The Do's And Don'ts Of Online Forex Trading Systems.

By John Eather

First let me give you some basics of online forex trading systems. FX, Forex, and Foreign Exchange are all terms that are used to describe trading world currencies. With trades totaling more than 3 trillion dollars every day, it is the most enormous market for trading. As with all trades, you hope to make a profit and be able to trade online as well.

Accessible 24 hours a day 7 days a week, you will be able to trade when you want to, not like the stock market. Since you are trading money, there will always be someone to trade with, giving you superior liquidity.

There are several do's and don'ts in Forex trading. What are they? Well, pay close attention. These tips could save you some trouble.

Don't rely on auto trading robots or things like that. They use previous information on the market to perform the trade actions. Seriously, if these robots earned a profit everyone would be using them.

Knowing that not every trade is going to be a winner is important. You are going to have some losses. Telling the future is not possible so, make sure the odds are in your favor with every trade you make.

Use your head. Think about the trade before you do it. Don't let a computer tell you when to buy and when to sell. In other words, just because you see a green light or a red light, it doesn't mean that is the best decision.

I don't care what your broker tells about not earning a commission. They do earn one but they call it a spread. It is one and the same only using different terms. Everytime you trade, they earn money.

You have a life away from the computer so make sure you take time to enjoy it. If you spend more than 20 minutes a day trading, you are going to start doubting yourself and possibly suffer burn out. This can cost you dearly. So, make sure to spend time with family and friends as well.

Do not wait for someone to tell you that the economy is okay before you start trading. This has nothing to do with currency trading or your earning potential with Forex. Becoming a successful trader by following certain rules, you learn that you control the risks you take. When you are in control, the earning potential is there regardless of the market. - 23212

About the Author:

Want to find out more about online forex trading system, then visit John Eather's site on how to choose the best forex trading robot for your needs.

Divergence Trading

By Ahmad Hassam

Divergence trading is one of the ways to trade the market. Though divergence trading is not often used but if used correctly it can be highly profitable. Divergences are often used as important trading signals. But it doesn't mean that divergences will always predict a reversal correctly. Price oscillator divergences have long been acknowledged by technical traders as a solid indicator of potential price reversals. Well defined divergences particularly on the long term charts can be surprisingly accurate in many instances.

Price divergence oscillators can be spotted with just two elements on the price charts. Catching a major price reversal at the correct time can be so profitable that only a few accurate divergence signals are needed to offset the inevitable false signals.

How do you determine a divergence? The first element is the price and the second element is an oscillator that runs either above or below a price level. This second element can be Stochastics, RSI, MACD or any similar oscillator.

The Moving Average Convergence Divergence (MACD) is among the most popular technical indicator or an oscillator invented. Many traders use MACD as their sole confirming indicator.

MACD is a multifaceted indicator that acts as a sign of trend momentum by representing the relationship between two moving averages. Some traders also take trading signals exclusively from MACD.

You must have used MACD in your trading. MACD is basically the difference between two moving averages. MACD can be traded by taking signals from the crossovers of two lines, crosses above and below the zero line. Relative Strength Indicator (RSI) is another popular oscillator that provides a measure of price momentum.

RSI is an indicator that gives overbought and oversold signals in ranging markets. However, its usefulness like most other indicators tends to diminish during a trending market. RSI may also be used for divergence purposes. Stochastic indicator may also be used for divergence trading.

What is a divergence technically speaking? A divergence occurs when there is an imbalance between the price element and the oscillator element. Both begin to go separate ways and start telling opposite tales. This is the point when the oscillator is providing a strong hint that price may be losing its momentum and a change in price direction may therefore be impending.

A bearish divergence occurs when the price hits a higher high while the oscillator hits a lower high. A bearish divergence is a hint for an impending reversal back down.

A bearish divergence is an indication that price may soon turn and go back down as the higher high in the price may lose its momentum and begin falling.

On the other hand, a bullish divergence occurs when price hits a lower low while the oscillator hits a corresponding higher low. A bullish divergence hints at an impending reversal back up.

Divergences can be a remarkably effective method for helping to time major market events when used in conjunction with other trading tools. Divergences are often used as hints of possible turns and reversals. However, divergences are not frequently used as a full fledged self sufficient trading strategy. - 23212

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Try These Cash Printing Forex Signals From Heaven! Learn Fibonacci Retracement

Fibonacci ... Pivot Point Trading (Part II)

By Ahmad Hassam

Beginning with the main Pivot Point that is calculated from the previous day's key price points, the resulting support and resistance are subsequently derived from the following calculations. How is the pivot levels calculated? Beginning with the main Pivot Point that is calculated from the previous day's key price points, the resulting support and resistance are subsequently derived from the following calculations:

R1 (Resistance 1) = 2PP-Yesterday's Low. R2 (Resistance 2) = PP + (R1-S1). R3 (Resistance 3) = Yesterday's High + 2(PP-Yesterday's Low).

Main Pivot Point PP = (Previous Low + Previous High + Previous Close)/3.

Support 3 S3 = Previous Low-2(Previous High -PP). Support 2 S2= PP- (R1-S1). Support 1 S1 = 2PP - Previous High.

After calculating these points they are plotted on the currency price chart. Trader's can calculate the current days pivot points using the above formulas based on the previous day's price data.

Breakouts or bounces may be traded with pivot points. Once these pivot levels are calculated and plotted, they are used in much the same way as Fibonacci Retracement. These pivot points are often also used as profit targets. Pivot points also indicate whether the market sentiment is bullish or bearish. Traders also use pivot points as reference levels to provide information as to whether the current price is relatively low or relatively high within its expected price range for the day.

