders lose when they use moving averages in this period because simply there is nothing to calculate.

Therefore moving averages are used to identify the forex trend, resistance levels and support, combining them with the momentum indicator that is entering the trade and use the period for a week. It is a great tool that can give you great profits if you know how to use it.

Friday, 13 January 2017

Moving Averages Analysis

The article describes using moving average in technical analysis to predict possible future stock trend direction as well as discusses several technical indicators based on the moving averages.

 Moving Averages Analysis

Moving average is one of the basic and most popular indicators in technical analysis. From the name of this indicator you may already understand that this indicator shows the average price of a security (stock, option, bond, etc) over specified period of time or specified period of bars. There are two most used types of moving average: Simple Moving Average (short name SMA) and Exponential Moving Average (short name EMA). The difference between simple and exponential moving averages is that exponential one uses weighing factors to reduce the lag in simple MA. 

The purpose of moving average is to smooth shorter-term price fluctuation within the longer-term trend in order to define the direction of the current longer-term trend. This technical indicator is one of the oldest in technical analysis and is considered as trend following indicator or a lagging indicator. Price moving averages themselves do not predict coming trend reversals but rather follow the changes in the trend. However, smoothing factor they use allows to filter small price changes and alert when the price-trend change has become critical to consider opening/closing a position.

Moving Averages are widely used in different trading systems to confirm trend as well as generate conservative longer-term trading signals. Over the last several decades technicians have build the number of other technical indicators based on the moving averages which help traders to define price volatility (example could be Standard Deviation indicator), recognize trend direction (as an example - MACD), as a signal line (for instance TRIX with Signal Line) and to smooth other technical indicators such as volume, advances and declines.

MACD and MACD Histogram are one of the most popular technical indicators calculations of which are based on the Moving Averages. In technical analysis MACD is considered as momentum indicator and is used to show the relation between fast (smaller bar period) and slow (bigger bar period) moving averages. This is a simple technical indicator that calculates the difference between two exponential moving averages by oscillating around zero line (center line). 

PPO (Percentage Price Oscillator) is another technical indicator that is very similar to MACD. Percentage Price Oscillator is calculated as ration between two moving averages (between fast and slow). It is analyzed and used in the same way MACD is used with the difference that it oscillates around 1 while MACD moves around 0.

Both MACD and PPO reveal the direction of the shorter term trend (fast MA) in relation to the longer term trend (slow MA) and used to generate trading signals from divergence, moving average crossovers and centerline crossovers.

Wednesday, 11 January 2017

How To Exponentially Build Your Twitter Followers

With Twitter’s API application, there is potential for many new applications to be built off the Twitter back-end (although, not quite yet Twitter usernames are essentially keywords used for these applications built on the Twitter platform — and Twitter username squatting is happening. The question is, how will these new businesses monetize — and how will Twitter itself monetize.

 How To Exponentially Build Your Twitter Followers

With Twitter’s API application, there is potential for many new applications to be built off the Twitter back-end (although, not quite yet Twitter usernames are essentially keywords used for these applications built on the Twitter platform — and Twitter username squatting is happening. The question is, how will these new businesses monetize — and how will Twitter itself monetize: The power in any advertising-supported website, publication, TV show, etc, is community (readers, viewers, listeners, etc). Build a great service, get people to use it (or read, listen, view) and you can then send out specific ads to those users. Example 1: Have a Twitter username for "Knicks"(i.e. NY Knicks, a basketball team in the NBA). People add that user as their friend — the "Knicks" username pushes out any Knicks news… the minute it happens! Ditto on sports scores — if a Knicks game is going on, it’ll send out the score during the game to keep you alerted, if you want to be. If you can get 10,000 Knicks fans on your list — then you can either:

1)Put an ad in any blank space at the end of your 140-character messages — i.e. "Drink an ice cold, refreshing Pepsi."

2) Send out an advertisement every 10th or 50th (whatever you learn to be OK with your users) twitter. Thus, I may receive 10 twitters of news announcements, and the 11th is an advertisement for Grey Goose vodka.

