Even with the right forex trading strategies, a forex trader can still fall prey to many of the major trading mistakes. But with the use of a automated currency trading software, he can trade his strategy in a mechanical manner without fear of making an error in his order entry or judgement. With automated forex trading software, a forex strategy will be executed in the same way over and over again, taking advantage of the statisical odds to grow his trading account exponentially over the long term.

When it comes to day trading the forex currency markets, using an automated forex day trading system will give the trader an edge that is very difficult to be matched by someone trading manually. With automated trading software, you get speed of entry and flawless execution according to your forex day trading system rules. There is no need for second guessing. Without exception, an automated forex day trading system can outperform a trader entering orders manually into his trading platform.

Using a forex auto trading system gives traders the flexibility to step away from their computers when they need to. With the automated forex trading program monitoring the markets, the trader does not need to worry about missing a trade for the time that he is away doing some other task. Computers do not need any rest other than regular maintanence during off market hours and a steady supply of power.

With the speed of order execution, automated forex trading programs have an edge over manual traders. In live trading, there is competition for liquidity at specific prices that a currency pair trades at. If you are slow, another trader would have beaten you to getting his order filled at that price. And usually, slow traders get the prices they do not want. This means they usually end up losing money on their trades.

The ability that automated forex trading gives to forex traders allows them an incredible opportunity to grow their wealth. Without having to go for large gains, even a little bit extra compounded every day can grow into a substantial sum of money in the long run. Not to mention the flawless execution of strategy when everything is set up right. This makes a good automated forex trading program a worthwhile investment.

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Market investing is tough to understand without help in the beginning.  Most people find the waters are extraordinarily frightening indeed and filled with all kinds of new words, new meanings, and confusing contradictions.  For this reason it’s best to work with a financial counsel or stock broker while you are learning your way around the globe of investing in the stock market and retirement funds. Which is why you need to sign up with the best online broker that you can find.

A broker can help you to learn the language and make informed decisions that are in keeping with your financial situation and your financial goals.  She or he can also help you identify your fiscal goals and your retirement desires as well as a timeline for retirement.  In other words a broker is an invaluable valuable tool in helping you secure the financial future of your dreams. 

When you are searching for the right stock broker to work with you will wish to consider a couple of things first.  You’ll want to find out about his history.  How long has he been in the business, how long has he dealt with specific sides of the business?  What kind of education does he have?  Where he went to school?  And what, if any, sophisticated degrees, education, and licenses he might have should be a pleasant set of questions to start with.  Many of those naturally can be found on the broker’s website so you are able to save your time meeting with him for more significant questions. 

Some of the critical questions could be what sort of time he sets aside for his clients, what quantity of a retainer ( if any ) is needed for him to take you on as a customer, what are his going commission rates, finance planning rates ( if applicable ), and if he is going to be available to you or dodge your calls and emails.  You can often get a pointer about these things before you are a buyer.  If he dodges your calls and emails when he is’s making an attempt to get his hands on your cash, probabilities are he’s going to do the same once he has them on your money. 

Get suggestions from pals and family and ask them the same questions about fees, commissions, and attention before you even talk to a financial aide.  The most vital thing you can get from your time with a broker or counsellor is a foundation upon which you can build a monetary future.  If you can learn as you go by asking questions of your advisor and having them answered you might make a situation in which the 2 of you’ve got a lifetime and beneficial working relationship. 

This brings me to my final recommendation.  Go with a broker that you are feeling cosy talking to and secure handing over an enormous portion of your money to.  This person is going to help plan your financial future you want to feel as if you can trust him to make the correct calls for your money dreams and goals.  If you cannot then you want to seek counsel and steering somewhere else. 

Consulting a good financial planner and taking their advice will make a positive difference to your financial future.

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Many traders who understand futures trading have a hard time understanding futures options. This is because the pricing of the options is sometimes different for the futures option contracts compared to the futures contracts.

For example, the 30 year t-bond futures contract has 32 ticks for each point in t-bonds. Each tick is worth $31.25. Now the options have 64 ticks in every point. Each tick in options is worth $15.625. See how this can be confusing. Not every market is like this. The financials have markets like this as discussed with bonds and also the grains.

For instance wheat futures are priced at $50 per cent. Each tick is ¼ cent. So each tick in wheat futures is $12.50. In the options market there are 8 ticks in each cent. So each tick is 1/8 cent and each tick is $6.25. We buy and sell options while looking at the underlying contract. The underlying contract might be priced differently so that is why it can get confusing.

Keep this is mind when buying or selling any options and futures. You will notice the prices are different if you check the quotes in the futures market compared to the options market.

