3 Critical Day Trading Mistakes And How To Avoid Them

Ah, the day trading profession - it's the perfect job, right? You can work when and where you want. You have freedom and independence. You answer to no one but yourself. All this sounds great and there is no doubt that day trading can be a very lucrative and rewarding career, but let's take a look at the cold hard facts. Nearly 80% of those who attempt day trading will fail. Trading accounts are lost every single day because of trading too much, taking illogical risks or just plain ignorance.

Don't get me wrong, you can make substantial profits at day trading. There are many successful day traders out there that are making a nice living year after year. In order to have the greatest chance of success, there are several mistakes that must be avoided:

1. Trading With Emotion

The single biggest mistake made by day traders is trading with emotion. If you trade with emotion you will lose money - It's as simple as that. Greed and fear rule the stock markets and these two emotions are precisely what will put you in the hole. Too many decisions when trading are based on emotions, rather than logic. The key here to overcome emotions is that you must have a system in place that picks trades mechanically - this will take greed and fear out of the equation.

2. Trading Without Proper Research

Day trading is a serious business and it needs to be treated that way. Many traders make the mistake of half-hazardly buying stocks without taking the time to complete the proper research. Day trading is for real and the stock market has no mercy for the
unprepared. To be a successful trader you simply must have a carefully planned out system in place for how you go about researching your potential stock picks.

3. Trading With Money You Can't Afford To Lose

Successful day traders never trade with money that will destroy their lifestyle or family if lost. It then becomes a domino effect and fear will take over trading decisions. The worst possible trading choices will be made and bank accounts will be depleted.

So in summing it up, day trading is a great way to make a living and a very lucrative one if you have a system in place and can avoid the mistakes that were discussed above. Just remember to avoid emotion, make sure you have done your research and never trade with money that you cannot afford to lose.

To see how easy it is to make money trading stocks and to get a free trial of a proven system that has consistently produced profits go to Stock Trading Systems USA Review. Once you try the system you will wonder how you ever got along without it.

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Forex Trading - Overcoming the Obstacles

Life would be a lot easier if everybody would conform to rules. If everyone becomes a law abider then, perhaps, there will always be peace and happiness.

In the same way, if there are rules printed in black and white involving forex trading then everybody wins. The sad truth, however, is there are no clear cut rules to forex trading. The forex market, in fact, operates in an unstructured environment, thus succeeding in forex currency trading becomes an obstacle for most people. If truth be told, only 5% actually succeed as a forex trader.

There are definitely downsides to operating in an unstructured environment as forex. For one, you have to be responsible for your actions and this is quite impossible especially if you are already used to having somebody else to blame if things go wrong.

Moreover, there are no standard rules to follow in forex trading. Since rules are important in any undertaking, you must come up with your own -- and stick to them at all cost. One possible reason why some traders fail is because they do not follow their own rules. They get frustrated easily when things look bad and they forget that there are rules they need to abide by.

One other thing you must understand trading forex, it is not your own effort that matters but to make the right decisions that count the most. You can work for 16 hours a day and that will amount to nothing if you make one wrong move. In forex trading, too, you have to be emotionally detached. You may find this difficult to do considering that man, by nature, is a social being. However, in forex currency trading, you have to be able to make your own decisions and not be influenced by the dictates of society.

If you are able to overcome these obstacles, you will most likely find success trading in the foreign exchange market.

Automated forex software help to avoid the pitfalls while trading forex. These forex trading systems are specifically made to analyze technical data and give forex signals when to buy and sell. Since these forex robots don't involve human emotions, they help for more profitable trading in the forex market.

For more information on forex trading visit http://www.fxmoneytrading.com

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Forex Day Trading- Two Step Trend Analysis

If you approach forex day trading by just looking at the 5 minute and 15 minute charts there is a strong possibility your account will evaporate sooner rather than later.

