Financial Spread Betting Companies Review

Forex Trading Hours - They Are Not The Same!

noreply@blogger.com (Daniel) — Thu, 05 Nov 2009 09:32:00 +0000

By Steve Maenshel

Forex trading hours are the hours when the foreign currency exchange market is open. Even though it may seem that Forex market is always open (it's true in a way), some hours are better for trades, while other hours may actually do more harm than good. Forex trading hours are 24 hours a day, 5 days a week, except for the national holidays. Forex trading hours vary from country to country, according to the hours when main financial institutions of that particular country start and end their business day.

Experts identify four major time zones, whose Forex trading hours substantially differ: Australia, Asia, Europe and America. Forex trading hours in Tokyo begin at 23:00 GMT on Sunday. This starts the weekly trading session. The weekly trading session closes on Friday at 10 pm in Chicago.

Forex market is open at the time of major holidays just as well. However, of course, it's not open in the country where the holiday is celebrated. For example, at the time of a major Christian holiday you can still get foreign currency quotes from the banks of Asian and Muslim countries, and the other way around. Thus, if you feel like trading, you will not have to wait for the holiday to pass in your country; you would just trade with others. It never happens that one holiday would happen in all of the countries all over the world at the same time.

Probably, the only uncomfortable time for your trades is weekends. Even though you can trade on the weekends, the volume of the transactions will be so thin, that you may risk not being able to find a counterpart for your transaction.

Forex is an international currency exchange. This market is continuously working, just like a hive, with zillions of transactions, selling and buying different currencies - Euro, US Dollars, Pounds, Yens, Canadian Dollars and Australian Dollars. You will be able to freely trade on the Forex market within the Forex trading hours.

Forex trading hours were established in order to give employees time for Forex transactions, which is not achievable at the time of active trades, as well as probably to give traders some time to "rest and relax".

The residents of different countries can be surprised that Forex trading hours start and end deep at night in their countries, however you should realize that the foreign exchange market works in different time zones, and thus while in some country Forex might seem to work "at night", in other countries Forex trading hours match regular working hours.

Forex trading hours in the main 4 timezones

Forex trading hours overlap and make up 24 hours of every day, 5 days a week. Trades are also carried out on the weekends. However they are much less active. Below you can take a look at the Forex trading hours in the 4 major time zones, in accordance with Eastern Standard Time:

Tokyo Trading Hours: 19.00 to 04.00

New York, Trading Hours: 08.00 to 17.00 EST

London, Trading Hours: 03.00 to 12.00 (noon) EST

Sydney Trading Hours: 17.00 to 02.00

A trader should get familiar with Forex trading hours, since Forex trading hours are often important to know, in order to gain reliable profits in transactions, rather than getting stuck in thin trades.

About the Author:

Author Steve Maenshel can help you take advantage of the forex trading hours. For more forex trading information, visit his forex resource center.

Currency Exchange Trading Couldn't Be Easier

noreply@blogger.com (Daniel) — Wed, 04 Nov 2009 11:01:00 +0000

By Scott McDonald

After doing currency exchange trading for years it got to the point where I needed to find a method that performed what It claimed and one that would make my trades different all together. Days turned into moths of research to find the best method, I finally discovered a method that the guru's use them self. This method has to be the best I have ever seen.

My skills in currency exchange trading seemed to start getting better every day once I incorporated this one method from the guru's. Out of years of trading there has never been a method that has come close to the results of this one. Do yourself a favor and find out the secrets behind this one method that they have tried to keep hidden for so long.

When new to currency exchange trading, it is definitely hard to get some profits rolling in at first. If you don't want to spend months in the boring learning curve and not make a dime, you need to check out this one method. Not only will you learn about forex more in depth than the average trader, you will also be making massive profits at the same time. There are no others that can compare to that!

Trades in currency exchange trading used to be hard to keep consistent. Not anymore with this one of a kind method that literally doesn't stop working. After getting fed up with the countless hours that were poured into research, I demanded a method that would make this more of a time friendly profession. This one method the pros have been using for years has made my trading account double every month!

Want your currency exchange trading to finally take off like you want it to? Then stop wasting time on methods that just don't perform how they should. The big traders have been hiding this method for a reason, because it is the key to their success. Take the step most cannot and turn your forex into a major success with the method that they don't want you to know about!

About the Author:

If your trades aren't raking the cash you want, you have to check out the "Big Wigs" Currency Exchange Trading dominating method. Stop letting the "Big Wigs" feed you baby steps, find out their untold secrets to Currency Exchange Trading today!

Investment Strategies - Why Logic Is Important

noreply@blogger.com (Daniel) — Tue, 03 Nov 2009 10:32:00 +0000

By Gnifrus Urquart

I've been an active investor for about 20 years of my life. In using either my tried and tested strategies, or trialing new ones, one thing I have realised is that the more an investment strategy makes logical sense, the more successful it tends to be.

Lets face it, you could spend 2 life times trialing all the investment strategies people offer you. There are so many out there and I am sure most of them have some merit. What I have found though (and this in no way passes judgment on the merits of any investment strategy) is that if I really think logically about many of the investment strategies which have come my way, there are often holes in them... big ones at that too.

Strategies generally make sense. The problem I am talking about is not about making sense, it concerns completeness. When these strategies do not cover all possible scenarios, you can be left in a position where you need to make decisions that are not following the strategy. The amount of judgment you can bring to such forced decisions depends on how close this situation is to others covered by the strategy. In a worse case scenario, it could be a complete guess.