For bonds I might see that bonds are priced at 115-31. I then look at an option and it is priced at 1-32. Now you will notice that bonds are never priced above -31 because there are 32 ticks and the next tick after 31 ticks is one point. So after 115-31 the next price is 116. In bonds options as we have seen, the price of the option can go from 1-31 to 1-32 because there are 64 ticks in every point in the bond markets.

For wheat you will see futures at 5546 which is 554 and ¾ or 554.75. Three quarters happens to be the highest price for futures ticks. You might see an option contract for wheat priced at 9-7 which is 9 and 7/8 which is 9.875.

So remember this when you are comparing futures options prices with futures prices.

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I want to go over a common concern with futures options trading. I only recommend and teach selling options if you are covering them by buying options. Sold options that are not covered are called “naked options”. That means that if there is a move against you, and you did not also buy options, there is potential unlimited loss.

If you did cover your sold position by buying a future option as protection, you are no longer naked. Now even if a sold option is covered some still feel nervous if an option they sold is exercised into a futures contract. The buyer of an option has the right at any time to exercise their option. Let’s assume you sold a call option to someone. They exercise the option and now they are long a futures. That means you are short the futures. Should you be worried?

Two things to consider:

You have unlimited loss potential whether you are selling a futures option or long or short a futures contract. So the fact that someone exercises an option should not worry you more. Either way, there is unlimited loss potential. But you always want to cover the position. So either way, now that it is covered, you do not have unlimited loss potential.

The second thing is that you should be happy if the seller exercises the option if there is still time value left. When they do this, they are giving up on some time value. So if there is $100 time value left and the buyer exercises the option, he gives up that time value when he gets the futures. So either way, do not worry if you are protected.

If you only sell uncovered or naked options because you do not want to spend the money to buy options as protection, you might want to re think your strategy. Find cheap options to cover your sold options instead of being naked.

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Often people often ask if is possible to become a day trader, and day trade for a living.. The answer is:: “Yes, you can!” However, you must receive professional  training to become skilled in online day trading.

There are many pretty good sites about Day Trading that offer great information about training. Just type “day trading” into the Google search engine.

What amount do you have to to make day trading every week to begin to day trade for a living? What would you need to replace what you earn from your current profession?

People need to know what they need to earn in order to trade full time.You must know what you need to make each week and plan accordingly.

Let’s use an example and say you need to make 100,000 dollars a year to leave your current occupation. Let’s look at whatyou must do to earn this kind of money trading.

100,000 dollars a year is about 8,000 dollars each month, or 2,000 dollars each. We are assuming that you take a couple weeks off,naturally.

What it takes is knowing what you are doing. You learn this by getting yourself trained by a professional day trader that is successful.

Have you not heard that before? Isn’t this case in becoming successful in any field?

Once you learn a professional method, you must practice. Practice on a simulated account until you have complete confidence in your chosen trading strategy, and more importantly in yourself.

Assuming you choose to trade the S&P 500 Emini and your goal is to make just a single point each day. It would be required to execute 10 contracts on each trade. The requirement is around 1000 dollars per contract. Do this and you will reach your objective.

Attaining the goal is the key to day trading success. Most importantly, you must have a sound trading strategy, and it must be one that works effectively in the market or markets you trade.

It is a must that you master your trading system and follow your money management rules.There are no well guarded. Becoming a professional day trader requires dedication to your education as a day trader, and commitment to honing your skills.

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Open up a web browser and do a Google search for “forex robot software.” If you do, then you are going to be surprised at all the results that appear. There are hundreds of different Forex robot software programs and review sites listed. Most people go to a review site and read user reviews and then buy the software that appears to be the best. Forex Ambush 2.0 is one of these programs. But if you delve deeper and actually find real user reviews, then you can see that those other “unbiased” reviews are a bit shady.

Forex Ambush 2.0 does offer some catch lines that are designed to get your attention. They claim that it took a team of experts three years to develop this truly artificial intelligence software trading system. It cost them millions of dollars, and for $197.00 you can get this software that will make you tons of money. What a great deal! Especially considering they once charged $197.00 per month but now you get it for a one time fee. Is it too good to be true?

One of the catches of Forex Ambush version 2.0 is that you need to have a higher investment starting point. Whereas some software programs can work with $50.00 to $100.00, with this one you need to start at $250.00 and higher. For some new Forex traders, this is a bit scary. Forex trading is hard work and it takes a lot of knowledge to even attempt trading. Regardless of the software you use, you have to know what you are doing. You have to know what pips are and you have to know what stopping points are if you want to make money. And the most important thing is that you have to know that the market changes continuously.

