Financial Freedom : Forex Trading ??

What is the best pair to trade using chanelling Technic?

2011-09-08T04:26:00.003+08:00

According to Investopedia, Channel trading is a powerful yet often overlooked form of trading that capitalizes on the tendencies of markets to trend. It combines several forms of technical analysis to provide traders with precise points from which to buy and sell, put stop-loss and take-profit levels, and much more! This article will show you how to create and effectively trade these amazing instruments.

Channels are useful for short-to medium-term trading - not long-term trading or investing. The technique often works best on stocks with a medium amount of volatility. Remember, the volatility determines your profit per trade. Channeling also tend to work best when the technique is combined with other forms of technical analysis, at which we take a closer look below.

Read more: http://www.investopedia.com/articles/trading/05/020905.asp?partner=COTW05#ixzz1XIhWy2JQ

So, What is The Best Pair to Trade using Chanelling?

A Long Journey... But Its worth..

2011-07-21T21:40:00.003+08:00

A Long Journey that Worthwhile..'You reap what you sow'

Still a Relevant Method

2010-02-24T16:16:00.007+08:00

After 2 years of a rapid market movements, it is still a good method to make money. BUT, must combined with a good Money Management.

Strategy for 'Visualize' People

2008-05-12T21:55:00.006+08:00

Chart Pattern n SHI Channel n Fibbonaci, using 1D T.F...
I feel like this strategy really suits me (as at now).
Busy at project site which do not have internet access and tight date line, sometimes, i only manage to see charts only once or twice a week..
That's why i see charts at 1D Time frame(T.F)..
Usually, Traders will take more than 300 pips if the use the 1D T.F, However, since i don't have enough time to analyse, I take what ever i could, it depends on the Pattern cycle (for e.g.. now, what i can see from the chart, it is a half inverse head and shoulder.. so its going to be a full inverse HnS within next few day).. I just open up a buy position for EurGbp.. my T.P is at Fibo 38.2 .. and the half line of SHI Channel).. I'm not even calculate how much pips would i get for this post.. But i'm pretty confident, sooner or later it will touch my T.P..

Chart Pattern n SHI Channel

2008-05-10T20:31:00.005+08:00

I am using SHI Channel in helping me to determine the the chart pattern.. and Fibbonaci to set my target profit..
I use this for more than 6 months, and its really boost my confidence in forecasting the next trend or pattern. As a part time traders, i could make 500 pips for 2 weeks.. well it's good enough for me.. the most important thing is, i'm no longer worry of losing my FX money.
Its pretty accurate especially if you read it using 1day Time Frame and 4hr TF (for GbpJpy and all Jpy pairs) .. thru my experiment (my style of trade on GbpJpy), the SHI Channel is not suitable for TF 1H and below..
To play safe, you have to be patient on the entry level...

You can use SHI Channel with others indicators that you are comfortable with.. as for me, I use SHI Channel as to confirm what is the next pattern gonna be..

Below is the few articles about SHI Channel:-

A. 1st article

"Hi there!

Our indicator today is not one of the popular indicators yet, but it’s growing popularity among the Forex traders in their forum; the SHI Channel indicator.

Channel trading in general is one of less use trading method, however it has its fan who trading the two methods of channels: Channel direction follower and Channel breakout.

The MetaTrader version of the SHI Channel indicator (SHI_Channel_true.zip) was created by Shurka & Kevin

How does the SHI Channel indicator work?

The SHI Channel indicator and as the all of the channel indicator uses the highest high and lowest low of the price to determine the upper and lower bands of the channel.

In the SHI Channel The channel is calculated according to the given period of calculation and the time frame of the used chart, and the channel is self-adjusted (Like the Bollinger Bands).

As you see in figure 1 there are two thick lines that indicates the upper and lower channel and a dashed center line.

The channel gives the overall direction of the price movement - up or down - and may change from time to time, specially if it used with a low timeframe (1, 5 and 5 minutes).

How to trade using the SHI Channel indicator?

Actually you can’t trade with the SHI Channel indicator alone, it will not tell you when to enter the trade neither when to exit, The SHI Channel indicator telling you the overall direction of the price trend and the channels with the middle line warn you how much the trend is strong or weak, however , you have to use another indicators to generate the entry/exit signals...For more info you can go to :http://forex.eazel.com/2006/06/29/shi-channel-indicator/ "

So.. for entry and exit.. i will use chart pattern.. you don't have to be an expert in chart pattern.. to make hundred bucks a month in fx.. i only focus on double top or bottom pattern, head n shoulder pattern, inverse Head n Shoulder, Ascending and descending triangle (the breakout of these triangle at 4h can give you about 400 pips)

B. 2nd article

1. DIRECTION.

SHI channels which automatically recalculate in real time gives us the direction we are going to trade. If slope is down we are only looking to sell, if slope is up we are only looking to buy.

