Wednesday 22 October 2008

A Forex Review of the Difference between Investing in Stocks verse Investing in Currencies


football sensation, ronaldo by ~aaronwty on deviantART
The Foreign Currency markets (Forex or FX) were deregulated in 1997 and no longer the private domain of the banks, insurance companies and other large financial institutions. Private investors quickly discovered what the large trading companies knew for a long time. Which was, it is much easier to invest in currencies for a profit than invest in stocks for a profit.
In every currency transaction there is one winner and one loser. The winner simply needs to make more than the commissions (Pip's) charged them by the brokerage firm they are using. When purchasing a stock, the seller of that stock could be selling that stock at a loss, and the person they bought it from could have sold it at a loss and the person before that could of sold it at a loss and so on and so on.
One of my biggest pet peeves when watching the business broadcast on television is when an investment banker from one of the stock brokerage firms come on and says, investing in the stock market over the last 100 years has been proven to produce the largest capital gain when compared to any other form of investment. At that time I wish I was a TV host so bad, because I want to ask the lying banker, exactly which companies would you have bought 100 years ago that are still in business today?
Can't you just hear them when you ask that, I am sure they would then mention some more fabrications like this, well there aren't too many, but if you sold this company after 2 years and then bought this other company and held it for 5 years and then sold it and bought XYZ firm and held it for 8 years, just a bunch of useless trash talking. That's my opinion anyway.
In essence, purchasing currency is a lot more like gambling on two sports teams than it is similar to purchasing stocks. When gambling on sports teams there are two participates and one wins and one loses. The winner pays the commission (Vic) to the bookmaker. There are quite a few differences between gambling and investing in currencies though.
First, the quantity and quality of information the currency has at their disposal when attempting to decide on when to buy and when to sell is vastly superior to gambling on sports teams. In fact, if you follow a few simple principles and don't get greedy this information can be used to virtually guarantee profits. The next difference is the upside potential verses the downside loss in trading currencies.
When gambling a gambler will normally invest in a one on one situation, in other words they invest one dollar to make one dollar. The currency investor on the other hand can limit their losses to what of percentage of their upside gain they believe is possible. If a gambler is correct 50% of the time they are still losing money. If a currency trader is correct 50% of the time they are traveling around the world on their own yacht trading with their wireless internet connection visiting every exotic know location. That is quite a substantial difference.
There are quite a few more reasons that investing in currencies is the best form of trading, but I am only going to mention one. If you manage your money correctly and have a low tolerance for risk then you only need to be correct somewhere around 20% of the time to break even. Even a blind monkey can do that. Really if you just throw darts at a chart you are going to be right 20% of the time. Since most of the people reading this will be new to the currency markets I highly suggest you acquire a quality education before attempting to trade. Yeah, it is not too tough, if I can do it, surly anybody can. But, I got my education before starting
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When gambling a gambler will normally invest in a one on one situation, in other words they invest one dollar to make one dollar. The currency investor on the other hand can limit their losses to what of percentage of their upside gain they believe is possible.
We have researched, tested & reviewed 100s of Forex Courses, Software Systems and Brokerage Firms which we only list our TOP 10 to help you LEARN FOREX TRADING. For 100s of FREE FOREX TUTORIALS please visit LEARN CURRENCY TRADING. Good Luck! I look forward to seeing you on the trading floor making money

