Easy Forex Trading System

No doubt you have encountered many forex system offered in the internet as you spent time browsing the pages of different webpage. For some of you who are not familiar with the term Forex, Foreign Exchange is the market of currency trading. The currency of one country is traded with another currency with the aim of earning profit from the trade. Forex Trading especially for beginners is quite complex, that is why experience Forex Traders formulate Easy Forex Trading System.

Earnings on Forex trading are gain from the difference of values of currencies between the two countries. Trading Forex is done online since there is no central market for this trading. And since Forex Trading is done online you can trade for 24 hours. Certainly you can make a profit in Forex Trading, but if you are new in the trading you need to know the entire process of the trading in order to gain higher earnings. This entire process can be learned with an Easy Forex Trading Technique.

Forex Trading is rewarding much like the stock market that are traded in the stock exchange. Although it is profitable it is also severely unpredictable that is why timing in trading is very much important and wisdom of determining the right timing of when to trade is a by product of the knowledge of the Fundamentals of Forex and with the knowledge of Easy Forex Trading Technique. Since no one exactly predict the market movement and the element of risk is always there do not invest beyond what you can manage.

Now one of the necessary tools for an Easy Forex Trading is the availability of software programs that can do the analysis for you, although as mention earlier you as a trader must have at least the knowledge of the basics and fundamentals of Forex Trading. The rewards of good automated trading software (Forex Trading Robot) are many. One of this is that the program can operate twenty four hours a day, every day and with aide of this program you will no longer waste ample time in front of your computer waiting for the buy or sell signals.

If you invest on Easy Forex Trading Technique now it will bring you profit more than what you the cost of the acquiring the knowledge. So don’t waste time, LEARN, LEARN AND LEARN the Easy Forex Trading.

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Features to look before opening online trading account

People are looking to start their career in trade business as internet provides perfect platform to newcomers, with effective methods of finding the right kind of trading platform, you can go with the most desirable brokerage company that will provide benefits in form of features. While searching platform for trading, think about online trading facilities offered by companies. You will get the facilities on creating an online trading account with companies, first of all look at the method to create and account and what should be the responsibility shared with your brokerage company.

It will be an ideal choice to get the benefits in form of features; you can look into the new concepts which are good to manage your online trading account. Trading is a kind of business with great returns, you can look at different trading options which are best described as choices for which investors have to put money and get the benefits in form of returns. While looking to start a trade business, you should create an online trading account, it will be easy to find brokerage company where from you can easily start career in trading.

It is not that tough to create an online trading account, as we can look at the different sites where from it will be great to start your career. Trading business has putted many things arranged for investors as it is the best way to gain maximum profit in lesser time, you can begin the earning from the first day of investing. Keep your money on the stocks which are described as the best one to predict, you can take help of different guides provided at the blogs, which describe method to convert your money in large amount.

Nice thing about creating online trading account with Brokerage Company will be the effective methods utilized by investors as they get frequent updates on different sort of stocks and that will help choosing best stocks to put the money. Put money on stocks after looking at the past record of performance, you can easily get the information related to stocks by reading annual reports. It will be ideal chance for people willing to start career in trading, as they will get additional benefits in form of strategy development and plans to fulfill desire of investor.

If you are not satisfied with traditional or forex trading, and want to look at other options then better to go with trading options, it will be ultimate choice for all those people wishing to earn big from the trading and are going well in terms of money. There are many people around searching for trading options guidance, you will find that thing with the help of online platforms, where from learning is easier as compared to reading article.

About: – With trading options you can look at different prospectus to go with ultimate experience of earning high from stock market, create online trading account with reliable company so as to get tons of features.

Chart Patterns – Decoding the Market’s Message

As a new investor, you’ve probably had people tell you over and over that the only rule you need to remember is to always “buy low and sell high.” This sounds simple enough, and assuming that you have a basic idea of how making a profit works, it’s pretty easy to grasp, even for the brand new trader. The only problem is that it can be hard to know if a price has sun low enough or soared high enough, as the market is moving up and down all the time. What may seem like a good time to buy might be only the halfway point of a stock’s journey to lower prices. If you’re going to trade at the right time, you’ve got to learn how to decode the market’s message through chart patterns.

One of the best things about chart patterns in today’s modern market is that you no longer have to worry about tracking or drawing them by hand. There was a time when humans were responsible for finding out the range of prices that a stock enjoyed the day before, and plotting them on a graph for visual analysis, but those days are over.