If the channel is thin (narrow) we dont trade .

If price falls outside the channel we dont trade(unless in a trade already) we wait for a new channel to form.

2.ENTRY/EXIT.

Remembering we ONLY trade in the given direction of the slope of the SHI channel!!

for more info go to :http://fxovereasy.50webs.com/TheSystem.html

Chart patterns are the depiction of trading psychology in motion

2008-03-15T00:46:00.003+08:00

My laptops was crashed last week. So i've lost all my fav bookmarks. From now on, i have to save all my fav site in this blog..
Below are websites that explained about patterns:

http://thepatternsite.com/
http://www.tradingpricepatterns.com/
http://www.informedtrades.com/index.php
http://www.chartpatterns.com/
http://www.thestockbandit.com/Chart-patterns.htm

why i like to study chart patterns?
"If human emotion drives buying and selling behavior, then chart patterns can help to determine where such emotions may next surface. Chart patterns are the depiction of trading psychology in motion."

Chart Patterns : Trends & Breakout

2008-01-24T00:48:00.001+08:00

Trends & Breakout

An important measure of the quality of a pattern is the trend that precedes it. It does not matter whether the trend is bullish or bearish, but the consistency and duration of the initial trend partly determines the well-formedness of the pattern.

The pattern is said to have "broken out" once it has crossed either the support or resistance line. If the pattern broke out in the same direction as the preceding trend, it is called a continuation pattern. If breakout is in the opposite direction, it is called a reversal pattern.

For example, a pattern described as Bullish Reversal Triangle would mean that it is a bullish signal, that is, the breakout was through the resistance line, upward. Because it is a reversal pattern that means the preceding trend was in the opposite direction as the breakout, that is, the preceding trend was bearish.

Source:http://www.interbankfx.com/Tools/PRS/Tutorials.aspx

Chart patterns

2008-01-21T12:02:00.000+08:00

Introduction

Chart patterns are well documented phenomena in technical analysis literature and are said to be based on psychological phenomena that occur between the buyers and sellers of financial instruments in liquid markets. They include but are not limited to head-and-shoulders, channels, triangles and wedges.

Pattern formations do not form a trading system, but rather provide an indication of the potential future trend as the security's price breaks key psychological barriers in the form of support and resistance lines.

Identifying chart patterns and using technical analysis does not guarantee success in the off exchange foreign currency market. Trading in this market is risky and only suitable for the sophisticated investor.

Pattern Types

There are numerous types of patterns, all named according to the shapes that the price graphs form between the support and resistance lines. The general types of patterns include Triangles, Channels, Wedges, and Head-and-Shoulders.

Triangles

A triangle is formed between converging support and resistance lines. A negative sloping resistance line indicates a reducing level of profit taking or more uncertainty about the value of the stock. With a positive sloping support line the price levels are squeezed into a corner. Once the support or resistance line is broken, pressure that has built up as a result of uncertainty is released and a certain amount of momentum is added to the price change in the direction of the breakout.

There are specific variations of triangles that can occur, namely ascending and descending triangles. An ascending triangle has a horizontal resistance line and a descending triangle has a horizontal support line.

An ascending triangle usually occurs as a continuation of a bullish trend, while a descending triangle usually occurs as a continuation of a bearish trend.

Channels & Rectangles

A channel is formed between parallel support and resistance lines. This pattern usually indicates a relatively strong trend (up or down) with the price staying within the lines until breakout. A breakout from a channel indicates either a reversal in the trend or a change in the slope of the current trend.

Similar to a channel, a rectangle is a pattern formed between horizontal support and resistance lines.

Rectangles and Channels are sometimes referred to as Flags and Pennants depending on the slope of the initial trend and the slope of the breakout. A Flag would be defined as a Bullish Continuation Channel Down, or a Bearish Continuation Channel Up. A Pennant would be defined as a Bullish Continuation Triangle, or a Bearish Continuation Triangle.

Wedges

Wedges are similar to triangles in that these patterns are formed between converging support and resistance lines. However, where the support and resistance lines in a triangle have one positive and one negative slope, the support and resistance lines of a wedge would both have either a positive or negative slope. Wedges with positive slopes are called Rising Wedges and ones with negative slopes are Falling Wedges.

The most common wedges are found as breakouts in the opposite direction of the wedge. That is, bearish breakouts in a rising wedge, and bullish breakouts in a falling wedge.

Head & Shoulders

A Head and Shoulders pattern describes a share price movement that depicts the head and shoulders of a person. Head and Shoulders is a reversal pattern from a bullish trend to a bearish trend. The pattern starts when the price graph crosses the support line upwards before formation of the left shoulder, and is completed once the graph crosses the support line downwards after formation of the right shoulder.