Personally I think that making decisions like this, decisions which are outside the logic of an investment or trading strategy, is gambling. Its not a good situation. Sure you may make money with this gamble, but you could lose it too. Its no different than blackjack. A robust and complete trading strategy should take these gambles away from you. There should be no guesses. You should just plan the trade and then trade the plan.

Also, the point about trialing a strategy is that you are finding out whether it will make consistent returns over the fullness of time. The point about trading a strategy is that you know it makes consistent returns over the fullness of time. If you have had a guess mid way through the strategy, you cannot be confident its the strategy or your guess which is making the money. You will need to start again.

So if someone presents you a trading strategy, go through the logic with a fine tooth comb. See if you can come up with scenarios which may happen in real life, which the strategy deos not cover. If you can think of some, try to get answers for these scenarios before you start trading with real money. Because believe me, if such scenarios exist, as soon as you put money down they will come up. I think 2007 - 2009 taught us all that.

And once you are happy with the logical analysis you have applied, don't forget to dummy trade for a while too. In dummy trading you will probably find a number of scenarios you never thought of. This gives you the chance of ensuring the strategy deals appropriately with them too, without risking any money. Good luck.

About the Author:

After years of successful investing, Gnifrus Urquart enjoys discussing his favorite trading strategies and offering general trading advice Grab a totally unique version of this article from the Uber Article Directory

Why Choose Online Forex Trading?

noreply@blogger.com (Daniel) — Mon, 02 Nov 2009 10:18:00 +0000

By John Eather

Largest world market: The largest financial market in the world is the Forex Market with an approximate USS$ 1.5 trillion trade per day. The main reason for the huge size of the market is the extreme demand worldwide for foreign currency. Central banks and international businesses thrive on International Trade as a main income sources with currency prices floated and not dependant upon gold prices. The ease of online forex trading has made the market even more attractive and lucrative.

Best Option: Online forex transacting has many great advantage. Firstly being, no commission or brokerage payable to middlemen, making your returns on online investments greater. Secondly, only a few hundred US Dollars is needed to get trading started. Thirdly, trading is open twenty-four hours a day, seven day a week. Most online trade companies offer greater leverage ratio's to clients as added bonus and last but not least Live information in the form of real-time pricing, stock analysis, charting and current news is available via trade software. Demo account options are also available to practice and familiarise yourself with the market without risk.

Less cost: The cost of online forex trading is much less than conventional forex trading due fact that no brokers are involved and thus no brokerage costs or fees-you are your own broker. Possible online foreign exchange fees applicable are admin either yearly, quarterly or monthly, account opening and software cost.

Experience: If you have never played the foreign exchange market is recommended that you do a course or research on the subject as you are exposed to high risks you may not be able to manage with limited experience or a broker. Forex trade has great returns, however the risk must balance with the return.

High risk: Due to the fact that foreign currency trading is conducted over-the-counter, no organised or formal market legislations or regulations are strictly applicable, opening the door for fraud, money laundering or theft. Gearing or leverage effects will have either a positive or negative impact on you as even the smallest of movement in the market will have a possible great impact on your deposit. Orders intended to reduce risk may not always be effective as they may not be executable depending on the market conditions.

About the Author:

Learn more about online forex trading. Stop by John Eather's site where you can find out all about forex trading systems and what it can do for you. This and other unique content '' articles are available with free reprint rights.

Currency Trading Software Easy As 1-2-3

noreply@blogger.com (Daniel) — Sun, 01 Nov 2009 10:04:00 +0000

By Scott McDonald

Spending time on currency trading software studying the market conditions sounded like an endless process of learning. Knowing how much time to spend on learning and how much time to spend trading should not be hard to figure out. Once I discovered this method the big traders use, the learning process went quicker than I ever imagined. The sum of profits in the two other methods I trade with did not even equal the profits this one generated.

What currency trading software works best? Through my experiences, this particular software and method has shown to be dominating over any others seen before. With this pair setup correctly, it is possible to easily double your trading account every month! There aren't many setups out there that can consistently do that. Imagine how fast you can build a small trading account up! If you are a new or long time trader this setup works, and works hard for you.

Jumping between different currency trading software seemed like a long process to figure out what one was actually the best. Don't go and waste your time, I have done the testing and came up with the best performing. Discover the method and software that the guru's don't want you to know about, and turn your forex into a massive income!

The currency trading software that is out there for the most part is junk that just won't deliver what you need. I found out the reason behind this. It is because the big traders just don't want the average Joe to find out about their tested and tailored products. That way they figure there are more traders in the market to fail to their dominating product. Not anymore, take charge today and crush them with their own method! Discover how they make record profits year after year.

Using this currency trading software combined with their method, in just a matter of a few weeks I was making record profits! I can see now why they have kept this combo hidden from the general public. It just works so well it almost does all the work for you. If you want to crush the big traders with their own method, you need to add this to your trading skills and show them you can succeed also!

About the Author:

If your trades aren't raking the cash you want, you must check out the "Big Wigs" Currency Trading Software dominating method. Stop letting the "Big Wigs" feed you baby steps, find out their untold secrets to Currency Trading Software today!

Distinct Sorts of Forex Software

noreply@blogger.com (Daniel) — Sun, 01 Nov 2009 09:09:00 +0000

By Brad Morgan

Forex trading software comes in multiple features. From placing trades to aiding you in designing your personalized trading system, these programs can do it all.

