FOREX Trading Profits – 4 Tools to Help You Catch the Biggest Trends

Here we are going to look at the art of contrary trading, which if you can trade contrary to the majority at important market turning points, which can give you massive profits but also low risk.

These FOREX trading profits only come a few times a year, but if you simply concentrated on them and caught them, you could enjoy triple digit profits.

Let’s look at how to catch them.

A good place to start is:

Exaggerated moves with a general consensus that the move will go on for ever in the media and from so called experts and gurus.

When you have a move like this start watching your charts.

It’s a fact that strong bull and bear moves collapse when the news is at its most bullish and bearish respectively – human nature has pushed prices too far from fair value and a change is likely.

These moves are easy to spot, if you use the following tools:

Relative strength index

A great contrary indicator.

Look for RSI To be over bought or oversold and watch for a turn up in a bear market and down in a bull market.

% Bullish

Another great contrary indicator when % bullish is above 80% in FOREX markets prices are overbought and when their below 20% their oversold.

Keep an eye on this indicator with the RSI, to spot potential trade set ups.

Looking for entry levels

When you start to see a these indicators indicating a top or bottom; its time to look for an entry in the opposite direction – i.e. a contrary trade.

Do this by watching for support or resistance to form and hold.

Timing your entry

Use the stochastic momentum to indicate price momentum going the other way to the prevailing trend.

Ideally, you want a cross of stochastic momentum to downside (bearish divergence) in a strong bull market, or the opposite set up in a bear market.

The majority will not agree with you!

Not many people will agree with your point of view, but that should not worry you – keep in mind the vast majority are wrong at important market turning points, so its good they don’t!

Great contrary trades don’t come up everyday.

You will probably only see a few of these trades a year, where all the elements come together, but when they do, you will trade with very low risk and huge profit potential.

These are the trades that make the big profits.

If you use the above indicators and don’t mind everyone telling you you’re wrong you can bank some triple digit gains.

Learn to become a contrary trader and have patience and the big profits will come.

6 Simplest Steps to Successful Portfolio Management

Portfolio management is challenging, but it's also exciting. Some people prefer to have their portfolios managed by a professional. However, it's not impossible to manage your own portfolio. It just takes time and a basic understanding of the process.

Portfolio management involves 6 steps in an ongoing process.
1. Determine Objectives/Constraints
2. Formulate a Strategy
3. Design an Investment Policy
4. Implement Asset Allocation
5. Monitor Performance
6. Evaluate Performance

As an ongoing process, it is the responsibility of the portfolio manager (whether that's you or a professional) to go through the process (beginning at "Determine Objectives and Constraints") and upon reaching the "Evaluate Performance" stage, start again.

Why is it an ongoing process? Because life is not static. People move, they change jobs, they get married, they get divorced, they get remarried, they have children, they make large purchases, they make wise decisions, they make unwise decisions, they are faced with windfalls and tragedies. Each of those (and many, many other) events will affect how they manage their portfolio.

Every individual has different needs and wants. The first step to successfully manage your investment needs is to identify them by drafting an investment plan. This plan should state your goals. It is simply a mission statement of what you endeavor to achieve. Be as specific as you can, so that you can determine what to invest in, and how your portfolio will be structured to realise your dream.

Knowing yourself is critical to creating and managing a portfolio that will do what you want it to do. This knowledge will help you set realistic future financial goals and will help you to decide how much risk to include in your investment strategy

There are several constraints that may work against your desire to build up a healthy nest egg. These are all challenges of having money. Unfortunately, many of them are unavoidable… but that doesn't mean that they're not manageable. The best thing to do is know that they exist and develop strategies to help you over come them. Some of the considerations include evaluating your Risk & Return Profile, Investment Time Horizon, Liquidity Requirement, Legal and Taxation Structure, etc.

And also, do you remember the popular saying, "Don't put all your eggs in one basket" ? The reason why you should achieve diversification in your portfolio is that the value of different asset classes tends to behave and perform very differently. Some assets move in tandem or in a similar direction with each other, while others move in opposite directions. What may surprise you is that for the same rate of return, you can actually combine different asset classes to achieve this expected return. Thus the secret to successful portfolio management is to create a portfolio by investing in different types of asset classes, that generate the lowest risk factor to achieve your investment objectives.

