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Saturday, April 18, 2009

Forexct- Using position size

By Forextraderreport

One of the major mistakes that most traders will make will be the amount of capital that they place per trade. So how trade to ensure you become successful? Size is the Key The legendary commodities trader Ed Seykota, who turned $5,000 into $15 million over a period of 12 years, was teaching a class in technical trading to a college class some years ago when he decided to conduct an try out to illustrate to his students the value of money management, or position-sizing - that is, determining how much money you will risk on any single given trade - to the generic success of any dealer's trading plan.

He said his class they were going to contend in a trading competition with each other. Each pupil would start with a theoretical equity stake of $100,000. The winner, of form, would be the student with the most money at the end of the competition. However, there was a catch: Each student would buy and sell the same stocks at the same right time, thinking those stocks would rise or fall exactly the same amount. In fact, Seykota pulled each "stock" out of a hat at the front of the room, and simply stated the students whether it had gone up or down and by how often.

How do you conduct a trading contest when everyone buys and sells the right same stocks at the right same time? It is all about position-sizing - how often money you are willing to bet on each trade. After Seykota chose each stock, but before he alleged whether it had gone up or down, each student was required to write down the amount of money he or she was willing to risk on that trade. They could risk as little or as often as they wanted.

The results of the competition provided quite an education for Seykota's students - and should be remembered by anyone who puts their hard-earned money at risk in the market. By the end of the competition some of the students had lost their entire hypothetical stake and were totally "broke". Others had come out about even, making a little money or losing a little money. But a few of the best students - the best traders - had turned that supposed $100,000 into over $1 million!

Think about it: Two traders start with the same amount of money and buy and sell the right same stocks at the right same time. One goes broke. The other makes 1,000%! Therein lies the secret to survival, and ultimately success, as a dealer. All the great traders will tell you that position-sizing is the individual most important factor in their success.

So how often should you risk on any individual trade - in other words, how much should you be willing to lose? It is best to risk a firm percentage of your account value on every trade, and not vary that percent from trade to trade. What that percentage should be depends on several critical factors. The most critical are your win-loss ratio, the size of your average win and the size of your average loss. Given these three numbers, your position sizing will determine whether you live or die as a trader.

The point of position-sizing is to be sure that you don't break the bank during a losing streak. Even a random coin toss can produce 10 tails consecutively, so make no mistake that even the best traders suffer through losing streaks of equal length. If you risk, say 10% of your account on every trade, and your average loss is 7%, a losing streak of 10 in a row could be devastating. On the other hand, if you are a day trader and your average loss is .5%, you can risk more money on each trade without worrying about a losing streak taking you out of the game.

Seykota says he never risks more than 5% of his account on any single trade. some other highly successful traders think risking anything more than 3% of your account on a single trade makes you a "cowboy". A good beginning point for beginning traders is probably 1% of your account. The added advantage of lower risk for beginners is that it helps minimize the emotions that often interfere with good trading.

For a detailed discussion of position-sizing, we highly recommend Van Tharp's book "Trade Your Way to Financial Freedom". An internationally renowned trading coach, Tharp was profiled along with Seykota in "Market Wizards", Jack Schwager's classic collection of profiles of some of the most brilliant traders and trading minds of all time.

CFD FX REPORT is a real time tool for clients with an interest in the trading of stocks, indices and commodities globally.CFDs (Contracts For Differences) are one of the worlds' hottest growing trading instruments that allows clients to profit from a rising and falling market. The CFD FX Report is a company comprising of expert traders that analyse the market daily and are able to make recommendations for the following day trades based on this analysis. The CFD FX REPORT is released everyday at 6.30 p.m. (Singapore time) for review by the clients for the immediate trading day. We provide sms and email service for our trade ideas as well as full member support. The trading tool that traders wants. Free 1 week trial - 23212

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The Secret Forex Strategies you must know

By fxreport

If you are a forex trader you should be prepared for winning trades and losing trades. To be a great forex trader you need to be prepared for this, as if you are not prepared to take some risks you can never become an effective and profitable forex trader.

The hardest thing for most forex traders to take is a loss, so if you can't take a loss you will never make a forex trader.

Being a trader in the Forex market has its ups and downs. There are times when you earn lots of profits but there are also times when you lose a great deal too. Foreign Exchange is a complicated, profitable, and risky endeavor. If you're not ready to take some risks, you can't be an effective and efficient trader.

Are you aware that the Forex market is the largest market to conduct trade all over the globe? It turns over $2.5 trillion dollars everyday and is larger than the world stock markets and bond markets put together.

The forex market was primarily created to meet the demand and supply of different kinds of currencies by individuals, companies, and government. It was also created to assist exporters and importers to buy and sell goods across the world. Most of the traders are investors, businesspersons, speculators, businesses, and those in the industry of banking. However since the introduction of the internet people from all walks of life are now trading the Forex Market.

Most Forex Traders accept the risk of any adverse movements in the exchange rate and in the case of a favorable currency movement the speculator can earn lots of profits. Those that make the most profit are those that are the best educated.

In order to become a successful forex trader you must have your own trading system. This is a must for all traders and beginners in the industry are encouraged to develop their own system. For starters, you can start with a small investment or you can start with a demo trading account. Once you build up enough knowledge and confidence from your practice account you can then start trading with your capital. With the system in place, you can easily decide when to enter the market and when to exit. Remember just your losses quickly and let your profits runs. Always use the old saying that Trend is your Friend. The cost for every transaction is very minimal and so you can trade for as many times as you like in a day; besides, the Forex market is open round the clock.

