Thursday, November 14, 2013
Thursday, November 7, 2013
CATCHING FIRE WITH FOREX
"Know how to take advantage of the hottest financial market without getting burned!"
Tuesday, November 5, 2013
METISETRADE : 1 HOUR SPRINT DEMO CHALLENGE
Happy Trading Hours ™ with MetisEtrade
Learn. Interact. Compete.
Now BIGGER and BETTER !
Open to everyone - Wherever you are in the world.
View our live streaming here
http://www.metisetrade.com/index.php/competition
(The live streaming will be active on Nov 08, 6:30 PM – 9:45PM)
Happy Trading Hours Program Schedule:
6:00 - 6:30 Registration
6:30 - 7:30 Introduction to Forex with Mr. Ernesto Unisa
7:30 - 8:00 How to Analyze the Market - Funda and Tech
Updates on Current Market Events
with Mr. Dennis Torraldo
8:00 - 8:30 Q&A
Preparation for the 1 Hour Sprint Demo Challenge
8:30 - 9:30 Competition Proper
9:30 - 9:45 Awarding Ceremony
---------------------------------------------------------
Last October, we had Mr. Robert Escano (and his team of chefs and traders) as our Champion. This November, we are searching for new solid contenders!
Do you think you have what it takes to beat everyone else in the TRADING FLOOR during THE MOST VOLATILE trading hours?
Join our 1 Hour Sprint Demo Trading Challenge
Win exciting prizes - and have the chance to beat Robert's team on the next monthly finals - Beginners are very welcome to join!
How to Register for Happy Trading Hours - and - Join the Demo Competition ONLINE
1. Register here:
http://www.metisetrade.com/index.php/competition
2. Go to your email, look for the email with the subject: "Happy Trading Hours with MetisEtrade"
3. If you don't have the Trading Platform yet, click the
"MetaTrader 5 Client Terminal" to download (5-10 min only)
Mac users should follow the additional steps in this link:
http://www.metisetrade.com/index.php/resources/macguidemt5
4. Log in to your MT5 platform with the provided Username and Password in the email.
5. The account you have is a USD 10,000 account usable for the 1 hour demo challenge which runs from 8:30 - 9:30 on Friday (Nov 8, 2013)
*Note: You may trade with the demo account as much as you can before the actual competition starts. MetisEtrade team will dial everything back to USD 10,000 at 8:30 PM Philippine time.
Now you're ready for the Happy Trading Hours for November 08, 2013!
Learn. Interact. Compete.
All together now, Let's TRADE!
#trading #forex #investments #seminar #democompetition #happytradinghours #MetisEtrade #Seminar #free #Learn #Interact #Compete
Sincerely,
MetisEtrade Team
Monday, October 14, 2013
The Next Big Thing!!!!
Carlos Slim (Net Worth $69 Billion) - “Anyone who is not investing now is missing a tremendous opportunity.”
LEARN more about investing in the forex market by singing up with our Metisetrade Investor Seminar Series! Attend our free introductory seminars and discover what you need to know to stay ahead with your investments
LEARN more about investing in the forex market by singing up with our Metisetrade Investor Seminar Series! Attend our free introductory seminars and discover what you need to know to stay ahead with your investments
Thursday, September 19, 2013
ANALYSIS-Wall Street banks see dollar signs in forex business
Credit: http://www.cnbc.com/id/100946026
By: David Henry and Peter Rudegeair
NEW YORK, Aug 7 (Reuters) - A surge in currency trading earlier this year and favorable regulatory treatment of the foreign exchange business have unleashed an intense fight on Wall Street, with banks battling one another for a larger share of an increasingly fractured market.
Volatility in major currencies has created opportunities for Wall Street banks to make money facilitating client trades.
In recent months, Bank of America Corp, Goldman Sachs Group Inc, Morgan Stanley and other banks that historically had smaller foreign exchange businesses than major rivals have stepped up efforts to gain market share, according to traders, recruiters and other people familiar with the business.
They are taking on Deutsche Bank AG, Citigroup Inc, Barclays PLC and JPMorgan Chase & Co , which have long dominated currency trading. Smaller firms like BTIG, Newedge, FXCM Inc and Gain Capital Holdings Inc have further fragmented the market.
