Friday, August 31, 2007

Are You Trading to Your Strengths?

In your trading, are you playing to your strengths, or are you simply being an "opportunity seeker"?

There is a huge difference between the two and if you're just an opportunity seeker, then you are leaving yourself open to frustration and losses.

There are many parallels between trading, business and gambling, and your ultimate success long-term will be determined by how you approach any of the three. Playing to your strengths is critical in all three.

In any of the pursuits, there is competition and you always want to make sure that you're playing to your strengths and not your weaknesses.

The objective is winning, that is profiting, and you want every advantage that you can get.

Too often, the opportunity seeker will go after an opportunity just because they see that there's money to be made, and they figure that they can shore up their weaknesses (learn more) enough to go get that money.

Let's take a brief look at how this applies in each area, keeping in mind the parallels between them.

In business, the long term successes are built by those with an end goal in mind, a vision of what the business will look like when it's mature.

This is critical because the company must stay on a course that is consistent with its vision while it is growing. Distractions and deviations from the path only serve to slow it down or even take it backwards.

Successful business leaders know when to pursue an opportunity and when to say "no". Saying "no" is essential to keeping the company's activities (investments of time) focused where competitive advantages exist and avoiding those where the company is at a disadvantage.

In gambling, the poker player will stay at the BlackJack table and make his money there. He won't jump up and run to the Roulette table just because he heard somebody just won $50,000 over there. He knows what he's good at and will only venture over to other tables for entertainment, not to make money.

In Trading, let's say investing for the sake of argument, a good real estate investor that knows how to make $1 million a year isn't necessarily going to do well in trading. They are completely different games.

Just because a person knows how to buy properties right, increase their value through rehab or raising rents, does not mean that they will have the talents or skills to make money in the Futures or Forex markets.

Even an experienced trader should be hesitant to jump from one game to the next. A buy-and-hold position trader should exercise great caution before jumping into day-trading, and a spread better should hone his skills before thinking about buying (or selling) outright futures contracts.

Each strategy (or game let's say) has different skills associated with it, and different emotional requirements.

The other serious consideration is your proficiency level - period. This combined with your ability to devote time to trading.

If you are completely new to trading or you haven't yet become proficient at the necessary skills to trade, then you definitely should seek out help.

The learning curve can be very costly in trading, and if you don't have the time or a plan to become proficient, how do you ever expect to make regular profits from it?

If you don't have the proficiency, the strengths, needed to be a good trader, nor do you have the time and resources to become one, you may want to consider other choices available to you.

If you have neither the skills nor the time to develop them, but want to take advantage of the nice money to be made in trading, you may want to consider a managed account. Why settle for an amateur trading with your money (YOU), when you can have a pro do it for you?

Do your Due Diligence first though!!! Ask for the track record and the plan going forward.

Your next option if you're "starting from scratch" is to trade with the assistance of a seasoned broker.

That's what they are there for. Of course you can find very low commission brokers to deal with, but you may get just what you pay for. A good broker can be found for $50-$100 round turn commission, and they'll give you the best advice they can.

In the long run, you're likely to be way better off - if you'll follow their advice!

Again, ask for their track record, and check with the NFA to see if they have any complaints.

It wouldn't hurt to see if the broker you're considering is recognized within the trading community as being good.

Many very good brokers publish regular articles or advisory columns on respected websites and in established periodicals.

Generally, if you see that the person has been published for a period of years, then that is a good sign.

The wackos and charlatans bounce around too much and aren't allowed to stay in one place for long before their reputation catches up with them.

Until you have the strengths yourself, borrow them from someone who has them while you're developing.

When you have the proficiency, the skills, and the resources, only then should you venture out on your own. And that is only if you are so inclined to actually becoming a trader and doing it all yourself.

If your true objective is to make money, then play it smart. Make use of other people's knowledge and skills until you have developed your own.

Of course, if you really don't want to devote the time to being a full-time or highly active trader, but still want trading to be part of your income portfolio, consider your other choices.

Whatever you do, don't simply chase another "opportunity" to make money if it doesn't play to your strengths.

For Trading, those strengths need to be discipline, emotional control, coach-ability, ability to focus, follow-through, decisiveness, understanding of probabilities, dealing with uncertainty, and a slew of others.

There are activities for entertainment and others for making money.