Here's a succinct outline of the different categories of trading software and what they are operated used for:

FX trading platform essentially links your broker to yourself. Online trading is made within reach by this kind of software. Your broker brings it to you through online download for installation on your PC.

After installation, all you need to do is open and fund the account and you're set up to trade via your PC. This is the pipe dream of many in this Forex trading, being able to place a trade order from wherever in this planet if they have an internet link.

Forex system development software is activated by some traders who wish to constitute their own foreign exchange ideology of trading. By allowing the user to employ past data to verify their trading theories. Called back testing, this method is extremely beneficial to traders wanting to determine how their ideas might have progressed had they been employed in past scenarios.

FX Robots are systems that have a pre-programmed trading system. Because they do not need human involvement to extemporaneously activate trading signals, they are called robots.

One may even connect the Forex robot to a trading platform empowering it to trade automatically. Most would assent to this the crown of trade automation in the Currency market.

You must bear in mind that testing these systems in a demo account is certainly all-important before using your real money. Then you can approve your account funded with real money to be used when the demo has appeased your requirements as far as returns are concerned.

Forex system software is same as a Currency robot since it also serves the trader with trading signals. When the software is used by itself, the trader can order trades manually based on signals emanated by the software.

Forex trading software shortens the task of a Forex trader. But again, it must be emphasized that the automated systems like the Forex system software as well as the Forex robots must be subject to close examination and review evaluation before procuring them. These are the types of systems that can make or damage your career as a Forex trader.

About the Author:

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Automated Forex Trading Proven Methods

noreply@blogger.com (Daniel) — Sun, 01 Nov 2009 09:09:00 +0000

By John Eather

If you are interested in learning how to conduct your own Forex trade then here is a short guide to get you get started. Automated Forex Trading is easy, some of the concepts to understand are the lot size, margins, currency pairs, leverage and pips.

You can always try a demo account or a trial, but the best is risk free. You will learn first that the starting capital is equal to the investment you plan to use in your on line account. Inside the manuals you find trade secrets valuable to success.

It is advisable to spend time getting to know Metatrader. You should surely learn how to open chart application and modify the time duration. Complete installation and set up manuals accompany the Forex robots but it is best you acquaint yourself with its working platform to maximize benefits.

Making real money is close if your demonstration Forex account is showing consistent profit over a given time. You should ascertain that it is making good profit over the time of one month to conclude that it works for you. Do you know how frequently you should trade, its characteristics, and strategies? These are the questions automated systems will help you with. But only when you study the guides.

There are forex trading systems that may not work for you. One that will fit each persons personality and style of trading; you can look around and do a little research. Beware of the many scams on line, you should be able to check the background of any site offering purchases.

Beware, always try the demonstrations and watch it over some time, study its workings, learn to control it and only then apply your real capital to the software. Check if you have understood how lot sizes matter, what are currency pairs, margins and pips and lastly how does leverage work? Try an automated forex trading system that will help create your success.

About the Author:

Looking to find the best deal on forex trading software online, then visit www.MoneyMakingFxTrader.com to find the best advice on automated forex trading for you. Get a totally unique version of this article from our article submission service

Stop Loss Types

noreply@blogger.com (Daniel) — Sat, 31 Oct 2009 10:59:00 +0000

By Ahmad Hassam

One important way to control your trading risk is by setting stop loss exits. A stop loss exit is a practical tool used in risk management. However, there is an art of developing the right stop loss exit strategy.

On the one hand, you dont want to set too tight stops that you constantly get bumped out of the market. On the other hand, you dont want to get too liberal with your stops that you never lock in a profit.

The topic of setting stop loss exits generally falls under the heading of trading systems. Your exits must be carefully coordinated with your entries. This is a trading skill that you can only learn with experience.

How many stop loss types you can use in trading? There are a variety of stops that you can incorporate into your trading system. The following sevens are the most valuable:

1. Initial Stop: This stop is identified before you enter the market. This is the first stop set at the very beginning of the trade. The initial stop is also used to calculate your position size. It is the largest loss that you are going to take in the current trade.

2. Trailing Stop: Using trailing stops is a good idea. This stop trails the price action. A trailing stop locks in profits when the price action is reversed. Trailing stops develop as the market develops. The trailing stop lets you lock in profit as the market moves in your favor.

3. Resistance Stop: A resistance stop is placed just under the countertrend pullbacks in a trend. This is a form of a trailing stop used in trends.

4. Three Bar Trailing Stop: This stop is used in a trend when the market seems to be losing momentum and you anticipate a reversal in trend.

5. One Bar Trailing Stop: Use this stop after three to five bars move strongly in your favor when the prices have reached your profit target zone. This stop is used when there is a breakaway market and you want to lock in profits.

6. Trendline Stop: Use a Trendline Stop placed under the lows in an uptrend or on top of highs in a downtrend. You always want to get out when the prices close on the opposite side of the trendline.

7. Regression Channel Stop: A regression channel usually represents the width of the trend channel. A regression channel forms a channel between the highs and lows of the trend. Stops are placed on the outside of the lows of the channel on uptrends and outside the highs of the channel in downtrends. Prices should close outside the channel for the stop to be taken.

If you find yourself being stopped out too frequently or if you seem to be getting out of the trend too early then most probably you are trading with a fearful mindset. Try to overcome your fear and place your stops at reasonable places in the market.

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Learn These Candlestick Patterns. Try These 1500 Pips A Day Forex Signals from heaven! You can get a unique content version of this article from the Uber Article Directory.