A Forex Trading Education




Life as a forex trader can seem a little tedious and frustrating at first. It seems like you need to gain experience before you can start trading but you have to trade to gain experience. You don't want to waste all your time studying how to make money, you would rather just be making money. It is discouraging when you sit down to try and start trading and you realize it is less like trading and more like gambling.
These emotions are normal as you progress and start out life as a trader. You were probably introduced to trading because you know, read or heard of someone getting wealthy doing it. It may have even appeared as the first real, 'Get Rich Quick' scheme that worked. Unfortunately that line of thinking is very flawed.
Learning forex is vital to your success, forex trading is more like a business model then a way to get rick quick. Understanding that a forex trading education is necessary will be one of the biggest money savers of your life. If you haven't you taken any classes, gone through any course or done extensive research then your forex trading will be nothing more the gambling.
Forex is a job and you have to view it as such, you wouldn't expect to get a well paying job if you were never educated on what the company was doing. In forex you are the company and you have to have a vast forex trading knowledge. Give yourself the opportunity to succeed by taking a course or two, studying, gaining your own experience and letting yourself have a period of 2 or 3 years were you know they won't be very profitable but you are learning so the losses are ok.
Over 60% of people that start forex trading drop out with in the first 6 months because they either lose their money, they get frustrated or realize that it isn't a get rich quick scheme. You can hold on and learn and grow as a trader you will be successful and even though it may not be a get rich quick thing it is a get rich slow plan. Day by day you are building up your wealth and the opportunity to gain more.
Don't give up simply because you have a couple losses, losing is part of a forex trading education. Accept that you are learning, mistakes are part of the game and that forex has less to do with intuition and more to do with set and established rules that work for you.
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Forex can be a frustrating process to learn but when you are in the right mind set it can turn out to be a very profitable business for you.
A Forex Trading Education is the secret to unlocking the power of the forex market.When you Learn Forex you are learning how to succeed.

4 Tips to Free Online Forex Trading Courses




Have you ever considered learning forex online? Well odds are if you have ever considered learning forex the option of online training was the most prevalent one on your mind. Forex is a very individual business options and so of course training that you can receive exactly when and how you want it is very appealing. How though do you choose and avoid getting scammed? Who is a mentor worth following and where can you find one? Here are 4 answers that are important to understand when doing any forex course shopping.
First- Take your Time- Studying out the course that is best for you is going to take a little time. You want to make sure upfront that the course you are about to invest both time and money in is worth what you are going to put forth. There is nothing worse then getting half way through a course and realizing there is no way this technique is going to work for you.
Study now and it will save you loads of time and money later.
Second- Examples are Crucial- The owner of the course you are about to buy should show you his own trades. If the course site has no examples of real traders made by the teacher you will want to be wary that they really know what they are doing. Examples are critical in learning to trade and if upfront they aren't even showing you their successes then it is very likely their course is going to be void of them also.
Third- Big Claims mean Big Trouble- Forex trading is not a get rich scheme, there are those that get rich off of it but any of them will attest to you that it was a slow process of mistakes, failures and lots of learning. If a course is promising big results with no effort and little training turn and run as fast as you can. Losing money in forex is just part of trading forex, no self respecting, successful trader will tell you otherwise. You can learn to trade but your course mentor better be honest with you and offer you help through mistakes not avoid them completely.
Fourth- Look where the Experts Hang Out- If you are looking for a mentor that is a real trader that has found success look in places where successful traders are going to hang out. Forums are an excellent place to look. If a trader is answering others' questions odds are they can and will answer yours. Another good place are forex blogs. Look for blogs with original content, these people know enough to produce weekly posts and are usually doing it because they love what they are doing.
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In a world where scamming has turned into a full time profession for some it can be hard to know where to turn for the information you need. These 4 tips will help you avoid the scams in the world of forex trading.
ForexStrategySecrets.com knows that an Online Forex Trading education is the choice of most traders. Learning to Trade Forexx can at first be overwhelming but the right Forex Course is the biggest stress reliever

Using Forex Accounts To Build Wealth




One of the best and world's leading ways to build capital is in the forex market. Forex trading has become very popular to trade in the global market place. This is a market that is opened 24 hours a day and is the most liquid market in the world. With the advancement in technology, individuals can now trade the forex with small amounts of capital which was impossible in past times. Using your forex accounts, trading is done weekdays and you can trade anywhere at any time throughout the world. With forex trading you place a bet that one currency will decrease or increase against other currency.
Forex accounts provide you the ability to trade in the forex market. Other accounts are forex demo accounts and these should be free. If any forex broker trys to change you for one just say no thank you and search for another broker. Most demo accounts will work for 30 days. Some forex brokers may let you to use your account more than that time period. While, other brokers will discontinue your account as soon as the time period is finished.
Forex brokers offer these demo forex accounts to people so that they get to know about forex trading and use their services. When you open your account, your broker will contact you and collect some specific information about you. They may call you to see how you are doing with your account and see if they can help you open a live account. Keep in mind that brokers are paid commission when you are using live accounts and don't get paid with the forex practice account.
Our advice is to use the forex practice account until you become familiar with the strategies of trading and are comfortable trading within the currency market. It is not a good thing to fund your live account without using the practice account. The practice account helps you to understand the rules and strategies of trading.
Managed forex accounts can help some people who don't have the time to look after an account. An expert will look after watching the account and do the trading for you. The people who are managers take their work seriously as it is a very competitive field. Many people have other types of investments such as stocks so it could be hard to watch them all.
Most people who trade in the currency market use some kind of automation to assist in trading. It is very hard to trade without using technical analysis software. There are many on the market and a search of the internet will bring up many to research. Check out forums and chat rooms to find peoples opinions on which ever software you are looking at.
Within the currency market there is a chance to make a lot of money. There is risk involved and you can loose money also. My advice is to get proper training so you can become a consistant winner as you trade forex. Find the training you can understand.It doesn't have to be hard or complicated.
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Forex accounts provide you the ability to trade in the forex market.
Finding the best information on forex trading can be time consuming. Rick Williamson researches forex information at Forexebookstore.com.

