Forex Training | Forex Trading Videos | Currency Trading | Forex Analysis | Learn to Trade

Forex Training | Forex Trading Videos | Currency Trading | Forex Analysis | Learn to Trade
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Thursday, December 27, 2007

Free Forex Training Video - Possible Trade Entry Video GBP/JPY

Free Forex Training Video - Possible Trade Entry Video GBP/JPY

Entering and exiting a trade is everything when trading. It's all about timing. Here is a great example of the forex market behaving as it always does. When I first looked at this chart the emotions kick in and it looks like a great opportunity. But then when my experienced eye kicks in I see that the move is almost over and I should not join the crowd. Instead my technical analysis tells me that it is time to wait.

I and you too should be doing a lot of waiting in the forex market. If you are waiting then you are trading. If you are always trying to make something happen, then you are a member of the heard.

There are always entry and exit signals that have specific technical analysis basis, those entry and exit points are the tools that make very successful traders.

I also mention in this video the difference between trading systems and trading methods. A trading system in a hard core set of rules that governs entry and exits, whereas a trading method is what an experience trader uses. A trading method is a method of trading based on special knowledge and experience, it understands that each situation is different and allows the user to make more accurate assumptions that a trading system can. A trading method is a living and breathing method whereas a trading system is not. A trading method is much better suited for the living, breathing markets.

I hope you enjoy the video looking at technical analysis of the GBP/JPY. Please contact me and give me your feedback, or comments.


This is a 25 min Video. Wanted to let you know before you dove into watching it.

*UPDATE* - since this video was created you can see that the support resistance zone was broken and the currency pair is headed down. I will continue to stay out of this pair on the short term until something more substantial starts to happen. I am anticipating something relatively soon, but it may be after the new years before anything really starts happening.

video

Forex Training Forex Trading


Live abundantly and then share that abundance.

It's time to make the world a better place.

-Mission

Friday, December 14, 2007

Forex Trading Systems | Forex Software - What's the difference?

Free Forex Training 102 - Forex Trading Systems Forex Software - what's the difference?What core things do successful Forex Traders know?

Forex Training Forex Trading

I found a good press release today that has some good comments that I wanted to share with you. I have bolded some of the key points that are important in forex trading.

Below is a direct quote from the press release:

"There has been significant bad press specifically on forex trading software, and there are certainly some scams online to be aware of, however there are most definitely bonafide options as well. Using forex trading software and systems eliminates the risk involved in currency trading, as Andreas Kirchberger of Forex Killer states "proven software which does the thinking for you and therefore eliminates the human error factor".

There are essentially 3 main factors of successful forex trading software and systems. Firstly selecting your term of trading is crucial to your currency trading success. There are essentially 3 time frames: long term, medium term and short term. The long term trader will hold on to their currency for months. The short term trader, sometimes known as a scalper, is seeking quick fire trades and immediate profits. The medium term trade is the lowest risk option, and require the least amount of capital to realize profits.

Justin Kuepper, a contributor to Investopedia.com, suggests favouring a medium term trade will "help you save money and ultimately become a profitable retail forex trader".Secondly, analysis of technical statistics is required. The currency marketplace is essentially a continuous supply of data which needs to be interpreted and correctly exploited for profit. One needs to be able to understand market fluctuations and be aware of key indicators of a market swing.

This is the attraction of forex trading software, as it will interpret this data and help you make educated decisions on future trades more frequently.Finally, timing of your trades is crucial to your success. John Chen of Profitable Trend Forex System attributes timing in terms of joining a trend as a key ingredient in currency trading success. There are essentially two main orders or decisions one needs to incorporate in one's forex trading system, theses are 'stop loss' and 'take profit'. 'Stop loss' is an order to cease trading when the currency reaches a certain point. 'Take profit' is a more conservative approach to a market upswing, which will result in profit, but not risk a massive collapse." This article comes from 24-7pressrelease.com and is referencing the forextradingsoftwarereview.com website. I did not write the article I am just citing it and want to document where it comes from.

