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Monday, 27 February 2017

Why You Really Need A Forex Trading Strategy: How to Build?

Forex trading requires a good strategy that must be built and planned well prior to trading. Here are the necessary steps of how to plan and build a good forex trading strategy.


WHY YOU REALLY NEED A FOREX TRADING STRATEGY: HOW TO BUILD?

What is a trading strategy?

In finance, a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity.

What is a trading plan?

A trading plan is a structure, or a set of guidelines, to define your trading activity. It can be an extremely useful tool to help you focus on planning and executing your trading strategy.

Forex trading is an exiting way to earn money provided that a good strategy is planned before starting to trade and also well followed during trading. Four basic factors must be considered in order to build a forex trading strategy which will be illustrated below.

First, the planner should determine the time frame which will be used during the forex trading .This will be a part of the forex trading strategy. The meaning of choosing the frame is to choose the period during which price will be noted for change. It may be in the range of minutes such as one minute or five minutes or in the range of hours or even days. Each period has its advantages and disadvantages. For example, in the high periods such as the one day period, the movement from one period to another will be high and thus there will be higher profits as well as high risk. The daily trading is considered long term forex trading strategy while low time periods such as hours and minutes are considered low term forex trading strategy.

Second, the analytical methods which will be used during forex trading must be planned carefully. This step is considered the most important one in the forex trading strategy.  It can be fundamental or techniqual schemes. The techniqual analysis depends on analyzing the curve of the currency pair price which will be traded. It uses techniqual schemes in order to predict the price movement in the future based on the history of the price. The most popular schemes are simple moving average, exponential moving average, stochastic, Relative Strength Index, MACD, and pivot point trading. The fundamental analysis depends on economical news analysis.

Third, money management planning must be considered as part of the forex trading strategy. What meant by money management is to determine the percentage of the forex account which will be traded, the profit limit, stop limit, and risk to reward ratio. This is very important in the forex trading strategy although it is ignored by many people.

Fourth, the entry and exit points must be determined according to the analysis used in trading the forex. This means to determine when to enter a trade and when to exit. This will deepens on the techniqual analysis used in studying the pair. For example, if pivot point is used as a trading strategy, the entry point may be the pivot line and the exit point may be the first resistance level.
Once the trader determined the four above points, then the forex trading strategy is built. An important thing to do after building it is to follow it carefully and respect the rules inside the forex e trading strategy.

Wednesday, 22 February 2017

10 Secrets For Effective Internet Marketing Solo Ads

Solo ads are where your selling message is emailed by a solo ad vendor to an agreed number of people on the vendor's list. Your message is sent on its own, without any other messages or advertising, hence the name solo ad


 10 Secrets For Effective Internet Marketing Solo Ads

Many online marketers use internet marketing solo ads to generate customer traffic towards their sales webpages or to increase their customer lists. A solo ad is when your sales message is emailed by a solo ad vendor to an predetermined quantity of people who have an interest in your product or service.

The solo ad vendor will normally ensure that the link in your email that goes to your sales page will get a specific amount of unique clicks. But, even if you get the clicks, they are not guaranteed sales or opt-ins to your email list. 

You still need to convert those readers into customers.

10 Secrets That Internet Marketing Solo Ads More Effective:

1. Is it clear what makes your product or service different when a viewer clicks the link and is taken to your squeeze page or landing page? If you don't know your Unique Selling Proposition (USP, how do you expect your potential customer know?

2. Your sales copy needs to be friendly and written in a way that will appeal to your audience. You don't want to sound like a high-pressure sales person who is desperate to sell something.

3. If you have more than one item to sell, use a different internet marketing solo ad for each with different copy and squeeze page link. If you attempt to offer too much on one ad, it will confuse your audience and they will not commit to any of them.

4. The best internet marketing solo ads are easy to read with breaks in the copy. Leaving some white space helps the reader to more easily focus your message.

5. Within the copy on your solo ad and on your squeeze page, highlighted text will draw visual attention. But use it sparingly because excessive colours on a page can frustrate online readers.

6. The squeeze pages of internet marketing solo ads will sometimes show good reviews or recommendations for the product from happy buyers. These testimonials are a valuable messages that motivate prospects to become buyers.

7. You have highlighted your USP and now you can make the offer even more appealing with a package including several free items as part of a "Buy Now" deal. Limited time offers create a sense of urgency for the buyer to act.