In order to get a feel for the market and an indication of the current trend it is necessary to do an analysis by looking at multiple charts on different time frames starting with higher level charts first.

Rather than having the charts cluttered with numerous indicators and signals which can cause signal paralysis, I recommend just two:

1. MACD (with default settings)

2. 200 EMA (Exponential Moving Average)

Now examine your charts using a top down approach:

• Daily
• 4 Hour
• 1 Hour

As you check each chart take note of these two factors:

1. Has MACD crossed down or up and is it above or below the water line?
2. Is price above or below the 200 EMA?

While it is not crucial to have them all lined up on these three time frames for successful forex day trading, if you want to be a cautious trader and go for high probability trades then certainly MACD on the 4 hour chart and 1 hour chart should be in agreement as also should price in relation to the 200 EMA.

The daily chart can be useful in seeing the larger picture and for noting key levels of support and resistance. They stand out on a daily chart so if price is within 100 pips of a crucial level of support or resistance as seen on the daily chart, make a note of the figure.

Then scale down to the lower time frames and see if this level matches with other indicators such as pivot points or Fibonacci levels.

Once you have done this groundwork, NOW you can look at the 15 minute and 5 minute charts for a suitable entry point.

Remember, for successful Forex day trading you need to adhere to the No. 1 commandment: Buy The Dips and Sell the Rallies!

So avoid chasing the market and going with the flow. Instead, wait for price to come the level you want, set your entry order, and let price pull you into the trade.

The Danger With Lower Time Frames

Just concentrating on the 15 minute and 5 minute charts will not give you the bigger picture. You could see what looks like a perfectly good trade and set your stops and limits only to find you get blown out within a few minutes.

By looking at the higher time frame you would probably have seen you were close to a key support or resistance level and either not gone into the trade or adjusted your stops and limits accordingly.

For the novice, Forex day trading can involve a huge learning curve. Include this simple daily top down analysis approach to your trading and protect yourself against making trades you wish you didn't!

Click here to learn how to use the 200 EMA in a simple yet powerful way:

http://www.vitalstop.com/Forex/Advisor/200EMA-forex-strategy.htm

For a free candle & chart pattern recognition reference tool click here:

http://www.vitalstop.com/Forex/Candle-Chart-Patterns

For the best free economic calendars plus a free pivot point calculator and Fibonacci calculator click here:

http://www.vitalstop.com/Forex/tools.html

AP - You're struggling to make ends meet, but each month you manage to scrape together your mortgage payment, if just barely. Are there any programs out there that might help you lower your payments to something a little more affordable?

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The Ugly Facts of Life About Being a Petroleum Trader

Anyone who's gotten involved in the inevitable daisy chains that are part of the online international commodity "trading" business has learned a new meaning of the term "dead end."

The fact is (and this is learned from real oil traders who know from experience) that most of these "deals" are just fake, plain and simple.

Thanks to the Internet, these days some phony-baloney oil brokers even have their own websites and call themselves petroleum suppliers or petroleum companies even though they may not have completed a single real oil trade transaction in their lives. Why do they keep doing it?

I honestly don't know. The sad thing is these traders' persistence could be put to good use if they ever took the time to actually learn about the business. And don't think it's only the unschooled who fall victim to these daisy chains. Many lawyers, MBAs and educated men and women who should know better are frequently sucked in too.

When real petroleum companies deal with real refiners in foreign countries, the standard procedure is that the seller makes a firm offer to the buyer - subject to whatever he needs done - and the buyer then takes a look at the offer and says either we've got a deal or we don't.

Simple. It's just like any other trade transaction in that regard. Too many buzzwords and too many qualifiers usually mean you should stay clear. And contacts who are actively seeking banking information before any discussion of product are usually non-players.

What about discounts? Real traders know there's no discount on orders whether it's a big deal or a small deal but the "play traders" believe that if the deal is bigger, there should be a bigger discount. This is another example of not knowing the industry.