Trading can be both, but if it is not taken seriously, with a sincere review of your own characteristics and desires, then it can wind up being neither. In any endeavor where money is the end result, get help from a trusted friend. Rememer, a good mentor is there to show you the right steps to take and those to avoid.

Copyright 2006 New Ireland Ventures, LLC

Brian McAboy, The Aspiring Trader's Best Friend

Online Forex Trading Today

With the introduction of the internet, many new opportunities have opened up for people to make money, learn new trades and improve their lifestyle. The internet has changed our lives in many ways. One of the most popular ways to make money online is through forex trading online. Todays forex traders are granted access to the international forex market over the internet. This has revolutionized the way business is done on this market and allows every trader direct access to the productive forex market. This has led to increased popularity of forex trading around the world and and government regulation has been relaxed in the United States, making way for this revolution.

Another aspect of forex currency trading that has been affected by widespread internet access is the proliferation of innumerable websites offering training courses and advice on forex trading. Many of these are not very useful, but there is a large number that do offer excellent advice and forex trading education. Many of these services nclude access to historical data and online libraries, interactive videos, live chat with experts, in-depth advice and analysis on using forex currency trading systems and demos of forex currency trading software online. The forex trading online training courses will often include live workshops and seminars or else let you know where such an event will be scheduled near you. The experience of learning from other amateur and professional forex traders is also invaluable and many of the online forex training courses will offer message boards and forums for members.

Some courses will include video presentations by a financial whiz, generally the proponent of the forex trading system that the course promotes, and his team. These can certainly be beneficial when you're selecting a system to use personally and help make the rationale of the system clearer. Further, live chat with the expert or members of his or her team is a great bonus and should be used to get answers to any questions you may have.

Online technical analysis software is also a highly beneficial tool, used by most professional forex traders and made available to amateurs by various websites offering forex training courses. This forex trading software is used to analyze and identify emerging trends so that forex currency traders can tap into these patterns and apply techniques to capitalize on many of them. A forex trading system works in conjunction with the software tools for technical analysis in this way. This ensures a orex trader can learn to use the forex currency trading system, understand how to successfully trade, and execute their forex trades completely online, without ever leaving home.

These elements serve to make online forex trading a popular means of livelihood for many people and contribute to its continued popularity. You can learn about forex trading in your spare time at work or at home and take a few minutes a day to keep checking your trading account, all the while making money and never leaving home or the office.

Andrew Daigle is the owner, creator and author of many successful websites including ForexBoost, a free forex trading resource and CashCurve, a resource for making money online.

Top Web Entrepreneur's Paradox

Trend following is a strategy normally associated with trading. You wont see it associated with Top Web Entrepreneurs. This is surprising. The strategy serves both types of activities quite well. I intend to set the record straight with this article!

First, A Bit Of Background

If you lookup trend following on Google, it will report that some 286,000 pages mention the expression. I am willing to bet that most, if not all, are related to speculative trading.

However, I am also willing to bet that Top Web Entrepreneurs, whether knowingly or not, use a strategy based on trend following to guide them in their choice of Web endeavors.

Let me explain.

I used to invest my money. That has brought me a certain significant return. But, it took decades of compounding the meager crumbs that the banks and other financial institutions were (reluctantly) giving me in interest.

One day, in 1998, I switched strategy. I became trader. I am what is known as a system trader. I have developed a system to protect myself while trading. My trading is based on a trend following strategy.

Im proud to say that it works remarkably well. For me, that is. Theres a catch, you see. It requires strict adherence to the a plan: my plan.

My plan, discipline, tight control over emotions, and patience make up the name of the game.

What Does Trend Following Trading Have To Do With Top Web Entrepreneurship?

The skills required to become a Top Web entrepreneur are not much different than the ones a consistently successful trader uses. Note the use of the word consistently. Anyone can be a lucky trader. Many think that Top Web Entrepreneurs were lucky to find their niche. Not so. They all worked hard at identifying it, and at planning how to best exploit it sometimes months, or years, before the event makes the news.

Top traders also work hard. Most of their energy goes into preserving their capital, so that they will always have enough to trade the next day, and never go broke. They never take risks! They manage risk. Theres a major difference.

So much so, that managing risks is the most important factor between success and failure, both in trading, and in business.