When you first start to investigate chart patterns, you might be a little overwhelmed, because there are literally hundreds of different patterns, gaps, and trends that you can look for at any given point in time. But like anything, it’s important to start with the basics. One of the first patterns that new investors work on identifying is the head and shoulders pattern. This is a reversal often observed while the market is in an uptrend. Although the pattern tends to form while price is increasing, it ultimately signals that a downturn is on the horizon.

Another one of the most basic chart patterns to learn to identify is the candlestick. This pattern is constructed in such a way that traders can begin to see a relationship between opening and closing prices. The body of the candlestick shape is traditionally solid or hollow, with thin lines, known as shadows, tails or wicks, developing from the top or bottom of the body. These lines show the range of prices traded during that specific period, and can be used to detect a discrepancy between the actual value of the stock, and the public’s perception of value as expressed through price. Look for explanations of charts online, and practice looking for them in past market activity.

How to Overcome Negativity in Trading

Trading the Financial Markets can be a roller coaster ride. If you hit a bad patch and find it difficult to recover, then hang in there. But you need to learn to accept that bad trading results are part and parcel of trading and trading development. In can be tiring and once you are drained of your energy, very often, what is left is only a big portion of Negative Energy or what I call Negativity.

In trading and many things in life, Negativity is a dangerous thing to have. It is worse in trading because this is a lonely activity. Family and friends are normally sceptical about this career and, hence,traders lack the support from them.Here are a few examples of the issues that can be cause by Negativity:
Start of a Negative Belief Cycle. Eventually, in a worst case scenario, you might even stop your trading career.
Cause of more negative emotions which leads to negative trading results.
Cause of lack of desire and motivationto excel or recover With that, I hope to share with you some of the lessons that I have learnt in the past to over come negativity. Recalibrate your Emotions Instead of letting your negative emotions go viral (which is the start of the Negativity cycle), you need to (1) accept your emotions (negative AND positive emotions) and be fully aware of what you are going through. Remember that we are supposed to be emotionless? Since that’s often a difficult task, the next level down is to be fully aware of it and to take note of the actions that are churned out of these emotions.

Once, you acknowledge that emotions exist and you are aware of your reaction towards them, you need to (2) let go of them and recalibrate yourself.

For me, I like to read the article by Mark Douglas on the -5 Fundamental Truth about Trading- (see article). I know other traders who would shut down their computers and head to the gym. Meanwhile, others would find their own little way of doing it. For other methods, do read myarticleon “5 Simple Control Mechanisms” (see article).

The biggest problem with having strong emotions (be it over-confident or fear) is that it tricks you into making irrational decisions. Hence, the earlier you recalibrate your emotions, the better. Just do it In the book -Hedge Fund Masters- (see book) by Ari Kiev, he interviews many top traders and analyse them in various ways. One of the conclusions from his interview was this

-Your Own Thinking is the source of you Anxiety- This is absolutely inline with the phrase -Paralysis of Analysis-. Hence, the only other way to overcome this problem is to keep things simple and Just Do It.

For example, when you see a trade, the chances are you know if it meets your rules within 3 minutes of your analysis. However, some traders have a tendency to re-analyse the same trade for 5 times before making a decision.On the contrary, when you over analyse, negative thoughts and images start filtering your mind. In the end, you start becoming emotional and your decisions become irrational. Fine, this might be somewhat of an exaggeration, but I think you get the point.

Note: Do not confuse -Just Do It- with rushing over it. Trading is simple, if the set up meets the rules, take the trade. Done. Find your Mojo Mojo or self-confidence is crucial for your eliminating negativity. When traders are confident about what they are doing, they do not hesitate their actions nor do that worry about their results.

The key to finding your mojo is practice, practice and practice. If you keep practicing, you are indirectly building your positive belief cycle. They more you do it, (1) the more you belief in it, (2) the more effort you will put into it, (3) the bigger the actions will be, (4) the better the result and (5) the more it will reinforce your initial belief.

And that is the how you can continue to build positivity and eliminate negativity. Conclusion A trader once told me that making money from trading is not a question any more. The real question is “How much will I make and how can I be better?”

That is the kind of attitude that all traders should have – Positivity. To get there, the first thing you need to do is to eliminate any possible Negativity.