3) Pay-Per-Twitter Message — If there was a username called "NYCtechJobs" — any person looking for a tech job in NYC could be a friend of this list, and be notified instantly of any new NYC tech jobs. Where would those jobs come from? Initially possibly just from Craigs List, Monster, Hot Jobs, etc … but then say you have 2,000 users that are the friends of "NYCtechJobs", that means you have 2,000 prospective tech employees in the NYC area. A company would love to get their latest tech job out to those prospects, so they can find a hire — thus, they go to a web page you have setup, and they are able to create a message up to 140 characters (likely include a URL to full job details) with some details on the job. You can charge the employer for posting this.

Ditto with a list (er, username) like "NYCfurniture". People could pay to broadcast their message to all of the friends of "NYCfurniture".

4) Charge for access to your Twitter messages — Your username can be private and only your friends can receive/view your twitters. Thus, if you had valuable/timely information — you could have a subscription-based service where you charge $X for people to be your friend, and then they would have access to your twitters. Thus, a celebrity could charge for this — or a newspaper might do this to give you access to the news first — or some blogger that finds online shopping deals could send them to you … basically, if the user wanted to be "in the know" for whatever offering, they’d pay $X for access (per week or month). Note: You’d have to verify their subscriptions — and if they haven’t paid for the month, you’d remove them as a friend from your Twitter account.

5) Commissions on user purchases — Setup a service that allows users to buy products through this. User would need to setup an account with you with their credit card (or PayPal info, or a deposit into this proposed payment service) stored. I imagine a user could be browsing Wired magazine and be able to quickly purchase a subscription for $10 by ripping out their cell phone, Twittering a code like "d buy wired", with a confirmation coming back to the user and them approving the confirmation possibly using a password, then the transaction occurring.

The biggest question on everyone’s minds is what Evans Williams is thinking. They’re opening up their back-end to allow the development of applications on the Twitter platform (which I think is real smart, because people are going to build useful applications for Twitter users — and everyone will be using Twitter in some capacity more often) … but will Evan plan to charge these companies that are building apps? Will Evan not want these apps monetizing themselves? How is Evan planning to monetize Twitter — or will he sell and leave that to a Yahoo/Microsoft/News Corp to figure out how to extract value out of the massive userbase (like his sale of Blogger to Google)? I don’t think Evan knows the answers quite yet — he’s just focused on building a great application for users.

Monday, 9 January 2017

How The Forex Market Works

Foreign exchange trading, also known as Forex or FX, is a trading investment vehicle that is used by plenty of big banks, but how exactly do they make money trading currencies? Read on to find out.

Foreign exchange trading, also known as Forex or FX, is a trading investment vehicle that some of the world’s largest companies and banks from around the world invest in. The basics of the forex market are similar to that of the stock market, but on a much larger scale that’s open around the clock and involves international currencies.

 How The Forex Market Works

During the day, currencies fluctuate hundreds of times, similar to the stock market. While the value of the dollar may be higher one day, the very next could be lower. Trading on the forex market usually requires you to pay close attention to your trader, especially if you’re investing huge amounts of money, since the markets are open twenty four hours a day.

The three main trading areas for Forex happen in Tokyo, New York and London. The results of any forex trading in one country could affect what happens in other countries as they take turns opening and closing with the time zones. Exchange rates are always fluctuating, and if you’re learning about the forex markets, you’ll want to know what the rates are on any given day before making your trades.

Although there are hundreds of currencies exchanged, the most heavily traded ones include (in no particular order) the Swiss franc, the Euro zone euro, the Australian dollar, the British pound sterling, the Japanese yen, and the United States dollar. When you trade between currencies, you always have to trade pairs. For example, USD and JPY is the exchange of U.S. dollars for Japanese Yen. You can also trade from the currency you’ve invested in to yet another currency to build up additional profits and interest on a daily basis.

