Wednesday, July 7th, 2010
It’s no secret that the economy is in a mess and that hundreds of people have just lost their jobs because of that. Now, there is a scramble to find other ways of earning a living.
And a number of them have chosen the foreign exchange market. This is because day traders have earned a reputation of being quite well-off.
There are a number of benefits that one can get with day trading. First, fluctuations in the currencies make it easy for day traders to earn profits.
Second, day trading does not require one to have a huge start-up capital before one can start trading. Lastly, help in the form of trading bots are available almost anywhere.
Going into the foreign exchange market especially if you do not know a lot about it requires help from an efficient trading robot.
If you try searching for trading bots in the internet, you will encounter hundreds of them. How do you find the perfect one from the entire mix.
Many of these trading bots have outrageous claims. One is Forex Autopilot which claims that it can make millionaires out of people who do not know a single thing about foreign exchange trading. Read more...
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Wednesday, March 31st, 2010
It seems as if every month, a new trading robot is released.
Because there are hundreds of these programs available online now, it becomes extremely confusing to choose which one to purchase. All of these programs work quite similarly only that a few programs have distinct features absent in the others.
The newest of these trading programs is Forex Autopilot. Forex Autopilot is an automated forex trading program that is used with metatrader platform.
It was created by Marcus Leary, a day trader by profession. It claims that it can make first time foreign exchange traders filthy rich just by clicking a few times throughout the entire day.
This can be such an awesome claim especially for those who would like to be rich without having to do so much, however there are a few things that you have to learn about Forex Autopilot.
Before you commit yourself to one single product, you have to always know what you’re getting into.
First, Forex Autopilot is an automated currency trading robot that will do trades using the fund that you set up without any necessary supervision which means that you can leave the program to run on its own. Read more...
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Sunday, December 20th, 2009
This is part 2 of the four part series on the discussion of principles of investment in the stock market. In the first part, the first principle involved realizing that the stock market is just another investment vehicles and that before you start investing in the stock market, you must realize that there are other vehicles of investments. We continue by discussing the next two principles. If you wish to view the entire article, please visit my blog.
2.) You must know that investing in the stock market is a roller coaster ride – One of the advantages of the stock market is that there are times when it really climbs up then really big profits are made. However when it really goes down then really big losses are also made.
The general strategy is to sell when the market is up and to buy when the market goes down. About two years ago when I started investing, the Philippine Stock exchange index was only about 2000 + points. I’ve seen it go up to 2500 points and slide back to the 2000 level in the middle of 2006. It slowly and steadily climbed up to the 3200 level in the 1st quarter of 2007 and dropped in a very short period of time during the last days of the 1st quarter of 2007. It climbed steadily to a high of 3700+ points in July 2007 but slid back below 3000 points a month after. By October 2007 it climbed steadily to its highest at 3800+ points. A month after it dropped to 3600+ points. Read more...
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Saturday, December 19th, 2009
This is the final part of the series on principles of investment in the stock market. The last seven principles was discussed in the past articles. We will be discussing the last three principles in this article. Visit my blog if you want to see the whole article.
8.) You must devote your time to study – When you want to invest in the stock market you should devote time to study what it’s all about. You can’t just place in your money and hope that it will somehow grow someday. You have to read books and materials on the stock market. When I started investing I dug out materials in the internet related to the stock market especially the Philippine stock market. I bought books on the stock market. The Philippine stock exchange has an “investor’s primer” for those who are new to the stock market. (See the Philippine stock exchange website for more information.) Read more...
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Saturday, December 19th, 2009
Margin of Safety is one of the most popular value investing strategies made popular by stock market legends like Benjamin Graham (father of value investing) and Warren Buffet. Margin of safety is simply a value stock investing model where the investor assigns a margin of safety to his/her value assessments.
In value investing, the investor estimates (or predicts) the intrinsic value of a stock. The concept is that every stock has an intrinsic value and price changes from this intrinsic value is just deviations resulting from the actions of market forces. The stock will often return to its intrinsic value when the market forces weaken. Thus investors who buy stocks when the trading price is below the intrinsic value and investors who sell stocks when the trading price is above the intrinsic value will profit.
But what make value investing difficult is predicting the intrinsic value of stock. There are no established rules for finding out this. Investors should develop their own strategies and models for this purpose, according to availability of information and analysis tools he has. Many traders use different indicators like book value, open offer, P/E ratio, asset to liability ratio, institutional investments, investments in other companies, etc to finding the intrinsic value of the stock. Read more...
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Sunday, November 22nd, 2009
To many newcomers, learning how forex market works can be somewhat confusing. They have to grasp the fundamentals of interpreting currency exchange signals, types of currencies and pips. In this article we are covering forex pips and we are showing your how to use them for maximum gain.