Competition is particularly intense among banks because the foreign exchange sector is under fewer new regulations than other areas of trading, like derivatives or corporate bonds. That means banks can fund currency trading with less capital than they need for other businesses.
"This is one of those products that looks good to regulators and looks good to shareholders and looks good from a capital perspective," said George Kuznetsov, head of research and analytics at consulting firm Coalition.
Trading volumes in major currencies rose in the first half of the year, supported by a massive monetary easing program in Japan and expectations that the U.S. Federal Reserve will start pulling back from its bond-buying program. Such central bank moves spurred companies to hedge their currency risks, industry sources say.
A slowdown in fast-growing markets like China and Brazil also affected currencies, with particular ripple effects on resource-rich Australia. With the prospect of less demand for raw materials from emerging economies, the Australian dollar has dropped to lows against the U.S. dollar not seen since 2010.
Average daily trading volume in major currencies jumped to $5.6 trillion in June, a record, up 15 percent from $4.9 trillion in May, according to CLS Bank, which operates the largest foreign exchange settlement system.
Volumes have declined in recent weeks, but the competition remains fierce.
"There's a very low barrier of entry to this game," said one senior foreign-exchange executive at a major bank. "Just Google how you would send money overseas - you'd find a number of FX providers that probably didn't exist 10 years ago."
NARROW PROFITS
Although policy moves and favorable capital treatment have turned currency trading into a bright spot for banks, the business is far from lucrative.
A broker typically earns just fractions of a cent for every dollar's worth of a trade, and banks have been cutting prices to gain market share.
Foreign exchange contributed just 8 percent of fixed-income revenue at the top global investment banks last year, down from 36 percent in 2008, according to Coalition. While the first half of 2013 was a good one for Wall Street, foreign-exchange volumes are down 24 percent so far in the third quarter, Barclays analysts said in a note on Tuesday.
Yet, for many banks, foreign exchange trading is an alluring business if only because new regulations are making other businesses unviable.
Under international capital rules designed to ensure banks have enough capital to cushion against losses, foreign exchange is treated as less risky than other fixed-income businesses. That is because assets involved in foreign exchange trading are essentially cash, said Coalition's Kuznetsov.
Even Swiss bank UBS, which pulled back from most fixed-income trading businesses to conserve capital, opted to stick with currency trading.
NEED FOR PEOPLE
Michael Karp, CEO of the Options Group, an executive search and consulting firm, said that while banks are cutting staff in many fixed-income trading areas, foreign exchange "is the one place where banks are expanding and looking to get back in action."
Since last year, big banks have been snapping up executives from competitors to bolster their foreign-exchange trading businesses.
In the spring, Bank of America hired Jim Coulton and Babak Eftekhari from Goldman Sachs to take on senior forex trading roles. JPMorgan in May hired Ron Karpovich, an architect of cross-border payment systems at Royal Bank of Scotland Group PLC , to build out its software for payments by corporations in foreign currencies. Morgan Stanley hired Giovanni Pillitteri late last year from Citigroup as head of FX electronic trading.
Matthew Miller, co-founder of consulting firm Shift Forex, said he has been getting a lot of calls from recruiters and clients asking if he can suggest candidates for foreign-exchange positions at big banks.
"They all seem to have a need for people, whether on the retail side or the institutional side," he said.
The industry has also spent millions of dollars developing and marketing new foreign-exchange trading technology software in recent years, Miller said, with development costs ranging from $50,000 for a small platform to $500,000 or more for larger ones.
"People have made significant investments in technology," said Troy Rohrbaugh, JPMorgan's global head of interest rates, foreign exchange and public finance.
(Additional reporting by Gertrude Chavez and Lauren Tara LaCapra in New York and Katharina Bart in Zurich; Editing by Dan Wilchins, Paritosh Bansal and Dan Grebler)
Tuesday, September 10, 2013
Why It's Good To Be Selfish
Credit: http://www.selfgrowth.com
Surprising title for an article, right? In today's society 'selfish' has such negative connotations how could anyone say it’s a positive thing? Let me explain.
Traditionally the term ‘selfish’ has been associated with such things as being greedy or acting like an obnoxious fool. Those are the definitions with which most people associate the term, and the dictionary agrees. That's why children are always taught not to be selfish, and adults are always wary of others 'being selfish'.