This is a really good article/press release that has some really good points about what profitable forex traders do. Here is my summation and added comments to this article.



  1. Forex has gotten some bad press lately - The forex market is a wonderful market, lets get that straight first. However, there are scams and questionable brokers around every courner. With the right education you can identify these with ease and have a great forex experience.
  2. It is not illustrated well and I will clarify this more in my following Forex Trading Software vs. Forex Tading Systems post - There is a big difference between forex trading software and forex trading systems. One step farther is that there is a big difference in following a forex system blindly or actually knnowing everything about that system and the trading methodology. This only comes from quality Forex Training, this type of forex training is rarely free. If the demand is great enough and you would really like to learn more about forex training, I have an idea that could give you the forex training for less than your monthly starbucks cost. But I won't waste my time if no one is interested so please contact me.
  3. Your term of trading - or your trading style (scalper vs. swing trader vs. investor) makes a big difference in your time investment, your stress levels, and your forex career. What I share with you is going to the medium term style as is what you can do easily without quiting your current job, it takes very little time per day to do, and you can produce expert level gains and results with this term.
  4. The medium term forex stylecombines the best of the highest reward with the lowest risk (scalpers have the lowest risk, however they also have the lowest profits per trade. They make up with this by the number of trades they make - sometimes a hundred+ per day, we don't have this kind of time to invest and we can do the same with a few minutes per day).
  5. Technical analysis of statistics is required (in our language technical analysis is required). That sounds really hard, but if you see that this line "/" is sloping up and this line "\" is sloping down, then you can do technical analysis.
  6. Successful traders uses analysis to determine when to enter and exit trades
  7. Some people use Forex Trading Software to give them signals. I personaly do not trust software, and I know for a fact that it does not always work!!! I will explain this in my following Forex Trading Software vs. Forex Tading Systems post. Trading software tells you when to buy and sell. Easy right,,,,that's what I want!!!! Well it's not that easy. These systems work well during trending markets. So you can make huge gains during a trend, and when you get to a correction you end up loosing it all if not more. OUCH!!! Yes I have been there.
  8. People use Forex Trading Systems to trade by looking at the technical analysis indicators and getting buy and sell signals from those indicators. When looking at the charts you can also take into account other little things, like cases. "Well in this case you would do xxxxxxx, and in that case you would do yyyyyyy" This is something that Forex Trading Software does not do a good job it. It is not human and cannot make those type of descisions.
  9. #8 leads me to this point and that is that taking the last bolded item of the article. Taking the signals (timing) in context or in conjuction with the overall trend of the market is very key to a Forex trader's success. Always go in the direction of the trend and trade with common sense, something a computer does not have. This may all be greek to you but with the right forex training this becomes very elementary and easy.

I have developed over 40 automatic trading advisors, I am an engineer by education and know a thing or two about computer programming. It has taken me a very long time to develop a trading advisor that works. I'm in the long phase of testing it. It is the closest thing to being intelligent enough to know to only trade during tending markets and to not trade during corrective periods.

Trading advisor & automatic trading programs (they execute the trades for you while you are out on the beach) are very hard to come by, the ones that are profitable and work are worth millions of dollars and will only be sold for that. It is much easier for you (unless you have a couple of million dollars to purchase one of these) to gain your forex training and start trading on the medium term time frame.

Forex Training - will never fail you (only your emotions will)

Forex Systems without education - Will produce profits, and will produce losses, you are at the mercy of how much either of those are by cercumstance and luck.

Forex Software - Same as the forex system but can get you into bigger trouble due to the fact that you could be in a corrective period and the software could give you numerous false signals resulting in numberous consecutive loosing trades.

Get you forex education is by for the best means of creating a successful forex career. You won't need anything else except a computer and an internet connection.

If you are interested in me creating a good educational source please contact me. You guys/gals have been great so far and I just wanted to thank you for coming to my blog, you inspire me.