When the trend becomes newsworthy, it rapidly ceases to be worthy of exploiting! It is cresting, in its adult phase, then. It will soon begin to decline.

Top Web Entrepreneurs, just like Top Traders, plan to get in as close to the (confirmed) beginning of the trend as possible. They avoid entry when the trend has already given most people a good run for their money! The probabilities of cresting are getting bigger, at that point. They do not want to enter a trend, just as it is about to decline.

How does one become a successful Web entrepreneur without taking risks?

By testing your ideas offline first!

Successful traders, do their testing outside of the markets. That use sophisticated computerized systems, either bought commercially, or home brewed. The very Top traders use home brewed systems. They feed their system years of historical data about the stock, or foreign currency they are interested in trading. The tests are computerized, so they take a few moments only. In a flash, they know what potential their idea may have about that given stock or currency. They also know what the risks are. They can prepare to counter them.

Successful Web entrepreneurs also make use of computers, of course. But not in the same way. They do not have years of historical data to test their ideas on. Only uncharted grounds are potentially ripe to give new types of crops. Its in the very nature of innovative ideas to not have a history.

Top Web entrepreneurs use sophisticated systems to mine the Web for the data they need. They develop their own system (around a strategy), but use the computerized applications that are available on the Web. Remember, the data they need does not exist at least, not as a coherent, filtered set yet. They have to look for signs of it. Then they analyze the signs. This analysis leads them to retain some pieces of data, and reject others as irrelevant. Not an easy task at best.

Top Web entrepreneurs will use their brain, and their experience in a given field of interest, to analyze what they find.

Their imagination gave them a business idea. They will carefully validate it, plan for it, and time their move into implementation.

They are like top competition surfers. They know what signs to look for, and they have the acquired a sense of timing to take advantage of a building wave. They are in there even as the wave is beginning to form (below the surface and most everyones radar). Sometimes, like Top traders, they reach the zone, totally concentrated. They are already stalking and preparing for the next profitable wave (trend), in the right spot, at the right time, before the coveted event even begins to form!

To get there, Top Web entrepreneurs use sophisticated, flexible Web searching tools to mine the Web for information. These tools exist, and are mostly free to use. However, they are scattered, uncoordinated, about the Web. Sometimes, they only exist as beta applications that only a few enthusiasts know about.

To give you an idea of what trend stalking might mean on the Web, have a look at the Google Alerts, and Google Trends. Many Web entrepreneurs use them, as general purpose tools, in an attempt to identify the trend they are looking for.

There are dozens of much more specialized and powerful tools for Web research and analysis available. You just have to try them until you find the ones that best fit your requirements, and personality.

When The Signs Are There

When it begins to look like their idea is being confirmed by enough verifiable signs (note the word verifiable), Top Web Entrepreneurs will immediately start planning its implementation carefully. They will give it a structure that will later house what they will be offering their targeted clientele. They will also have identified the latter through thorough research.

Their Web business is taking shape offline, at that stage. No risks involved. I hope you get my drift! They make sure their idea will work, before they commit themselves! Thats what planning is all about.

The First Small Step

If the idea looks viable, they start small. Very small! Just to give you an idea, I never bet more than one percent yes, you have read correctly, never more than 1% of my total equity on any given trade idea. Thats how small a step I am willing to take at any given time. That should give you a measure of how careful, patient and disciplined successful trading is. After a while, if my trade idea works, I will add to my position progressively. If all the conditions of my trading system continue to be met, I continue to execute my trading plan in a very disciplined way.

When Top Web Entrepreneurs have thoroughly researched and tested their business idea offline they will create the home page of their Web site, and publish it online.

They will slowly add to their position, from there. Meanwhile, they keep up their research effort. They watch for signs of their idea drifting away from the trend they have identified, and chosen to follow.

In fact, they go wherever their traffic leads them. They will patiently, and dutifully follow that trend to destination and success.

They will publish one well researched, keyword focused Web page at a time. They will slowly furnish the structure they planned in the first stages of preparation and thus progressively increase their tailor made offer to their target clientele.

A New Web Business Is Born!

As you can see, it did not happen suddenly. Nor, was it due to a stroke of luck.

Top Web Entrepreneurs innovate and follow trends.

Thats the apparent paradox.

