Why Trade The News? (Part II)

By Ahmad Hassam

There is a lot of news in the world that can move the currency markets. Fundamental economic news releases often disrupt the short term forex markets and quarterly reports carry more weight than the monthly and weekly news. There are many strategies for news trading used by the currency traders.

Sometimes the results of fundamental announcements are surprising and shock the markets for a while. Lets take an example. The release of the NFP figures has been moving the EUR/USD pair on average 100 pips for the last two years. About half of these pips occur just within two minutes of the release of the figures.

Consider this worst case scenario. You are a news trader and immediately sell the EUR/USD pair within 2-5 seconds after the release of the NFP figures. However, the EUR/USD has already dropped 30 pips because of the pre news guessers who are anticipating a bad news.

Your forex broker gets thousands of EUR/USD sell orders. Just like yours almost all these orders are made at the same moment and it will take your broker a few seconds to execute all these orders. You wait for your order to be executed. Meantime, the EUR/USD price falls another 15 pips.

Because the volatility is so extreme to the downside as no traders are placing the buy orders, the broker widens the pips from 3 to 12. The moment your order hits the market, you are already -12 pips but you are also 45 pips away from where you thought the market would be.

Suddenly the EUR/USD pair starts to pull back. But you have already pulled your trigger and now you are at a loss of 55 pips. You exit your trade to cut your losses. You are angry. You want to blame the broker. But you cant blame the broker.

You should read the agreement with the broker that you had to sign when you opened your trading account. There will be a clause in it that says that the broker does not guarantee order execution at times of high volatility.

Do news traders always end up like this? Not always but they can and do end up behaving this way quite often depending on the importance or surprise results of the economic announcement.

So you need to develop a survival strategy that calls for the preservation of your capital at all cost while at the same time giving you maximum pips if you really want to trade the news. Do all that not to lose money.

Your priority is to reduce your risk by patiently waiting for conservative repeatable setups and not to make as much money as possible. News trading puts a traders patience to test and your objective should be to use the undue volatility to identify the important levels of support and resistance so that you can trade with high chances of winning. - 23204

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in trading stocks and forex. Trade Forex News. Learn Forex Trading.

Currency Day Trading Day

By Paul Bryant

Day trading the Forex market means to actively buy and sell currency pairs multiple times during a day. Quick wins can be made in Forex trading which makes it a very popular choice for fast traders. The majority of the currency pairs have up to 300 points traded on a daily basis and rise and fall throughout the day.

Just like the stock market, or any other trading market for that matter, the currency trading market can be very volatile. As there is always a risk of losing money, each trader needs to find a trading method that works for them.

Traders often get attracted to the day trading in order to earn huge amount of money within a short period of time. But making a profitable forex day trading is not an easy job. In many cases traders end up losing money while trying their hands in forex day trading. And this happens most when traders attempt to trade over the 1 minute to 5 minutes charts.

This fast method of trading is often called scalping the market. There are many experts on scalping so it is very possible to make Forex day trading work. However, it only takes one unpredicted sharp rise or fall in value for you to lose a lot of money. Part of the problem is that the shorter the time period of trading - the harder it is to predict a trend as trends tend to show over a period of time. This is why scalping can be both difficult and costly.

If you are engaging in risk management techniques then quite simply, the longer time period you use the safer your trades will be. However, longer periods can also make the process of making profit a more drawn-out affair so it really does depend on your circumstances.

So by using the longer time frames you can make your forex day trading more profitable. Here you will get more time and scope to study and understand the trends and reconsider your positions. This will definitely increase your success rate.

As you grow to understand the trends of the market you will be able to start constructing your own trading system. You can use technical indicators to aid this process and there are also a number of Forex charting software packages available to help further.

It cannot be underestimated how much timing comes in to in Forex day trading. Firstly you have to be patient and be prepared to wait for the exact moment to execute your trade. If you leave it too late or go in too early then you will reduce the amount of profit you make. A successful day trader is able to pinpoint the exact moments to enter and exit trades for maximum profitability.

If you are able to master the arts of timing, trend forecasting, and risk management then you will have the 3 core skills needed to become a successful Forex day trader. - 23204

About the Author:

If scalping the currency market and earning money from trading currencies online is something that is attractive to you, we recommend you check out: Forex Day Trading

Four Basic Tips In Getting Your Own Valuable Penny Stock Pick

By Malcolm Torren

Balancing high expectations with the actual stocks being in trade can be quite a challenge for the new penny stock investor. It is no joke to be investing in penny stocks. But if you have the stamina to overcome your first quarter hurdle, you should be good for the next challenge.

In this trading business, it is important to understand that your key to success is always based on facts supported with a rational conclusion. Even with the best penny stock pick can't compete with your decision.

However, once you master the basic moves, penny stock trading can be worth your investment. That is no myth and there are people who can tell you that it's even fun. So where do you start? Know the basics first. Here are five tips that are most important to get your excited.

- Do not buy shares from ambiguous claims. Of course you wouldn't buy a product in a grocery store if the label doesn't say much about its content, would you? There may be phone calls and emails you'll be getting saying stuff about penny shares that are up for grabs. Verify this claim first. Verify the source of the information too. It is important in your penny stock pick to have track records and an accurate stock price before you buy a penny share. The point is, don't buy if the information you need is not given completely.

