Could Swing Trading Be Where You need to Go Next?

One of the most frustrating things you’ll encounter when you enter the world of investing — specifically, the world of forex trading — is that there’s always something new to learn. There’s always something that you need to understand before you can move to the next step of the problem, and if you don’t embrace these new concepts early on, you’re not going to really go very far. Thankfully, it’s quite easy to pick up on concepts over time, especially when you don’t pressure yourself one way or the other. Now is the time to learn the key basics and then build on that information. Over time, you will get exactly where you want to go within the world of forex.

So the first topic that we definitely had to address is swing trading. If you don’t know what swing trading is, this is definitely the guide you need to read.

You see, swing trading as it relates to forex means that you’re trying to catch the wave of a major trend and taking advantage of trades that are profitable. These trades are not long term — a few days to a week is the normal duration. So you’re trying to handle things in the short term which can be risky — but very profitable. A lot of people recommend swing trading because it really does allow you to get a lot of stuff done without a lot of hassle, because the system is so clearly understood. In fact, a lot of forex forums will assume that you know something about swing trading if you’re going to attempt it, so make sure that you keep reading!

Keep in mind that swing trading is not the same as currency day trading — you want to make sure that you are going off real valid data and not just running with volatility. Volatility in terms of pricing and movements can really mess up your analysis, which leads to missed opportunities to make your profits.

Support and resistance are going to be two concepts that you really need to understand as they relate to swing trading.

You will want to look at a trend and identity the moments of support as well as resistance, and then take the opposite view. This means that you execute a trading signal in the opposite direction.

Stop loss orders play well into swing trading — in fact, they are downright necessary. You want to always make sure that you place your stop levels behind the supp-ort or resistance level. Never assume that a trade is just going to take care of itself — you must always make sure that you are in control.

The Wide Variety of Stop Orders in Forex Trading – Yes, You Need Them All!

Forex orders are the heart of good trading. The smart investor knows that they will not always be able to babysit their trades, so setting proper orders is a great way to carry out your wishes without falling prey to things sliding out of control before you know it. One type of order that new forex traders really need to understand are stop orders. However, there isn’t just one and that’s what makes it a bit confusing — and downright frustrating when you think about it.

We know that you really want to make sure that you’re looking at just about every angle you can think of when it comes to your upcoming trading portfolio. So if you want to learn your orders, you have to look into the four main types of stop orders inside and out. This guide will get you started.

There’s the chart stop order, which is very technical in nature. Traders like it because it lets you elaborate numerous stops that can be caused by the price charts’ action, or by other indicator signs. Candlesticks get involved as well, so if you don’t have a basis in technical analysis, you might want to make sure that you practice those skills before using a chart stop order. That’s the best way to really understand what’s going on. For example, the swing high/low point gets used, which would mean that a mini lot could get sold at the risk of 150 points depending on the chart, which would be 1.5% of a 10,000$ account — not that much in the long run, though it can be a little scary at first!

Our next stop order is the volatility stop order, which uses — you guessed it — volatility as the real chart stop. When prices move up and down quickly, the broker is going to need to let the position have a bit more room to breath and allow for more risk so that you don’t get stopped out.

By placing a volatility stop, you let the broker use a scaled-in approach to get a better breakeven point as well as better risk management.

The 3rd type of stop order would be the equity stop order. Newbies like it because it’s pretty easy to understand — you’re going to basically be just working the basics. The risk is focused on the predetermined amount of your account on the trade itself. So let’s say that you have $10,000 again, and a broker is going to risk $300 — let’s say that’s 300 points on a mini-lot of EUR/USD. This is pretty easy to understand because it works off of percentages of your account more than anything else. Brokers will take this very conservatively, because too big of an equity position in any single trade can really hurt your portfolio in ways that are hard to recover from. It’s just a matter of making sure that you have everything else taken care of — risk controls go well with stop orders of all kinds, but when it comes to the equity stop order things just make sense.

Mechanical Failsafes and Your New Forex Strategy

If there’s one thing that’s going to make sure that you stay successful in the world of forex trading, it’s going to be limit orders. You have to make sure that you are always thinking about the type of order that you want to place, because let’s face it — you’re not going to want to always handle everything manually. There are going to be times where you want to have some of this stuff taken care of for you.

Contrary to popular belief we are definitely not against automation when you know what’s going on. It’s when those fancy forex software programs begin to take over solid thinking and research that we get a little concerned. There’s so much to forex trading that it doesn’t make sense to only think in terms of one strategy over another. The problem with a lot of software solution is that they do not properly adapt with the market. While you run the software and think that it’s making all of the right decisions, you might be leaving money on the table — or entering risky territory without a way to cut your losses if the market flips on you.