An Inverse Head and Shoulders is similar in shape except that it is upside down and indicates reversal from bearish to bullish trend.

article source: http://www.interbankfx.com/Tools/PRS/Tutorials.aspx

Learn to Trade Triangle Chart Patterns Part 1

2008-01-20T15:44:00.000+08:00

Last Year, I've learned a lot about indicators.. but then, I realize that i become obsessed with indicators. Well, the pro said, indicators are only value added tools. The Charts n Technical Analysis are the main things..
mmm.. o.k then.. lets study about charts..

Triangle Patterns can be broken down into three categories: The ascending triangle, the descending triangle, and the symmetrical triangle. While the shape of the triangle is significant of more importance is the direction that the market moves when it breaks out of the triangle. Lastly, while triangles can sometimes be reversal patterns they are normally seen as continuation patterns.
The Ascending Triangle:

The ascending triangle is formed when the market makes higher lows and the same level highs. These patterns are normally seen in an uptrend and viewed as a continuation pattern as the bulls gain more and more control running up to the top resistance line of the pattern. While you normally will see this pattern form in an uptrend if you do see it in a downtrend it should be paid attention to as it can act as a powerful reversal signal.
The Descending Triangle:

The descending triangle is formed when the market makes lower highs and the same level lows. These patterns are normally seen in a downtrend and viewed as a continuation pattern as the bears gain more and more control running down to the bottom support line of the pattern. While you normally will see this pattern form in a downtrend, if you do see it in an uptrend it should be paid attention to as it can act as a powerful reversal signal.
The Symmetrical Triangle:

The symmetrical triangle is formed when the market makes lower highs and higher lows and is commonly associated with directionless markets as the contraction of the market range indicates that neither the bulls nor the bears are in control. If this pattern forms in an uptrend then it is considered a continuation pattern if the market breaks out to the upside and a reversal pattern if the market breaks to the downside. Similarly if the pattern forms in a downtrend it is considered a continuation pattern if the market breaks out to the downside and a reversal pattern if the market breaks to the upside.

source:http://www.informedtrades.com/3557-learn-trade-triangle-chart-patterns-part-1-a.html

Trading Plan - could help to rectify trade problems

2008-01-16T18:24:00.000+08:00

After nearly 2 weeks using the Trading Plan and Paper Trade. Finally, i found my biggest problem, while trading FX..
This Trading Plan is really useful.. Why?..
(On this Particular Case). I noted each of our position entry, plus the reason why i did open the post.
Last Saturday, I have 4 floating positions (E/U and U/J).. Total of -200 pips..
Then, I check the reasons on why I opened the post, one by one..
Then later I found out, My problem is
"I try to hit the top of E/U and bottom of U/J and didn’t wait for enough confirmation. I trade against the market and as soon as I saw a small reversal signal,I enter the opposite pos,t whereas the market yet to change its direction.

Today, I found the solution, how to improve my trading style (of course, from the internet).

"If this is your problem, then it is very easy to resolve:

First way: Do not wait for a reversal signal. Go long when it has already started to go up. Go short when it has already started to go down. Do not try to hit the top and bottom of the market. Enter to the trade when the market is on its way and is moving to a special direction.

Second way: Act against your primary decision. For example if you came to this conclusion that the price wants to go down, don’t go short. Go long!!!

and visa versa …" Mr Vahid http://www.weboma.com/about/

Discipline

2008-01-13T14:20:00.000+08:00

To be a good trader, they said.. you need to be disciplined.. My self told me " If you really serious about trading forex, be discipline. or else forget about forex trading". For a week i thought about discipline that relates my current situation as a newbie in forex trading and as a human being in general. I wonder, what should i do now??.. I used to heard about it during my school days time....

I know, need to acquire this... but how to start?.. then, i thought.. how about, go back to the roots... what does discipline really means..

"In its most general sense, discipline refers to systematic instruction given to a disciple. This sense also preserves the origin of the word, which is Latin disciplina, "instruction."

To discipline thus means to instruct a person or animal to follow a particular code of conduct, or to adhere to a certain "order," or to adopt a particular pattern of behaviour. So for example, to discipline a child to wash its hands before meals. Here, 'washing hands before meals' is a particular pattern of behaviour, and the child is being disciplined to adopt that pattern. 'To disciple' also gives rise to the word disciplinarian, which denotes a person who enforces order. An ideal disciplinarian is one who can enforce order without coercion. Usually however, the phrase 'to discipline' carries a negative connotation. This is because enforcement of order - that is, ensuring instructions are carried out - is often regulated through punishment.