Online Foreign Currency Trading - How To Make A Profit?

noreply@blogger.com (Daniel) — Mon, 19 Oct 2009 10:21:00 +0000

By Emile Heskey

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.

Currently there are many brokers that deal primarily with individual speculators. If you have a home computer, Internet access and the desire for adventure you can open an account and enter the exciting market of currency trading. Most brokers require only a small amount of money to begin trading. This is why there has been such a large growth in the number of individual traders.

Although access to the online foreign currency trading market has been made easier, that doesn't mean that making a profit has been made easier. In order to increase your chances of making money from your trading you will need to study how the market works. You will need a thorough understanding of what causes prices to move up and down. Before you even make your first trade you should take a good currency trading course that can help you build your level of knowledge about trading. The more knowledge you have the more confidence you will develop.

One important tool that you need to thoroughly understand before you do even one transaction is technical analysis of price movement. Charts will show you a picture of historical price behavior. They will help you recognize price trends and changes in trends. Riding a trend can be a very profitable thing to do, so educate yourself on how to identify them. Having a high level of knowledge about how to use charts is a big help in becoming successful in the currency market.

Another tool that you should understand is fundamental analysis. This deals mainly with how outside factors in the economy and environment affect currency prices. A country's monetary stability can move prices one way or another. Inflation and interest rate changes can change currency prices. Environmental and political conditions within a nation will affect the value of their currency. Using fundamental analysis in combination with technical analysis should give you the best results.

Most brokers only require that you deposit a small amount of money to start trading. They will lend you a large percentage of the capital to purchase the currency. This use of leverage needs to be actively managed. It increases your exposure to risk. It can increase your profits as well, but to protect you from large losses use stop-loss orders.

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.

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!

The Risks Of Online Forex Trading When Using Margin Accounts

noreply@blogger.com (Daniel) — Sun, 18 Oct 2009 16:33:00 +0000

By John Eather

The benefits of online forex trading with a margin are that it allows the broker to leverage lots of currency which are as much as 100:1 the size of his deposit. This makes for very good profit potential. However with every high profit venture, comes the high risk aspect which is the other side of the coin. If a trader is not careful and does not know what he is doing he could lose his margin deposit.

Your margin deposit on a currency lot of $100 000 at 100:1 is $1 000. No one wants to lose $1 000! This is the amount you need to open a margin account with a foreign currency broker. Traders (the depositor) have to know that if a currency moves in the wrong direction, even to the extent of 1cent, they could lose their deposit, and in the process the margin account.

Stop loss order can be put in place to prevent this from happening by they are not fool-proof. However they do still allow for a certain amount of profitable trading, as well as limiting of losses.

The greatest risk to your deposit on a currency lot in a margin account is often overlooked. This is that the broker you have lodged your deposit with, may close your position if the losses look set to wipe out your deposit balance. You might have been aware of the downward trend and may have been awaiting a turnaround but if your broker is not aware of this and he closes your position you lose the deposit money in your margin.

So you see there are both risks and the potential for great rewards when using a margin account. The beauty of this kind of account however is that virtually anyone who can get their hands on $1 000 can become a forex trader. Professionals are making dramatic career changes to get into this industry, but everyone needs to know that knowledge is vital. Rather invest that first $1000 in getting yourself an education in currency trading, to obviate any costly mistakes.

About the Author:

Looking to find the best deal on online forex trading, then visit www.MoneyMakingFxTrader.com to find the best advice on automated forex trading for you. Visit the Uber Article Directory to get a totally unique version of this article for reprint.

EUR/USD

noreply@blogger.com (Daniel) — Sat, 17 Oct 2009 20:24:00 +0000

By Ahmad Hassam

EUR/USD is the most liquid currency pair in the currency markets. There are four currency pairs that are known as the major currency pairs namely EUR/USD, GBP/USD, CHF/USD and JPY/USD that are heavily traded in the global currency markets. The rest of the currency pairs dont have the liquidity to trade big volumes as these four pairs do. Almost like 90% of the global currency exchange is in these pairs. Out of these four pairs, EUR/USD has the most liquidity and is the most popular among the currency traders all over the world. EUR/USD is the most heavily traded currency pair in the global currency markets at the moment. Most of the currency traders are in fact speculators. Trading currencies can be exciting and lucrative. Its a great market because of the way politics affect the trends. Elections, strikes, and sudden developments, both good and bad, can lead to significant trading profits if you stand ready to trade the EUR/USD is a convenient currency pair because it encompasses the policies and the economic activity and political environment of a volatile but predictable part of the world: Europe.

France, Italy, and Germany, the largest members of the European Union (EU), normally operate under high budget deficits and tend to keep their interest rates more stable than the United States, where the free-market approach and a usually vigilant Federal Reserve make more frequent adjustments on interest rates.

The general tendency of the Fed is to make the dollar trend for very long periods of time in one general direction. Aside from the technical analysis, here are some general tendencies of the euro on which you need to keep tabs:

1) Given Germanys history of hyperinflation in the first half of the 20th century and the repercussions of that period, namely the rise of Hitler, the European Central Bank (ECB) is almost fanatical about inflation. That means that the European Central Bank raises interest rates more easily than it lowers them.

2) EUR/USD pair is affected by what is happening politically and economically both in Europe and the US. The European Central Banks actions become important when all other factors are equal, meaning politics are equally stable or unstable in the United States and Europe, and the two economies are growing. For example, if the U.S. economy is slowing down, money slowly starts to drift away from the dollar. In the past that meant money would move toward the Japanese yen; however, because the market knows that Japans central bank will sell yen, the default currency when the dollar weakens is often now the euro.