What I’m talking about what being selfish really means — you take care of yourself first and then help others. This is a crucial concept to understand since it forms a great foundation for your own success. To be blunt, the more selfish you are the more successful you can be.
Being unselfish is dangerous
Religions, society, the media, family and your friends are always promoting being unselfish. You’re a “better person” if you give and give and give of yourself. In theory that sounds good, but in practice it fails. This is because you are taught to suppress yourself in order to help others, and that’s not a good thing. Your flow, your true life’s purpose, is 100% about success. So if you are repressing that success in order to “help” others you are creating blockages, sometimes severe.
There are numerous examples of where being unselfish is detrimental to your wellbeing. The most obvious has to do with charity. If you gave every dollar of your paycheck to charity every week how would you live? Likewise with the parent/child dynamic. If children were truly unselfish and obeyed every single thing their parents ordered them to do they would never grow into their own independent beings. Imagine a parent telling a child what music to listen to, what clothes to wear, what friends to have, whom to marry, and so on.
Surprising title for an article, right? In today's society 'selfish' has such negative connotations how could anyone say it’s a positive thing? Let me explain.
Traditionally the term ‘selfish’ has been associated with such things as being greedy or acting like an obnoxious fool. Those are the definitions with which most people associate the term, and the dictionary agrees. That's why children are always taught not to be selfish, and adults are always wary of others 'being selfish'.
What I’m talking about what being selfish really means — you take care of yourself first and then help others. This is a crucial concept to understand since it forms a great foundation for your own success. To be blunt, the more selfish you are the more successful you can be.
Being unselfish is dangerous
Religions, society, the media, family and your friends are always promoting being unselfish. You’re a “better person” if you give and give and give of yourself. In theory that sounds good, but in practice it fails. This is because you are taught to suppress yourself in order to help others, and that’s not a good thing. Your flow, your true life’s purpose, is 100% about success. So if you are repressing that success in order to “help” others you are creating blockages, sometimes severe.
There are numerous examples of where being unselfish is detrimental to your wellbeing. The most obvious has to do with charity. If you gave every dollar of your paycheck to charity every week how would you live? Likewise with the parent/child dynamic. If children were truly unselfish and obeyed every single thing their parents ordered them to do they would never grow into their own independent beings. Imagine a parent telling a child what music to listen to, what clothes to wear, what friends to have, whom to marry, and so on.
Monday, September 9, 2013
A Fun Event with Metisetrade
I attended an event last friday Sept 06, 2013 at Marajo tower The Fort. This is a regular Friday event of Metisetrade. Inc which they called HAPPY Trading hours. Most of the visitors are new in FOREX Market some are already traders.
Some lose others won on their trades but all in all the event is fun and successful. I am looking forward to attend this Friday.
Below are the Pics Taken during the Happy trading Hours.
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Tuesday, September 3, 2013
Becoming the Person You Know You Can Be
Credit: http://www.brettsteenbarger.com
In bodybuilding, there is a principle known as "train-to-failure" (TTF). The idea is that you lift that amount of weight that permits you at least ten repetitions, but continue the lifting to the point of failure: the point at which you can no longer sustain the repetitions. Such a heavy-duty program, as outlined by the late Michael Mentzer, is low force (to minimize injuries) and high intensity (drawing upon the body's full reserves). This program also contradicts usual practice, which has athletes lifting every day. Mentzer, a world class bodybuilder, found that a limited number of repetitions to failure were sufficient to stimulate muscle growth, as long as there was an adequate period of recovery following the training stimulus. When first espoused, the idea of doing a limited number of intense repetitions and then staying out of the gym during the recovery phase was heretical. Now it is the backbone of many successful approaches to bodybuilding and strength training.
As Mentzer noted, the idea of TTF is itself a reflection of a principle in exercise physiology called SAID: Specific Adaptation to Imposed Demands. The body, according to SAID, will develop along the lines of the demands imposed upon it. If you impose intensive demands upon a muscle set, that set will develop more than others that have not been challenged. The opposite of SAID is deconditioning: the absence of demand upon the musculoskeletal system. Astronauts in space for a considerable period of weightlessness lose body mass due to deconditioning and, at times, have had to be carried from their spacecrafts due to a loss of strength. Their bodies adapted to the absence of demand.