If you want the real scoop on Forex Ambush 2.0, then you have to visit www.babypips.com. The Forex message boards have some very interesting comments about this software and you will see that those “unbiased” reviews were nothing more than a sales ploy designed to get you to buy the software. One user’s experience with the software speaks volumes. He logged into the Forex Ambush chat room and anytime he said something negative he was banned. That is definitely not a positive sign.

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Corn futures is among the main futures areas in the world, as corn is the staple grain utilised in the west, specially in america. Billions of USD worth of corn futures are traded every day via markets, assisting both to drive the value of corn, and to stabilize the current market.

Corn futures commenced trading in Chicago at about the same time that cotton started trading in New York, in the mid 1800s. Originally, the corn futures were with 3000 bushels however today it is traded for 5000 bushels. Corn futures trade on the eCBOT around the clock, pit session runs from 10: 30 am est thru 2: 00 pm est close. Who wouldn’t enjoy a 3. 5 hour workday?

Corn futures at times close greater with the dollar giving up ground and fair harvest weather in the forecast. Wheat prices regularly increase along with exports below expectations for the week. Corn production is up in addition to ending stocks on gradually declining livestock numbers. Though the trading frenzy subsided in addition to corn futures trading rates at week’s end, the blight lifted the price of corn futures per bushel last week.

Grain caliber merely becomes an problem when a substantial portion of the complete crop has been influenced. For example, low check weights across a bulk of the corn belt may lower normal yields, or extremely high levels of mycotoxins might make some corn unusable as a food, impracticable for ethanol use and excluded by export markets. Grain offered on the market at harvest incurs no storage and interest expenses. Nevertheless, as the time progresses, storage as well as interest fees accrue and the money costs raises to cover these charges.

Wheat can also be planted strictly as a forage crop for livestock and also hay, that has little to do with corn futures. Wheat basics are generally bearish as export demand remains sluggish. USDA has raised their global wheat production figure in the past, reinforcing concerns about abundant wheat materials globally, and corn futures trading.

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Most savvy savers will have used up their cash ISA allowance to get the best returns on their ISA accounts, but many don’t consider using the full allowance by making use of Equity ISAs by investing in stocks and shares and earning tax free returns.

It is a well known fact that equity ISAs can offer significantly greater rewards than their cash counterparts. To begin with, you can invest your full ISA allowance to invest in them, rather than just £3,600 which is the most you can put into a cash Isa per year. This means that you can invest up to £7,200 every year.

Changes made in the 2009 budget mean that as of April 2010, the ISA savings allowance will be increased from £7,200 to £10,200 – £5,100 of which can be invested into a cash ISA and up to the full amount into an equity ISA.

Now comes the question of returns. Cash ISAs pay a predictable rate of interest that can be fixed if you’re willing to lock your savings away for a fixed period of time. These ISAs hold no risk, as long as you stick to FSA regulated providers and invest only the current Financial Services Compensation scheme limit.

However, with equity ISAs there is no upper limit to how much you can earn, but these ISAs do come with different levels of risk, depending on the scheme you choose, so in many cases you will also get a regular income.

For example, Neptune Japan Opportunities - one of the better performing equity funds over the course of 2009, produced a return of around 70% for investors, all of which is of course was tax free.

It is much more challenging to find the best ISA rate for equity funds than cash ISAs, as the rates of return offered are only a guide to the potential returns offered, so these are never guaranteed. But there are a number of rules that can help you along the way.

The risk factor

Before deciding on which ISA to invest in, it is a worth thinking about the type of asset that would best suit you. By making the decision to invest into an equity-based ISA, you have already proven you are willing to add an element of risk in return for potentially higher returns. But the levels of risk differ between investments, allowing you to choose the amount of risk you wish to take.

Something that’s always worth remembering is that you won’t gain or lose anything until you sell your shares, and in many cases if your shares lose value, they will recover over time.

Gavin Haynes, of Whitechurch Securities said: "Although the volatility of the stock market can be unsettling, the potential to generate long-term returns is indisputable. In the last 20 years the FTSE All-Share index has provided a total return of 332 percent (including dividends) - the equivalent to an annual compound return of 7.6pc.”

Be careful when investing in overseas companies, as there is always the chance that exchange rates will fluctuate, sometimes against you. For example, if you were bought some American shares which appreciated by an average of 5%, but meanwhile the dollar fell by 10% against sterling, the value of your fund would fall.

If you purchase funds that invest in emerging markets, such as China, you could benefit from the successful economic progress, but this can carry greater risks of political instability or unexpected events. Investing in global emerging markets funds could be a safer bet, as your money is spread across several of countries, therefore spreading the risk, although this does not remove the issues around exchange rates.

Diversification is a good method when investing, as each of your funds can take a different approach, so this can help to reduce your overall risk.

