All professional traders have a trading plan. Trading futures
is a zero sum game and those with a plan (and the discipline to
apply it) will succeed over those that have no plan. A plan
details the particular market anomaly that you intend to exploit
- your edge. Human emotion creates anomalies - essentially, the
fear and the greed of those that have no trading plan.
Creating a trading plan and rigidly applying that plan allows
the professional trader to eliminate emotional responses from his
trading.
Let's look at what your written trading plan should cover:
Trading concept - What anomaly is your trading strategy
intending to exploit?
Timeframe - The shorter the timeframe the more trades that can
be made. However short term trading leads to lower reward:risk
ratio's and higher commission costs.
Instrument - There are many different ways to trade
essentially the same idea - options, futures, exchange traded
funds etc. Which offers the most reward for your trading
concept?
Entry - How will you open your trade?
Exit - How will you close your trade - A stop loss should be
placed at a point where the trading concept become invalid, this
could be a specific price or a certain length of time. A profit
exit must also be established - again either a certain target
price or a timed exit.
Money Management - How much capital is required to trade the
strategy and how much should be risked on each trade to maximise
returns whilst minimizing the risk of blowing the account?
End of Day Routine - At the end of each day every trade should
be compared to the trading plan and any variances should be
addressed. Remember the plan is their for a reason and you must
trade it exactly. If a change is required then it should be
properly tested before being added to the plan. No decisions
should be made whilst a trade is live.
Brokers - Which broker will you use and how will you trade?
Automating a trading plan through the broker's API will help to
eliminate any emotional responses.
Your plan will require constant revision as the market
dynamics change. If you have noticed a market anomaly then it's
very like that many of your competitors have as well.
"If you don't know where you are going, any road will take you
there." Lewis Carroll
Sri Lanka Rupee, Stocks Drop After Currency Trading Band Removed Bloomberg The central bank narrowed the currency's trading band against the dollar on Feb. 3 and Feb. 6 and today, prior to announcing its removal. The monetary authority raised benchmark interest rates for the first time since 2007 on Feb.
India Eases Currency Trading Limits for Some Banks Wall Street Journal By SUDEEP JAIN MUMBAI -- India's central bank has asked banks to approach it individually for relaxing some foreign currency trading limits and has already eased restrictions for some banks, a top official said Monday. "Some limits, based on their ...
iFOREX Adds Oil to its list of Tradable Commodities MarketWatch (press release) ROAD TOWN, Tortola, Feb 09, 2012 (BUSINESS WIRE) -- Leading currency trading company, iFOREX, has recently expanded its services, giving all Forex trading accounts direct access to oil CFDs. Targeting an audience that has little or no experience with ...
This January Azerbaijan's exchange currency trading totaled $82.5 million Azerbaijan Business Center Baku, Fineko/abc.az. The Baku Interbank Stock Exchange (BBVB) has renewed statistics of its operations. BBVB reports that in January 2012 the nine participating banks concluded 28 deals in 36 trading sessions in e-trading system (BEST).
FOCUS: Technology Buoys Retail Currency Trading, Reshapes Old Models Wall Street Journal By Eva Szalay Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Retail foreign-exchange trading is emerging as one of the biggest growth areas in the currencies space, and some of the trading firms that facilitate these flows are building up a whole new ...
Morgan Stanley Currency-Trading Head Stephen Mettler Leaves Bank BusinessWeek By Michael J. Moore Jan. 26 (Bloomberg) -- Stephen Mettler, who oversaw Morgan Stanley's interest rates and foreign-exchange trading businesses, has left the bank. Mettler, who joined the firm in 1997, retired, according to an internal memo obtained by ...
Bank of England and ECB Hold Steady, Indonesia Cuts CNBC.com [CNBC] ----------------------- MULTI CURRENCIES VS THE DOLLAR Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm. Learn more: The essential vocabulary for currency trading is on Key Currency ...
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Systems
The foreign exchange currency market is the largest market
in the world because it trades up to $1.9 trillion daily.
The Meaning of FOREX
Price Charts and How to Use Them
There is one very important factor that you should consider
with great care if you are willing to become a successful,
profitable Forex trader. This ever important factor that
must be always present in the trader's portfolio, is the
ability to read the charts.
