Learn To Select Trading Window Frames (Part II)

By Ahmad Hassam

What matters most to a trader or an investor is how to create a positive cash flow. It all depends on your trading strategies. The first step is to identify the type of trade into which we will enter.

Once we acknowledge what our goals and objective are than we can narrow our expectations. Is it a day trade? Is it a swing trade or is it a long term positions trade?

Suppose I am a day trader. I will be generally be able to identify what the average range for the day is and expect that if I miss 20% of the bottom and 20% of the top then I can expect to capture 60% of the average daily range. My expectations are for X amount of a given range.

First I will have to structure my computer and charts to a format that is conducive to day trading. So how do I start? How many pips you want to make in a specific time frame like eight to six bars from entry? 30 pips or 40 pips!

Use the 15 minute time frame for the dominant trend if you trade Euro, Yen or Pound, then for day trading. Use the 5 minute time frame to exit a position in day trading. Use the 5 minute time frame as a shorter time frame trigger to go with the 15 minute signal.

How do you make your entry and exit decisions in day trading. First look at the 15 minutes chart than take a look at the 5 minutes chart to make your trading decision. The key to remember is when the 15 minute time period is in the buy mode, take the 5 minute buy signals. Similarly when the 15 minute time period is in sell mode, take the 5 minute sell signals.

If you are in a trade based on the 15 minute and the 5 minute time periods, these are the time frames you need to monitor for that specific trade. However as a day trader you can watch the 60 minute time period.

Keeping an eye on the 60 minute time period will help you identify the current trend and a potential change in the trend if a moving average crossover occurs. Keep in mind your profit targets and where you are in range.

Suppose you are trading Euro/USD currency pair. The odds are that your profit potential is in the range of suppose 30 pips or less if the average true range (ATR) is 80 pips based on the past 14 trading days and if the Euro is already down 50 pips when a sell signal is triggered. How do you calculate these things?

You will have to subscribe to a good forex charting service. Free forex charts do not go into very fine details that you need to look into when making your trading decisions. Using good forex charting software will help you automatically calculate all the daily, weekly, monthly pivot points as well as the daily range, support and resistance, S-1, R-1 and other stuff.

Learn pivot point trading. Pivot points are the best leading indicators that tell you the market sentiment at any point of time. You should learn how to calculate pivot points. Using pivot points in day trading can give you an edge. For day trading use the 60 minute time period for calculating the monthly pivot points, 15 minutes time frame for calculating the weekly pivot points and the 5 minute time frame for calculating the daily pivot points. - 23218

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Try Strignano's Forex Signals free. Discover a revolutionary Forex Robot Trading System!

Win At Forex Trading With A Forex Education

By Bart Icles

Anybody who wants to invest in Forex currency trading can become a successful and profitable trader with the help of Forex trading education programs; some of these may be free to use, while others are for purchasing and which one is best solely depends on the traders' style or type of trading and his overall preference. As 95% of traders eventually lose their money in the market, it only goes to show that only the remaining 5% are able to get the right Forex education.

Free Forex education programs may or may not have all the information vital to successfully trade Forex can be found on the Internet. Those new to Forex trading will need to make use of Forex charts and must know how to read all the information on the indicators correctly, and by applying their strategies to each situation with patience and discipline in order to succeed.

Forex trading courses for purchase are offered by experienced, retired or active Forex traders themselves who are willing to offer their accumulated knowledge and expertise from their many years of trading Forex. Majority are excellent in nature with a wide scope of coverage of everything one needs to know and learn about Forex trading and the market itself, and should have a money back guarantee to be considered risk free. The trader's learning time is dramatically shortened with the application of their proven strategies, wherein it is put to the test in actual trading to how see how it actually works and performs. This builds confidence in the aspiring trader, enabling him to learn trading effectively but, of course, with the able guidance of the Forex education mentor.

Since, in some cases, the confidence factor may still be lacking in the typical neophyte, there are other alternatives to turn for further help other than Forex education programs which others may find too lengthy and complicated to pursue.