Live abundantly and then share that wealth with those who need it.
-Mission
Forex Training Forex Trading

Tuesday, December 11, 2007

Free Forex Training Video - Protecting Profits in the GBP/AUD Part 4

Free Forex Training Video - Protecting Profits in the GBP/AUD Part 4

Hey Everyone,

Some interesting things happened on this trade. Well I say interesting when really this is kind of normal for the forex market.

I'm so accustomed to the forex market that when you guys come to me for help that I typically respond with what are you talking about, it always happens likes this. This has been actually been an interest of mine over this past month. I have a retirement account that I am still managing and it has just been funny lately, when really it is the same old thing. I've just been growing accustomed to the forex markets. Friends, I always tell people that they need to trade at a minimum of 3 months in a forex demo account before live trading.

Please hear me on this one!!! Look at the gains that I am getting on these trades...it is realistic to double your account every couple of months. REALLY LISTEN TO ME NOW!!! If you could double (that is 100% rate of return on your entire account balance) in 6 months (and we can do it every 3 or 4). Is it worth it to take a little break and "LEARN" the markets, get a feel for the markets, get all messed up like me because you are accustomed to the forex market. This is what you want...I cannot stress enough how lucrative this market is. Now outside of brokers, we have to be better than them. Only 5% of the traders out there can have the success that we are seeing here. Stand by be and you will be in that 5%.

So how to we double our accounts? lets say I risk 3% of my account balance on every trade. I have $10,000, so I riske 3%...that is risking $300. Got it? if not contact me, I want you to make money...so please ask me, I WILL answer any question you have. So we trade with $300. Lets say that I can average 100 pips per trade (I believe I am averaging about 135), So that means that I am make $300 on my 1st trade. I then have $10300 and I riske 3% = $309 (so we stick with our .3 lots or $300 risk) (1 lot trades in the forex market = $1,000 of currency, this would be trading with .3 lots = $300) So now we make $318 with our 100 pips profit. So now our account balance is $10,627. What is 3% of $10600? It is $318. So we are sticking with our $300 risk or .3 lots.

BORING...right!!!! So If I'm making a little over $300 per trade on average (forget the compounding interest), how long does it take to double my account balance. 34 trades is how long. Well I get this many pips every other day or 2 or 3 days. So that is why I say you can double your account balance every 3 or 4 months. I make BIG PIPS, period! That how I trade, my mediocre trades are 100 pips, I get 200 - 700 pips all of the time! I have even had a few 900 - 1000 pip trades. Trading in this manner is also the easiest on you, it's the funnest. I mean how many people can turn $100 to $1000 in one to 4 months time?

HONESTLY....its REALLY boring though! This is not fast money....Could you? Well yes, I'm tempted all the time....(Mission....you make 100 pips profit all the time, why not risk 50, 70, 80% and make some big bucks).....well, it never works out that way. WHY? Emotions! Its a lot easier to see a -100 pip move on $300 (it's only $300 and I made that yesterday), and so I am confident in the indicators and the trends and everything else (yes, I make mistakes too when I enter the market but the overall trend takes care of everything). Then the trade works out...it always does, and I can manage the trade better that way. But when I see that I'm -$7000 on an account, no one can take that kind of loss in a day, or hours, or even minutes in this market. So you close the trade for a HUGE loss!

So if you are looking for excitement (pants flaming and leisure suites in Manhattan), then you've come to the wrong place.

All we do here is make money, in a very boring way. Sorry for the disappointment....but I at least hope that you like the video!!!

In this industry we ALWAYS use stop losses!!!! PERIOD! Now I have traded without them, but this was a big mistake. Don't loose $15K on one trade like I did because of no stop loss. Yes, I have lost, so listen to me when I harp! Lucky I make $17,400 a few hours before on 4 trades. It still REALLY hurt though. I couldn't trade for a week after that.

Forex Training Forex Trading

Have fun guys!!!

Enjoy



Live live abundantly.
-Mission

Monday, December 10, 2007

Part 3 Stop loss-Free Forex Training Video

Free Forex Training Video - Protecting Profits in the GBP/AUD Part 3


Hey Everyone,

I'm glad that you've made it back. I'm continuing to show you what kind of profit potential you can make and how we can lock in profits using stop losses in the forex markets.

