I find it amazing that nearly everyday I receive something online or offline that is the greatest break-through in Trading. You know the stuff. This 'system´ or that 'method´ has been thoroughly tested and back-tested in every conceivable fashion and is wildly successful. Some work for a period of time but most do not. The decades old statistical fact still remains, 90+% of Futures Traders will lose all of their trading capital within their first year of trading. Now there is a new and promising alternative.
Enter e-Currency Trading. In simple terms e-currency is Internet Money. E-Currency allows the purchase of Internet goods and services at lightning speed and most importantly with a high level of security. Much higher than credit cards, bank transfer etc. The demand for e-currency should only grow as Internet Commerce grows.
So what does this have to do with trading? There are literally hundreds of different e-currencies. Each is backed by an underlying Currency or a precious metal. The need arises to exchange between these e-currencies or convert an e-currency to hard cash. Much like the Euro is to the European Union. We can profit from the exchanging process and profit from the fluctuation of the underlying currency value.
The same basic strategies apply to e-currency trading as with futures trading. Supply and demand dictates price primarily. You could buy e-currency that has historically performed well (buying the trend) or go the opposite way and buy those that are under-performing, looking for a turn-around. You can even chart them if you like.
Leverage, that double-edged sword that Futures Traders are so familiar with is also present in e-Currency Trading. You can borrow against your portfolio to buy more e-currency. The compounding affect is almost outrageous. Some would argue that you never have to pay back the leverage. I contend that it is paid back if you closed your e-Currency account, because your final balance would be less the amount leveraged. The point here is the leverage in futures trading is often times the demise of a well intended trader versus the leverage afforded an e-currency trader combined with the daily compounding affect creates portfolio growth at a phenomenal rate. It is not uncommon to see portfolio growth of 20 - 40% per month.
Futures Trading and e-Currency Trading have a common downside. The learning curve is huge and can be frustrating and costly. Each has unique terminology, which is impossible to work around until you have a good understanding of the meaning. Thankfully in this world of information, we are able to find resources online and offline that shorten that curve. How much it is shortened is dependent on how much time you want to dedicate.
Industry experts have debated for years the optimum amount one should fund their futures trading account with. The obvious moving target is enough capital to withstand the drawdown periods. Many factors go into this but I´ve seen numbers range anywhere from $10,000 to $50,000 and up. If this is the case then there is little doubt why most futures traders lose as most are willing to fund only the amount required to cover Margin or the Brokers account minimum usually a few thousand dollars. One of the biggest reasons for small business failure is being under capitalized, the same holds true in futures trading.
E-Currency Trading is different in that the experts recommend starting with a few hundred dollars and let the system build your account. Whatever route you choose, only trade with risk capital.
E-Currency Trading certainly has advantages over traditional futures trading and may well be worth your serious consideration.Merv Thompson is the owner of a website that provides trading tools, resourses and reviews for todays futures trader. http://www.futures-brokers-review.com
Merv has started his own personal e-currency trading account and will periodically post updates - Visit the website to view the results
Additional information about e-currency trading can be found on his website at http://www.futures-brokers-review.com/ecdwnld.html
October 17, 2007
Two Great Forex Indicators: Bollinger Bands and Fibonacci Retracements
Forex trading is a fascinating way of earning a living online, and if you are seriously considering entering this fascinating world of forex trading you must consider, by all means, the learning and understanding of a number of indicators that will give you invaluable help on predicting with a high probability the directions the forex market may take as you carefully analyze the price charts for any currency you are trading at the moment. Two of these important indicators are: "Bollinger Bands" and "Fibonacci Retracements".The basic interpretation of "Bollinger Bands" is that prices tend to stay within the space formed by the tracings of the upper and lower bands. The distinctive characteristic of "Bollinger Bands" is that the spacing between the bands varies based on the volatility of the prices. During periods of extreme currency price changes (i.e., high volatility), the bands widen to become more forgiving. During periods of low volatility, the bands narrow to contain currency prices. The bands are plotted two standard deviations above and below a simple moving average. They indicate a "sell" when prices are above the moving average (or close to the upper band) and a "buy" when prices are below it (or close to the lower band). The bands are used by some forex traders in conjunction with other analyses, including RSI, MACD, CCI, and Rate of Change."Fibonacci retracement levels" are a sequence of numbers discovered by the noted mathematician Leonardo da Pisa during the twelfth century. These numbers describe cycles found throughout nature and when applied to technical analysis can be used to find pullbacks in the currency market. More information here; http://www.1-forex.com"Fibonacci retracement levels" are a quite effective way to see the future (at least in the forex markets), i.e., it involves anticipating changes in trends as prices near the lines created by the Fibonacci studies. After a significant price move (either up or down), prices will often retrace a significant portion (if not all) of the original move. As prices retrace, support and resistance levels often occur at or near the "Fibonacci Retracement levels" (See my articles on "Fibonacci trading" for more detail about this).In the currency markets, the commonly used sequence of ratios is 23.6 %, 38.2%, 50% and 61.8%. Fibonacci retracement levels can easily be displayed by connecting a trend line from a perceived high point to a perceived low point. By taking the difference between the high and low, the user can apply the % ratios to achieve the desired pullbacks.Adrian PabloForex Trader and Freelance Writerhttp://www.1-forex.com