One can purchase a Forex Account from a reputable Forex broker. All the complicated and time-consuming task of researching, gathering and analyzing all important Forex datas are taken out of the trader's hand. All he has to do is to wait for the Forex broker's recommendation when the market closes and it is time to decide whether to buy or sell. The price for each account varies from one Forex broker to another, ranging from hundreds to a thousand dollars per membership.

What Forex education program to get is all up to trader to decide in the end. The free or for purchase Forex education programs available are both great ways to equip one's self to becoming a successful and profitable trader, but will ultimately need to be reinforced by a traders inherent abilities and skills in trading. - 23218

About the Author:

Is automated forex trading misleading? What is forex trading? Come visit our blog to find out the answers to these questions and more.

Solution For Debt Reduction

By Layla Vanderbilt

Once you fail to pay back the borrowed money, you will face a lot of problems as a debtor from the hands of creditors. Debt Consolidation program comes to your help at this juncture. First and foremost a debt program starts with evaluating your financial situation in order to render you a suitable help. This involves an in depth analysis of your financial standing. As the result of this you will be able to decide whether it is better to file for bankruptcy or go for a debt consolidation program. A debt consolidation analysis will highlight the potential savings of the debtor and enable the debtor to strengthen savings.

Once the debtor comes to know, through debt consolidation analysis, how much he will be able to pay the creditor every month, then one of the counselors contacts the creditors and negotiates with them with regard to reduction in the rate of interest and fix monthly payments at an amount that will be affordable to the debtor. Thus a deal is finalized with the debt consolidation company and the debtor in a friendly and caring manner.

The interest rates can be reduced or eliminated completely. Sometimes with good negotiation skills from the debt consolidator the creditor can even reduce some of the principle amount.

Debt consolidation also has other added advantages such as stopping the creditor from pursuing any further legal actions against the debtor. This means that the debtor can now live with no fear of being taken to court. Since the creditor will be receiving payments the debtors credit rating will also start to rise.

With debt consolidation services, the debtor will no longer be dealing with the creditors directly. This means there will be no more embarrassing calls from the creditor and no more bills from the creditor. Instead, he only has to pay the single agreed amount to the consolidation firm every month. In essence, the debt consolidation firm takes full control over the creditors as long as the debtor keeps his part of the bargain and hence there is no interaction between them.

Due to this system the enjoyments of the debtor are great, because the fees are paid by the creditors as the creditors would get something in return than loose all money the debtor owes them. Use of a debt service company or consolidator is indeed a great solution for debt reduction. This program works for those with good or bad credit. It does not mean that you should do things at random and stand for the mercy of debt consolidation companies. Let us do things properly and systematically and be careful to avoid pitfalls. - 23218

About the Author:

Layla Vanderbilt is the content coordinator for a leading website that offers for bad debt consolidation advice and guidance.

Should I Be Buying Stocks On Margin ?

By Richard Moran

You can use someone else's money to leverage your capital for stock purchases. That is buying on margin and is the same as buying other things on credit. The difference comes to the control you have over your investment - with the stock market you are at the whims of the day-to-day market fluctuations. Many of the recent financial problems drove the market down and therefore lost money for those who held their stock on margin. These circumstances left many stocks at all time slows.

Cash is still king when it comes to purchasing stock

When you buy stocks outright you pay for your stocks at the time you purchase them. For example, you may purchase one hundred shares of stock at fifty dollars per share costing you five thousand dollars. It is over and done, you own the stocks, and they are free to earn you the money instead of earning someone else money. Since most brokerage firms require you to have a minimum equity of two thousand dollars to begin with before buying on margin, it simply makes sense to drop the number of shares you purchase and own them outright.