This is a short little video showing you that I'm moving the stop loss to another support / resistance zone where I know that if it breaks that zone it will continue to move the opposite direction for a more substantial retracement.

I'm locking 134 pips profit and sitting at about 280 pips profit for the trade.


Forex Training Forex Trading

So I hope that you enjoyed this little video and please "digg it" to the right as this helps other people find this great information so that we can protect them as well. Believe it or not, the more people that find this great industry the better trading opportunities we will see.

If there is a certain topic that you want me to cover please get in touch with me and I will focus on that topic next.

Live abundantly!
-Mission

Saturday, December 8, 2007

Stop Losses Continued GBP/AUD : Free Forex Training Video

Here is the continuation of the 1st Free Forex Training Video covering stop losses and how we use them to protect ourselves and lock in profit.

I really hope you enjoy this video I had fun making it and adding in the extra tidbit of information that I find quite amusing.

I'm really glad to see that you guys are loving this stuff, and that gives me the fuel to give you more great information. I'm making 200 pips profit in this trade, that should prove to you that we are going to see some good things here.

Enjoy!



video


Forex Training Forex Trading

Have a great day!, and I will post more soon.

Live Abundantly and then Share that Abundance
-Mission

As an aside, there are some great things happening in the markets right now. The USD looks strong and there are some opportunities that may be coming up soon.

Disclaimer: Remember, all the opinions and thoughts are my own personal opinion and should not be taken as trading advice and you should always get advice from your financial advisor before taking any actions.

I really don't like that in this day and age we have to use disclaimers!

Have a great weekend!

Thursday, December 6, 2007

Stop Losses - Free Forex Training Video - Locking in profits and protecting accounts

Free Forex Training Video on the use of Stop Losses in the Forex Market:

I wanted to get some video content up and show you how we protect ourselves in the Forex Markets when we are forex trading. We want to do 2 things:

  1. Protect ourselves from massive losses
  2. Lock in Profits - so we can be happy and breath easy!!
I hope you enjoy the Free Forex Training Video on stop losses. Please digg it, stumble it, blink it, whatever you use if you like it.



Forex Training Forex Trading

Have a great day and we will learn more about forex training soon!!!

Live Abundantly and then Share that Abundance
-Mission

Monday, December 3, 2007

Forex Training 102 - FOREX BROKERS! -- PART 3

Forex Training 102 - FOREX BROKERS! Who do I give my money to? Whose advice and training do I trust? -- PART 3


Let’s talk about brokers in the Forex industry as a whole as part of your premiere free forex training.


THIS IS A VERY IMPORTANT POST. PLEASE READ FOR YOUR PROTECTION!!!


From Part 2 we have a sense of how to determine what kind of broker we are dealing with.


There is another very important topic I want to cover and that is concerning training. I have been doing Technical Analysis for over six years now and know quite a bit about trading in all markets. I have invested thousands of dollars in my trading education and have receive a very good one. I feel that the difficulty of the material…these secrets are not worth paying thousands for, however the few that are teaching the secrets are controlling the price because they know people with pay it or they won’t invest and that is fine with them.


The next thing I want to cover is all of this FOREX TRAINING that is out there. Have you noticed that all the free training out there is BROKER DRIVEN? This is clearly evident when you go to the site that is offering the free training and there is nothing but advertisements about brokers among everything else. Something that you as a consumer must know is that you are entering a new world. That world is the currency exchange world. This world is entirely online and is a global world, a world that is deregulated, a world that is making more money that any other industry. So then you tell me, “Well Mission, I want to be a part of that world!” There are two money making aspects of the forex world. One is clearly by the traders who reap in huge profits in this industry (by the way, only 5% of forex traders are these guys), the other money making aspect of the forex world is on the brokers side, the side we cannot get a hold of unless we are the one’s scamming people out the their money and getting paid by the brokers (that’s just not my style). So excluding those big traders (the banks and very select few), we are talking about small traders, you and me. The guys who trade with less than hundreds of millions of dollars. There are a lot of us out there, and we are hungry to be in this market. Statistics in the forex market shows that most people loose money in the forex markets and the brokers are banking on this. So what happens? To continue making profits the brokers have to lure more people into this market. How do they do that, by offering more incentives, some like free training? They also boast no commissions; the commissions are just built into the trades with the spread (well go over this later). This also ties into PART 2 of the previous post, can you see how the bad brokers can take advantage of all of this.