You can buy funds directly from the companies that run them, however this could actually be a more expensive option, as fund supermarkets usually waive the initial fee that fund managers charge, which is usually about 5%.

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This is the first of two articles looking at currency exchange vs stocks from the standpoint of the retail stock trader. Currency exchange has been getting a lot of press lately and has attracted many new traders working from home, as well as many investors looking to widen into currency trading. But what precisely is the currency exchange market? How does it work?  

World Market

FOREX trading is a world affair. You are not restricted to dealing in the currency of your own country. Foreign exchange is an over the counter market and there is no central exchange or clearing house. This gives the forex market several advantages over the exchange for a retail trader.

Transparent Market

The value of a stock is influenced by the performance of a company whose figures may be manipulated or known to insiders for a while before it is revealed publicly. Currency prices, on the other hand, are driven by the commercial performance of an entire country. This is almost impossible to manipulate and masses more clear. This means that a trader working at home, out of the loop of personal financial info, is on a much more level playing field in the forex market than in stocks.

Liquidity

Daily transactions in the forex market total almost $4 trillion per day. This is more than the total of all the world’s stock exchanges added together. What’s more, there are only a controlled number of possible currency pairs compared with probably many thousands of company stocks. With so much money concentrated in such a limited arena, price management by the bigger players is far less of an issue, if it exists in any way.

As you can imagine, such high liquidity also means that it is very improbable a trade in any of the major currency pairs would have problems getting matched, even in bad times. This is a big advantage, particularly if you’re trading big positions.

Signals

Currency market has a wide array of signals software available for the traders. Signals like Forex Mercenary provide precise orders to be put on the charts. While such convenience is also available in stock markets, it is not as widely used.  

Development

So if foreign exchange trading has so many advantages , why is it that it isn’t been favored till recently? The answer is that the market itself only began for real in the 1970s when exchange rates stopped being permanently pegged by the ‘gold standard’ and were allowed to fluctuate.

Even then, it was only the banks, hedge funds etc who were concerned in trading on the currency market initially. There had been no history of personal speculators getting on the telephone to a broker to trade in currency as there was in stocks. This indicates that it wasn’t until the development of the Net that the currency market opened up and currency exchange vs stocks turned into a real choice for retail traders.

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Rating: 4 out of 5 stars

Reviewing: The INO Portfolio Tracker

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Nearly all the traders and investors who want to monitor a portfolio of investments use a portfolio tracker. In a global economy investors and traders want to monitor stocks, ETFs, mutual funds, futures, and forex, but few portfolio trackers have this feature. INO provides at no cost access to a portfolio tracker that can accomplish all of these things and gives detailed analysis on what you are following.

To get started assemble your list of what you are interested in managing.  The search tool makes it easy to locate the symbol you are looking for regardless of what it is. If you have no idea what the symbol is just type the keywords and the INO Portfolio Tracker will help discover it. There are greater than 300,000 tickers in the INO Portfolio Tracker system and upon receipt of the search results, you can shorten your selection to equities, futures, or spreads. Select the symbol and review its details. If it is a futures contract for example, the INO Portfolio Tracker will display all the possible monthly contracts and you can choose the one that interests you. INO will automatically add it to the Portfolio Tracker.

Upon placement into the Portfolio Tracker you can begin by examining the Fast View.  The Fast View shows you the symbol Open, High, Low, Last, Close as well as the percentage change. Select a single instrument and the Portfolio Tracker will illustrate a customizable chart with intraday, daily, weekly, and monthly time period selections. Detailed information about the annual low and high, 52 week low and high, and the average and daily volume is on screen. INO’s Portfolio Tracker also distributes the short interest, volatility, and beta which is data every investor needs to know. Lastly the Portfolio Tracker even offers the option expiration and pricing if there is one for the symbol.

If you are an INO MarketClub member all the analysis and tools are linked right there for convenience.

Clicking on the Detailed View of the Portfolio Tracker, investors can focus on how the ticker is changing today. Open, High, Low, Close and Volume are all presented as well as changes in percentage for each symbol in the portfolio.  Investors can organize the order of the tickers and organize the layout to their unique preference. Links for accesing charts, researching option chains, and MarketClub analysis is here as well.

The Quote board is another terrific feature..  The Portfolio Tracker Quote Board hangs a small floating window summarizing your portfolio activity which you can park anywhere on your desktop. Right click and refresh to get the latest quote prices. Investors can examine changes in their Portfolio Tracker by just surveying the small window.

Finally INO has great no cost offers for Portfolio Users from their partners including trading and investment education, futures and forex guides, and online education.

Bottom Line: Traders and Investors looking for a Portfolio Tracker will appreciate INO’s for its flexibility, feature set, and price – it’s free.

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Sea Lion Capital Management LLC

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