8. The one thing that is often forgotten on internet marketing solo ads is to make it clear what you want your reader to do. If the purpose of your squeeze page is to get people to opt-in, then ask them to do that. If it is to make a sale, ask them to buy.

9. If your solo ad vendor is sending your ad to an unresponsive audience, you are wasting your money. Make sure that you buy from a reputable and verified email solo ad promotion service or individual.

10. Include a gracious and personal "Thank you" email with your order confirmation. It never hurts to show good manners and your appreciation to the customer for buying. After all, if they have bought from you once and liked it, they will statistically buy from you again.

Monday, 20 February 2017

The Philosophy Of Why Do You Need A Forex Trading Strategy

A good Forex trading strategy is important for any trader, however experienced or inexperienced they may be. With a good strategy, you can minimize your risks and make money.

The Forex market is considered to be the largest exchange market in the world. It’s fast gaining popularity as there is great possibility of earning huge profits. However, whether you are a newcomer or a seasoned trader, without a sound Forex trading strategy to guide you, you will be floundering around in the dark. Imagine a blind person trying to cross a busy intersection; that too without anybody to guide him - get the picture, huh?


If you are still wondering why you need a strategy, read on to find out.


Guides you onto the Right Path
When you become a trader, it is important to be consistent. A routine is essential in this respect. Once you have a routine and follow it diligently, you will have a better shot at being successful. That routine you seek for will be provided by a good Forex trading strategy. It will also help you measure your success and see what you’ve achieved at the end of the day. Without a routine, you cannot stay on track of your goals, and get results consistently. Besides having a strategy also means that you’ll inculcate a business mindset and bring in some professionalism to your trading.


You realize it's about the journey not the destination.
This applies to what was said above. If you want to create a profitable career in Forex, you need to focus more on the journey rather than the "prize" at the end. Doing so will help you test your systems more thoroughly so you know if they are built to endure through the long haul. It lets you stay emotionally balanced, even when you are going through a period of losses, and it lets you curb your enthusiasm when you're going through a string of wins. Forex is about more than just making money; there are a number of personal development lessons you'll come to realize and looking at Forex as a journey gives you a better chance of using the lessons to create profits.

You work well alone.
Most people aren't as self-motivated as they think, or as self-disciplined. However, true traders are. They are like lone wolves that can spend hours on end alone as they learn and develop their skills. It is important to have this quality as a trader because you have no one to answer to, except the market (and the market only speaks in terms of gains and losses). No one is going to tell you how to run your Forex career. No one will hold you accountable to your Forex plan and strategy. It's up to you to put in your all into becoming a proficient trader; and it is up to hold yourself accountable. If you're someone who requires hand holding, constant reassurance, or simply a boss to guide you, Forex may not be for you.

You know you will not be a millionaire in a year.
You won't even be a millionaire in three years. In fact, if you're starting Forex with the hope of becoming rich quick, you may want to reconsider the decision entirely. Creating instant wealth is a highly unrealistic goal. For one, there are too many factors a trader cannot control which play a key role in how much they make. Secondly, traders who enter Forex under the pretense of earning easy money are more prone to making mistakes and falling for Forex traps--all of which ensure that you lose more than you gain. If you are serious about creating a Forex trading career, you need to leave unrealistic expectations at the door and understand that Forex is like anything; it requires hard work, patience, and lots of discipline. Anyone who tells you otherwise is probably trying to sell you something.

You aren't afraid of failure.
It's important to note that you are not a failure simply because you lose money in Forex, but the fact is you can't come into Forex with a fear of losing or be someone that equates losing to failing. All traders, even profitable ones, go through a losing period. A trader has to focus on what they can learn from it and continue to develop their skills. A fear of failure will simply hold you back from consistent profits.

Helps to minimize Losses
For the unprepared man, the Forex Market will hold very little attraction. Without a good Forex trading strategy, he will not be able to make much headway or profit, and he is bound to get frustrated. If you attempt to trade in currencies blindly, without any clue as to what and why you are doing, you can give up any hope of striking it rich! Read my words clearly, lack of strategy is equal to financial losses. Therefore, to make the best of your investment, formulate a strategy and stick by it.


You keep learning.
Forex is not something you learn once and become a master of. The financial world changes constantly and with it does the rules of Forex trading. If you aren't willing to stay up to date, keep learning, and continuously test your knowledge you will struggle to make consistent profits. Keep an open mind as a trader.