Forex orders take care of that. There are quite a few orders that you need to learn about, and these orders are definitely going to keep you safe when it comes to getting things done within the world of forex trading.

The top order that you need to learn is the limit order. This is an order to buy or sell currency at a certain limit. When the market reaches the price that you set, your order is going to be carried out. When you want to sell, your order gets executed when the market reaches UP your limit order price.

There is also the general market order, which gets done a lot but it can be risky. This is because the order indicates when to buy or sell at the running market price. If the market is especially volatile, you might end up having to sacrifice pips when you least expect it. This is because the market can move faster than when the market order is actually given the price of the deal. You can enter or exit a trade with market orders, but it’s up to you to make sure that you are being as careful as possible.

Trading Options Can Be The Best Move You Make All Year

Thinking about expanding your trading efforts into options, but you just aren’t sure if you want to take the plunge? Don’t worry if you just nodded your head while reading this. A lot of people right now are trying to reach for more profitability than what they had. They want to live a life where they don’t have to stress so much about money. There’s nothing wrong with that, and certainly nothing to be ashamed about. You just need to figure out what the right move is for your own needs. This takes us immediately to trading options. Forget the negative press that you’ve heard about trading options. The new generations of options is more exciting, while being much easier to handle.

If you go with binary options, you’re going to have a fixed price as well as a fixed return. That’s different from what most people think of when they think of options. They think of the busy trading floors of New York and Chicago, where options are constantly in flux. There’s a bit of volatility involved, but nowhere near as much as you might think.

Your option has a set time limit, where you find out whether or not you’re in or out of the money. If you’re in the money, you get a certain amount on your return — this can be as high as 89%! If you’re not in the money, then you generally only lose a part of your investment. However, it’s possible to look at market trends to the point where you can “time” a lot of your options to be pretty profitable.

This might sound like a shock to you, especially if you’re coming from a traditional “stocks and bonds” background. You might even think that trading options is a big scam, and that no one actually makes money from it. This couldn’t be further from the truth. You’re getting into a world filled with possibilities, one where you can make money consistently. Everything is laid out, from the time the option is set to expire all the way up to the type of return that you can expect to get. Yes, there’s a chance that the market will move in the other direction. You’re still going to have to turn yourself into a very educated trader, but the sky is the limit in terms of profitability. Why not check it out today, while it’s still on your mind? Good luck!

Stick With Forex, But Really Think About Buying Silver Online!

Are you thinking about trying to hang in there with forex? We know exactly what you mean. You might find that there’s going to come a point in your forex career where you really like the field, but you want to spread out. That’s perfectly normal. We are of the mind that you really don’t have to be exclusively about forex. But if you really want to step into speculation of a different kind, you really want to start thinking about buying silver online.

If you want the best variety, you have to think about online. The Internet is where you can get just about anything and everything that you really want. There’s no reason to think that you can’t achieve your precious metals trading goals just because you have to look for a good site to get your silver form.

Where you buy from matters for a wide variety of reasons. For one, every dealer’s going to have a different markup. You cannot escape the markup process — it’s the way the dealer makes money over the post price. You just need to look for a source that has low premiums.

You also want to make sure that you’re looking to see what type of process you have to go through to make your first purchase. Some sites don’t ask for additional documentation and proof of identity, while others do. Be cautious and make sure that you do your checks before you sign up with any site. If they are taking steps to protect that information it’s one thing — but always ask questions. If you don’t like the answers that you get, you can always move on.

Some people skip over silver and go straight to gold, but we think that it’s a mistake. Gold has its place in any portfolio, but if you’re still trying to build up capital silver is a much better choice.

You will feel a lot better when you finally get the chance to really make sure that you can diversify your portfolio. Precious metals of all kinds aren’t going away any time soon. Also, many in the market feel that silver is very close to breaking through its resistance level. As you can see, there’s still some overlap between your forex charting and the precious metals game. If you want to explore more connections, now is definitely the time to see how far you can go with trading silver — start today for the best results around!

Binary Options Practice Can Prime You For Future Red hot Profits

Forex is all about practice — but you cannot tell a good majority of the new forex traders that fall into the industry every year. They assume that Their Portfolio Is Different, just as many new business owners assume that Their Business Is Different. Either way, it’s a mentality that can easily leave you broke. What would be the real sense in that? You’re a lot better off thinking about the type of future that you wish to create in the world of investing, and learning the mechanics that can help get you there. If you’re only thinking about the big profits that you’re going to make without any regard for the mechanics that can propel your portfolio in that direction, you’re really doing yourself a severe disadvantage.

This is so important that we’ll say it again, just a little differently: if you are so caught up in the money without figuring out where it really comes from, you’re in for a load of trouble. You have to make sure that you are doing your fair share of demoing.