To be disciplined is then, subject to context, either a virtue (the ability to follow instructions well) or a euphemism for punishment (which may also be referred to as disciplinary procedure). As a concrete noun, the discipline refers to an instrument of punishment, for example in mortification of the flesh (see also: flagellation). Such an instrument may also be applied to oneself, for example in penitence for not being sufficiently self-disciplined.

Self-discipline refers to the training that one gives one's self to accomplish a certain task or to adopt a particular pattern of behaviour, even though one would really rather be doing something else. For example, denying oneself of an extravagant pleasure in order to accomplish a more demanding charitable deed. Thus, self-discipline is the assertion of willpower over more base desires, and is usually understood to be a synonym of 'self control'. Self-discipline is to some extent a substitute for motivation, when one uses reason to determine a best course of action that opposes one's desires.

School discipline refers to regulation of children and the maintenance of order ("rules") in schools. These rules may, for example, define the expected standards of clothing, timekeeping, social behaviour and work ethic. The term may also be applied to the punishment that is the consequence of transgression of the code of behavior. For this reason the usage of school discipline sometimes means the administration of punishment, rather than behaving within the school rules.

Church discipline is a response of an ecclesiastical body to some perceived wrong, whether in action or in doctrine. Its most extreme form in modern churches is excommunication. Church discipline can also refer to the rules governing some ecclesiastical order, such as priests or monks, such as clerical celibacy.

An academic discipline refers to a body of knowledge that is being given to - or has been received by - a disciple. The term may then denotes a 'sphere of knowledge' that an individual has chosen to specialise in. In an institute of higher learning, the term 'discipline' is often a synonym of 'faculty'.

In unionised companies, discipline may be a regulated part of a collective bargaining agreement and subject to grievance procedures."

Source:http://en.wikipedia.org/wiki/Discipline

My Learning Platform (FX)

2008-01-05T11:36:00.000+08:00

People ask me... Why do i have this blog?.. "Do wanna be a forex guru?", "Do you want to sell something on it?" and bla,bla,blabla...
As for me, this blog is like a diary or a bookmarks for me..
I'll put the on-line articles, lesson or video (in future) or anything about FX that trigger me while I'm browsing fx websites/forums.. Its like, when i go to a bookshop, buy a few books, then read a bit by bit..LOL
Since I'm a slow reader, sometimes I need to read a few times the same statement, before i could understand it. I can also refer back, anytime i want..
But now I'm really serious about learning FX, its like preparing for my final exam during my Uni. days.. Why?.. because i have already lost quite handsome of money in FX :-(

"There is nothing like losing all you have in the world for teaching you what not to do. And when you know what not to do in order not to lose money, you begin to learn what to do in order to win. Did you get that? You begin to leam." quotes taken from Reminiscences of a Stock Operator, written in 1923 by Edwin Lefèvre

THIS VERY UNUSUAL AND RARELY USED STRATEGY (Jacko's Way)

2008-01-03T21:06:00.000+08:00

Happy New Year 2008!! Hope to see more GREEN Pips coming...
I'm still searching for a method/system that suit me (of course profitable one:-), and hopefully I'll find it this year..

Well, I just found an interesting one, quite simple to understand but yet to test it.. I just called it "JACKO's Way" (sounds like a movie film..hehe).. have fun.

I divide them into 4 chapters:
Chapter 1 : I am a Trend Trader
Chapter 2: Jacko.. on alternative to Hedging..
Chapter 3 :Jacko..on the Time Frame..
Chapter 4 :Trading The News

Chapter 1 : I am a Trend Trader

I am a Trend Trader

EVERYONE SHOULD TEST OUT THIS VERY UNUSUAL AND RARELY USED STRATEGY;

1. buy/ sell ONLY in the direction of the major trend and
2. buy/sell on dips.(Use support lines to guide you as to price...also "round" numbers ... I also use the 50% Fib ratio..)
3. bank your profits

Firstly, how do you know what the trend is?

DETERMINE THE TIME FRAME THAT YOU WANT TO TRADE.

1. If the graph on the chart starts in the bottom left hand corner and ends in the top right hand corner, the market is going UP.

2. If the graph on the chart starts in the top left hand corner and ends in the bottom right hand corner, the market is going DOWN.

3. If you are still confused, print it off and show it to a 5 year old...they will get it right EVERY time...LOL

The trend is the BEST friend you will ever have in the Forex market.

When you trade with the trend, even if you make a mistake, the market will get you out of your problem....If you make a mistake and you are fighting the trend ...YOU ARE STUFFED, BIG TIME !!!

Secondly,I think the round numbers (1.2900...1.3000...etc) are valuable. I only use minimal numbers of trend lines and the ONLY Fibonacci number I use is the 50% number....
That's the limit of my T/A...