- The flip side is that the market often sells the euro during political problems in the region, especially when the European economy is slowing and the economy in the United Kingdom (UK), which often moves along with the U.S. economy, is showing signs of strength.

As a word of caution, its okay to form an opinion and have some expectations, but the final and only truth that should make you trade is what the charts are showing you. As usual, you want to closely monitor major currencies and the cross rates. The direction that counts is the one in which the market is heading.

Combining fundamental analysis with the technical analysis can give you the edge as a forex trader. Fundamental analysis can help you determine the strong/weak currency pair. Use fundamental analysis to determine if USD is expected to lose value and EUR is expected to gain more strength that means that the currency pair EUR/USD is perfectly timed for swing trading. Use technical analysis to make the entry and exit decision.

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Try These 1500 Pips A Day Forex Signals From Heaven. Know Forex Rebellion!

Forex Day Trading Systems

noreply@blogger.com (Daniel) — Sat, 17 Oct 2009 19:19:00 +0000

By Jason Myers

Normally, we associate trading with buying a commodity, bringing it home or to our business premises, and then advertising it. Likewise, we buy stocks and dividends in the stocks and shares market, keep them until their value improves and then sell them off.

Times have been transformed, and now trading can be done on a daily or even hourly basis in the stocks and shares market, and additionally in the foreign currency markets with many brokers. This has become possible due to the forex day trading services, also called intraday trading. Due to intraday trading or day trading, individuals can earn funds on the trading day itself. Intraday trading, inspite of variation in times zones all over the the world, is additionally recognized since the forex market remains on 24 hours everyday.

One more cause that attracts people to intraday trading is the fact that the forex market is the most liquid market in the world. The instant your contract is executed, your profits are added to your bank account. This has become probable because of the decentralized clearing structure, which permits the market to remain liquid day and night.

Another benefit of day trading is that you are not required to invest a lot of money to make profits, keep that in mind! You don't have to experience big losses also. This is, certainly, if you concentrate on the guidance provided by your brokering company about the entry and exit times. There are a lot of brokering companies that can coach you for day trading so that your transactions are not reduced to gambling. These businesses give you with trading techniques and data charts that assist you when to trade.

They also teach you to interpret forex quotes, and additionally how and when to trade the currencies by interpreting various technical and analytical studies.

About the Author:

Jason Myers is a professional writer and he writes mostly about forex traders strategy news. He's also interested in forex trading plans.

Covered Call - Play With House's Money

noreply@blogger.com (Daniel) — Fri, 16 Oct 2009 08:14:00 +0000

By Maclin Vestor

Great Gamblers actually have a lot in common with great investors. They know excellent money management is the key to success. Their view is that as long as their money is on the table, it belongs to the game. Their Goal is often to get their own money off the table quickly, so they can play with the house's money. In the investment world, a Covered call trading strategy is a good way to play with the house's money. However, there are many different viewpoints. One is that you just find a good stock, and then if it trades options to just sell calls against it until the stock pays for itself. However this is a very limited viewpoint that doesn't explain what a "good stock" is.

If you are typically a growth and momentum investor, you are generally relying on accelerating earnings and sales growth and price momentum and buying momentum to take over as the stock is bid higher. If you identify a good buy point this will NOT make a good covered call strategy.

The reason is, the premium on the option is generally based on recent volatility, and stocks that set up for a buy point typically consolidate as buyers take profit, sellers try to battle this stock back and buyers and sellers reach a stand still, then buyers gain momentum, and soon right near the buy point the buyers begin to take control. Sometimes the sellers will give-up, and cover their shorts, and the buyers will come in full force. This means that right before the buy point the stock's premium is fairly low, and it's not until after the stock breaks out that the price of the premium will be reflected based upon this volatility. In addition, this strategy is generally based on price appreciation. If you sell options on these stocks, you will limit your gain, and you will most likely not increase your potential very much. Generally the best strategy would be to sell out of the money options at your price target. However, generally this will net you a very small amount unless you are buying a lot of shares, and your fees per trade and per contract are very low. Even then, this is just adding a very small premium onto your shares, and usually isnt worth it as much. Instead, you may be better off learning to BUY options if this is your strategy.

On the other hand, If someone is not a momentum trader, and is going to buy stock s perhaps that just received upwards earning guidance, or if they have a strategy where they expect mild price appreciation, or if theyre just index investors, then perhaps a covered call strategy would work well. If you expect a mild price appreciation, you can sell out of the money options, and still gain from price appreciation up to the strike price, while also collecting a premium. Say you Identify a stock that is starting an upward or sideways channel, You are following a trend, you would want to identify the peak of that trend at expiration, and sell a call option near that strike price. This will allow you to adjust price targets, receive the capital appreciation gains, and also collect a premium.

Now generally covered call strategies are better for value investors, or even contrarian investors. You want a stock that you can own for a very long time, but is one that you dont anticipate any short term price appreciation. You can just collect premiums by selling at the money call options, or if you expect the stock to actually decline slightly at the moment, you can sell in the money options, hoping that the stock declines out of the money, and that you dont have to be assigned on your call. This way you can own the call and write another call option month to month, collecting income.