A lot of traders hate demo accounts, but we don’t really know why. If you’re interested in red hot profits from one of the hottest trends in forex, then it’s time to handle binary options practice with a little more grace than what you’ve probably shown up to this point. It’s all about getting the inner workings of the methods down pat.

You won’t find that advice on many sites. Sure, we could sell you on all of the different brokers that are out there. We recommend that you look at good reviews from real traders, and then look for brokers that give you a free account to play with. They’re not doing this just to be kind — they know that if you practice on one platform, you’re likely to go there when you’re ready to cut your teeth in the real markets. It’s going to be up to you to figure out where you wish to go from here, but one thing is clear: practicing is the key.

There are plenty of successful traders out there, but many of them attribute their demo accounts towards their success. Nothing really good happens without a demo account. You might think that you know forex because you’ve looked at theory, but we have news for you. Theory is nothing without taking some serious action. Forex, like fortune, favors the bold!

Check At Least One eToro Review Before You Get Into Forex Trading Full Stop!

Are you ready to get into forex trading? Not so fast! There’s always a bit of preparation that you need to do before you dive into anything new, and forex trading is really no exception to this rule. If you rush into dealing with currency exchange, you’re going to find yourself in a world of trouble. It’s very easy to make mistakes in forex that lead to some big problems, and you really can’t move past those problems until you learn where to begin.

One of the most important decisions that you will ever make in the world of forex trading is your broker. A good broker makes everything else come together smoothly. You want to make sure that you have the ability to trade a high range of currencies with them, including minor pairs that other brokers don’t even bother with. As you gain more skills, you’ll be able to leverage exotic pairs to your benefit.

You might have heard of eToro, and even looked at an eToro review or two. That’s definitely a good thing, for a wide variety of reasons. We really like eToro because they have a massive network of brokers around the world to execute their trades. This means that everything moves at lightning speed, which is always a good thing.

You are also going to be able to go beyond forex, which is also very good. You can trade oil, gold, silver, and even some stock indices.

Leverage is also the name of the game here, which will allow you to handle large positions with fewer margins. Tight spreads help you really make the most of your forex experience.

The reason why you really want to do your research is that you still need to understand what eToro or any other forex broker can do for you. The more comparison shopping that you do, the better control you will have over your own circumstances. It’s very easy to get sucked into the idea that you don’t need to look around, but that’s not the case at all.

Forex trading is like anything else — it’s really what you want it to be. If you rush in, you’re not going to have very good results at all. However, if you are patient and you really think about your options, then you will have the power to get a lot of things done in a very short time — check it out for yourself!

An Overview of Basel II – Back Testing Value at Risk

The Basel II Capital Accord, part of the wider banking regulatory accords issued by the Basel Committee on Banking Supervision (BCBS), was initially published back in June 2004 with the aim of helping to create an internationally uniform system for banking capital reserves. It has since been supported by a further accord – Basel III, which will be implemented in Europe under the Capital Requirements Directive IV.

Basel II dictates that banks must comply to new codes on banking law and control. Its main purpose, reported under the “three pillars” concept, is to encourage the advancement of risk management.

Basel II

The three pillars concept covers three core areas, which were partially, but not entirely, covered by the previous Basel I regulation:

Pillar 1 – covers minimum capital requirements.

Pillar 2 – demands a supervisory evaluation of capital competence.

Pillar 3 – covers market supervision and discipline.

Steps to guarantee Basel II assurance

In order for the regulators to be assured that the pillars are being adhered to, clients must show proof of systematic VaR Back Testing, which is the recommended form to evaluate market risk set by the Basel II Accord.

Value at Risk (VaR)

VaR represents the risk basis that forecasts what an investment portfolio speculates in terms of loss over a certain amount of time.

Back Testing

The back testing system compares the anticipated losses from VaR against the actual losses achieved within a certain time period. It allows firms to identify where VaR has been miscalculated, suggesting that a portfolio has suffered more than the original VaR estimate.

The VaR predictions will be based on the results of back testing in order to then polish the templates. The templates will, in turn, become more precise, and thus lower the danger of unforeseen deficits.

Who must comply?

The Basel II Accord’s guidance applies to all banks but its observance is in accordance to each bank’s fulfilment and relative demands throughout its jurisdiction.

Five points of Back Testing Value-at-Risk

To measure the capital charge within a model calculating market risk, there are five standards to follow:

1) Every three months data sets need to be upgraded

2) Daily calculations of VaR have to be worked out.

3) For the instant price shock, a ten day movement in prices needs to be in place.

4) 99th percentile, one-tailed confidence is to be applied.

5) For “historical” monitoring to occur, a minimum term of one year should be observed.