KISS = Keep It Short and Simple
Note: I do NOT use any moving averages (or any other of the fancy measures). They are historical numbers!!!

The reasons that I use only Round numbers, trend lines, and the 50% Fib number is that the big players ALL use them. The more complex you make your trading parameters, the less number of people will be using them.

Forex is one of the most "trendy" markets. That is, it trends MUCH stronger than say metals, oils etc in futures markets. The pair that are the strongest "trend" market is the Euro/USD. Trending markets are soooo much easier to trade than choppy, volatile and erratic markets

Thirdly, Slow down... this market will be here for the rest of your life...
DON'T BET YOUR BANK...

It is better to get rich slowly...than to go broke spectacularly fast.

Fourthly, A much wiser man than me once said that "If you find yourself in a deep hole, then stop digging"

Do NOT throw good money after bad money...stop and accept the loss... then clear you head so that you can see more clearly...

You should either

1. Close out the trade, and let the market go up/down....but after the market starts to retrace, then put your "short"/"long" position back on at exactly where you closed it out. This ensures that you get back into the trade on the way down (the Jacko "alternative method" to hedging) or

2. Close the position and take the loss. Then look at getting back into a "good" trade next time. This market will be here long after you and I will be dead, so there is no need to rush in and try to get all your money back in one day.

Fifthly, the is a tendency for newbies to "PANIC" when the market goes a little against them This is due to:
1. Probably scared to lose money
2. Probably undercapitalised
3. New to industry....therefore probably uncertain about your own abilities
4. Unsure that the trend lines, 50% Fib line and "round numbers" are as reliable as they are in practice.
4. Probably inexperienced in business and investment from a practical aspect
5. Probably unsure who to talk to for guidance

There is a solution to all the above...... It is called "old age"........LOL

Finally, you ask why I prefer to use the longer term trades. The answer is that the shorter the time period, the more you are gambling and punting on tiny movements. The smaller the time frame, the less they will follow the trend lines, Fib numbers and "round number" rules.
The longer the time frame, the stronger will be the trend lines etc

Also, short term trading is emotionally much more draining.

Just some additional little things that I have remembered that may be of assistance to anyone looking to position trade:

Firstly, don't over-trade. Some people here seem to want to bet on every tic. The thing that kills new traders is the "wild punting" on everything that moves two ticks.

Secondly, stop thinking that you have to "outsmart" the market.
You don't have to..this business is very easy if you leave your brain at the door....just follow the trend = follow the money =going with the flow = barking with the big dogs.
Stop thinking that "it can't be that easy".......it is!!!

Thirdly,, you have to detach yourself emotionally from the money...that is the hard part...stop seeing it as money, and look at it as numbers.
Also, don't play with money you can't afford to lose...or alternatively, put the money aside and tell yourself that it is already lost. (You MUST detach yourself from the money

Finally, I am not saying anything different to what all the good trading books say...but it is amazing that every newbie wants to "take on" the market and then wonders which express freight train flattened them (and destroyed their trading accounts).
Most people are trading for the adrenaline rush rather than the boring concept of just maximising profits

The Forexmarkets are arguably the most "trendy" market there is, especially the Euro.

Once a trend is in place, it takes a lot of power to reverse it. Take a look at the weekly charts. This current "long" started back in early Dec 2005 at approx 1.1650. (nearly 1700 pips from where it is now) It had a relatively "minor" correction from approx 1.3000 to 1.2500 before continuing on to where it is today.

Even more strong evidence for the power of the trend is that the above "long" is part of an even stronger "long" from 0.8363 from July 2001.

Price does not like support or resistance levels. It mostly tests them and then moves away quickly. You’ll rarely find much price action in the vicinity of the line. If price is hanging around a support or resistance level, it’s likely to break in the opposite direction.
(For example we know that professional traders love round numbers to target...it brightens up their dull day to push and cajole the market to a target number. Now Euro/USD 1.3000 is the roundest number there is around those levels, so the pros have gotta be saying that the big game in the industry is to now grind and push the market to 1.3000. After that they don't care, they have had their fun...and thats why a market will whip and drop/rise dramatically straight after the target has been hit).

Smart Money is the Central Banks. They actually determine the trend by sheer weight of money. (Central Banks turn the long term currency markets to accomodate the relevant government's trade requirements). Then following them are the huge hedge funds."

Chapter 2: Jacko.. on alternative to Hedging..

"An Alternative to Hedging. Jacko's Anti-Hedging Strategy

This strategy was invented by me as an alternative to "hedging" which was often discussed on Forums as a panacea to a losing trade.

"Hedging " to me is simply hiding a loss under another opposite trade...and sooner or later, when the hedge comes off, there is an ugly loss exposed...I don't like that concept !!! (However, to those who use them, I say, different strokes for different folks...that is, its a personal choice).

