No Way to Know Everything About Trading

By Patrick Deaton

A title like this one my come as a surprise to you, most pointedly it does when written by a guy who earns his living educating folks about this very subject. I have been at this for some time now and not managed to learn everything yet. I do know how to make money with using trades and lose it by the same means. Here is a guaranteed way, hop from method to method and don't stay with one for enough time to know it. I will stick to trend following everytime.

As you focus on and find, learn, practice and master a trading technique that will conserve your finances, emotions and time you will win. If you squander your finances, time and intellect, you will lose. Decide on a technique and then stick with it.

By starting to specialize, you will gain lucidity and your efforts will be more concentrated. This will provide a great amount of self-assurance when you can grab an upward trend then let go on the downward. With my system you have moneymaking opportunities whether the market is moving up or down.

Over 68% of the reason any one stock's price moves is sector-related. When you start thinking in terms of sectors and trends instead of individual stocks, you gain emotional control and mental focus. That feeling of overwhelm as you scan the thousands of publicly traded stocks, in thousands of Mutual Funds and ETFs can be narrowed down to the 46 sectors and a few indexes.

By implementing this one technique you can reduce the amount of hours spent observing the markets every year. Students at a higher level of training will watch 20 to 40 ETFs but by utilizing a mere handful significant gains can be realized.

By specializing you will sharpen your views and intensity. This will lend you the confidence needed to acquire rising stock and short-sell when the stocks are dropping.

Clarify where it is you desire to invest your time and energies. Hone your techniques and familiarize yourself with trading methods. By becoming master of this you will have the ability to be in complete control of your emotions when making a trade. - 29950

About the Author:

Foreign Exchange Market

By AHmad Hassam

Right now forex trading is considered to be the hottest wealth creation opportunity. You can trade forex from anywhere in the world. You only need a computer, an internet connection and a few hundred dollars to begin trading. The foreign exchange market most often called the forex market is the most traded financial market in the world. Average daily currency trading volumes exceed $2 trillion per day. To give you an idea it is 10-15 times the size of the daily trading volume on all the world stock markets combined. That is a mind boggling number isnt it.

There many players in the forex markets. Big banks, multinational companies and other institutions require foreign exchange to carry out their day to day business. While commercial and financial transactions in the currency markets represent huge nominal sums, they still pale in comparison to amounts based on speculation. By far the vast majority of the currency trading volume is based on speculation.

Traders buying and selling currencies for short term gains based on minute to minute, hour to hour and day to day fluctuations. Almost something like 90% of the volume in currency trading is speculative in nature.

Activity in the forex market frequently functions on regional currency bloc basis where bulk of the trading takes place between the USD bloc, JPY bloc and the EUR bloc representing the three largest economic regions. The bulk of the spot currency trading almost like 75% takes place in the so called major currencies which represent the worlds largest and most developed economies. The major currency pairs are EUR/USD, GBP/USD, JPY/USD and CHF/USD.

A highly liquid market like the forex can see large trading volumes transacted with relatively minor price changes. Liquidity represents how much faster or easier it is to buy or sell an asset. Forex markets are highly liquid. In other words, liquidity is the level of buying or selling volume available at any given moment for a particular asset or security.

Forex markets are the most liquid financial markets with a very high volume of transactions. At any given moment, dozens of global financial centers are open such as Sydney, Hong Kong, Tokyo, New York or London and currency trading desks in those financial centers are active in the market. The forex market is open and active 24 hours a day from the start of the business hours on Monday morning in the Asia-Pacific time zone straight through to the Friday close of business hours in New York.

There is no official starting time for trading day or week. But for all practical purposes the market kicks off when Wellington, New Zealand, the first financial center opens on Monday morning local time. It roughly corresponds to Sunday afternoon in US, Sunday evening in EU and early Monday morning in Asia.

Forex markets are unlike the stock markets or for that matter any other market. As pointed out above currencies are always traded in pairs. You can go long as well as short on any currency pair. In the stock market, you cannot go short on any stock. There is an up tick rule as well that prevents you to go short on a particular stock. Unlike other financial markets, you can see around the clock action in the forex markets except on weekends. Forex markets are open 24/5. Sunday open represents the resumption of trading after the Friday close of trading in North America. This is the first chance for the forex market to react to news that may have happened during the weekend. Prices may have closed New York trading at one level. However, they may start trading at another level altogether at the Sunday open. - 29950

About the Author:

Sign Up for our Free Newsletter

Enter email address here