You like to stand apart.
Creating consistent profits is heavily dependent on your edge. In order to even consider what your edge could be, you have to be someone who thinks outside the box, doesn't follow the crowd and looks to your own talents and personality as assets. The reason I included the latter is because most traders will find their edge within themselves. For example, you may be a highly focused individual, which could work to your advantage. Regardless, you need to be someone who doesn't follow the crowd and likes to stand apart if you're serious about creating an edge.

Helps you sharpen your Trading Skills.
Making errors in the Forex market is a luxury that is afforded only by newbies, since they invest relatively small amounts of money. If you want to be a seasoned trader, there is very little room for error. With the help of a Forex trading strategy you can sharpen your trading skills and try and hone it to perfection. Once you’ve set a plan for yourself, you can try and modify it according to the different situations you come across. Think of your strategy as the foundation on which your trading skills rest. Once you have a solid foundation, you can alter the exteriors of the building with ease.

The Essentials of a Good Strategy
Now that you know the importance of a Forex trading strategy, you need to know what goes into its making. These following points will elaborate what a good strategy is all about.

  • Identify your goals and make them realistic
  • Fix a time when you will sit down to analyze the market and plan out the trade. Along with this, also decide when you are going to transact and observe the market
  • How often are you going to check the market and at what specific times?
  • What’s the maximum percentage that you can afford to risk on each transaction?
  • How many lots are you planning to trade?

Tuesday, 14 February 2017

Double Your Profit With Moving Average Convergence/Divergence (MACD)

Macd is one of the most used studies in the technical analysis was introduced to the world of traders in 1960th and represent the difference between two exponential moving averages. This indicator is used to generate trading signals as well as to confirm a trend.



What is the MACD indicator?

Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA.

What is a MACD divergence?

Moving average convergence divergence (MACD), invented in 1979 by Gerald Appeal, is one of the most popular technical indicators in trading. The MACD is appreciated by traders the world over for its simplicity and flexibility because it can be used either as a trend or momentum indicator.

How does the MACD work?

The MACD is just the difference between a 26-day and 12-day exponential moving average of closing prices (an exponential moving average or EMA is one where more weight is given to the latest data). A 9-day EMA, called the "signal" (or "trigger") line is plotted on top of the MACD to show buy/sell opportunities.

MACD (Moving Average Convergence / Divergence) is one of the most popular studies in the technical analysis. Created by Gerald Appel in the 1960s this indicator reveals the shorter-term trend changes in relegation to the longer-term trend. The MACD formula is simple:

MACD = EMA1 – EMA2

Where EMA1 is a fast moving average that reflect shorter-term trend and EMA2 is a slow moving average that reflects longer-term trend. MACD is always used in a combination with a signal line which is exponential or simple moving average applied to MACD line. The signal line is used to smooth MACD and generate signals on its crossovers with MACD.

One of the most used settings for MACD is 12 for EMA1, 26 for EMA2 and 9 for signal line. Still this setting is not always fit to trading needs of all traders; therefore, the setting could vary depending on a trader's personal trading style.

The difference between the MACD and signal line forms the Histogram which was first used in 1986 by Thomas Aspray.

In technical analysis MACD is considered as a trend following indicator and is used to generate signals as well as to confirm a trend. There are three basic ways of using this indicator.

The first way of using MACD is to look for its crossovers with zero line. Positive MACD confirms an up-trend and negative MACD confirms down-trend. Thus, when this indicator drops below zero line it could be considered as a signal to sell short and when it raises above zero line it could be considered as a signal to buy long.

The second way of using MACD is to trade it and Signal Line crossovers. This is the same as to look for MACD Histogram and zero line crossovers. The technical analysis says that when MACD crosses signal line on its way down it signals selling and when it crosses signal line on its way up it signals buying.

The third way of using MACD is to define moments of divergence between price and MACD. In particular, a buy signal could be generated when price makes new low, yet MACD stays above its previous lowest point. Controversially, a sell signal could be generated when price makes new high, yet MACD stays below its previously hit high level.

Despite the fact that MACD is one of the oldest studies in technical analysis, as many other studies it generates fake signals. Furthermore, it is recommended to use it in junction with other indicators. Since MACD is price based indicator it could be a good choice to use volume based indicators to complete a trading system that uses MACD analysis.



Monday, 13 February 2017

Are Moving Averages Really Simple to Use?

