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Monday, October 5, 2009

Automated Forex Trading The Truth

By Chris Green

Automated forex trading is one of the most sought after things when it comes to forex. You might not have noticed that every trader would like to somehow make their forex trading an automated system. With the countless hours traders put into their trading, it may be hard to believe that there is an automated way of trading and making a living off of it.

Can automated forex trading make the same kind of profits as a day trader? Depends on the trader, but for the most part auto traders are better than the average trader hands down. With technology becoming more advanced every year, our possibilities in computing increase substantially as well. The average trader can only watch their trades for so long, and can only do so many at a time, where an auto trader can watch the trades from start to finish and can handle many at a time.

You may be asking yourself how long automated forex trading software has been around. Well until now you may not have noticed that it has been around for a few years, but today the newest ones are better than ever before, making profitable trade after trade. Whether you are a long time trader or new to the market, you could get one of these automated forex trading robots to help you out substantially.

Do many people know about automated forex trading software? Surprisingly, you might find that many traders are not aware of it. The traders that are aware of it are reaping the benefits day by day, where the traders that are stuck to their old fashioned styles are losing out on great potential. I wouldnt tell you that you are lost without one of these trading robots, but you may find that it can accelerate your forex success.

Eventually automated forex trading software may take over as a standard. Some people will be left behind from not joining in on the great market, where as if you joined in, you may find yourself further ahead of many traders in no time. One doesnt have to become successful in forex, but you may want to become successful. If you truly want to become a success, take action and make the step many cant, get yourself ahead of the game and dominate the forex market with the best forex trading robot that has ever came to the market. - 23204

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Secrets To 401k's

By Michael Swanson

You need 401k advice. Years ago almost every employee in every company received a pension through a company paid pension plan. People stayed on one job for their entire career and companies felt it was their duty to provide this type of loyalty after retirement as well. The major benefit of having a pension was that the employee didn't need to contribute. It was a gift. Then life changed and so did corporate America. Companies still were willing to help you after retirement, but they looked for other vehicles to do it. And so came the 401k plan.

This type of retirement plan became very popular very quickly. It was an added benefit companies in that they didn't need to do anything other than select a brokerage house to manage these accounts. Most companies that weren't unionized elected to offer these plans to employees, and many of them even had plans where they would contribute right along with the employee, sometimes doubling the investment. However, this is optional and no company is obligated to contribute on behalf of any employee. Many companies either stopped, never did, or reduced their contributions significantly.

Each person can contribute up to $15, 000 a year without regard to their income level. 401Ks are made up of mutual funds, and the employee can pick and choose which funds he wants to invest in. However, he is limited to funds offered by that brokerage firm managing the plan.

Even though the concept of a 401k is attractive, not all plans are worth the investment. Many employees choose not to participate in their company's plan because after doing some research they may find that the funds (mutual funds) have not performed well.

If you try to withdraw any funds from your account before the age of 59, you will be taxed and then stuck with another penalty from the IRS. You invested with pre-tax dollars, so you're going to pay your taxes at the end.

When the time comes to leave your company, don't forget to take your 401k with you. Get some professional financial advice on rolling it over into another 401k or a Roth IRA. - 23204

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Are Your Options Losing Value?

By Donald Scott

Let's discuss the complexities of options and how they differ from trading stocks. First of all stocks are simply one-dimensional trading vehicles, the dimension of "price movement." For example, one can go long a stock if he/she is forecasting a rise in the price of the underlying asset. The stock trader doesn't need to worry about time or changes in volatility affecting the outcome of his trade. The stock trader only needs to focus on the asset's price movements.

So those are the basics about stocks, but what about trading options? Options are like trading 3 dimensional vehicles...direction, time and volatility. Let's look at a real-trading example to clarify the difference in the trading world:

What if Google moves up 25% in 2 years? Well, those stock owners would have just made 25% by holding on to their investment all that time. However, if an option trader held on to his Call options for 2 years, most likely there would be very little if any gain on the trade.

We know why the stock holder made money, but why would the option buyer lose money? Everyone thinks there is leverage in options, and it's true, but in this case, the leverage didn't work out for 2 reasons. One, the asset took too long to move, so the option time value decayed. Secondly, the asset moved up, causing its volatility level to fall, and this also helped the option price to move down.