There are other strategies such as just collecting the maximum premiums that are available. This may be a bit dangerous since these are stocks that people expect to make big moves, and those moves arent always up. The price of a call and put are directly correlated, so just because a covered call will yield you a high percentage yield, doesnt mean it is worth it. It is generally associated with higher risks, and most likely, if the stock does go up, it will be a big move, you will be limited in only being able to collect the premium, and you could potentially lose everything if the stock tanks to zero. However, if you do enough research, seeking some of the top yielding covered call options is a good strategy, that can sometimes have you yielding around 10% a month. In addition, you may decide to use this to find stocks that are ready to move, and just buy the stock outright, avoiding additional costs associated with the option (such as the time premium and extra brokerage fees), and still allowing you to profit from the gains. Or perhaps you want to identify the stock and just buy out of the money calls.

Ultimately its up to you to pick a strategy you understand, and learn as much as you can, taking whatever courses you need to and educating yourself so that you are prepared to make money in a way that works for you.

About the Author:

Maclin Vestor teaches about various automated trading systems and teaches you to find a stock market trading system that works for you.

Cms Forex Trade Away

noreply@blogger.com (Daniel) — Wed, 14 Oct 2009 16:02:00 +0000

By Chris Green

When taking a look at Cms forex, they offer things like hedging high leverage and up to a 10 lot execution. One thing about them that is shown in forums is that they are not the best for trades under 10 minutes, the execution of the trades sell/buy is not the best and can be frustrating. When looking for a good platform to start out on, this one may not be the best.

Cms forex is one of many platforms available today; with more platforms available then ever before there can be a lot to choose from. Whether you are new or a long time trader to forex, it is important to have a good platform to trade on that offers current real time up to date information on the charts. One method that is far superior to other is the scalping method.

Second guessing Cms fores? Then it is time to look into a different method to put into effect. The scalping method is a sure profit way, and it is available on many platforms. Scalping or quick trading can be a great way to make profits in literally seconds. With only a few trades a day, scalping can make great profits and take up minimal time. Today, more and more people are joining the scalping way of forex, it is a preferred method. In as short as a few weeks of practice trading, you can start to quickly make good trades.

Cms forex? Well in my experiences I have found that the scalping method on different platforms can be more profitable in a short period of time than on Cms forex. If a trader were to start on the scalping method, in as little as a few weeks they could start to make some consistent profitable trades. If you are looking for a way to build up a good trading account quick, in other words profit! then scalping is where you should be. Be sure whatever platform you use, has low brokerage fees.

Cms forex could be a place to start, but you may find yourself bored with the platform soon, and profits can take some time. Take your forex trading serious and make a serious decision on the best scalping method available on the market today. Still wondering what scalping method to use, or how to make it work fast? You need this to add to your trading skills and get you past the average trader. 20 percent of the traders make 80 percent of the profits. Don't let your self be a failing statistic, beat the rest and be the best at forex. Take your profits to a higher level with scalping, and discover what the big traders have been hiding from your all along! Take action today and reach your success!

About the Author:

If you actually want to get out of the ditch and make a dollar, check out the "Big Wigs" way to dominate Cms Forex. If you have searched this far and you want to make real profits for your self, stop letting the "Big Wigs" spoon feed you tips, find out their secrets to dominating Cms Forex.

The Determinants of Exchange Rates

noreply@blogger.com (Daniel) — Sun, 21 Jun 2009 11:19:00 +0000

Forces Behind Exchange Rates
Have you ever wonder what are the factors which drives the movement of exchange rates?
We can categorize the determinants of exchange rates into two categories:
1) Market forces, and
2) Government intervention

1) Market Forces of Supply and Demand
We can further look into two types of factors which are affecting the dual force of supply and demand: real economic effects and monetary effects.

Real Economic effects
In real economic effects, exchange rates are determined by real economic events affecting the supply and demand for the currencies. For example, trade flow between countries reflects the demand of goods and services for a country. This also indicates the demand for the country currency to conduct trade. For example, a fruit importer from Singapore would like to buy oranges from a supplier in the US. The supplier requires to be paid in US currency. Therefore, to conduct the trade the importer needs to buy US currency (create demand for US currency) to pay to the supplier.

Government policy such as tax policy, labor law, tariff and trade policy may resulted a shift in the supply and demand for currency. Other economic conditions such war, political instability and a real price “shock” – for example a sudden increase of oil price, are also going to affect the exchange rates.

All these factors can be reflected in the Balance of Payment Accounts components: Current Account, Financial Account and Reserve Account.
i) Current Account reflects the trade surpluses or deficits of goods and services. Real price “shock” (for example an oil price shock) and changes in government policy (such as tariff or trade policy) may have positive or negative effect on trades.
ii) Financial Account reflects the investment figures. Government policy (such as tax policy and labor law) and perceived risk (such as war and political instability) are factors affecting investment.
iii) Reserve Account reflects the government reserves.

Changes in any of these real factors will cause the supply and demand for currency value to shift and affects the exchange rates. Your decision to buy or sell currencies as currency forecaster will be affected by all these real economic factors.

Monetary Effects
Monetary effects can be further explained through the Purchasing Power Parity (PPP) model. In PPP, the purchasing power of currency is the same everywhere in the world and the movement of exchange rates offset the differences in the rates of inflation.
We look at an example; the cost for a loaf of bread in the US is USD1 and we shall be able to purchase the same loaf of bread with SGD 2.5 in Singapore. Thus the exchange rate of the SGD / USD is 2.5 as shown in the table below. A month later, the same loaf of bread cost SGD 2.8 in Singapore. Thus, the exchange rate has increase to offset the difference in the inflation rates.
In the short run, Purchasing Power Parity model was not able predict the movement of exchange rates but PPP works well to explain the changes in exchange rates in the long run.