You are in control as a forex investor. You can propel yourself forward even faster if you learn to have more pips gains. Or, pips can be your worst enemy with more pips losses. So what is a pip you ask? PIP is the acronym for percentage in points in the forex market and it represents the smallest increment in currency exchange trading.
In common terms, a pip is the way gains and losses are measured during an active trade. Successful traders understand the importance of maximizing trading pips. The ultimate goal is to have more pips gains during the course of a trade than pip losses. This is how you make profitable trades.
When you are evaluating pips, always look to by currencies when the value is as low as possible and then sell them off when the value reaches its highest point before taking a nose dive. Knowing when to sell is not always easy. There are plenty of market indicators that affect the rise and fall of a currency. Read more...
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Thursday, November 12th, 2009
Can autotrading make you rich? Well, it depends on your autotrading system. Many hedge funds and other entities that manage money through forex trading use some form of autotrading in their daily activities. Autotrading is common in the currency trading.
Big institutions have the resources to finance their inhouse development teams. Big institutions always had proprietary autotrading systems developed by their inhouse programming teams. These autotrading programs also known as Expert Advisors or Forex Robots were expensive costing like thousands of dollars and only wealthy individuals or big institutions like hedge funds could afford them. These autotrading systems were proprietary in nature and were not available to the general public.
However, the recent developments in computer programming have changed the field. Many private individual traders have also begun to adopt autotrading to execute their thoroughly backtested and highly optimized forex trading strategies. The recent advancement in computer programming has made it possible for professional forex traders to team up with a software expert to develop their own autotrading systems.
The recent advancement in computer programming has made these Expert Advisors cheap. The price of these Expert Advisors has come down to around a few hundreds that can be easily purchased by ordinary investors like you and me. Metatrader platform makes it real easy to program such type of Expert Advisors. Read more...
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Tuesday, September 8th, 2009
Exchange Traded Funds (ETFs) are a great tool for the retail traders. ETFs enable you to trade a variety of markets and sectors individually or with options. ETFs are a recent financial innovation that has become highly popular with the investing public. An Exchange Traded Fund (ETF) is typically designed to track a particular index or segment of the market. An ETF is a security that is made up of different component stocks, bonds, currencies or commodities.
ETFs can also reduce volatility. As ETFs track a group of securities, ETFs volatility is less than that of its component stocks, bonds, currencies or commodities. With ETFs you can also implement strategies previously only available to large investors. ETFs enable you to reduce risk by offering unleveraged access to certain asset classes.
ETFs are similar to a mutual fund. But they trade like a stock which means you dont have to wait till the end of the day to exit a position. If you are looking for a segment of the market to invest or trade, there is a good chance that an ETF will be available that will fit your requirements. There has been an explosive growth in ETFs. So dont hesitate seeking an ETF for a market you wish to trade. Read more...
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Monday, September 7th, 2009
A picture is worth more than a thousand words. The forex chart is perhaps the best proof of this clich. Have you heard of Candlestick Charting? It was developed by the Japanese in the 17th century to profit from rice trading.
Dont confuse the Head and Shoulder pattern with the name of a shampoo. Head and shoulder is an important trend reversal chart pattern. Appearance of certain chart patterns can give you priceless clue about the direction in which the market is about to turn. Traders have become very sophisticated in understanding charts and the information contained in them over time.
By studying the patterns that appear on the forex charts you can predict the likely direction of the currency pair whether it is sideways, upward or downward. Study of charts is known as Technical analysis. Technical analysis depends on the study of different types of charts to understand and predict the likely direction of the currency market. Without technical analysis, you wont be able succeed in forex trading. Technical analysis is very important for forex traders. Read more...
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Sunday, September 6th, 2009
Whether it is to the upside or the downside when you trade triangle breakouts ignore any first breakout attempts. Each triangle type has its own directional bias. Gather as much evidence as you can to support a particular breakout direction so as to minimize the risk of trading false breakouts. Get ready for a breakout when you have identified the triangle formation on either the daily or weekly chart. There can be three possible cases when you try to trade the decreased volatility breakout strategy.
Possibility No 1: You should not forget to ignore the first breakout. Suppose the second breakout attempt is in the upside direction for an ascending triangle and it is in the downside direction for the descending triangle. In other words, the second breakout attempt is in the direction expected of the triangle type. This breakout could signal either the continuation of the existing trend or the trend reversal.
For an ascending triangle make sure each side of the triangle gets touched two times at least. Place a stop buy order at least 10 pips above the horizontal resistance level to capture the potential upside breakout. Place a stop loss order 10 pips below the horizontal level of the triangle to protect against false breakout. Set profit target according to your time frame. Read more...
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