Claude Jollet is a former planning advisor to major industrial and commercial clients. He specialized in weather related operational planning issues. He holds a bachelors degree in applied computer science, specializing in business process analysis and automation. Mr. Jollet now devotes all his free time to the promotion of entrepreneurship on the Web. He reaches his following with his Web site

Forex Course Trading

Nothing can help you better understand the nuances of the exciting tools and strategies of the forex market than a forex course trading. If you are a first time player or want to start as a foreign currency trader, a course in the forex market can guide you and build your confidence to face the real world.

The foreign currency market is highly developed with some of the most advanced trading systems and features available to make your decisions more scientifically. Whether you are a day trader or a long term player, you need to develop your own strategies to time the market and your entry and exit points. Forex course trading can help you in your understanding of the terms and concepts. As you learn the basic tricks of the trade, you can learn the advances strategies, straddle concepts, technical analysis indicators, charting software and other tit bits to gain your foothold in the forex market.

Forex market demands a fair bit of knowledge about the finer aspects of trading and techniques to be successful consistently. Hence it is all the more important that you are armed with right training. Forex course trading can fill that gap and make even a novice an expert in the field.

While it is true that no forex trading course can make you rich overnight, it is also true that there are no magic formulae to make money in the shortest possible time. It is only patience, hard work and consistency that brings dividend in the long run. A good course will equip you not only with the trading strategies but also how to handle exceptions and time your market moves.

Charting and Technical Analysis are one of the most important tools for predicting the future trends and fluctuations. Forex course trading will help you do that to give shape to your strategies for your good. A good trader does not spend his time and energy trading all day. He looks for 4 or 5 good trading opportunities in a week and place his orders based on that analysis. The timing is very important and so is the correctness of his prediction. This way you can earn better than the expected returns without having to time the market all the times. Hence an understanding of the trading systems and rules allow you to concentrate on exceptions rather than all the currencies and commodities for making an entry in the market.

If you are planning to take forex course trading, never be enamored by all those claims of making risk free profits by trading in currency spot and futures. Remember that there are no free lunches. Currency trading is a specialized field and has its own risk reward paradigm. In most of the cases, you will have to adjust your trading strategies to fit that paradigm to remain within the ranges. One wrong move and all your equity may be wiped out. The forex course trading will also help you to understand that sometimes it is better to cut losses than to cut a sorry figure later.

Thomas D. Houser
The key to successful Forex trading is knowledge.

Forex Online Broker Trading

Finding a good forex online broker trading service can be an extremely difficult task, but is essential if you want to ensure that you make as much profit as possible from your trades. Hiring the wrong company could lead to devastating results as if you were actually doing the trading on your own without any training or assistance.

When looking for any firm to assist you with your Forex trading, you should be extremely diligent and carry out as much research as possible with regard to those you would like to handle your investment portfolio.

Look for those firms which will provide you with details of those clients who are willing to provide information with regards to their services and how successful they have been. A reputable firm will have plenty of client testimonials which will indicate to you that they are have a strong knowledge and background relating to this type of trading. However these testimonials should not be used as the way of making a decision in relation to which firm you are going to be using.

Also another way of testing out the reliability of any firm that is providing services for people to trade Forex online is the amount of information that they make available to their clients. Also what sorts of literature and any training that they are willing to provide to those who become clients with them.

So the more that a Forex broker trading firm is willing to do for you then this will then provide you with a way to better understand Forex trading systems and so will make you in to a much more competent trader yourself.

A great way of searching out a reputable and good brokerage firm is through friends and family. Ask them if they can suggest anyone and if they do you will still need to carry out your own investigations with regards to their qualifications and knowledge base before you commit to any type of formal agreement with them.

Finally another thing you will need to consider when looking for a good Forex online broker trading firm is to see what margin of return they are offering to their clients. Avoid those that are offering very low margins of return. It is important to remember that these people are providing a service to their customers and if you find that the firms you are considering are not returning your calls within a reasonable amount of time then it is best that you carry on searching for the ones that will.

Ricky Lim runs an online forex trading education site for beginners. Visit his site today for more forex tutorials such as a free forex trading strategy.

What Day Traders Don't Want You To Know

I had a discussion with a good friend of mine yesterday about how Day Traders made their money.