2) Government Intervention
Government can influence the exchange rates intentionally and unintentionally. Government influences the exchange rates with intention through currency market intervention. Central Bank buys or sells home currency in exchange for its foreign currency reserves. Monetary policy introduced by the government may unintentionally trigger the movement in exchange rates through impact of inflation.

Type of Exchange Rate Policies
In free float exchange rate system, forces of supply and demand determined the exchange rate and does not required any intervention. This system invites speculation thus is volatile and unstable.
In “dirty” or managed float exchange rate system, some intervention are required mainly from government to ensure the exchange rate remain within a specify range. Central Bank will buy or sell home currency to ensure the exchange rate is within an allowed floating range.
In fixed exchange rate or “peg”, we can observe unlimited intervention at a fixed rate by government through Central Bank policy. A fixed exchange rate system allows trade activities during volatile market situation as uncertainty and risk are minimized. However, continuous monitoring required government to set aside reserves.

In the short run, government fiscal policy and monetary policy may affect the dual forces of supply and demand thus determined the exchange rates. However, no policy can overcome market forces in the long run, as we observed in the current financial crisis.

Related posts:
1) Fundamental of Foreign Exchange Market
2) Learn the basic of financial spread betting
3) How to choose spread betting companies

Privacy Policy

noreply@blogger.com (Daniel) — Tue, 09 Jun 2009 16:54:00 +0000

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About Me

noreply@blogger.com (Daniel) — Thu, 04 Jun 2009 17:02:00 +0000

Hello there, my name is Daniel and I am the owner for this blog. You will find this blog very useful if you want to learn about making money through financial spread betting. Forex, commodities and stocks are some of the financial instruments which you can invest your money on, if you want to make money from spread betting. This blog will also provide information about spread betting companies and what are the services which they offered. I try to ensure the information are as accurate as possible but please do not held me liable for any incorrect information publish here.

Fundamental of Forex Market

noreply@blogger.com (Daniel) — Tue, 19 May 2009 10:00:00 +0000

Learn How to Trade Currencies

In foreign exchange market (Forex), investor trade one country’s currency for another. Therefore, currencies are quoted in terms of their price in another currency. Currencies are always quoted in pairs; for example, EUR/USD 1.3594. The first currency is called the base currency and the second currency is called the counter or quote.

For the above quote, EUR is the base and USD is the counter. Base always has the value of 1. Therefore, for with EUR 1 you can exchange for USD 1.3594. So, if you have EUR 100, you can exchange for USD 135.94. If the value of the exchange rate increases, this will imply that EUR is getting stronger. Your EUR has higher value because you can exchange for more USD.

Lets look at more example. The table above is today’s currency rates from Bloomberg. These are the 8 most important currencies in the world. We look at USD exchange rate against other major currencies.
1) USD/HKD 7.7514: USD 1 can be exchange for HKD 7.7514
2) USD/AUD 1.2986: USD 1 can be exchange for AUD 1.2986
3) USD/CAD 1.1588: USD 1 can be exchange for CAD 1.1588
4) USD/CHF 1.1133: USD 1 can be exchange for CHF 1.1133
5) USD/GBP 0.6466: USD 1 can be exchange for GBP 0.6466
6) USD/JPY 96.543: USD 1 can be exchange for JPY 96.543
7) USD/EUR 0.7356: USD 1 can be exchange for EUR 0.7356 (or equivalent to EUR 1 for 1.3594 USD)

By now you should have understand how currencies are quoted in the marketplace. Now we learn how spread betting companies provide Forex quote for traders. Let look at the example from Forex.com spread betting software.

A forex quote consist of 'bid' and 'ask' prices. The 'bid' price represents the price at which the spread betting companies is willing to buy the base currency in exchange for the counter currency. The 'ask' price is the price at which the spread betting companies is willing to sell the base currency in exchange for the counter currency. The difference between the 'bid' and 'ask' prices is known as spread.

We take look at the currency rate for USD/JPY. The 'bid' price is 96.350 and 'ask' price is 96.373. Thus, the spread would be 0.023 yen per dollar. A person looking to convert yen into dollar might have to pay 96.373 yen for each dollar. A person looking to convert dollar into yen might receive only 96.350 yen for each dollar he convert.

The BID is the price at which you can SELL base currency.
The ASK is the price at which you can BUY base currency.

Forex prices are quoted in tiny increments called 'pip' (percentage in point). A 'pip' refer to the 4th decimal point out. However, Japanese Yen is the only exception with pip refering to 2nd decimal point out. So that's the answer for why the spread for USD/JPY is 2.3 pip. Take another example, GBP/JPY spread is 148.942-148.885=0.057. Thus, spread is 5.7 pip (Japanese Yen 2 decimal point out). Now, look at GBP/USD 1.54561-154523=0.00038. Thus, spread is 3.8 pip (4 decimal point out).

Forex is the world most traded market. You can make and lose money with forex. So you must learn the fundamental of forex before you put your hard earn money into this venture. Most forex companies offer simulation trading platform for new user. Therefore, register for a free account with them and test the trading platform before you start trading in a live environment.