Thank you for reading and happy trading!!

Dabba Trading

As a part of the investor education, it is important to know the good as well as bad practices prevailing in the market. We often read about dabba trading, not being
permitted by the regulators. Many do not know the nmechanics, and also the risk associated with it, till now. Dabba means box and a dabba operator, in stock market
terminology is the one who indulges in dabba trading. His office is like any other brokers office having terminals linked to the stock exchange showing market rates of stocks. However, the difference is that the investors trades do not get executed on the stock
exchange system but in the dabba operators books only. A dabba operator acts as a principal to all the trades and not as an agent of the client. He is a counter party to the
trades, whereas, he should be the Clearing Corporation who guarantees trades on the BOLT/NEAT system. This kind of operation, where trade is kept within the books of
the operator is called dabba in the popular market terms.

A Dabba operator flouts rules and regulations relating to Client Protection, which includes registrations, margins, transaction, execution and settlements. Not only he evades the Income tax regulations, which prohibit dealings in cash, but also service tax rules and many other mandatory requirements.

It may be learnt that the Securities Contract Regulation Act permits securities transactions only through stock exchanges unless the settlement of the trade is done on
a spot basis i.e. the receipt and delivery of shares happen within 24 hours of the trade. But a dabba operator allows the client to carry forward the trade, be it in cash or in derivative segment for a period, not necessarily prescribed by the stock exchange. The cash trade is not settled on rolling basis and the derivative trade may not have a month-end settlement cycle.

In dabba trading, most of the times, neither written contracts are made, nor the bills are issued .The settlement cycles are authorized by the dabba operator, himself. There is no daily mark to market settlement if the trade is in clients favour, whereas losses are extracted regularly from the clients.

This presents before us the picture of an outlaw practicing amidst us, the organized price discovery mechanism of stock exchanges to run an illegal business, while maintaining the faade of a stock market broker. It is a criminal offence, not much different from smuggling or black marketing. As a result, frequent raids are conducted on dabba trading operators in which their computers and records are seized. Those working in his office are also taken in the custody just like drunkards found in the illegal toddy
shop. The Gujarat police has conducted several raids in the past and alerted citizens. Media has also played its role in reducing the menace of dabba trading. Some dabba traders hedge their positions in the market by partly executing the trade in the market,
maybe in their own proprietary accounts or some benami names. Dabba traders disappear when the market goes against them, resulting in huge losses for their clients. The brokers who permit such activity in their branches or even sub-brokers offices are the affected parties. Stock exchanges take complaints against dabba trading very seriously and enforce strict penalties. Even suspension is levied, if stock exchange inspections confirm the complaint.
As Sensex jumps, resulting in the spurt in trading activity, dabba traders bounce back in the business. Hence constant vigilance is required. Most important, people should not patronize such traders.

The clients patronizing such dabba traders may find some short-term benefits here. They do not follow Know Your Client norms; fill cumbersome forms, sign long agreements and requirements like PAN card. Margins are bypassed and leveraging is freely available. Unaccounted cash is used for making payments rather than making payment by cheque. It must be understood that dabba traders are fair weather
friends. They seldom honour their commitments, particularly when market is against them. Dabba shops close overnight, with traders disappearing from the locality. They go to the extent of employing goons for the recovery of losses. In such a case, neither Stock Exchange Arbitration is available to the investor nor there is any access to customer protection funds. The Security blanket provided by the Security Market
Regulations is also not there.

India is a country where the respect for law is scant. Our holy epic Ramayana prophesies compliance of the law. Sita was kidnapped by Ravan because she did not follow the instructions of Lord Rama and crossed the Line. Inspite of our rich cultural past, we demonstrate noncompliance to our children, early in their lives. We notice
parents as well as teachers breaking traffic signals just outside the school campus, as there is no penalty levied. Such small instances showing indiscipline grow leading
to casual approach towards law.

Globally, Indian Securities Markets have earned a Place of Pride. Indian investors have gained a lot from the rising indices. Let us be alert citizens and report all instances of dabba in our locality.

Remember healthy market is the foundation of wealth creation.

Buying gold on the stock exchange?? Impossible, it is a commodity; we have to go to the commodity market. Well, buying gold on the stock exchange is now possible with the eminent introduction of Exchange Traded Fund that will invest in Gold only. ccumulation of gold for a marriage in the family is a popular Indian custom. Instead of physical acquisition of gold or demating the same we go a step forward and buy shares that
represent gold. Let us first understand the concept of Exchange Traded Fund (ETF) then understand about the advantages of buying gold ETF.