Currently, this is what seems to happen to some Traders...

1. you put a trade on and you put a stop loss of around 40- 50 pips
2. the market goes against you (horrors....I was wwwwwrong !! )
3. let the market continue...it will probably go say another 30 - 100 pips past your stop...who knows ???
4. FINALLY, the market comes back around and starts to head in the opposite direction
5. by now you are totally hacked off with the market and you let it go

The solution that that I found is a pretty simple one but one that has to be executed without fail...

Scenario 2

That strategy is:

1. you put a trade on and you put a stop loss of around 40- 50 pips
2. the market goes against you (horrors....I was wwwwwrong !! )
3. let the market continue...it will probably go say another 30 - 100 pips past your stop...who knows ???

4. PUT AN ORDER IN AT THE EXACT SAME FIGURE AS YOUR STOP LOSS (if you were originally "short" then place a "short" order) This ensures that when the market comes back, as it invariably does, you have a DEFINATE order in place to put you back in the market where you were originally...and you are now in the same direction as the market is moving..

5. FINALLY, the market comes back around and starts to head in the opposite direction
6. The market picks you back up on its new direction

7. THE ADVANTAGES OF THIS (THEORETICAL) STRATEGY IS THAT
a. IT HAS AN EFFECTIVE AND DISCIPLINED COURSE OF ACTION
b. IT GIVES YOU A SPECIFIC "ENTRY" POINT
c. IT REDUCES LARGE DRAWDOWNS
d. IT PUTS YOU BACK IN THE MARKET EXACTLY WHERE YOU GOT OUT

I know that there are DISADVANTAGES with this strategy, buy I think that the overall effect of the advantages outweigh the disadvantages.

I also think that this strategy is more appealing to my business sense of minimising risk than the original concept of "hedging" that initially set me off to discover an alternative strategy to hedging.

I have now been using this strategy for a couple of months and it is working brilliantly.

PLEASE NOTE: I am a medium to long term trend trader. The above method works best on those time frames. It works less well on short term time frames because of the volatile "noise" in the market.

When a stop loss has been triggered, I allow it to go past my SL by a minimum of 50 pips before I set the new order.

When the market has turned and is coming down in the "trend" direction, my order is then opened.

Try it...you will be surprised how good it is.

The key advantage is that you are not tempted to "hang on" to a losing trade....and therefore your drawdowns are minimised.

However this is a "default" trade. It is NOT the prime strategy to use.
DO NOT LOSE SIGHT THAT the prime strategy is to trade medium/ long term and trade with the trend, with a trailing stop."

Chapter 3 :Jacko..on the Time Frame..

Timeframes for Determining The Trend

Time frames (for me) as a Trend Trader

I start with weekly, then move closer in using daily, 4 hour and 1 hour to help me make a decision. Less than 4 hours tends to be "noise" rather than a "trend". They are the "sucker" rallies and declines.
PS Don't be the sucker...

But I am also starting to notice that it doesn't really matter anymore where I buy or sell.
The anti-hedging strategy is FAR, FAR, FAR more important.

The anti-hedging strategy ensures that,... if you make a trade in the wrong direction,.... you can get your losses back ...AND you are in the direction of the trend.
Stick a trailing stop loss on it and you are guaranteed a profit.

So...
1. If your trade is a winner, you stick a trailing stop loss on it and let it run.

2. If your trade is a loser, employ the anti-hedging strategy, and at some time, you can get your losses back ...AND you are in the direction of the trend. Stick a trailing stop loss on it and let it run.

K.I.S.S. (keep it short and simple)

Chapter 4 :Trading The News

An Opinion on "Trading the News"

In my opinion,

You have NO chance trying to trade the news (buy or sell as soon as the news is released)...the dealers will ALWAYS be in front of you. (you need a broker too that won't play unfair tricks during those high volatility times, those tricks include freezing the platform, some will widen the spread way too much, others will get you filled way to far from the price you wanted to).

Whichever broker you trade with, you are trading through their platform. Consequently, their brokers will therefore have an advantage over you.
To think otherwise is naive.
They are taking the other side of the trade (which they must in "trading the news" because they don't have time to spread their risk), and they will fight tooth and nail not to give away a business advantage to any trader. That's why they are doing all the things (plus much more) outlined above.

Its like poker, if you look around the room and can't see the patsy, then YOU are the patsy. The faster / shorter time frames that you try to play in this business the more you are at a disadvantage. Retail traders trading the news are like fish swimming with hungry sharks in blood-filled water.

(Source : taken from forexfactory.com.."Invented by Jacko, Jacko's Forex House of Pleasure and Pain")

Trading in 8 Pairs - Q & A

2007-11-12T23:21:00.000+08:00

what's the use of Gann HiLo activator?