Instead of looking for suppliers of huge amounts of oil in its various forms, the real buyers know that no single supplier can come up with one million barrels a month (an amount frequently tossed around) because the refining capability just isn't there.

What about someone fronting for a rich Saudi sheik?

Fat chance, say the real traders. In the case of Saudi Arabia, there are only two legitimate organizations that sell oil on behalf of the country or an oil consortium. Someone who says he's selling on behalf of a Saudi sheik is just, well, full of sheik!

And if they start talking about millions of barrels per month it's almost certainly not real unless they're talking about crude oil.

Remember, a broker's entire job is to help a petroleum company's trading department find or sell oil and related products so that he will receive a commission when the deal comes together. Will you get paid? That's always an issue for export intermediaries but it can be especially tricky in the oil business.

The fact is that most oil companies -- and especially the big ones -- have traders in their marketing departments who operate honestly and fulfill obligations to brokers. But there are some independent and smaller companies who treat brokers shabbily and their reputations are widely known - another reason to get smart on the oil business before you dive in.

Surprisingly, you will probably find that many of the bigger oil trading companies will not only accept your services but may also provide advice and assistance.

So what's the bottom line?

Like I said before, it ain't easy. And you've got to know what you're doing. The fact is, petroleum marketing is a dog-eat-dog business and if you're a broker, you'd better have the resilience and perseverance to work through the baloney and outright deceit which seems to attach itself to petroleum trading.

Frankly, unless you have contacts in or familiarity with the petroleum industry, I recommend you stay with small- and mid-sized product manufacturers who are not exporting their products. It may not be as exotic as trading in petroleum, but it works - and you can make some real money. If you insist on trading in the volatile petroleum industry, try to find someone who will mentor you on the ins and outs. This is probably the best way to make sure you don't get "burned" by oil.

Dennis Hessler is the publisher of The Computer User's Guide to Running Your Own Exporting Company and numerous other books, video tapes, software packages and The International Trade Connection newsletter which is designed to show entrepreneurs new to exporting how to get involved in the booming global market.

Learn more about international trade at his website, http://www.spyglasspoint.com You can also download a free sample copy of The International Trade Connection at the site. If you have questions about any of his products or international trade in general, e-mail Dennis at Dennis@spyglasspoint.com. Spyglass Point Productions, P.O. Box 13141, Pensacola, FL 32591 U.S.A.

Reuters - WASHINGTON (Reuters)- President Barack Obama's aides warned Americans on Sunday not to expect instant miracles from the $787 billion economic stimulus bill he will sign this week, but said it would help eventually.

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Forex Trading Platforms - 3 Questions To Ask When Comparing Trading Platforms

Assuming you've already done you initial research into forex, and understand the basics and the risks involved, you'll probably start searching for a forex trading platform next. Here are three questions to ask when comparing your options to help you make the best choice for your situation.

Tip #1: Is A Demo Account Provided?

Almost every company that offers a forex trading platform will provide a demo account for you to practice and learn on first. Stay away from any trading platform that does not provide this option. It is in every company's best interest for you to learn to trade as well as possible, and demo accounts are one way of encouraging this. Also, once you've chosen your platform, make certain to actually use the demo account first before risking any actual capital.

Tip #2: Is Solid Training And Responsive Support Included?

No matter which platform you choose, you'll likely need some help along the way. See how much training information is offered by the company. Make sure they have a support email and phone number - and test them out. Call and email with a few questions, and see how fast they respond - and how helpful their responses are. This will give you a good indication of the type of personal service you'll be getting if you decide to invest in their platform. Beware of any company that provides canned responses on the phone, or boilerplate email replies.

Tip #3: What Is The Minimum Amount You Can Start With?

Once you've narrowed down your choices with the questions above, you'll need to find out which platform will let you effectively trade with the amount of money you have to initially invest. Keep in mind, although you'll be able to trade larger amounts if you have larger amount to start with - never risk more than you can afford to lose.