- Consider the PE ratio principle. This is a bit technical for you if you are just a beginner. PE stands for price to earnings ratio. The basic definition is that it's the value being set by the stock market per dollar per share of a company's annual earnings. Conduct a thorough research on this to get a better understanding of how it can be applied to your decision making.

- Be cautious with hyped penny shares. Although it is true that press releases can pump up the value of a penny stock. But there are scams involved in this part of the trade and hype is often the favorite game. You should be confident enough of your penny stock pick to not get influenced by other stock broker's opinion. Sure you'll need these brokerage firms but your analysis is what matters most.

- Seek advice from credible sources. You decided to throw in your investments in your penny stock pick because it is your personal decision to. That means whatever risk you have, loss or gain is all yours for the taking. If someone else gives you an advice, make sure that they have traded their own money and have a good track record of successful transactions.

Always make your own well-informed decisions. Nobody in the trading business can teach you penny stock wisdom. Nobody and that is a fact. Penny stock brokerage firms can give you advice and present you the hottest penny stock pick there is. Yes, that can be very helpful. But it's your money out there. Even the stock market doesn't own it. - 23204

About the Author:

Find the best tips on how to choose a penny stock pick. Learn more about investing in penny stock from the pros.

The Introduction Of Writing A Will

By Jason Klatham

It is not surprising that some young adults as early as 18 years old are already considering writing a will. You have probably heard of teenagers getting huge earnings from online businesses and that is only a clear indication that even if you have just reached the age of 18, you can choose to write a will.

Reaching the legal age means a lot of things for young adults. Not only can they have additional privileges in the community, they are now also protected from illegal elements who are eyeing at getting their wealth by force. Having a will, serves as a protection for anyone who thinks of the future of their family and loved ones.

A will is a legal document that contains the actions that will be executed pertaining to all your assets, real and personal properties, including designations of people who will manage your properties or care for your minor children. This is commonly called the last will and testament that requires two witnesses, name of executor, name of beneficiaries, list of properties and other conditions stipulated by the testator with or without the assistance of a lawyer.

Most people are familiar with the written will which designates an executor and lists down all the properties of the deceased to be distributed to the heirs. Since it is a legal document all the entities written down should have their proper identification. The name of the beneficiaries should be their legal names and so on. And to prove that the testator is sane and is mentally sound during the preparation of the will, he or she should clearly write down that condition to erase doubts that there are outside forces influencing his or her judgment.

The first part of the testament must include the details as to how you want your funeral to be handled. Usually, the spouse takes on this role automatically or any first degree relatives close to the deceased. If the departed is not married, he or she can also assign a partner to take care of this.

Next is the assignment of responsibility for your children if you are a single parent, widowed or divorced. After which, is the long list of your real and personal properties and the corresponding beneficiaries of those assets.

And lastly, the signatures of the witnesses who will attest that you are indeed the one who created the testament and your signature. Your witnesses cannot be your beneficiaries. You can also have it notarized.

Writing a will early can be a little morbid or having a death wish lurking behind your back. But being prepared for the future of your family should be your prime concern regardless of how you view an early death. - 23204

About the Author:

What type of Texas Legal Will you write can make a big difference on whether or not it is easy to writing a will.

Ways that a Forex Trading Robots Comparison Can Help You

By Davion Wong

There are several ways that a Forex trading robots comparison can be of help to you, particularly if you are quite clueless as to which trading software types to settle for. Forex trading can be intimidating to some people, especially without the right knowledge, but the right trading system can help you learn a few pointers along the way.

Getting profits from Forex trading can be difficult in the beginning. If you are not careful, the profits you make on each trade could be easily eclipsed by the losses you suffer. This is why getting the right software for Forex trading can help you ensure a profitable trading activity each time. A comparison on some of the more reliable trading systems will allow you to narrow down your search to more viable options.

When trading, you need to remember that knowledge and discipline both play very crucial roles. The better your experience is in Forex trading; the easier it is for you to make profits, whether for the short-term or long-term. However, getting assistance from a reliable trading system can help you cut losses and minimize risks. A comparison of Forex trading robots should be done first.

By comparing Forex trading robots, you will be able to avoid scams and to find the trading software which can help you earn trading profits in a legitimate way. When searching for trading robots, never fail to check on the software first, as well as the over-all system used by the program. Check for easy-to-use features and important guidelines. The Forex trading program should also have a reliable manual, for first time users.

If you are starting out as a day trader, and you want your trades to be automated for you, you can choose a trading system that has easy-to-use features. Through these tools, you don't have to be too involved in trading, since the software lays out all the strategies for you.

Nonetheless, this is often not the case with the more experienced Forex traders. If you already have your own tactics in trading but still want a trading program that can be of valuable assistance, you might require a more sophisticated system. Finding the right website and comparing trading robots for Forex will definitely help you pin down the trading software perfect for you.

These review sites or comparison sites also present the costs associated with each trading platform, so you will be able anticipate your expenses well in advance.

Carrying out a Forex trading robot comparison will surely help you find the right trading tools, so drop by my site today to learn more. - 23204

About the Author:

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