An interesting fact to know is that brokers are paying massive dollars for marketing, pay per click advertising for the forex industry is some of the highest paid. These guys are making so much money and most forex traders that I know are loosing money. The money is going somewhere, with some careful attention you can see that the brokers are ending up with it.


The brokers can care less if you loose all of your account or not, they would actually like you to slowly loose your account balance because then they would make more money. This wild world of forex trading can be very easy if you have the right education, but what kind of education do you get from the brokers. Honestly it is very basic, and had been available online fore free more many years. You have to be very careful with your brokers. Chose a broker that is not concentrating on training, and get your training elsewhere, chose your broker by Part 1 & Part 2 of the FOREX Trading 102 posts. There is training available out there that is relatively cheap. I say cheap because remember in the forex you can make 100% profit on 1 trade which I will show you in a video soon. So let’s say you invested $500, there are training programs out there that will pay for themselves in 1 or 2 trades.


It is critical that you get educated before investing money in the forex market. It is critical that you practice in a demo account before you invest any hard earned money. I cannot give you all my secrets here, but a can give you a lot of them. Most of all I want to educate you enough that you can make informed decisions about brokers and also about trading. I want to keep you from making the same mistakes that many people are still recovering from.


I don’t mean for these first few post to scare you out of the forex marker, it is highly rewarding and fulfilling. There is just some work that we must do before we blindly jump into the market.


Hang with me and I’ll be showing some cool stuff coming up in the future. Some real life trades!


Live abundantly and share that abundance with others!


Forex Training | Forex Trading

Friday, November 30, 2007

Forex Training Trading 102 - FOREX BROKERS! Who do I give my money to? Whose advice and training do I trust? -- PART 2

Forex Training Trading 102 - FOREX BROKERS! Who do I give my money to? Whose advice and training do I trust? -- PART 2

Let’s talk about brokers in the Forex industry as a whole as part of your premiere free forex training.

THIS IS A VERY IMPORTANT POST. PLEASE READ FOR YOUR PROTECTION!!!

In the last post I left you at the Swap Test for brokers and how to determine what level of integrity the broker has.

Test 2 is the ECN test. This is going to take some explaining so I’m going to first teach you about the different orders system and how 1 is corrupt and the other is legitimate (in my eyes at least).

Simple Definition:

ECN = Electronic Communication Network – An electron system that brings buyers and sellers together for the electronic execution of orders / trades.

Order House/Market Maker = A broker that takes orders and may not necessarily place that order on the ECN to complete the trade. The broker may find 2 people within the firm that match up and complete the order that way.

You have to call up the broker and ask them what their structure is and how they place their orders. They should tell you (without thinking about it), that the orders go straight onto the ECN for execution and they do not handle any executions of orders, they just submit them via automated computer means.

The other type of broker could hold your order and bet on you loosing you money. So they will show you (virtually via the data stream) that you order went through, they hold the order in their “safe keeping,” betting you you loosing money (since most people do in the forex – because they don’t invest in their forex trading education). So you loose some money, but really that order never went to the market, the broker just kept it the entire time. This may not seam like a problem at first but what happens when you invest in your education and you end up making huge gains time and time again? Well since they didn’t put that order on the market, they will be responsible for taking money out of their account putting it in yours, which they will not like very much.

This type of broker may also have the ability to manipulate the data stream, so lets say you have a trade in place with pretty substantial stop loss (your protection point – a stop loss liquidates your trade at a price that you set that if it breaks you know the trade was wrong, protecting you from massive losses). If the bad broker has flagged your account as being a big winner and a risk to them, they will look at your stop loss and can manipulate the data engage your stop loss, after several of these they will have all of their money back.