Moving averages are used by amateur and professional traders alike for very rewarding results.   Finding moving averages that work for you might be a difficult task, but after finding the “perfect pair,” moving averages provide huge results with little work.  Master the identification and use of moving averages and anticipate a long career in trading.



Moving averages are used by amateur and professional traders alike for very rewarding results.   Finding moving averages that work for you might be a difficult task, but after finding the “perfect pair,” moving averages provide huge results with little work.

Moving averages can make up a whole strategy

Many profitable traders have built proven strategies around a few moving averages.  Whether in an uptrend or downtrend, moving averages are a great way to identify the major trend while placing positions that are set for the highest profits. 

Moving averages can be used in a variety of ways.  Many professional traders use moving averages to smooth out a price over the long term to ascertain a reasonable price, while others use a combination of averages to find when the market is entering a reversal.  Regardless of the technique, moving averages provide for great profits when combined with other day trading strategies.

Moving averages are some of the easiest technical indicators to use because they are the easiest to understand and can be used in practically any market type: uptrend, downtrend or sideways trend.  Moving averages are simply a mathematical calculation of the average market price over the X amount of days preceding the current bar.  Essentially, the calculation is just a “running average” of the price for comparison to the current price or other average prices for the long term.

Many different ways to use moving averages

Traders have adopted many creative techniques for use with moving averages.  They can be used as a trendline, showing both support and resistance, or to show just a basic average price.  Moving averages are also used by some professional traders as a cross to show when the market is ready for and uptrend or downtrend after a long time in a sideways trend.

Finding a cross pair of moving averages can be difficult, but not impossible.  A trader first needs to find two moving averages that move together to show the high and low points of a chart.  Good moving averages, when crossed, will alternate between buy and sell signals.  Finding a good pair usually includes using a moving average between 2 and 20, coupled with another moving average between 21 and 100.  Profitable traders utilize a moving average cross between a small number and a much greater number to show short term reversals against the long term trend.

All traders should use moving averages

Whatever the application, moving averages deserve a spot on a trading platform.  Many traders have luck using trendlines as a way to show long term trends, while others use them as a way to find reversals and key resistance.  Either way, moving averages really are simple to use both for amateurs and professional traders alike.

Thursday, 9 February 2017

Do You Have Psych To Make It In Forex?

Are you a contender? Have you got what it takes to hack it in the fast moving, sometimes ultra high glorious, other times ocean trench depression low world of Forex Trading? This may sound like a standard motivational talk, but having the right frame of mind DOES influence your trading results - So before you risk your well earned money read this and ask yourself - Have I got the edge? - Or should I stay with regular shares?


Do You Have Psych To Make It In Forex?

Are you a winner? Have you got the sharpness and mental profile needed to hack it in the fast moving, sometimes ultra high, other times ditch depression low world of Currency Trading? It may sound like a standard motivational rant, but having the right frame of mind WILL influence your FX results - So before you risk your savings read this and ask yourself - Have I got it - Or should I stick with regular shares and bonds?

There are many aspects of Forex trading that are outside the investor's control.

Forex market players number in the millions - traders from the world's banks, governments and private people - just like you. Unlike stocks, even the big traders have a tiny effect on exchange rates.
Even when setting interest rates and other actions that influence inflation, the largest governments can have no immediate impact on exchanges. The Forex markets are simply too large - $3 trillion daily - for any one player to dominate the action.

Trading strategies, which are essential, can increase the odds of making profits and help minimize or avoid losses. They give the knowledgeable trader that tiny edge that can make the difference between winning and losing on a given trade, or over time.
But before looking at market influences, and even before developing a set of technical strategies that help guide trading choices, the novice Forex investor has to honestly and objectively examine his or her own attitudes.

Currency trading is very fast, complex and needs a well considered strategy. That game plan has to be executed with nerve and skill. Trading well in a dummy account for a few weeks is a "must do" but can lead to over confidence. Traders who invest Monopoly money will often take chances, leading to successful trades, that they wouldn't dream of taking with real money.

Real trading requires answering honestly a number of questions that can be difficult to answer objectively when the subject is the self-same trader asking them. What are your financial trading goals? Looking for a quick buck? Seek elsewhere. You will have losses that wipe them out. Looking for secure, low-risk capital accumulation? Try AAA bonds instead.