Bonus Tip: Before you make you final decision regarding which forex trading platform you're going to go with, make sure to check out user reviews at a free forex forum and chat room like: http://www.freeforexforums.com

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Rule the Currency Market With the Best Forex Trading Indicator

That's right! You can really make some nice, consistent profits with the best Forex trading indicator. Of course, you are wondering when I am going to tell you what it is. OK .. drum roll please .. it is the most time tested and reliable Forex trading indicator .. known as .. the 200 Day Moving Average. Yep, it's the ole' faithful instrument used by more money managers and large institutions than any other indicator. The truth is that this trading indicator is so effective because it works as a result of those who work it. Let me give and example: A certain currency is trading above its 200 day moving average. Five of the big money managers in some of the largest financial institutions see the currency is above this mark and as a result they move on it .. going long that currency. Guess what happens when the "big boys" make that move? That i right, the currency goes up. Why? Because it is the big money that moves the markets. it has always been that way and always will be.

Now, I am not suggesting that you go and find any currency trading above the 200 day moving average and go long that currency. Nor am I saying that you should short a currency that is trading below the 200 day moving average. Here is what it comes down to: Start with currencies that are above the mark (200 day moving average) then learn to use other indicators to confirm your move. I also suggest using a reliable trading software program that provides timely and effective trading signals (I have included a couple of links for review sites that can give you an objective look at what has a good track record and what does not).

Good trading ahead as there is always opportunity to make money on the Forex market.

Get an Objective Review of the Most Popular Forex Trading Software Programs. Best Forex Trading Indicator is the place to visit.

See What Forex Trading Software REALLY Works! forex-trading-system-review.com is the place to visit.

Reuters - The U.S. Securities and Exchange Commission's top enforcement official, Linda Thomsen, plans to leave the agency and return to the private sector, the SEC said on Monday.

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How You Calculate the Profits Form Forex Trading That Will Help You Quit Your Day Job

One of the first things that people interested in trading the forex markets for a living want to know is how much they would need to make every day to earn a full time living. Quite honestly, if you are looking to make a modest income($40,000-$50,000), from you home, the Forex markets are perhaps one of the best ways to do it with minimal capital and unlimited potential.

What you need to calculate, to figure out your trading profits, is something known as calculating your profit and loss by way of pip's movements. A pip is just the minimal amount of money a traded pair of currencies can move in price. For instance, if you have a currency quoted out to 4 decimal places, the smallest amount it can move is .0001. So, that .0001 is a pip. And we use it to calculate our profits for an entire trade.

So, you place trades in what are known as lot sizes. A lot size can be $10,000, $100,000, etc. To illustrate the power of Forex trading, and to show you just how small of a price movement you need to make 100s of dollars each day, I am going to use $100,000 lot size. Let's say that we trade $100,000 lot, and that the price of one currency relative to another moves up .0020. Now that number to your left is a fraction of a cent, but it is known as a 20 pip movement.

To figure out the profit that only a fraction of a cent movement can make on the trading of $100,000, we do the following calculation: (.0001/price of currency you are selling) * $100,000=price per pip (let's say in this example it is $5.00- it has nothing to do with a large huge movement, all we need to know is that pair that we are trading ONLY rose .0020), then we take this $5.00 price per pip and multiply it by the .0020 or 20 pips (rise in currencies relative to each other), and we get $100.

So, in summation, what has happened here is that you traded $100,000 lot(you don't have to trade such a large lot) and with a .0020 increase in the currency pair, you made $100. Now imagine if you traded that pair and it moved up a full cent. Well, you would have five times the amount of money. This trading takes studying and practice. You can actually trade a demo account(fake money, but real implications) with someone who does these exact types of trades for a living. He can give you daily live training here for an excellent price. Most good training costs thousands of dollars. This is a fraction of that.

Good luck training.