They are in for profits and nothing but profits. While many people who own stock or shares, however you want to call them. They are looking for the next stock to pump on (what I mean by pump, is get people hyped) and when they pump or get people to pump, it's because they own a significant amount of shares. Another tip, if you ever look in your email box or whatnot & see a stock tip. The stock is about to run out of juice and they are looking to get to cash out once the newbie investor has dumped their life savings. A pump and dump are notorious for scams, the SEC always has their work cut out for them.

I like to think that I am helping investors that are looking to build their financial security. I really encourage people to look at the solid big picture of if it's too good to be true then more than likely it is.

In today's society where it is so hard to be able to have something that you know is stable & money is often hard to come by. Everyone seems to be looking at cheating someone these days. I know it isn't easy..

I like to think that I make good financial decisions and here is my pie to prove it :0)

Investments are easy to do as long as you know what you are doing & you have someone who you can count on to do the job right...

Diversify is key...

Alison G. Teaching you to Invest Wiser

What Would Jesus Invest In?

According to the bible, we already know how Jesus felt about moneychangers in a house of worship but what investments would Jesus possibly deem acceptable and suitable in today's society?

Residential Real Estate
A residential dwelling is a good place for a family to live in and a good thing for a family to own. A home can be the foundation and centerpiece for a family unit and family values. A good home can create a stable environment for the family members, the surrounding neighborhood, the town or city and the country as a whole.

Commercial Real Estate
Commercial real estate can be a boon to commerce and the local community. It can generate local and convenient marketplaces for vendors and consumers, can house businesses in a community, can create jobs on a local level - for construction workers, electricians and, of course, carpenters. Commercial real estate is a critical and fundamental component of successful local community development.

Savings Accounts, Savings Bonds, CD's, etc.
It is good to save some money and put it away for a rainy day; for into each life some rain must fall. And putting your savings in a secure financial institution is safer than keeping it under your mattress.

Yes, the stock market is the bastion of capitalism, and capitalism these days is feared and hated around the world and by liberals here at home. Upon further examination here is what we will also find: in fact, the stock market is an excellent and efficient way for small, medium and large companies to acquire expansion capital. With the additional capital these enterprises can create new jobs, new products and more new tax revenues for the society.

An individual or other investing entity can purchase common stock shares of a company, and, in doing so, legally becomes an actual owner of that company, with voting rights regarding the affairs of that company. And an individual may even choose the specific company or companies he or she wishes to invest in. If an investor is a devout socially conscious person if they so desire they can even choose to invest in companies involved in alternate energy, environmentally beneficial products and services or invest in other politically correct fields.

Whatever the investor chooses to invest in, if the investment becomes successful and profitable, he or she can then choose to help those who need help, their less fortunate brothers and sisters, by donating the profits they make to a house of worship, a charity or other organization of their choice.

What Would Jesus Invest In?
Jesus most probably would not invest at all. After all, He would need no money (I'm sure His earthly needs would be provided for), would accumulate no wealth, have no investable funds, and thus would probably not be interested in financial investments of any kind.

But I don't believe that Jesus would mind if we mortals, as we go forth and multiply, make some good, solid, productive investments along the way.

Alan Korber is a successful investor and creator of the Korber Strategy, a simple and successful stock investment strategy for returns of 50%-100% annualized, published online at

Learning Forex Trading - The Eight Steps To Get You On Your Way

Learning forex trading can certainly be a daunting process if you have no idea where to start. Although forex is less complex than some other methods of trading because it only deals with one specific commodity, it can still be a chore to get to grips with. There is so much involved when learning forex trading, especially if you want to be successful, but by following the tips below, you can soon obtain the knowledge and know how that you need.

1. Research forex trading You can never walk into any kind of investment without first investigating the possibilities and weighing up the advantages and disadvantages, and learning forex trading is no different. You should at least know what it is and how the concept of forex trading works before committing yourself to attempting to profit from it.

2. Learn all about currencies Most individuals know a little about the dollar, pound and euro, but it is essential to learn about all currencies and their histories whilst learning forex trading. Without having basic knowledge of the fundamentals of currency, you cannot hope to do well at forex trading.

3. Assess the odds The odds of success and failure are part and parcel of learning forex trading because you need to be able to recognise trends, analyse profit margins and recognise potential.

4. Learn the key terms Every investment opportunity has some form of jargon attached to it. Ensure that you have a full understanding of the jargon associated with learning forex trading before progressing to the next possible step.