That means Bullish when bar forms upper the blue line and bearish if it forms below the blue line.

This blue line is very important. in all pairs, Gann will send PRE SIGNAL before 5EMA crosses 50 EMA.

On the QQE, do you need a 50 line crossover (of the thick solid line) as well as a crossover of the two indicator lines?
On the MACD, do you need to be above the 0 line as well as the bars rising in value?

QQE, blue crossover upward means bullish and the time QQE crossover the MACD is going up and so is momentum. That means get ready to open long position and I suggest that you wait for 5EMA to cross 50 EMA for more safe. This Condition guarantee 100-250 pips bro.

When the price goes against you, you don't have to wait until it hits your SL but you can close it manually as soon as 5 crosses 15. or red crosses yellow, and it would be around -25 pips

What trading session(s) do you enter and exit your trades?

I always check my chart for every 4 hours and some times 10 hours if I have already lock in some profits.

I still wonder what is your strategy to open position on GJ when all the signals are confirmed. It can be difficult to set your SL cause GJ has a wider retracement than other pair. Do you wait for a retracement to enter or instantly enter position when all the signals are ready?

in 4H TF ( bullish trend) you can see that when 5EMA crossed Gann HiLo, at the same time QQE, Momentum and MACD are all crossed up . You may place an order in this point ( especially GJ pairs) and after it reached 50 pips moves your SL to +10 and after it reached 80 pips please lock in 50 pips and let this beast go for another 100, 150 or even 200 pips or retrace to hit your SL

by:cornelius2 at www.forexfactory.com

Trading in 8 Pairs - When to Buy?

2007-11-05T16:17:00.000+08:00

BUY

When?
1. the 5 SMA crossed 50 upward that is the first signal.
2. Please check the MACD, the bar must be climbing up.
3. after 15 crossed 50 the signal is 98% bullish.
4. Usually MACD, QQE and Momentum are crossed up at the same time, and that is a signal to upload your weapon.

Please open your buy there with TP1 80 pips and lock profit for 50 pips after TP touched and let the price go to TP2 180 pips.

note :

Patience traders as we are trading in 4h time frame. Noo need to Hurry.

MACD : Please draw a red line in zero line.

Source: by cornelius2, forexfactory Forum.

Trading in 8 Pairs - Part 1

2007-10-24T20:27:00.000+08:00

Trading in 8 pairs

Hello traders,

I am trading in 8 pairs with very good result ( between 2.400 - 3.500 pips) a month.

I am not the creator of this method as I combine the system from Vynner, Investor_me and later I add Auslanco system.

I don't do any scalp as I don't have much time to follow the trend minute by minute so I decided to use 4h time frame. No stress and no crossing finger as this system is absolutely trend following.

I have been trying this system for 7 months with very good results or at least I have bought a new car

Recently I am trading in these pairs : GJ,GU,EU,AU,UJ,UChf,UCad,NU and EJ

Remember this traders, we only have 3-5 entry point for every pair a month with approx 80-200 green pips each.

We must patience to wait those entry points so keep smiling.
For newbie, please use money management.

For example :
Small Deposit in September $ 2.000, when AUD gives signal buy you op with max $ 50 and SL 30 pips or when red signal turn to cross yellow.

your income for September should be aprox. : $50 x 300 pips x 8 pairs = $ 1.200. ( 60% Return on Investment). You should use only $50 per pair because sometimes there are 4 signals come out at the same time and that means you need to use $200.

Here the tools you need:

Metatrader4
EMA5 Red
EMA 15 yellow
EMA 50 White
Thanks to Great Vynner for this method

MACD:
Fast EMA 5
Slow EMA 13
MACD SMA 1
Thanks to Great Investor_me for this method

Momentum value 10

QQE :
Thanks to great Auslanco for this last method

Regards.
Cornelius
(source;http://www.forexfactory.com/showthread.php?t=45176)

What is a "Get-Rich-Quick" scheme?

2007-10-24T11:30:00.000+08:00

"Get-Rich-Quick" scheme?

A plan which offers high or unrealistic rates of return for a small investment while at the same time promising that such investment is easy and risk -free.

The following "Get-Rich-Quick" schemes are prohibited under the
legislation administered by Bank Negara Malaysia :

Illegal Deposit Taking Activities

Illegal deposit taking is an act of receiving, taking or accepting of deposits (moneys, precious metal, precious stone, any other article etc.) from members of the public that promises a repayment with interest or returns in money or money's worth without a valid license under the Banking and Financial Institutions Act 1989 (BAFIA).