Forex
Trading
Foreign exchange market, or better known as FOREX, is the
world's largest and most prolific financial exchange market
originated on 1973. Bearing the status of largest and most
prolific currency exchange market, FOREX is the center
stage where a vast majority of the currency trading or
FOREX trading takes place, with a total daily turnover of
currency worth more than $1.
Sending Signals for
Trading in Forex
Forex signals are sent by a forex firm to their subscribers
in order to buy and sell currencies. These signals are
called entry and exit signals for the forex dealers.
Momentum Trading: A
Practical Day Trading Strategy to Get Profits from Hot
Stocks
Momentum day trading can be extremely profitable when done
correctly..
A Look at Online Forex
Brokers
An online forex broker is a firm that facilitates retail
trading using Internet technologies. Global Forex Trading
(GFT), one of the popular online forex brokers.
Forex Training: Follow
Your Gut or Your Broker
Which way will the forex market move? Do you just follow
your gut feeling? Or do you have Neo's sixth sense that
would let you be one with the market and feel the
underlying currents. Trading forex is a non stop action
movie but a good one, where you really don't know who will
win at the end.
Where to Get Forex
Training
For those of you who are interested in forex trading, you
may want to start off by getting some good forex training.
Forex training is a necessity for anyone with this
interest.
Forex Trading -
Advantages and Disadvantages
What is Forex Trading? Forex, or Foreign Exchange, is the
simultaneous exchange of one country's currency for that of
another. This market of exchange has more daily volume,
both buyers and sellers, than any other in the world.
Forex Trading Can Be
Like Day-trading
Forex trading, or foreign currency trading, has become a
bit of a craze of late, especially since it is something
available to anyone who owns a computer. And anyone who is
willing to put in some training time can profit from forex
trading.
Disgruntled
The following situation happens quite often to many
traders. Look it over and see if it has been happening to
you: You have been faithfully following your trading plan
and the rules you've set for trading.
Mechanical or
Discretionary Trading - Which is Best?
Discretionary Trading. Pure discretionary trading will rely
solely on the traders judgment. For example a
discretionary trader may spot a particular pattern
developing on a chart and decide to enter a trade on that
basis.
Risk and Stock Trading
Fees: The Two Barriers To Overcome If You Want A Successful
Trading Career.
You know the old joke:" How do you make a million in the
stock market? Start with two million?" There is no way
around it, risk and stock market fees are a part of trading
that you can't avoid. But, you can manage your risk.
Day Trading the Index
Futures - How to Judge Good Entries
QUESTION: If the SP futures fall through support and go
straight down for another two points, and I want to get
short, should I (a.) enter immediately, (b).
Example of a Profitable
Transaction in FOREX
To make a profit, in the FOREX, a trader can enter the
market as a *buy position* (known as going "long") or a
*sell position*(known as going "short"). For discussion,
let's assume you've been studying the EURO.
Choosing A Forex
Broker
With currency trading becoming ever more popular, the
number of brokers is growing at a rapid rate. What should
one look at when deciding which broker to open an account
with? These are the important points to consider.
Why Demo Account
Performance Is Often Better Than Real Account
Performance
Over the past several years, the popularity of online
currency trading has grown substantially. Each day, online
FX brokerage firms attract new investors - each of them
lining up with a glint in their eye, lured in by promises
of easy money.
Hedging Foreign Exchange
Risks
The exchange rate of the Macedonian Denar against the major
hard currencies of the world has remained stable in the
last few years. Because of the IMF restrictions, the local
Narodna (Central) Bank does not print money and there are
no physical Denars in the economy and in the local banks.
New Opportunities with
Forex Trading
The simplest definition of currency trading is the practice
of exchanging one country's currency for another country's
currency. Basically, currency trading involves four main
variables: currencies, exchange rate, time, and interest
rate.
Creativity in
Trading
"Is it important to be creative in your trading?" I'm not
sure I can describe it in terms of importance. The creative
process is somewhat of a mystery, even to scientists who
study it.
MORE RESOURCES updated Thu. February / 09 / 2012