The vast majority of people live their lives the way uninformed athletes train: they take on too many demands, none of which are sufficiently intense to take them to failure. Theirs is the equivalent of lifting a twenty-pound barbell for hours on end. They become tired, but not strong. By the time they get old, they are chronically tired, and then retire from all demands. For many, retirement is an exercise in mental, physical, and spiritual deconditioning.
Truly great people live their lives on a TTF basis. They challenge themselves until they fail, and that provides new challenges. They ultimately succeed, because the challenges that produce failure also build their adaptive capacity. Their minds and their personalities exhibit SAID: they adapt to imposed demands.
Now ask yourself: If you trained in the weight room as hard and as smart as you train for trading success, how strong would you be?
The reality is that few traders train at all, and those that do rarely impose demands on themselves that require growth and adaptation. The bodybuilder knows that effort is a friend, a stimulus to development. You push yourself to your limits, and then you adapt to those imposed demands. In simulated trading--and in the practice that comes from trading small size--it is not enough to concentrate and focus: you develop the capacity to operate in "the zone" by testing the limits of your mental stamina. Similarly, don't just follow your trading ideas; test them until they break. Then you'll be able to figure out where they are weak and how you can fix them. We cannot know our limits unless we are willing to venture beyond them.
Mentzer realized that, to become the person you know you can be, you have to do more than you think you can do. Paradoxically, you will find your greatest freedom, in the gym and in life, in the imposition of your most stringent demands.
In bodybuilding, there is a principle known as "train-to-failure" (TTF). The idea is that you lift that amount of weight that permits you at least ten repetitions, but continue the lifting to the point of failure: the point at which you can no longer sustain the repetitions. Such a heavy-duty program, as outlined by the late Michael Mentzer, is low force (to minimize injuries) and high intensity (drawing upon the body's full reserves). This program also contradicts usual practice, which has athletes lifting every day. Mentzer, a world class bodybuilder, found that a limited number of repetitions to failure were sufficient to stimulate muscle growth, as long as there was an adequate period of recovery following the training stimulus. When first espoused, the idea of doing a limited number of intense repetitions and then staying out of the gym during the recovery phase was heretical. Now it is the backbone of many successful approaches to bodybuilding and strength training.
As Mentzer noted, the idea of TTF is itself a reflection of a principle in exercise physiology called SAID: Specific Adaptation to Imposed Demands. The body, according to SAID, will develop along the lines of the demands imposed upon it. If you impose intensive demands upon a muscle set, that set will develop more than others that have not been challenged. The opposite of SAID is deconditioning: the absence of demand upon the musculoskeletal system. Astronauts in space for a considerable period of weightlessness lose body mass due to deconditioning and, at times, have had to be carried from their spacecrafts due to a loss of strength. Their bodies adapted to the absence of demand.
The vast majority of people live their lives the way uninformed athletes train: they take on too many demands, none of which are sufficiently intense to take them to failure. Theirs is the equivalent of lifting a twenty-pound barbell for hours on end. They become tired, but not strong. By the time they get old, they are chronically tired, and then retire from all demands. For many, retirement is an exercise in mental, physical, and spiritual deconditioning.
Truly great people live their lives on a TTF basis. They challenge themselves until they fail, and that provides new challenges. They ultimately succeed, because the challenges that produce failure also build their adaptive capacity. Their minds and their personalities exhibit SAID: they adapt to imposed demands.
Now ask yourself: If you trained in the weight room as hard and as smart as you train for trading success, how strong would you be?
The reality is that few traders train at all, and those that do rarely impose demands on themselves that require growth and adaptation. The bodybuilder knows that effort is a friend, a stimulus to development. You push yourself to your limits, and then you adapt to those imposed demands. In simulated trading--and in the practice that comes from trading small size--it is not enough to concentrate and focus: you develop the capacity to operate in "the zone" by testing the limits of your mental stamina. Similarly, don't just follow your trading ideas; test them until they break. Then you'll be able to figure out where they are weak and how you can fix them. We cannot know our limits unless we are willing to venture beyond them.
Mentzer realized that, to become the person you know you can be, you have to do more than you think you can do. Paradoxically, you will find your greatest freedom, in the gym and in life, in the imposition of your most stringent demands.