Never enter the Forex marketwith limited knowledge. You must be aware that around 90% of all Forex traders suffer great loses. Only 5% are able to gain profitable results while the remaining 5% are only break-even. So the most important thing that you can do is educate yourself as knowledge is power. A great place to find excellent free education lessons is the CFD FX REPORT and they can also help you find the Best Forex Broker in the market.

You will need to have adequate knowledge about the Forex market before you every start trading, if you start without the right knowledge you will more than likely end up in the 90%, losing money - 23212

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Successful Forex Day Trading Strategies

By Forex Trading System

The majority of Forex Trading Systems that are used by beginner traders are focused towards short term trading strategies, which aim to take small risk and promise to pile up massive profits and regular income. So we will look at how to succeed. The major challenges that Forex day trader face are the following: There are millions and millions of individuals will all different views, skills, knowledge, who think very differently so what Forex Trading System can predict reliably what will happen in the next minute, next hour or next day?

Lets be honest not one of them can reliably predict this.

From experience this is simply the silliest way to be trading forex, with all of the differences and variables it is impossible to know what is going to happen in the coming minutes, hours, days, and here is why.

Fact: All volatility in short term time frames is random and you cannot get the odds on your side, you can't win long term it is as simple as that!

Most of the forex day trading strategies, systems that have ever been purchased have ever made any really gains, sometimes random luck will see people profit. Most of them show back tests of the past, this is easy to show positive as you already know the outcome and can adjust the test accordingly. Most of the systems are just incredibly brilliant sales pitches that work on peoples greed, and create a good story like Mary Poppins.

All is not lost you can win Best Forex Broker , but it is not as simple as turning on computer and putting in a program, it does take some skill and knowledge. You need to get the odds stacked in your favor and one strategy to be able to do this is through swing trading or long term trend following. Remember trend is your friend, so if you follow your system it can mean big profits if you have a great forex system and have the knowledge to be able to do it.

Do not make the mistake of day trading or forex scalping, get the right Forex education and trade long term and you can soon be enjoying currency trading success to get more Free Education feel free to visit the CFD FX REPORT they can provide you with valuable education lessons and help you find the Best Forex Broker in the Market. Happy Trading - 23212

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Silver Peace Dollar Coin - A Silver Showcase For Liberty

By Christina Goldman

Those devotees of the study or collection of currency and other members of the numismatic community will find their hearts warmed, knowing that the Silver Peace Dollar Coin issuance was inspired by their interesting and widespread hobby.The Peace Dollar was minted by the The U.S. Mint during a seven-year period, from 1921-1928.

The Numismatist, the official publication of the American Numismatic Association (ANA), featured an article in 1918 which suggested the minting of a coin to mark the end of World War I and the triumph of democratic ideals. This was the inspiration for the Peace Dollar coin.

This suggestion was further expounded at the ANA convention in Chicago in August 1920. It called for either a half-dollar or a dollar commemorative coin to provide ample space for a design showcasing liberty, prosperity, honor and democracy. US Treasury authorities, however, went a step further and issued the silver as a coin for general-public circulation.

The Silver Peace Dollar coin succeeded the Morgan dollar which was minted last in 1904. The Pittmann Act sponsored by Nevada Senator Key Pittmann enabled the minting of the Silver Peace Dollar, as this federal law authorized US sale of standard silver bullions the proceeds of which will used for minting new silver dollars.

The Peace Dollars designer was Anthony de Francisci who prominently rendered the word "PEACE" at the bottom of coins reverse side. The silver content of this coin is 0.77344, and it is the last silver dollar that was minted for US circulation.

There was brief minting of the Silver Peace Dollar coin in 1965 with the coins bearing the year 1964. For one reason or another, however, these coins were neither circulated to the public nor any of their examples released. The whole 1965 mintage was melted, perhaps along with the hopes of some avid numismatist and Peace coin collectors. - 23212

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Capped Bust Silver Quarter - Rare Quarter Commands Exceptional Value

By Christina Goldman

The Capped Bust Silver Quarter was first minted in 1815 and is one of the rarest coins ever minted in the United States. These gorgeous silver quarter coins were the immediate successors of the equally rare draped bust silver quarters which started minting in 1796. At that time, the fledging U.S. government minted these two particular varieties of silver quarters to replace the Spanish two-reales coin circulating in the Americas.

The Capped Bust Silver Quarter carried the same design as the other coins, like the half dollar, minted during that time. Production of these quarters went on until 1838, and these coins together with the draped bust quarter, have been named by numismatists as the "Early Quarters" commanding premium prices among coin collectors.

Other key years to look out for when scouting for the Early Quarters are 1823, 1804 and 1796. Notably from 1804 onwards, the reverse side of the Early Quarters sported a bigger, "heraldic" eagle, suggestive of strength and power that collectors and numismatists appreciate over coins of earlier vintage which had smaller eagle designs.

It is a sound advice that before buying a Capped Bust Silver Quarter or any of the Early Quarters, the buyer must have an assurance that these items have certification of authenticity from reputable numismatist groups or associations like the ANACS, NGC, PCGS and ICG. Another is to deal only with reputable dealers.

A useful website for reference on the capped bust silver quarter can be found in the net. This site carries a legitimate eBay auction listing of Early Quarters and their key dates. Through this listing, a prospective buyer could check the trend of the pricing, and compare various price levels within years, comparative data that are useful to the serious collector or dedicated numismatist. - 23212

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