5. Watch the market As with anything in life, always watch the market to get the feel of it before progressing to participation. Learning forex trading is all about understanding before participating, and the only way for you to do that is to watch other before attempting it yourself

6. Use software to trade for free Some softwares enable the learning forex trading before you actually invest. You can trade imaginary amounts via simulators to give you practice and give a greater understanding of the system. You can analyse your mistakes and rectify them before actually investing your own money!

7. Set a budget Always work out what you can afford to trade whilst you are learning forex trading. It is easy for an individual to get in over his or head and end up losing far more than he or she can afford, so make sure that you are not one of those people!

8. You are ready to begin for real Your learning forex trading crash course is complete so as soon as you feel confident, go for it!

Simon Aridej is the owner a site which provides a good information about forex trading tips, how to trade like a professional forex trading free forex trading ebook and much more. You can download forex trading ebook for free by Click Here!

Major Advantages to Trading Forex

When most investors hear the word forex, the words that flash through their brain are risky, complicated, and tiny profit margins. This is because the information on currency trading isn't as available and easy to access as the stock market. A stock investor just needs to pick up the Wall Street Journal or turn on CNBC to instantly see what's new and exciting. When you're a stock investor, you can talk to your friends, neighbors, and co-workers about what you're buying, share tips, and brag about your profits. Everyone is familiar with the stock market. Forex is a different beast. To find information, you have to turn to the internet or privately run newsletters. You can't talk about forex with anyone in your everyday life because they won't understand the lingo and will have no idea what you're talking about. It's a shame, because our game has some major advantages over stock trading. Maybe if forex information was more public, the average investor would realize the following 5 things to be true.

One thing that most people doesn't realize is that there is no trading commission involved in currency trading. When you're trading stocks frequently, even if it's done online at $20 a pop, the fees start eating into your profits. If you're trading options, you're not only paying a commission on the trade, but you're also paying additional fees per contract. Fortunately for forex investors, the only retail transaction cost is the bid/ask spread which is usually less than 5 pips (0.05%).

Secondly, the currency market is open 24 hours a day, 5 days per week. Unlike the stock exchange, which is only active between the opening and closing bells, you can trade forex first thing in the morning or in the wee hours of the night. There are people all around the world trading at all hours, so a trader can take advantage of any market condition at any time.

Another big benefit to the foreign exchange is the huge leverage opportunity. Leverage, also called margin, is when you borrow your broker's money and add it to your own capital in order to make a larger investment. In the stock market, you have to pass your brokers strict guidelines to be approved for a margin account, and if you do, you'll get a maximum of 2:1 (which means if you invest $10,000, you can borrow $10,000). In forex, a ratio of up to 400 is considered normal. If you use that massive amount of leverage properly and hit some big winners, you can make substantial money in short periods of time. Of course, the opposite is true as well. You can lose substantial money very quickly also. But you can't get a better opportunity to use other people's money.

A fourth advantage to currency trading is it's size. Because the forex market is so huge and has so many traders active at all times, no single investor can corner the market. In the stock market, each equity issue has a finite amount of outstanding shares. For many small cap companies, a large investor could amass a large percentage of those outstanding shares, and because of the low liquidity, their choice to buy, sell, or hold will have drastic effects on the price of that particular stock. With currency, no single investor, not even a central bank, can accumulate a controlling amount of something like the dollar, pound, or franc.

The last great characteristic of the forex that we'll discuss in this article is the never ending bull market. Forex is a zero sum game. A gain is only made when one currency rises in value in relation to another currency. So this means that if one currency is going down, another is going up. In the stock market, when a bear market hits, the vast majority of stocks are all going down. If Microsoft drops 5 points, that certainly doesn't mean that GE went up 5 points. Sure, you can short stocks in a declining market, but the average investor isn't too keen on the unlimited downside risk and probably doesn't even have the margin to be able to make the trade. Just remember that something is always guaranteed to go up in the currency market.

There are dozens of other reasons why the forex is one of the best playing fields in the investment world. If you are an investor, do some research and see for yourself. Open up a demo trading account at one of the several online forex brokers and see how you do. You might just find that it blows the stock market out of the water.

This article is just a small piece of the free Forex Trading Course at Go learn about this incredible market and sign up today while the 30 day course is still free.