You can further refine your pivot point levels by using the S1, R1 and other levels. S1, S2 and S3 as well as R1, R2 and R3 are used as references in pivot point trading. For example, traders may look for long trading opportunities with the view that the price will reasonably move towards equilibrium around the main PP level if the price is near the day's S2.

Many traders use different time frames in their trading decisions. You can also calculate the pivot levels for a week and for a month time frame too. Instead of calculating the pivot points for the current day you can also calculated the above levels for 4 hour charts as well as 8 hour charts.

Both Fibonacci and Pivot Points are excellent technical tools that often encompass entire trading discipline in themselves. Just replace the day's highs, lows and the closing prices with the appropriate time frame highs, lows and closing prices when calculating the pivot points for the other time frames.

In an extremely bullish market condition, the pivot point can become the target low for the trading session. This number represents the true value of a prior session. It is important to understand that it can be used as an actual trading number in determining the high or the low of a given time period, especially in strong bull or bear market conditions.

Pivot point trading has been successfully used by traders in making trading decisions. Traders will step in and buy the pullback until that pivot point is broken by prices trading below that level. A retracement back to the pivot will attract buyers if the market gaps higher above the pivot point in an uptrending market. The opposite is true for the pivot point will act as the target high for the session in an extremely bearish market condition.

What you need to understand is the market psychology at any particular point of time. If you can do that you can become a master trader. Understanding what the herd is doing can help you decide what to do and what not do in your trading. Technically speaking, in a bearish market, the highs should be lower and the lows should be lower than in the preceding time frame. Generally prices come back up to test the pivot point if a news-driven event causes the market to gap lower after traders take time interpreting the information and the news. Sellers will take action and start pressing the market lower again if the market fails to break that level and trade higher. - 23212

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Try These Cash Printing Forex Signals From Heaven! Learn Fibonacci Retracement

Picking A Winner

By Bo Miller

Micro cap stocks make for some very interesting conversation, some investors love them while others are not so sure about them. Usually those who have made large profits love them while those who have lost money do not really care for them.

Some investors are rolling in the big bucks while others are losing. So how does one follow the winners and make the big bucks? well there are several things that all profitable investors do in order to make money trading penny stocks. Now lets take a look at the strategies they are using to make huge gains.

First of all you must find a company that is on the verge of breaking out. It could be that they have developed some sort of new technology that the world cannot live without. Maybe they have increased profit in the last few quarters, their chart may look like a nice bullish upward trend is about to occur. Now we all know these scenairos would create more positive news for a company. However we still must be careful before we pull the trigger and purchase thousands of shares.

The history of a company plays a major role in our decision process. All of the companies that are penny stocks are pretty much "new" companies, not been around very long. Now what we must look at is the management, who they are and what is their background. Have they ever built a company from the ground up and made money for the investors involved? Many companies will place a web video interviewing the CEO's of the company. This is a great tool and will help investors better understand the plans and goals of the company.

Almost all successful penny stock traders follow the tips listed above. But many do not have the time to do all the research that is needed to pick a big winner. The web is filled with great newsletters that are FREE and it is a great idea to sign up for several. You can make great money trading penny stocks but you must have the inside scoop! - 23212

About the Author:

Wanna learn how to make money trading penny stocks? then sign up for the FREE newsletter at SmartPennyStock.Com where you will receive the hot penny stocks that will make your account grow.

Online Foreign Currency Trading - How To Make A Profit?

By Jim Buchan

One of the fastest growing sectors in the financial markets is the FOREX. The foreign currency exchange has the largest trading volume of any exchange in the world. This has made online foreign currency trading a huge growth market as well. Since globalization has become such a big factor in the business world, currency trading volume has exploded. This increased volume is one factor that has made it easier for the individual speculator to get involved.

The amount of money required to trade foreign currencies used to make it impossible for most people to get involved. The market participants were limited to large financial institutions and extremely wealthy people like George Soros. In 1996 though, many brokers started using Internet-based trading platforms, giving individual investors access to the market.

Many brokers have sprung up that deal mainly with indivdual speculators. If you own a computer and have Internet access you can trade. For the most part, these brokers require only small deposits to begin trading. This is very appealing to many people. People you may not have the capital to even trade in the equity market will find someone who will allow them to trade in currencies.

To get started with online foreign currency trading you must first get a solid education on the subject. Competition is stiff and the more prepared you are the better your chances for success. There are excellent trading courses taught by professional traders that can help you develop some good skills. The more knowledge you acquire before you begin trading the better your results will be. You want to develop a trading instinct that will come from studing with a professional.

Studying technical analysis will serve you well in your efforts to make the correct trading decisions. Understanding how to use charts can help you see price trends and changes in trends. Currency trends can have a long life span so identifying them can make money for you. Most traders no matter whether they are online or otherwise understand charts and technical analysis. You must build you skills with these as well if you expect to compete in this market.

Using fundamental factors affecting the economy and business environment is another way to make trading decisions. Fundamental analysis studies what affect interest changes or the level of inflation have on a country's currency value. Employment levels can cause moves in a currency price as well. Many other economic numbers, political issues and environmental factors can impact a currency price. Using these issues along with technical analysis can increase your profitability.

When you open your trading account the broker will require that you deposit a small amount of money. This amount is only a small portion of the capital you will use in your online currency trading account. You will borrow a large part of the cost of the currency contract from the broker. It is very important that you manage this leverage carefully. It can multiply your gains or your losses. Using stop-loss orders as a protective measure is advisable.

By doing your homework before you begin, you can become a huge success with online currency trading, and have a life style that few people ever experience. - 23212

About the Author:

online foreign currency trading can be a BIG buzz so be sure to read up about currency options trading to start making money!