How to Learn Forex Trading using the top rated Forex Educational Courses and Make Money with Them






If you wanted to fly an airplane, would you just jump in the cockpit, take off and hope for best? Of course not, then why do so many people enter the currency markets without obtaining the best possible training possible and learn Forex trading from A to Z? I will tell you why, they don't know what every successful businessperson knows, which is you don't go into business TO SAVE MONEY, YOU GO INTO BUSINESS TO MAKE MONEY!
I am going to tell you another little secret, IT TAKES MONEY TO MAKE MONEY! If you don't have any money, well then trading the currency markets is not for you. But, if you have money, the first thing you do when becoming a currency trader is NOT to start trading. The first thing you do is acquired the very best education possible. I know I am simply stating the obvious, but did you know that 95% of the people that enter the Foreign Exchange Markets NEVER make money.
This is not like we are building a rocket to go to Mars. We are only trading currencies that can only go in one of two directions, UP or DOWN. Gosh, if you blindly threw darts at a chart you would be correct 50% of the time and if you did nothing else you would only need to make more than the commission you pay to the broker to make money. So, you think you need to be right 50% of the time to be make money trading Forex, WRONG, you only need to be correct approximately 20% of the time! Why do you need to be correct only 20% of the time to do your trading on your new yacht you just bought with your profits from Forex? Because you are able to protect your downside risk while maximizing your upside profits.
Since 95% of the people that enter the markets fail to make money, I am sure you are wondering why? I am going to tell you why, they are IDIOTS! They think they can buy a piece of software for $100 that's going to make them millionaires. Guess what, if it would make you a millionaire, it is not going to cost $100!
I have been trading the currency markets for what seems like forever and I am going to tell you the THREE SECETS to making huge profits. The first is money management, the second is risk avoidance and the third is to not get greedy. That is all you have to do, it is easy money. That is of course if you know what you're doing in the first place. If you're an experienced trader and not making what you should or a new comer to the markets, then you need to learn Forex trading by taking one of the many exceptional educational training programs that are available. Do that and follow the three principles I mentioned above and it is virtually impossible not a very lucrative currency trader.
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Since 95% of the people that enter the markets fail to make money, I am sure you are wondering why? I am going to tell you why, they are IDIOTS! They think they can buy a piece of software for $100 that's going to make them millionaires.
We have researched, tested & reviewed 100s of Forex Courses, Software Systems and Brokerage Firms which we only list our TOP 10 to help you LEARN FOREX TRADING. For 100s of FREE FOREX TUTORIALS please visit LEARN CURRENCY TRADING. Good Luck! I look forward to seeing you on the trading floor making money!

Monday 20 October 2008

Make Money Fast - Want $100,000 to Invest Get Now Easily!



We all want to make money fast but the problem is we don't have much to start with and it is of course easier to make money when you it at your disposal. Well, if you have just $500.00 you can get 100,000 to invest. Lets look at how and putting it work to make money fast.

The way to do it is to open an online currency trading account - they will immediately let you trade your deposit x 200 which on $500, is $100,000

Hang on!

You may say I don't know how to trade currencies - and you may not but currency trading is a learned skill and many people start with small stakes and build wealth using leverage.

It's a fact that online currency trading is now open to all, with the rise of online trading and the money that can be made is truly life changing - however leverage is a double edged sword and can of course work for or against you

You need to make it work for you and restrict risk - so how do you do this?