About Capital Spreads and London Capital Group Holding

noreply@blogger.com (Daniel) — Tue, 12 May 2009 04:34:00 +0000

London Capital Group
London Capital Group Holdings plc (LCG) is a rapidly growing and profitable spread betting and financial services company offering online trading in the financial markets. There are 3 companies under the wing of LCG.
Capital Spreads – this division is the core activity of LCG which is provision of spread betting products on the financial markets to retail clients.
Capital Forex – is a division that provides online foreign exchange trading services to institutional and intermediate clients.
Capital Derivatives – this division of LCG offer institutional derivatives broking.

More about Capital Spreads
Capital Spreads is one of UK's leading spread betting companies. Capital Spreads is a division of London Capital Group Holdings plc, an AIM listed Financial Services organisation. Capital Spreads is authorised and regulated by the Financial Services Authority and a member of the London Stock Exchange.

You can trade in many financial products using one of the several major currencies with a Capital Spreads account. Some of the markets offers are prices on UK, European and US shares, world indices, commodities, foreign exchange and bonds. With typical spreads significantly tighter than those offered by their competitors they offer a better value service to their customer base. For example they quote just a 1 point spread on the FTSE Rolling Daily and DAX and the Euro/USD is only 2 pips.

Capital Spreads offer spreads significantly tighter than those offered by most of other spread betting companies. For instance, Capital Spread quotes just a 1 point spread on the FTSE Rolling Daily and DAX and the Euro/USD is only 2 pips. Apart from tight spreads, Capital Spreads’ customers benefit from a limited margin policy, where they are required to deposit only the maximum value of their stop-loss (plus 20%). This means that large sums of capital are not tied up funding the spread betting account.

Capital Spreads also offer newcomers to spread betting a Demo trading account which is almost the same with the live trading platform in every way. You can learn about spread betting and execute mock trades without risking your own capital.

Permanently tight spreads, trade multiple markets, better value spreads, minimal margin requirements, tax free profits and spread betting from £1 per point are some benefits of trading with Capital Spreads. Thus, making Capital Spread one of the most reliable and popular spread betting company in UK.

The Basic of Financial Spread Betting

noreply@blogger.com (Daniel) — Tue, 28 Apr 2009 13:04:00 +0000

Learn about Financial Spread Betting

A spread is a range of possible outcomes and the bet is always below or above the spread. In spread betting the payoff is based on the accuracy of the wager. There is no fixed profit or loss in spread betting and the risk in spread betting is high with the potential losses and gains far in excess of the original money wagered. Spread betting create an active market for both side of a wager, even the outcome appear biased towards onside of an event.

Financial spread betting allow you to bet on wide variety of financial markets, such as stocks indexes, individual shares, currencies, bonds and commodities. Spread betting

An example of Financial Spread bet

In financial spread bet the loss and profit is not fixed as your betting stake is on the direction of the market, usually on Pound per points basis. Assuming that you are expecting the FTSE 100 index to rise and so decide to buy it at £1 a point using a spread bet.

Lets say that you bought the FTSE index at 5100 risking £1 a point and then sold it when it rise to 5250. Your profit would be £150 (150 points X £1). However you will be taking a loss when you sold your bet after the index drop lower than 5100. Supposed the index drop to 4900, you will loss £200 (-200 points x £1). As you can see your loss or profit is never a fixed amount.

Stop Loss
You can request for a stop loss to limit your losses and ensure that your bets are profitable, usually during volatile markets. You will be able to control your risk and your losses will never get out of control because you will always know your maximum loss.

Spread Betting Companies Review

noreply@blogger.com (Daniel) — Sun, 19 Apr 2009 13:45:00 +0000

How to Choose a Spread Betting Company?

There are numerous spread betting companies around. IG Index, Capital Spreads, City index, CMC Markets, Cantor Index and Financial Spreads are some of the established and reputable spread betting companies around.

Each individual has his or her own preferences when it come to selecting spread betting company of their choice. There are several factors for us to consider when we are choosing a spread betting provider.

a) Stability and Regulation
First of all, we have to make sure that the company is reliable and offer a stable trading platform. Furthermore, you will feel more secure if the spread betting firm you deal with is authorised and regulated by the FSA (Financial Service Authority).

b) Range of Market, Narrow Spread & General Functionality
Most spread betting companies offer wide range of market such as individual equities and stock indices, foreign exchange, bonds, commodities and interest rates. But you have still has to ensure that your choice does offer the spreads services that you required. The tightness of the spread has brought the cost of entering and existing the trade much lower.

c) Stop Loss
Stop loss is a feature which will limit your risk. You can place a sto
Loss when you open a new trade. This is very important during volatile market situation, when the market movement is against you and your bet will be closed once the market hits your stop loss level. Check the rules of each spread betting companies thoroughly before you trade as each firms have different rules. Some firms allows you to specify the stop loss level, however some firms might close your bet at different level.

d) New Account Offers
New account offers are subject to term and conditions of each individual company. Different company will offered different amount of offer based on the deposited amount. In addition, you will need to bet a minimum number of time when you accepted up the offer. The offer will be credited to your account.

e) Deposit Account / Margin
When you open an account, spread betting firm requires you to deposit certain amount of money before you are allow to trade. Each firm has their own minimum amount of deposit and firms can change this amount based on the market situation.

f) Other Services
There are also other services such as online application, 24 hours trading and candlestick chart provided by the spread betting company. You can also include these additional features during your evaluation process.

Every firm has its own pros and cons and choices are based own individual preferences. Choose the most suitable firm based on your preferences and you can always change the firm if you are not satisfied with their services.