EFT is defined as a security that tracks an index, a commodity or a basket of assets like an index fund but trades like a stock on an exchange and experiences price changes throughout the day as it is bought and sold. ETF were first launched in 1993 in United States. Their popularity as a structured product has grown immensely because of the benefits it provides to investors and traders. The issuance of EFT is just like a
primary market IPO or a mutual Fund NFO. Shares are issued by the Fund manager and listed on the exchanges. Investors can buy and sell these shares from the secondary market through their brokers. ETF are often called as index shares, are a hybrid of index mutual funds and stocks. Some popular funds are

ETF nameETF SymbolUnderlying Asset which it tracks
StreetTracks Gold SharesGLDGold
NASDAQ ETFQQQQNASDAQ
SpiderSPYS&P 500

The advantages of a Traded fund shares are :
Tradable and diversifiable: ETF offer a unique advantage as they are diversifiable like mutual funds and also can be traded like stocks. Mutual funds cannot be traded each day like a stock.
Low cost: ETF like an Index fund does not require active fund managed and is therefore cheaper as passively managed.
Transparency: ETF is a very transparent instrument, as everyone knows the underlying asset.
Makes multiple trading strategies possible: Arbitrage opportunities between cash and futures market can be availed at low cost. Trading strategies can be applied with stop loss orders.

The disadvantages are:
Broker and commission costs: ETF are traded through brokers and hence every time brokerage has to be paid which becomes costly affair if regular trades are done.
Premiums and discounts: An ETF might trade at a discount to the underlying shares. This means that although the shares might be doing very well on the bourses, yet the ETF might be traded at less than the market value of these stocks

There are different types of ETF unlike close-ended funds can create or cancel units as investors enter or leave the fund. The size of the ETF, rather than the price, will fluctuate based on the demand and supply for the ETF. There are several ETF launched till date
they can be broadly categorized as follows:
Global ETF: There are ETFs tracking indices beyond the domestic markets. Ex specific regional funds that track fast growing markets in China and Korea.
Fixed Income ETF: ETF tracking fixed income products. ETF in this case may declare and pay dividends.
Commodity ETF: ETF that track commodity or commodity indices take advantage from the gains in the commodity market.
Currency ETF: ETF tracking currency or currencies. Ex ETF- Euro Currency Trust
(FXE) was introduced in Dec 2005 which trades on the NYSE. Hence investors can
take exposure in Euro through this fund.

It is also important to understand the difference between a Mutual Fund and ETF :
Trading in ETF takes place on the stock exchanges during trading hours. The Mutual fund units are however purchased from the Mutual Fund at NAV at the end of the day. The expenses are low in an ETF since there is no active fund management involved as in case of mutual funds. The costs in mutual funds are higher in short term since they are subject to load fees, annual management fees, exit fees etc. These are intended to discourage frequent trading. Dividends are rarely made in EFT whereas there are frequent dividends made depending upon the stocks the mutual fund is holding. As per Indian tax laws redemption amount received from mutual fund units are not subject to tax, however in case of EFT if representing gold, which is a commodity and not stock there would be tax payment in event of appreciation. ETF are regulated by the same authority, which regulates mutual funds. In the Indian context SEBI is the regulator.

ETF is not a new concept in India. There have been two ETFs launched in India one is based on Sensex which was called Spice and another was launched with Nifty as
an underlying asset, it was gold Nifty Bees. However both these instruments failed to attract the attention of investors. These instruments allowed the investors to buy index in the form of shares. The investors apparently preferred to buy shares included in the index directly by buying index baskets or purchased index in derivatives
markets.

Falling interest rates has forced Indian household to look at other classes of assets to hedge their portfolios as well as improve the yield on their basket of assets. Given
the fascination for gold among Indians the current launching of gold-based EFT has obvious advantages. Gold can be bought like a share on stock exchanges; storage will be done by the Fund manager, no security risk, no impurity risk, and no cost of making charges. Costs will be low and same channel of trading and delivery like shares will be used. Innovation of products in Indian markets is welcome. Time will tell whether despite obvious advantages Indian savers will continue to buy gold from jewelers and banks or from the stock exchanges.