The Frontiers Of Trading

By:  Ivan Cavric Bollinger bands will help you to predict big trending moves, act on big trend reversals and finally, time trading positions with greater accuracy for bigger profits.   Here we have related Bollinger bands to the currency markets (as it is here that they are most useful) - but they are useful in all financial markets. What are Bollinger Bands ? Developed by John Bollinger , Bollinger bands are volatility bands drawn around a simple moving average.   You calculate Bollinger bands using the standard deviation of price over the same period as moving averages and plotted as lines above and below the moving average. As moving averages have been traditionally used to identify the underlying trend, Bollinger bands combine this with the volatility of the individual market (or the standard deviation) – to plot a trading envelope.   The distance between upper and lower Bollinger bands reflects the volatility of the market traded.   As prices force themselves away from the longer-

By:  Ivan Cavric Forex trading strategies are the key to successful forex trading or online currency trading . A knowledge of these forex trading strategies can mean the difference between a profit and a loss and it is therefore imperative that you fully understand the strategies used in forex trading. Forex trading is very different from trading in stocks and using forex trading strategies will give you more advantages and help you realize even greater profits in the short term. There are a wide range of forex trading strategies available to investors and one of the most useful of these forex trading strategies is a strategy known as leverage. This forex trading strategy is designed to allow online currency traders to avail of more funds than are deposited and by using this forex trading strategy you can maximize the forex trading benefits. Using this strategy you can actually utilize as much as 100 times the amount in your deposit account against any forex trade which will make back

By:  Ivan Cavric Forex trading systems are all about getting investments into the foreign markets. Foreign exchange markets are abbreviated to be called Forex. The worldwide trading of stocks in companies and in products happen over the Forex trading system. There are over a trillion dollars traded on the Forex market everyday. You can learn to chart and follow markets in the Forex trade world on your own, or you can rely on a broker as you would in the New York stock exchange. The Forex trading systems are similar in method, but each is a proven method of how to make money, how to learn about companies and how to follow what is going on with the money you are investing in the Forex trading markets.  You can live anywhere in the world and trade stocks and investments in the companies that are involved in the Forex markets. There are no limitations to the money you can make, or the money you can lose. The Forex markets can be tapped into online, over the phone or by contacting a broker

By:  Ivan Cavric Between 5 p.m. EST Sunday and 4 p.m. EST Friday, there are millions of Forex traders around the world trying to make a profit by predicting the future movement of currency exchange rates. With nearly 1.8 trillion dollars changing hands each and every day, the Forex is the largest and most fluid market in the world. Traded 24-hours a day and with investors having instant access to price changes via an Internet station, it is literally possible to watch one’s fortunes ebb and flow—one pip at a time! A pip is equal to the smallest price increment that any currency can make. For the U.S. dollar and most major currencies, that amounts to 0.0001 (0.01 for the Japanese Yen). While it seems near impossible to make any money when dealing with such small numbers, the standard transaction unit on the Forex is $100,000 and is called a lot. Thus, the movement of just a few pips in either direction can turn into big profits or big losses—real fast! In truth, playing the Forex is muc

By:  Ivan Cavric Back when I first started learning about investing, I decided to start from the beginning and read basic books on personal finance as well as “guides” for understanding all of the investment world in a nut shell. Most of these authors were very knowledgeable and informative, but their investment advice was far too conservative for my taste. They would literally write chapter after chapter talking about the differences between conservative investing, which according to them generally yields somewhere around 5% PA, as opposed to “risky” investing which usually meant a diversified stock/mutual fund portfolio yielding (in my mind) only slightly higher averages. What kind of returns can you expect in the stock market? Well they say the market has gone up an average of 10% a year since Adam and Eve. Popular indexes like the DOW and the now more popular S&P500 have always, like real estate, “gone up over time.” Now, these market averages are almost worshiped like golden c

By:  Ivan Cavric Step One:  Plan for the Unexpected Big Time Bill  The first step arises from debt from a one-time large expense - something that is too large to be paid for with your monthly paycheck, or by saving for a few months.   Many of these debts are investments in either an asset that will appreciate over time, or a income stream that will be greater over time.  The most common example is the purchase of a home.  Very few people are able to save enough money to purchase their home outright, or pay for their entire home out of a few paychecks.  We use a mortgage to pay for the home after-the-fact, and to enjoy home ownership in the meanwhile.  Another example is investment in education.  Many people cannot afford to pay for college tuition outright - so we take out loans, planning that our future income stream will enable us to be able to afford to pay for the education after-the-fact.   The more insidious type of one-time large expense is the expense that is not an investment.

By:  Ivan Cavric Anyone who is vaguely familiar with gambling knows that the house has the odds in their favor. Do some people leave a casino with large winnings? Yes, but that's because they left before they lost it back to the casino. If they had won and then continued to play long enough it is a mathematical certainty that would lose all of it back to the house. I watched a program one time about a group of students from MIT that had developed a system to beat the odds in blackjack. The program stated they had won large amounts of money before they all were blacklisted from the casinos. The system they used involved waiting to place large bets only when the cards were in their favor. This system works, it's called card counting and others have used it to win in blackjack also. By placing minimum bets on almost all the hands played they controlled their losses. When the cards left in the deck were in their favor they would place large bets and win most of the hands. During th

By:  Ivan Cavric The Forex (Foreign Exchange Market) exists because multi-national corporations and nations need to buy and sell goods/services from outside sources.  To do that, they need to exchange their home currency with that of other nations.  As you know, not all currencies have the same buying power so nations, banks, and corporations exchange their money with one another just as tourists do when traveling abroad—same concept, just a LOT bigger scale! In fact, the Forex is the single largest financial market in the world and upwards of 1.8 trillion dollars are traded every day—between the hours of 5 p.m. EST Sunday thru 4 p.m. EST Friday.  Between those hours, the Forex market is open and there are always brokers out there willing to buy and sell positions.  However, unlike the NYSE, there is no centralized exchange but rather an informal network of computers supplied by investment houses, central banks, and other large players which help facilitate the trades. The Forex market

By:  Ivan Cavric "Easy money" is the allure that captivates many beginning FOREX traders. FOREX websites offer "risk-free" trading, "high returns", "low investment." These claims have a grain of truth in them, but the reality of FOREX is a bit more complex.  Mistakes Of The Beginning Trader There are 2 common mistakes that many beginner traders make: trading without a strategy and letting emotions rule their decisions. After opening a FOREX account it may be tempting to dive right in and start trading. Watching the movements of EUR/USD for example, you may feel that you are letting an opportunity pass you by if you don't enter the market immediately. You buy and watch the market move against you. You panic and sell, only to see the market recover.  This kind of undisciplined approach to FOREX is guaranteed to lose money. FOREX traders must have a rational trading strategy and not make trading decisions in the heat of the moment.  Understandin