Another question to ask them is if you place a trade with them can you see the trade go through on the level II (level two) data? If they say yes, ask what name it will appear as. If they cannot provide the name, beware, if they say no, beware. No I have not told you what this is yet, and it’s a little more than this post can handle. I am considering making a video to better illustrate this point.

This is a good breaking point for today….

To be continued……

Live abundantly and share that abundance with others!

Forex Training | Forex Trading

Thursday, November 29, 2007

Forex Trading 102 - FOREX BROKERS! Who do I give my money too? Whose advice and training do I trust? -- PART 1


Forex Trading 102 - FOREX BROKERS! Who do I give my money to? Whose advice and training do I trust? -- PART 1

Let’s talk about brokers in the Forex industry as a whole as part of your premiere free forex training.

THIS IS A VERY IMPORTANT POST. PLEASE READ FOR YOUR PROTECTION!!!

I’m about to make a lot of brokers not happy with me, but it is my duty to tell you that the forex industry is not all that credible. There a lot of shady things going on in the forex market and its not something that we can really prove is going on. There are some tests that we can do to see if we can get the sense that our BROKER is cheating us.

The Forex market is a market that is traded electronically around the world so you have the virtual trading floors all over the place throughout the world. There are different laws and regulations all throughout the world so as you could probably imagine the forex market is the wild west of the 21st century.

Let that sink in. It is your responsibility to know that you are in a very risky, wild, frontier. That no one will protect you here and that you are on your own. At the same time the rewards of taking on this challenge are unbelievable! You WILL win big!!! You will loose! Its how we win and how we loose that determines whether we win our financial war. Another note to take is that when you win big, don’t get excited about it, it’s part of the job, and when you loose, don’t get excited about, it’s part of the job.

Now back to brokers! There are 2 types of brokers, ok ones, and bad ones. That’s about it. Now the brokers have their own challenges to deal with and we don’t make it any easier on them, but that is all the slack I’m going to give them.

There are 2 areas that we can look at with brokers that give us an idea as to which side of the line they lay on. These are 2 policies the brokers operate by and they are:

Swap Rates Test – The easiest to determine & most brokers will not pass this test

ECN Test – is to determine whether the broker is an ECN broker or an order house/market maker/bucket shop – more difficult to determine – usually take calling the broker and talking to someone. (Update…this will be covered in the next post, the to be continued post that I will post very shortly, like tomorrow…this is in an effort to keep the post to a length limit for your convenience).

To keep this post shorter I will only cover the simpler swap rates and a generic question to call the broker with to determine the broker’s integrity.

Let’s talk about swap rates. What is a swap? A swap is a funny thing that the brokers are required to do. Basically the brokers are not allowed to hold a trade over night, so they must swap your trade out with a fresh new trade. You never see this happen and everything still looks the same but when this actually takes place someone has to pay for the swap. What that payment is, is interest. Depending on the position or direction of the market the swap/interest rate is either positive or negative. So let’s take the EUR/JPY and buy it (buying the EUR) and hold it anticipating that the trade is going up. When I hold it over night, the broker swaps it out, and because of how the finical markets work there is a +swap/interest payment that gets paid to me. So I make money on top of money. This Japanese Yen position is actually called the CARRY TRADE! Interesting right? Take a look at any JPY chart and look at that very long term trend, and then remember the words of Alan Greenspan talking about the unwinding of the carry trade. This is a whole other topic all together.

So we can either have to pay out swap rates or receive swap rates for holding trades over night. Well the brokers determine what the swap rates are. They have to pay or receive a swap rate themselves when they make the transaction and they basically give you a cut of that. You will notice that a swap is greater in one direction or the other. We use these numbers to determine the integrity of the broker. If the swap rate is a 3:1 ratio this is not good. A 2:1 ratio is the least that we will take from a broker. The ideal case would be a 1:1 ratio. Now what do I mean about all of this?