Currency trading can be a stimulating mental game and an exhilarating adventure at the same time. The thrill of victory! The (temporary) despair of defeat! The mastery of the intricacies of Fibonacci, Parabolic SAR, Stochastic Oscillators and Doji Stars. All this, and much more, is part of Forex investing.

As a result, you have to be very honest with yourself and decide how (and whether) you are prepared to deal with the fear and pressure. Even professional traders do not have any certain system of ensuring profits and avoiding losses.

The pressure of deciding when to buy and when to sell is many times larger than in stock trading. The fear of loss is greater, in part because of the amplification provided by 100:1 or larger leverage.
Even winning can be problematic. With practice and persistence, provided you don't quit too soon or run out of money too quickly, you will have periods when it all seems laughingly easy. That can lead to euphoria, which is great. But it can also lead to cockiness, which is fatal. Nothing will wipe out a trader quicker than arrogance. Confidence is essential, vanity is suicidal.

The other side of the coin to be avoided is too much second guessing. Successful trading requires bold moves based on sound judgment and confidence. Every decision is a small leap of faith, since no one can know in advance for certain what the outcome will be. Probability of one degree or another is the best that can be hoped for.

All this will be accompanied by the fear of loss of capital, which often leads to panic selling in the face of what would have been a temporary price movement. From such panics are depressions made, both psychological and economic.

Forex is a roller coaster ride. But if you have a good inner ear and a strong stomach, bolstered by the brain of a statistician and the nerves of a pro billiards player, you will be well suited to end the ride with full pockets.

Monday, 6 February 2017

HOW TO MANAGE RISK IN TRADING

Risk management is the process of measuring, or assessing risk and then developing strategies to manage the risk while attempting to maximize returns. Typically involves utilizing a variety of trading techniques, models and financial analyses.


HOW TO MANAGE RISK IN TRADING

Forex market provides the same chance for investors to take their return, but so many investors can't earn enough returns and lose money, why? Because they don't know what is risk management and don't use it.

What is Risk Management?
Risk management is the process of measuring, or assessing risk and then developing strategies to manage the risk while attempting to maximize returns. Typically involves utilizing a variety of trading techniques, models and financial analyses.
The potential return from any investment is generally depending to the amount of risk the investor is willing to assume.
Investors will not take on greater risks without the possibility of higher earnings. This is called the risk premium. In general, the greater the risk, the higher the potential return; the lower the risk, the lower the expected return.

Common types of Risk
There are several main types of risk, and investors should understand them well because some affect certain investments more than others.

The two common risks that apply to almost all investments are:

Market Risk: The chance that financial markets in general may rise or fall in value.

Inflation Risk: May be the most important factor for long-term investors to consider, because inflation is cumulative, and it compounds just as interest does.
You can't control the inflation risk, but with a good strategy you can manage and control the affect of market risk on your stocks.

A professional trader always tries to understand and control portfolio risk. Before entering into any trade, good traders first think about how much risk to take and how much risk exposure comes with a particular trade selection. Only then do they allow themselves to think about how much profit they stand to make.
Prudent investors always close their position and exposure if they determine that a portfolio carries too much risk.

Risk Management for a Trade
  • Before you decide to trade consider to these fundamental principles:
  • Before you trade, know how much you are willing to lose.
  • Check the pair to be sufficiently liquid, can you buy or sell promptly?
  • Determine the cut-loss level before trading.
  • Determine your profit target (take-profit-level).
  • Buy the pairs only at an acceptable price level. Use a limit order when you buy a pair.
  • Immediately after the trade has been confirmed, enter the stop-loss-at- market order at your predetermined stop-loss level.
  • Take profit when the trade reaches your profit target.
For example: so many traders determine their cut-loss level 2% of their capital and they call it 2% rule.

Portfolio Risk Management
Whit managing the risk of each trade your portfolio risk will be well under control and you manage your portfolio risk actively, but to control your portfolio risk management better notice to these points:
  • Determine your overall cut-loss level. Usually your portfolio should not lose more than 10% of your capital.
  • Diversify your investment in at least six or more different pairs.
  • Know your overall risk tolerance before building up the portfolio.
  • Act quickly when you see your risk limits exceeded.
  • Close out the entire portfolio if it loses to your overall stop-loss level. 

The Bottom Line

Traders should always know when they plan to enter or exit a trade before they execute. By using stop losses effectively, a trader can minimize not only losses, but also the number of times a trade is exited needlessly. Make your battle plan ahead of time so you'll already know you've won the war.