Thursday, August 29, 2013
The 7 Top Ways Millionaires Become Wealthy
Credit: http://www.selfgrowth.com
There are 7 common factors to those who build net fortunes of one million dollars or more. In America, there has never been more personal wealth than there is today; yet most American’s are not wealthy. Amazingly, a mere 3.5% of our households own almost one-half of the wealth in the United States! Although we may be hard working, educated, moderate to high-income earners, why are so few of us affluent?
In studying the affluent, I found a pattern that the wealthy follow. It is more often the result of planning, hard work, perseverance, and self-discipline that determines who become wealthy. The factors compiled here are summarized from the research done by Thomas Stanley Ph.D. on over 1100 actual millionaires (many are multi-millionaires) in the U.S. today.
1) Live Well Below Your Means
Don’t be fooled. The ‘average’ millionaire doesn’t look like a millionaire! The key word here is frugal, frugal, and frugal. The typical person is America is a consumptionist. It’s in our blood. We work hard, make money, and spend it well. Not the typical millionaire! They play great defense (saving and investing) as well as offense (making money). Just like in football – great offense is exciting…but great defense wins games. An interesting note: Millionaires on average claimed their spouses were as frugal or more than they were. It’s a family affair: Sacrifice high consumption today, for financial freedom tomorrow.
Wednesday, August 28, 2013
How To Become A Successful Forex Trader
Credit: http://www.investopedia.com
Retail traders just starting out in the forex market are often unprepared for what lies ahead and, as such, end up undergoing the same life cycle: first they dive in head first - usually losing their first account - and then they either give up, or they take a step back and do a little more research and open a demo account to practice. Those who do this will often eventually open another live account, and experience a little more success - breaking even or turning a profit. To help avoid the losses from hastily diving into forex trading, this article will introduce you to a framework for a medium-term forex trading system to get you started on the right foot, help you save money and ultimately become a profitable retail forex trader.
Why Medium Term?
So, why are we focusing on medium-term forex trading? Why not long-term or short-term strategies? To answer that question, let's take a look at the following comparison table:
Type of Trader Definition Good Points Bad Points
Short-Term (Scalper) A trader who looks to open and close a trade within minutes, often taking advantage of small price movements with a large amount of leverage. Quick realization of profits or losses due to the rapid-fire nature of this type of trading. Large capital and/or risk requirements due to the large amount of leverage needed to profit from such small movements.
Medium-Term A trader typically looking to hold positions for one or more days, often taking advantage of opportunistic technical situations. Lowest capital requirements of the three because leverage is necessary only to boost profits. Fewer opportunities because these types of trades are more difficult to find and execute.
Long-Term A trader looking to hold positions for months or years, often basing decisions on long-term fundamental factors. More reliable long-run profits because this depends on reliable fundamental factors. Large capital requirements to cover volatile movements against any open position.
Now, you will notice that both short-term and long-term traders require a large amount of capital - the first type needs it to generate enough leverage, and the other to cover volatility. Although these two types of traders exist in the marketplace, they are often positions held by high-net-worth individuals or larger funds. For these reasons, retail traders are most likely to succeed using a medium-term strategy.
The Basic Framework
The framework of the strategy covered in this article will focus on one central concept: trading with the odds. To do this, we will look at a variety of techniques in multiple time frames to determine whether a given trade is worth taking. Keep in mind, however, that this is not a mechanical/automatic trading system; rather, it is a system by which you will receive technical input and make a decision based upon it. The key is finding situations where all (or most) of the technical signals point in the same direction. These high-probability trading situations will, in turn, generally be profitable.
Retail traders just starting out in the forex market are often unprepared for what lies ahead and, as such, end up undergoing the same life cycle: first they dive in head first - usually losing their first account - and then they either give up, or they take a step back and do a little more research and open a demo account to practice. Those who do this will often eventually open another live account, and experience a little more success - breaking even or turning a profit. To help avoid the losses from hastily diving into forex trading, this article will introduce you to a framework for a medium-term forex trading system to get you started on the right foot, help you save money and ultimately become a profitable retail forex trader.
Why Medium Term?
So, why are we focusing on medium-term forex trading? Why not long-term or short-term strategies? To answer that question, let's take a look at the following comparison table:
Type of Trader Definition Good Points Bad Points
Short-Term (Scalper) A trader who looks to open and close a trade within minutes, often taking advantage of small price movements with a large amount of leverage. Quick realization of profits or losses due to the rapid-fire nature of this type of trading. Large capital and/or risk requirements due to the large amount of leverage needed to profit from such small movements.