Simple Definition:

Swap long = the interest paid or deducted from you while holding the trade over night for a long position - meaning we buy the Euro in anticipation of the chart increasing in value.

Swap short = the interest paid or deducted from you while holding the trade over night for a Song position - meaning we buy the Dollar in anticipation of the chart decreasing in value.

Let’s take the swap rate for the EUR/USD of an unnamed broker:

EUR/USD:

Swap Long = -.29 (when I buy the Euro vs. Dollar to go up I will have to pay an interest charge every day I hold this)

Swap Short = .21 (when I sell the Euro vs. Dollar to go down I recieve an interest charge every day I hold this)

When we compare these rates we just divide the 2. For this example this shows that the broker is taking their cut, but not taking complete advantage of us. This is actually a really good rate.

.29 / .21 = 1.38 or 1.38:1

Lets look at some more currency pairs…

AUD/CAD: Swap Long = .2 / Swap Short = -.36 -- .36/.2= 1.8 or 1.8:1 = acceptable

GBP/JPY: Swap Long = 3.02 / Swap Short = -3.87 -- 3.87/3.02= 1.3 or 1.3:1 = acceptable

When you see a currency swap rate this is: 1.75/.6 = 2.9:1 which is unacceptable this is a broker who takes advantage of you.

So it looks like this is a good broker….so far (& I hope so since this is my broker). Go ahead and do this for every currency pair, it is a good exercise and can be easily done in excel, this will also serve as your record when brokers want to change swap rates on you.

Brokers change their swap rates, so be careful of this. I called this broker who is not in the U.S. and talked with them and told them that this is how we as customers evaluate them. I complained to them because they increased their swap rates to a ratio of higher than 2:1. Within about 3 months they switched the ratios back, and since that time they have even gotten better.

So this broker passes TEST 1 the swap test.

I will end this post here and will post a separate post for the continuation…

There is a lot of training to be had so that you can survive the Wild West, again if you have to get started right away please get some more training. The trading system in the links section of the blog (upper right) is a good place to start.

To be continued……

Live abundantly and share that abundance with others!


Forex Training | Forex Trading

Wednesday, November 28, 2007

Forex Trading 101 - What is a PIP? How does Leverage Work?


Forex Trading 101 - What is a PIP? How does Leverage Work?



When I am doing Forex Training one of the most frequent questions that I get asked when first talking to
people about forex trading is "What is a PIP?"

Pip stands for Percentage Increment Point

Since currency trading is buying one currency against another there are no shares to purchase. What you purchase is that actual currency. When you trade currency exchanges you are entering a position in that exchange, so you are positioning yourself on the side of one currency versus they other.



Lets talk in terms of the Euro and the USD. If I have information that is telling me that the USD is declining in value then I may want to buy a currency that is versus the USD. So we could buy the EUR vs. USD or (EUR/USD). As the USD falls the difference in the value between the EUR & USD gets larger. Well how do we define that? Money vs. Money. Money/Money=% right, if 5 apples out of 10 apples were bad (the difference between some being good and some being bad) well how do we define that 5 apples/10 apples = .50 or 50% are bad. So this would be a type of Percentage Increment Point or PIP, in this case it is 50 PIPS (because I only
gave you to 2 decimal places).

Lets say we are keeping track of the EUR/USD and for hypothetical reasons we are going to say that on Jan 1st 2008 it took $1.0000 EUR = $1.0000 USD. So if we looked at the charts we would see the price on that chart as 1.0000.

Well then we check that chart again on Jan 5th 2008 (great day in the year) we see that the chart price has changed to $1.0050. This means that now $1.0000 EUR = $1.0050 USD, it takes more USD to equal EUR, also meaning that the value of the USD fell by $0.0050, or a half of a cent.

Since I gave you the amount in 4 decimal places we are going to call that change 50 pips. Here are some more examples of this:

Change = PIPS
$.0001 = 1 PIP
$.0005 = 5 PIPS
$.0060 = 60 PIPS
$.0700 = 700 PIPS

So know you understand how a pip works. How does that translate to profit?