As you manage your portfolio, different factors will have an effect on its performance. The economy, for example, may go up or down and cause the value of your holdings to rise or fall. Perhaps you followed some advice from a friend on a "can't lose" stock and ended up losing. Whatever the case may be, it is crucial to monitor the performance of your portfolio at all times so that you can react if something happens.

We will review the 6 steps in our upcoming series of articles and I really hope you will benefit from it.

Create a Forex Strategy That Will Provide Massive Returns

Forex is a foreign-exchange currency market, where investors from all over the world buy and sell different currency pairs. The development of the Internet and computer programs have made it possible for people from all over the world to enter this multi-billion dollar market. But, most of them get caught up by the system. Start-ups with as much as $250 in their account are highly-likely to fail. If you want to invest in this market, you need a strategy. The goal behind a Forex trading strategy is to provide profit for the investor. The whole scheme is based on the idea of buying a given currency when it's undervalued and exchange it for another currency of normal or higher value. The difference will be your profit. This is a very simple strategy, but brings out the main idea of FX strategies.

No matter what type of strategy you apply, always remember that the chances of loosing are as real as the chances of winning. Be prepared to loose those money, but at the same time, do your best to be on the receiving end. Your strategy must be based on accurate and thorough studies of the market, up-to-date financial tools and information.

The big corporations that deal on the Forex market are able to make constant profits, because their strategies are made by professionals that have extensively researched the market, have special education and years of experience. Watch what large traders do and try to get some advices from them regarding the strategies available to you.

A Forex trading strategy must be influenced by the current economical and political news, situations and factors. You must follow the government issued reports, political news from all around the world, and economic trends in order to forecast the moves of the different currencies. Other strategies can be based on mathematical analysis of the forex charts for a given currency pair. The best idea is to combine both methods but no matter how good a given strategy is, unexpected events will always occur at one moment or another. Remember that it’s not the events the drive the market, but the anticipation of those events.

This is a two-sided market, as there are always two currencies that are involved, two different countries. It’s the news about those countries that make the difference. The goal when investing in currency is to be holding a currency that increases in value relative to another currency.

The Five Secrets of Successful Forex Trading

I think I had better start off by clarifying that there really are no “secrets” to trading in the forex market, but there are certain things that successful traders do that unsuccessful traders do not do – and vice versa.It seems to be a well established fact that 95% of all the people that trade the forex lose some or all of their investment while a small percentage of traders make a very handsome return. Why is this?

If we were able to make a detailed study of every successful trader, we would find that there is a common thread that runs through these people. The details that we could take from this thread could be considered to be the five secrets of successful forex trading.So here is the first “secret”. Successful Forex Traders love to trade. They love everything about trading. They love the studying, the planning, the scheming, the waiting, the anticipation, the execution, the result, the atmosphere and of course they love making lots of money.

These traders talk, eat, sleep and dream trading. It is not a job. It is a way of life. They DO NOT do it just for the money!In my forex trading business, one very common question that I am asked is “how do you overcome the boredom of being stuck in front of your PC all day?”.The answer is of course that I do not find it boring. I love trading and if I didn’t, I would find a different way to make a living.

The next “secret” is emotional control. Successful traders have learned the ability to trade without emotion. This does not mean that they do not care about the outcome of their trade, quite the opposite. Successful traders always trade to win, but they do not let their emotions play a part in the process. They just look at the cold hard facts and then either trade or wait. Successful traders also accept that there will be both winning and losing trades and they treat both with the same lack of emotion.The next “secret” is to have a system. Now it really does not matter what system you use so long as it produces more and bigger winning trades than losing ones. This is referred to in trading circles as “an edge”. If you do not have an edge, then I highly recommend that you consider the trading system that I co-developed called The Amazing Stealth Forex Trading System. It is available from the website: www.stealthforex.com

The penultimate “secret” is to be disciplined. This means having the self discipline to STICK TO THE PLAN. There is a great maxim in trading. Plan the trade and trade the plan. If you have a winning system, make sure that you have the discipline to stick to the rules exactly.

The final “secret” is to have enough money to trade safely. In many ways this should be RULE NUMBER ONE. More people fail to make money when trading on the forex through insufficient trading capital than for any other single reason.

When trading it is vital to adhere to strict money management and capital conservation techniques. Money management must be an integral part of any good trading system, and of course you should never trade with money that if lost would cause you or your family financial difficulty.If you can take onboard and learn these not so secret “secrets”, there is no reason why you should not be able to join the ranks of successful forex traders.