If you want to make money and have a desire to succeed, then you will be prepared to learn forex trading the right way.

So if you know nothing about currency trading what do you need to learn?

The best way to trade is simply to look at forex charts learn repetitive patterns that continue to repeat and are a reflection of human nature - this is of course a learned skill, anyone can do it. You need to lock into the longer term trends and run them for profit and cut losing trades quickly.

Is it really that simple?

The answer is yes and no.

It's a fact that 95% of traders fail to make money at currency trading but it's not the market that's at fault it's their approach.

Most traders simply fail to appreciate that you need to have not only a good method - but the confidence and the discipline to execute it and stay with it, through periods of losses to achieve long term success.

Do not be fooled - obtaining trading discipline is not easy, but there is a big difference between something being easy and being achievable.

Again anyone can learn discipline - if they have the right attitude and a willingness to learn the correct way of trading.

Making money is never easy and you certainly wouldn't expect it to be with the rewards that are on offer in forex trading but again if you have desire and a willingness to learn you can.

Let me tell you an inspiring story...

In 1983 Richard Dennis a famous trader set out to prove that anyone could learn to trade successfully. In just two weeks, he taught a group of diverse people, all from different backgrounds, of both sexes and all ages, to trade - none had any previous experience.

The result?

They went on to become famous and within 4 years had made $100 million dollars!

Now I am not saying that you will become as rich as this group - but there is nothing to stop you becoming a competent and successful trader, creating wealth and an income that could change your life.

The real crux of this article is - do you have a desire to make money fast and do you have the willingness to learn the skills required?

If you do - then welcome to the world of global FX Trading and the opportunity to make money fast.

From the above you now know that you can learn forex trading and you know it's a challenge - but its one you can take up if you want to and the rewards as you have seen can be immense.





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About The Author:

Live The Dream

Become A Professional Forex Trader From Home!

Get 2 x free trading guides and an exclusive novices guide to forex trading success visit our website at:
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Online Trading: 7 Success Secrets



Getting ready to do some online trading? Get the facts on options and arbitrage trading before deciding on your trading technique. Join a live teleseminar at www.surefireonlinetradingsuccess.com.

Here are some things to consider in preparing to trade:

1. What technique/vehicle will you use?
A. Options
B. Futures
C. Forex
D. Arbitrage
E. Mutual Funds
F. Stocks
G. Penny Stocks
H. Bonds

2. What is your required level of security?
A. Almost guaranteed success
B. Minimal amount of loss when there is one
C. High risk with high possible returns
D. Moderate risk with moderate rewards

3. Determine your current goals.
A. Steady immediate income stream
B. Find the big up and coming stocks
C. Stable Long term/future growth
D. Instant big profits
E. Slow but consistent increase

4. Determine how much time you will commit.
A. A couple of hours daily.
B. A couple of hours weekly
C. Have someone else manage your trades
D. A combination of your time and someone else managing a portion of your portfolio.

5. How much money will you apply to your online trading?
A. 10% of your gross income
B. 10% of your net income
C. 10% of your investment funds
D. Other

6. How much money will you place in any trade?
A. 2% of your total account
B. 10% of your total account
C. $1,000
D. $10,000
E. $25,000
F. Other

7. How will you manage your profits?
A. Allow all of it to compound?
B. Compound 10% of the profit and use the rest for living?
C. Compound 50% of the profit and use the rest for living?
D. Use all of it for living?
E. Other?

Defining your plan before you begin online trading will make a huge difference in your results. Once you have defined your plan, stick with it. Discipline yourself to do exactly as you said. Set a certain date when you may revise the plan and then stick with the revised version. It's best not to randomly vary your activity off the set plan.

If you want the least risk, learn about options and arbitrage trading. There is fabulous software available these days to make arbitrage trading a cinch. It's a great way to get your feet wet so to speak with the safest form of online trading.

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ABOUT THE AUTHOR


Juanita Bellavance coaches entrepreneurs on "How To Condition Yourself For Success." Get the facts on options and arbitrage trading before deciding on your trading technique. Register for a current live teleseminar here: http://www.surefireonlinetradingsuccess.com Contact Juanita at Juanita@surefireonlinetradingsuccess.com