Medium-Term A trader typically looking to hold positions for one or more days, often taking advantage of opportunistic technical situations. Lowest capital requirements of the three because leverage is necessary only to boost profits. Fewer opportunities because these types of trades are more difficult to find and execute.
Long-Term A trader looking to hold positions for months or years, often basing decisions on long-term fundamental factors. More reliable long-run profits because this depends on reliable fundamental factors. Large capital requirements to cover volatile movements against any open position.
Now, you will notice that both short-term and long-term traders require a large amount of capital - the first type needs it to generate enough leverage, and the other to cover volatility. Although these two types of traders exist in the marketplace, they are often positions held by high-net-worth individuals or larger funds. For these reasons, retail traders are most likely to succeed using a medium-term strategy.
The Basic Framework
The framework of the strategy covered in this article will focus on one central concept: trading with the odds. To do this, we will look at a variety of techniques in multiple time frames to determine whether a given trade is worth taking. Keep in mind, however, that this is not a mechanical/automatic trading system; rather, it is a system by which you will receive technical input and make a decision based upon it. The key is finding situations where all (or most) of the technical signals point in the same direction. These high-probability trading situations will, in turn, generally be profitable.
Monday, August 26, 2013
TOP QUESTIONS ABOUT CURRENCY TRADING?
Credit: http://www.investopedia.com
Although forex is the largest financial market in the world, it is relatively unfamiliar terrain for retail traders. Until the popularization of internet trading a few years ago, FX was primarily the domain of large financial institutions, multinational corporations and secretive hedge funds. But times have changed, and individual investors are hungry for information on this fascinating market. Whether you are an FX novice or just need a refresher course on the basics of currency trading, read on to find the answers to the most frequently asked questions about the forex market.
How does the forex market differ from other markets?
Unlike stocks, futures or options, currency trading does not take place on a regulated exchange. It is not controlled by any central governing body, there are no clearing houses to guarantee the trades and there is no arbitration panel to adjudicate disputes. All members trade with each other based on credit agreements. Essentially, business in the largest, most liquid market in the world depends on nothing more than a metaphorical handshake.
At first glance, this ad-hoc arrangement must seem bewildering to investors who are used to structured exchanges such as the NYSE or CME. (To learn more, see Getting To Know Stock Exchanges.) However, this arrangement works exceedingly well in practice; because participants in FX must both compete and cooperate with each other, self regulation provides very effective control over the market. Furthermore, reputable retail FX dealers in the United States become members of the National Futures Association (NFA), and by doing so they agree to binding arbitration in the event of any dispute. Therefore, it is critical that any retail customer who contemplates trading currencies do so only through an NFA member firm.
The FX market is different from other markets in some other key ways that are sure to raise eyebrows. Think that the EUR/USD is going to spiral downward? Feel free to short the pair at will. There is no uptick rule in FX as there is in stocks. There are also no limits on the size of your position (as there are in futures); so, in theory, you could sell $100 billion worth of currency if you had the capital to do it. If your biggest Japanese client, who also happens to golf with the governor of the Bank of Japan tells you on the golf course that BOJ is planning to raise rates at its next meeting, you could go right ahead and buy as much yen as you like. No one will ever prosecute you for insider trading should your bet pay off. There is no such thing as insider trading in FX; in fact, European economic data, such as German employment figures, are often leaked days before they are officially released.
Before we leave you with the impression that FX is the Wild West of finance, we should note that this is the most liquid and fluid market in the world. It trades 24 hours a day, from 5pm EST Sunday to 4pm EST Friday, and it rarely has any gaps in price. Its sheer size and scope (from Asia to Europe to North America) makes the currency market the most accessible market in the world.
Where is the commission in forex trading?
Investors who trade stocks, futures or options typically use a broker, who acts as an agent in the transaction. The broker takes the order to an exchange and attempts to execute it as per the customer's instructions. For providing this service, the broker is paid a commission when the customer buys and sells the tradable instrument. (For further reading, see our Brokers And Online Trading tutorial.)