Well lets take out example of a change in the EUR/USD of $.0050

If I took $1000 and purchased Euros on Jan 1st 2008, and then sold those Euros for Dollars on Jan 5th 2008, I would have made a WHOPPING $5.00 because of the difference $1005 ($1,000 * $.0050 = $5).

Why then is there a FOREX craze going on? (and it's just getting started)

Well here is were the FOREX market comes alive. Ohh MY IT'S ALIVE!!!

This Beasts name is LEVERAGE. It is much like having your very own BIG FOOT (some say fictitious man-like beast roaming the forests with incredible strength). While having BIG FOOT as a friend is nice because you don't need a jack to change a car tire, no one would ever pick on you again, you might even get into some really cool clubs. While all of that is very cool, it sure does hurt when the dumb oaf steps on your foot, takes out walls in your house, destroys your neighbor's car, damages public property. He's a REAL Liability to have around!!!

So unless you have a shock collar to train Big Foot you better be very careful with him! Same goes with leverage, I actually recommend getting a shock collar and wearing while trading, shock yourself right before you place a trade just so that you are reminded that LEVERAGE can be VERY BAD. Please don't put a shock collar on yourself, I was only kidding.

So how can leverage be good and bad. Leverage works like this, it is a loan. Very hard concept, right?

Well in the stock market you can get leverage of 2:1 or 4:1 but really no higher. That means that if I used my $1000, when I placed the trade they actually placed the trade for $4000 (considering 4:1 leverage).

The FOREX market offers much higher leverage, brokers offer varying amounts from 50:1, 100:1, 200:1, and some 400:1. The most common is 100:1 leverage.

Wait one jiffy minute here, do you mean to tell me that if I had $1000 and I was able to trade with 100:1 leverage that would mean that I would be actually trading with $100,000. Why YES that is exactly what I mean!

So now you see that that with that same $1000 and that same Jan 1st - Jan 5th trade with 50 PIPS gain would go from $5 with no leverage to 100 X $5 = $500 and your new balance would be $1500.


This is what drives this new FOREX craze. That is a 50% gain in just a few days. So when we talk about PIPs we loosely associate that to percent gain. Most of the major pairs (currency pairs) pay 1% per PIP with leverage, others are slightly less but that is a whole different conversation and we will save that one for later.

So how is leverage bad? The previous case also hold true if your information was wrong and instead of buying the Euro you bought the US Dollar, that would have yielded a -50 PIP return and now your $1000 would be only $500, ouch!

Earlier I mentioned the information telling me what I need to do. That is what I am here for, I'm going to be showing you the secrets of the systems. Those things that have been kept secret from the many I am going share with you, mainly because this is really easy and I feel guilty
for not telling people how to make their lives better.

There are huge profit potentials in the Forex Market, and I myself have made huge profits, it is not unlikely to make 100, 200, or even 300 PIP profits in 1 day. Just today there was a 485 PIP move in the GBP/JPY (Great British Pound vs Japanese Yen) in 11 hrs.

Stay tuned! I will be showing you some really cool things to come, I will even be uploading some videos showing you examples of some really great gains and how you protect yourself with stop losses. Some of the things I will be showing will be worth THOUSANDS of dollars.

Add me as a friend, get in touch with me, tell me what you want to learn in this industry and I will do my best to getting to everyone's questions and posting the secrets pertaining to those questions.

Please subscribe to my Feeds and that will alert you as to when I have posted something new. It does save time.

If you are dying to start in the forex market and you cannot wait for me to teach you stuff please get some eduction in the forex market before putting any real money in it. A good start to Forex Trading can be found here: Forex Training | Forex Trading

Have fun, and live intentionally!

I am Mission, and I have been given a charge, a quest so to speak from a higher calling to
help all of those that want to learn.

Tuesday, November 27, 2007

Welcome to the Ultimate Forex Trading Blog


We are going to have a lot of fun here, so hold on to your shorts!!!

Videos and great demonstrations are soon to come introducing you to the great forex trading markets and showing you real live profiting trades that produce astounding rates of return.



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