Reuters - The frequency of Ponzi schemes is not increasing but the magnitude of the frauds is, a Securities and Exchange Commission official said on Friday.

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Why New Traders Fail

There is a lot of hype in the online world that lures many from all walks of life to try their hand at trading. Only a few succeed to make any money, most almost 95% fail and lose their account. There are a couple of simple reason why this happens. In this article we will list them out, and hopefully the young trader can avoid such mistakes.

1. Too eager for profits. This is the number one killer I believe. Why I say this is because many young traders succumb to the greed that is the curse of us humans. We want to make quick profits and in that want we take risks that we would normally not take. In fact we do the craziest things and actually believe that it becomes something that would "just for us" We create a fantasy world and live there!

2. Not enough learning. This is really the 2nd biggest killer. Now you might e screaming out loud saying you have read and bought every book every written on trading. So why aren't you making a killing? Knowledge and learning are different matters. Learning is taking that knowledge and applying it to each and every action you do. If you have the knowledge but take no action on it, then it is same as the trader who has none.

3. No proper trading plan. Now a trading plan is not a jumbled collection of wants. A proper trading plan lists out each and every action you will take at each juncture of the trade. It must clearly spell out, what your profit objectives are, what is your risk level, your stop loss, when to enter, how to exit the trade. And to top things off it must be so simple that a 5 year old could do it! Sounds like a tall order? Not really, read my free ebook to find out how you can do all that.

4. Discipline. Most traders would say that their discipline is really there, but sometimes things happen in the trade and you know...stuff happens...I get that so often it starts to become funny. These are excuses, and if you have been telling yourself that it is time to stop and take stock. Manage your mind and you will be able to manage your trading. That will lead to profits coming in consistently.

Do not wonder why the above mentioned sounds so common sense. You have been given pointers, the only thing that separates the old you and the new profitable new you, is the action you will take now. Choose wisely and take responsibility for your choice.

Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. For a limited time get his free Money Management to a Million Dollars e-course here: http://www.pipsalot.com

Reuters - Bank of America Corp shares sank to their lowest level since 1984 on Thursday on swelling fears about losses tied to a bad economy and its acquisition of Merrill Lynch & Co, adding to pressure on Chief Executive Kenneth Lewis.

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Using the Internet For Forex Trading

One of the most convenient resources available today is the Internet. Today the Internet can be used to quickly exchange data and information world wide. Thanks to this convenience people from all backgrounds have been able to use the Internet to do nearly anything, including trading in the profitable financial markets.

Using the Internet for financial trading is more than convenient. It makes financial trading possible for people all over the world. Before the Internet financial trading could only be done inside the market floor or with the help of an experienced, expensive, broker or advisor. Now all a person needs to trade online is a reliable computer, Internet connection, and easy to use trading software.

If you are a confident Internet user that is interested in the financial market it is time for you to consider the world of Forex. The surprising growth of the Internet has encouraged the Forex market to relax some of the strict rules regulating who could trade and how they could trade. Now a person does not have to be affiliated with a well known company or have a large amount of investment capital available to begin trading.

This ability exposes curious investors to an exciting and promising world of Forex. There are many who are unsure about Forex trading and do not believe that they will be able to make any more money in the Forex market than they would in any other investment. In reality, the Forex market is the largest financial market in the world that is active 24 hours a day. This nonstop trading involves trillions of dollars in currency being bought and sold each day.

With the ability to use the Internet and reliable software to trade in the Forex market anyone with determination can make their fortune with Forex trading. The Internet combined with Forex software gives average people the opportunity to learn and experiment with the Forex market in an entirely risk free, simulated environment before getting started in the real-time market.

If you are interested in finding out more about Forex Practice Accounts or Forex Trading feel free to visit Forex Automation.net

Reuters - Macy's Inc said on Monday it would slash about 7,000 jobs and cut its quarterly dividend as it forecast earnings for fiscal 2009 that fell far below Wall Street expectations, sending its shares down 4 percent.

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