If a person knows what is going to happen to the stock market before the general public knows, it’s known as insider trading – which is very illegal by the way. The Forex market differs because there is very little (if any) inside information in the forex trading markets. Within the Forex market, more emphasis is placed on the currency, the value of the economy of a country at that specific time.

Every currency that can be traded on the Forex markets has a three letter code associated with it, similar to a stock has a symbol.

Monday, 2 January 2017

Forex Trading Strategy Building and Planning

When starting to trade Forex, the trader must build first his own forex trading strategy. This is important especially for beginner traders. The forex trading strategy is considered like a plan that identifies how the trading will go. This includes identifying the analytical ways the trader will use to know the currency pair trend. It also identifies how the money in the trading account will be managed. Here are considered general steps to build your forex trading system.

 Forex Trading Strategy Building and Planning

1. Identify your time frame: each currency pair can be monitored over certain time intervals. The time interval can be in the range of minutes, hours, days, weeks, or months. When mentoring over a time interval of one minute for example, the value of the currency pair is monitored every one minute and displayed on the graph as an opened value and closed value for every minute on the forex trading chart.

The opened value is the value of the currency pair at the beginning of the time interval while the closed value is the value of the currency pair at the end of the time interval. What interval length is chosen depends on the trader personality and his external conditions. It also depends on the amount of money in his forex trading account. Many traders can be busy and cannot look at charts very frequently. This makes the minute or the hour intervals difficult to use. Also it depends according to the personality where some traders can be bored looking at the chart very frequently while others can be happy looking at the charts every hour or every two hours.

The most important thing when determining the interval value to monitor the currency pair over is the amount of money in your trading account. Longer interval times such as days and weeks will result in more fluctuations in the currency pair and more floating losses. This means that larger-valued accounts must use the larger time intervals. Forex trading accounts that have less money must use smaller time interval in order to be able to withstand the fluctuations in the currency pair chosen.

2. Identify your analytical techniques: in forex trading, currency pair trend prediction is the key to be successful in forex. If you are well able to predict where the currency pair will go in the future, you will be able to earn money.

There are two basic ways to use: fundamental analysis and techniqual analysis. Fundamental analysis means to track economic news of the countries that own the currency your are trading and use the news your are reading or hearing to measure the economy of that country. This way is suited for long term trades or trades that uses large time interval such as weeks or months.

On the other hand, techniqual analysis uses the charts directly to predict the trend of the currency pair you are trading. Every forex trading chart supplies you with huge tools that allow you to read the chart more intelligently.  These tools can be studied in any forex contexts but the most common are the moving averages, the pivot point analysis, the MACD, the stochastic indicator, and the RSI indicator.

In analytical analysis, you just identify two or three tools from the tools mentioned above and add them to the chart. This will allow you to study the chart and know the currency pair trend. When choosing the analytical tools, you must not use too many tools because this will make the analysis complicated. Only two or three tools are sufficient.

Second, the analytical methods which will be used during forex trading must be planned carefully. This step is considered the most important one in the forex trading strategy.  It can be fundamental or techniqual schemes. The techniqual analysis depends on analyzing the curve of the currency pair price which will be traded. It uses techniqual schemes in order to predict the price movement in the future based on the history of the price. The most popular schemes are simple moving average, exponential moving average, stochastic, Relative Strength Index, MACD, and pivot point trading. The fundamental analysis depends on economical news analysis

Third, money management planning must be considered as part of the forex trading strategy. What meant by money management is to determine the percentage of the forex account which will be traded, the profit limit, stop limit, and risk to reward ratio. This is very important in the forex trading strategy although it is ignored by many people.

Fourth, the entry and exit points must be determined according to the analysis used in trading the forex. This means to determine when to enter a trade and when to exit. This will deepens on the techniqual analysis used in studying the pair. For example, if pivot point is used as a trading strategy, the entry point may be the pivot line and the exit point may be the first resistance level.

Once the trader determined the four above points, then the forex trading strategy is built. An important thing to do after building it is to follow it carefully and respect the rules inside the forex e trading strategy.