The FX market does not have commissions. Unlike exchange-based markets, FX is a principals-only market. FX firms are dealers, not brokers. This is a critical distinction that all investors must understand. Unlike brokers, dealers assume market risk by serving as a counterparty to the investor's trade. They do not charge commission; instead, they make their money through the bid-ask spread.
In FX, the investor cannot attempt to buy on the bid or sell at the offer like in exchange-based markets. On the other hand, once the price clears the cost of the spread, there are no additional fees or commissions. Every single penny gain is pure profit to the investor. Nevertheless, the fact that traders must always overcome the bid/ask spread makes scalping much more difficult in FX.
Friday, August 23, 2013
The Spouse of a Trader: What Makes Marriage Work
Credit: Brett N. Steenbarger, Ph.D.
Picture credit: gambling911.com
Much has been written about trader personality and what
it takes to succeed in markets. I can't say I've encountered any serious
discussion of the psychology of the trader's spouse. And yet, my work with
professional traders suggests that trading can take a meaningful toll on
spouses and marriages.
The fundamental challenge, I believe, is that traders are rewarded for sound decision making under conditions of risk and uncertainty. These very conditions ensure that traders do not have regular, predictable earnings streams. When I was teaching full time inSyracuse
The trader at a professional firm (investment bank, hedge fund) will typically have a base salary, but most of potential earnings will come from performance. Because these firms are often located in such high living cost locales asManhattan and suburban Connecticut
The fundamental challenge, I believe, is that traders are rewarded for sound decision making under conditions of risk and uncertainty. These very conditions ensure that traders do not have regular, predictable earnings streams. When I was teaching full time in
The trader at a professional firm (investment bank, hedge fund) will typically have a base salary, but most of potential earnings will come from performance. Because these firms are often located in such high living cost locales as
Thursday, August 22, 2013
Explaining Market Success
Credit: Brett N. Steenbarger, Ph.D.
Numerous books have been written on the topic of trading
success. Nevertheless, it is unclear how
expert traders obtain their expertise.
Several explanatory models are implicit in market writings:
1) The
psychological model – What makes great traders, this model asserts, is
self-mastery. Great traders don’t
necessarily possess better trading methods or secrets, but apply common wisdom
more consistently, with less emotional interference, and therefore with better
risk management. Developing trading
expertise is a function of developing oneself in this model.
2) The
scientific model – What makes great traders according to this model is
superior research. Markets exhibit
cause-effect relationships, and these relationships shift over time. The role of research is to uncover these
patterns and capitalize upon them. Such
a model is, in a sense, the opposite of the psychological model. It hypothesizes that, once you discover
inefficiencies in the marketplace, these can be incorporated into mechanical
systems that eliminate any troublesome human elements from trading.
3) The
hidden pattern model – Success in the marketplace, this model emphasizes,
is a function of understanding. Patterns
exist in the marketplace that do not shift over time, but also that are not
necessarily observable on the surface.
The role of the great trader is to successfully decipher and apply these
universal patterns. This is not so much
a function of research as experience; such approaches to trading as charting,
Elliott Wave, and Market Profile are not systematic approaches to trading, but
instead rely on the trader’s interpretive skill.
4) The
performance model – Trading is viewed as a performance activity, like
athletics, in this model. Successful
trading can be broken down into component skills and aptitudes that can be
honed through intensive exposure and practice.
Expertise is less a function of explicit research or pattern-based
interpretation as rapid execution of perceptual and motor skills.
EURJPY Eyeing 132.432 Levels After Passing Through Off 130.763 Support
Looking at EURJPY in the H4 chart, the price passed through the previous resistance line which became the support line now at 130.763. Currently it’s looking to climb up to 132.432. levels, continuing its bullish trend. The mentioned 131.590 is considered as a resistance area. The price can test this level and once breached, this can go higher to 132.432.
The 5, 10, and 20 day Simple Moving Averages for the EURJPY currency pair are currently moving below the price, a clear bullish momentum. As a confirmation of this heightened bullish strength, the 5 day Simple Moving Average has recently advanced over the 10 and 20 day Simple Moving Averages.
RSI(14) in the daily chart is currently at a 56.94 level. RSI has recently bounced off overbought territory and thus the resurgence of bullish traders and investors. The current level, although considered neutral, implies that the price still has room for an upswing. It is expected that the price will continue its established upward trend.
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