Using A Brokers' Margin System

When you buy stocks on margin, you are requesting a loan for the money to purchase those stocks. In return for the loan from the brokerage firm, you will pay interest on that loan. The brokerage firm is virtually making money on your loan and will hold your stocks as collateral against the loan. If you do not pay the firm back, they sell the stocks. In short they have little risk involved in loaning you the money for the stocks. On the other hand, you have to see to it that the stocks you select make enough in profits to not only put money in your pocket but to pay the loan back to the brokerage firm.

Regardless of How You Pay You Still Must Know What Stocks To Buy

Realistically, if you pick all stocks that go up you are going to make money. Many people have a feel for the market any make their living doing just that. Once you get into margin buying the market becomes more than just a simple investment. You can no longer buy a stock and look in the Sunday paper to see how you did the past week. The potential for loss is high, and you may have to "bite the bullet" and sell a stock before you lose too much on it. Most successful investors use margins sparingly, many times only when they have good knowledge that a stock will rise significantly in the short term.

So Which Way Should You Go?

Basically, buy with cash if you can. When a special situation arises where you are sure of the stock health and "know" it will rise buying on margin can net you some super profits without a big cash outlay. You will of course still be limited by the equity you have in your brokerage account. Unless you are wealthy, or have great credit at a bank they won't lend you money to buy a stock so the broker is normally the only avenue available. Another "trick" used by savvy investors is to use the 7 day payment period used by most brokers. You can buy the stock today and wait a few days to pay, or just sell it before the payment is due. Then any profit is yours without interest - that is if the stock goes up. If the price falls the purchase price is still due, so be sure you have a backup if you are using this plan. - 23218

About the Author:

Richard Moran is a Financial Consultant and maven for Money Helpers. The Blog contains 100's of articles, charts, and calculators to assist you in your financial well-being. All the aspects of the Blog are free and it is updated on an almost daily basis. If you are searching for any financial information or products they can be found on Money Helpers.

Become Successful In Forex Trading With A Solid Education

By Hickman Ryan

People all over are getting interested in currency trading as an alternative to stock market investing since trading in the forex market seems to be much easier and takes place around the clock. To be successful in the forex market, you should start off by getting involved in the best training available. This is the key to entering and succeeding in and making good trades.

The type of training you receive will make all the difference in the world. Don't just rush into forex investing haphazardly, but seek out the information you need to propel you forward into profits. With the correct training, you will be confident in your ability to do profitable trades and you will know when it is time to exit a trade before you lose money.

People all around the world are getting wealthy investing into the forex market. It is really exciting to see your money grow as your confidence grows. On the other hand, is you lack confidence in doing trades, you will not make the right decision when the time comes to enter or exit a market. When you see market fluctuations, your emotions will override your lack of skills and confidence forcing you to make costly decisions.

Currency trading can be described as an activity in which people from different countries trade on the value of money. Each country's currency has a different monetary value on the world market. As these values are influenced by world economics, the exchange rate also changes. If you are a trader, these differences can either make you money or cause you to lose money.

It is important to learn as much as possible before you trade real money. Start by searching the Internet on the subject of forex trading. You will find many websites devoted to teaching you all of the basics. Some are free to join while others may require a small fee.

A great place to get more information about forex investing is at the library. They have tons of books and other resources on investing in the financial section. If you are serious about getting a great education in forex, consider taking a college class at your community college. These are some of the best courses around and the interaction you get with your instructor is priceless.

A comprehensive forex education should center on the basic principles of investing into world currencies and cover real investment strategies as well. There's a lot to learn. This means you will have to learn how the markets work, the tools that traders use such as charting and reading signals, and most importantly, how to enter and exit a trade successfully. This is the key to managing risks and predicting possible gains.

A good forex education should provide you with a demo account that you can use to practice on. Demo accounts are great for giving you experience in the real world of trading without using real money. Additionally, these types of account will teach you the basics of how to open a forex account. Once you are confident in your ability to trade, go live with real money. Start slowly and build up over time. - 23218

About the Author:

Hope you enjoyed the foreign exchange article. Please see foreign exchange for more information.