This is why we need to be educated in order to trade options. Simply buying Calls and Puts makes option trading very difficult because of the elements of time and volatility. Remember, options are three-dimensional vehicles, and if we don't understand how to manage these 3 complexities, we shouldn't trade them. After we understand options more in depth, these investment vehicles can make money in any type of market. Options are very adaptable and allow investors to be very creative once the understanding is there. - 23204

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Bulk REO Investing In Today's Market

By Jerome Pennix

Bulk REO Investing is proving to be one of the most profitable fields of investment during this year and potentially beyond. Bulk REO Investors profit by buying groups (commonly called portfolios) of properties from lenders who have foreclosed the properties and have urgent desire to reduce pressure on their balance sheets. Due to the urgency of the balance sheet needs of the banking institutions coupled with the investors ability to purchase a package of REO properties rather than singular properties, its quite possible for a well-financed bulk reo investor to acquire REO packages at extremely attractive deals.

Most bulk REO real estate investors make offers to lending institutions on the basis of a percentage of unpaid mortgage balance. This means that if the investors make an offer of 60 cents on the dollar for a package of loans with a remaining balance of $3,000,000 in principal balance, then they pay $1,800,000 to acquire that group of houses.

When the REO portfolio transactions are finalized, investors have multiple houses which may then be sold to bring a return to their fund. To do this, the investors resell their houses to retail home buyers via seller financing. By eliminating traditional lenders out of the transactions, they are able to move their houses quickly and at very attractive options.

Try to learn when the banks financial quarter ends. This is when they report their quarterly earnings and financials and when most of supervisory management get evaluated for increases in pay. Just like any business, financial institutions dont want to show these underperforming properties on their books especially when their earnings reports are due.

Valuate the properties, figure out what you need to get them for, and put in your second (or third) best offer (do not give your best offer first).

Negotiate until its a win for all: you get to have several properties at lower than market value the bank walks away with those deals off of their books just in time for the quarterly earnings reports to shareholders.

The future seems quite bright for astute Bulk REO investors. - 23204

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Time Frames Selection For Swing Traders

By Ahmad Hassam

Swing trading means that your trade can run for several days as long as your profit targets are not met and the trend does not reverse itself. Swing traders believe in the saying, Trend is your friend. Most of the day traders end up being swing traders. A swing trader may have started as a day trader. Either they scaled out of a portion of the position, set a stop loss objective and kept the trade running as the market kept moving in the desired direction.

A swing trader is also considered to be a mini position holder. Regardless of how a swing trader started, they need to focus on higher degree time frames and spend less time on 5-15 minutes time frames.

5-15 minute time frame charts are for the day traders, most of who are scalping. 5-15 minutes charts will generate too many short term signals if you are a swing trader holding a position for a few days. The most reasonable time frames for a swing trader are the 60 minutes (hourly), 240 minutes (4 hourly) and the daily charts.

As far as the pivot point trading is concerned, swing traders should give more attention to the daily, weekly and the monthly pivots. This information will help them to identify potential entry or exit targets but also help to be aware of the confluence of any support or resistance.

Whether you are a day trader or a swing trader, you are only interested in making profits from what moves the markets. You are not so much concerned with long term macroeconomic conditions as you are with riding a momentum wave when you are day trading. This is your job. The same is also true for swing trading. As a swing trader you are simply looking to ride from a move and profit from it.

Swing traders try to identify a potential trend and enter it at a time when most of the other traders have not yet identified it. You need to capture opportunities as they arise. In short term trading market conditions change! Forex markets are ideal for momentum trades. The forex market tends to trend well over the course of 3-10 days. This allows swing traders opportunity to capture larger price swings over a given period of time.

Forex markets are open 25/5 except on weekends. You have access to the forex market over the 24 hours period unlike the equity markets. This is the biggest advantage that forex markets have over stock markets. Therefore, you can monitor your positions, place stops and take action to exit a trade at any time, day or night.

The fact that the forex market is a 24 hour market and because of the time frame involving several days in swing trading, swing trading is slightly more advantageous in forex markets. Due this continuous market action there are very few time that gaps occur in the currency pair prices, this makes forex markets more suitable for swing trading as compared to the equity markets.

So if a day trade moves sharply in your favor, carry it through the overnight session. However try not to hold a position over the weekend. If the trade starts making money in your favor from the let go, your entry was correct. Do not carry your losing position to the next session.

Never get fancy and try to get a better fill by placing limit orders when you enter a bona fide trading signal. Go to the market before your competitors. Wait until the close of the period to confirm the signal. Never anticipate that a signal will happen. - 23204

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