Forex Trading: The Fastest And Greatest Way To Create True Wealth
If you search on the internet you'll find millions of investment programs such as real estate, stock trading, bond trading, mutual funds, CDs, auction programs and various internet programs.I have not done many internet income opportunities or programs or affiliate programs because I had been lucky to discover a very easy way to make money through forex trading, (Foreign currency trading) safely on the internet.Perhaps you know about only stock trading or bond trading which are common, but not forex trading.Forex trading is the most profitable and attractive internet income opportunity because you can do it from home or office and from any country in the world.In forex trading, you don't need to do any marketing or selling or internet promotion to succeed.In currency forex trading, you don't need to spend thousands of dollars to do any internet promotion.In forex online trading, you don't need any stocks or warehousing.In forex online trading , all that you've to do is open an account with one of the brokers with as little as $300 or $2000.Then follow simple instructions to buy and sell the currencies.When the price of the currency is low, you buy.In a few seconds or minutes, the price will go up, and you sell it and make a profit.By so doing , in a day, you can easily make $500-$1000 by just buying, selling and trading these foreign currencies for about 3 or 4 hrs!And get this:You don't even have to be stuck sitting behind your computer buying and selling these foreign currencies.You can enter all your buy trades and specify the sell prices you desire and then log off.Whenever the values of these foreign currencies rise and your selling prices reach, the currencies will be automatically sold for you and you make money!You can do currency forex trading and at the same time keep your day job, because in forex online trading, there is no work to do.In the future when you have made hundreds of thousands of dollars, you may then quit your job and just keep doing currency forex trading forever and go on permanent vacation!To understand the beauty of forex online trading Picture this:In the morning, you get up from sleep at 6 am.You go to your bathroom and have your shower.At 7am, you hurry and eat your breakfast.At 7.20 am, you login into your day forex trading account on the internet and spend 10 minutes to buy about 3 or 4 different currencies, [for example British Pound, Euro, CHF (Swiss Currency) and Yen (Japanese currency).]You can specify the price at which you wish to sell each currency.Then you can log off.By 9 am, you're at work in your office or business place.You do your job as usual and by 5 pm, you're finished and heading home.When you get back home around 6.30 pm, you login into your day forex trading account to see how much money you've made.Holy Molly, there in your account it says you have made $750!"Is this for real?", you wonder…Yes, it is. (Your eyes are not deceiving you…)$750 in a day for just clicking your mouse twice and doing no work?(Whereas at your job, you work 8 hrs, but make only probably $150..)This is how easy it is to make money from day forex trading.But before you use real money to open a live forex system trading account, you have to open a free trial (demo) account (forex simulation trading) and practice first, to understand how it works and to acquire the right skills.This free demo (trial) forex system trading account (forex simulation trading) will help you to reduce a lot of risks that can lead to loss.In forex system trading, you can choose how much money to invest, how much money to make and when to make it.You can make money daily, 365 days all year from forex trading.Your computer can be transformed into an "ATM" machine that cranks out cash for you daily (without large investment or hassles) from forex trading.In day forex trading, you can choose what type of risk you can manage, when to invest and when not to invest.In Currency forex trading, you're the boss. You may do as you please.When day forex trading is compared to other investment programs such as stock trading, bond trading, mutual funds, real estate and regular business, it is evident that forex online trading is the fastest and greatest way to make money in the world.Forex system trading is a 2.5 trillion dollars daily business and it is larger than all the stock trading in the world combined.These are some of the reasons why I believe that forex system trading is the best internet income opportunity.Perhaps from reading this article you'll now come to know why currency forex trading is the secret behind the greatest wealth on earth and why it has been kept hidden from the average people of the world and therefore little known to the masses.May these forex trading insights open your eyes to the possibility of infinite wealth and success that can be yours from day forex trading.Please feel free to print or publish this article anywhere and read and also send to your friends and well wishers and please preserve the author's resource box below.Warmly,Ikey BenneyI-key is the creator of "Mscsrrr, Millionaire Secret Cash System, The Royal Road To Riches, Generate $1,500 Weekly For Life" (http://www.mscsrrr.com ) and "TMT: Transcendental Mental Technology, The 10,000 Yr Old "Secret" Of Infinite Wealth, Infinite Success, Infinite Happiness, Revealed. (http://www.tmtworldwide.org )
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