Illegal Foreign Currency Dealings

The following acts tantamount to illegal foreign currency dealings:

- Buying or selling of foreign currency by a person who is not an authorized dealer unless such person has obtained the permission of the Controller of Foreign Exchange under the Exchange Control Act 1953 (ECA).

- Buying or selling of foreign currency by a resident who is not an authorised dealer, with a person outside Malaysia except if the resident has obtained the permission of the Controller of Foreign Exchange under the ECA. CAUTION: Internet Investment Schemes

- Members of the public are cautioned to be on guard against some investment schemes promoted on the internet as these schemes are not licensed or authorized by Bank Negara Malaysia to accept deposits or deal in foreign currency. Such schemes often come in the guise of
attractive investment returns or opportunities involving unrealistic rates of returns with zero to low risk.

- Investors are reminded that they should only place deposits with institutions licensed or deal in foreign currency with institutions authorised by the Bank. Unlicensed operators may cease operating their business resulting in the investors with no means to recover their investments or seek redress against the persons connected with the scheme.

How To Spot The Scams?

Illegal deposit taking scam

o The person (an individual, a company or an organisation) receives, takes or accepts deposits from members of the public and is not licensed under section 6(4) of the BAFIA;
o The person promises to repay the deposit, with or without interest or returns, over a period of time in the form of money or money's worth, etc.; and
o The person promises to repay the initial deposit upon demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it, with any consideration in money or money's worth (the repayment of initial
deposit is sometimes included in the fixed interest or returns promised).

Warning Signs for Investors

· Illegal deposit taking activities have been disguised and camouflaged in various forms to deceive the public to fall victim to the investment scams, by giving valuable goods as part of the promised returns and camouflaging the deposits as loans to the company;

· Illegal deposit taking activities appear to be able to provide high or unrealistic rates of interest or return over a short period of time as compared to licensed institutions. However, these schemes will not last long;

· The survival of this scheme is dependent upon the recruitment of new depositors, i.e., new funds obtained will be used in paying dividends to the existing depositors. Therefore , the scheme will fail when there is no contribution of funds from new depositors; and

· Initially the depositors may be paid their promised returns. However, the operator would eventually abscond with the moneys collected when he feels that the scheme is about to fail, thus leaving the depositors at the losing end. Illegal foreign currency scam

Foreign currency dealings with a person, other than an authorized
dealer, who has not obtained the permission of the Controller of
Foreign Exchange under the ECA, often:

o Offer investors or members of the public the opportunity to deal in foreign currencies with a principal company (purported to have a valid licence to trade foreign currencies overseas);
o Facilitate the trading of foreign currencies by providing access to the principal company's website and trading facilities via internet;
o Recruit fresh graduates as marketing executives and allure them to get their family members to invest;
o Instruct the investors to deposit the investment moneys into either the principal company's bank account or a third party bank account; and
o Induce the investors to top up their investment ("margin call") or otherwise risk losing their investment.

Warning Signs For Investors

Illegal operators of foreign currency scams will try to entice potential investors with a marketing strategy which promises quick and high returns

· By projecting a professional and reputable image with smart-looking employees, a high-tech office layout and advanced IT facilities where investors are induced to operate their accounts via the internet;
· With tools of the trade, e.g., a news screen showing movements in exchange rates, to give the impression that a professional and legitimate business is being conducted; and
· A business contract is usually entered into between the investors and the company. Such contracts are usually left unsigned by the company. This means no action can be taken by the investors against the company as there is no binding written contract.

How To Protect Yourself From The Scams?

+ Remember the golden rule - if it sounds too good to be true, it's probably a lie;
+ Deal only with licensed financial institutions and authorized dealers;
+ Check with the relevant authority before investing;
+ Don't be pressured or rushed to invest;
+ Be extra careful with investments over the internet;
+ Be skeptical of any investment opportunity that is not in writing; and
+ In case an investment has been made, keep copies of all the investment and communications.

What Should You Do If You Are a Victim of such Scams?

If you have any information pertaining to illegal deposit taking activities or illegal foreign currency dealings or are a victim of such activities or scams you can send details of such information or complaint together with the documents to Bank Negara Malaysia as
follows:

Address:
Unit Penyiasatan Khas
Bank Negara Malaysia
Jalan Dato' Onn
50480 Kuala Lumpur
Fax: 03-26987467
E-mail: upkinfo@bnm.gov.my

We can also be contacted at the following telephone numbers:

Tel.: 03-2691 5090 / 2698 4163 / 2691 0824 / 2692 6482 / 2694 2143

RSI/MACD System Basics

2007-10-09T21:04:00.000+08:00

In the trading system based on TRSI/RSI and MACD indicators it is important to find out tht basic pattern "a gold cross", i.e. divergence between RSI and MACD. The system works on 1, 5, 10, 15 and 30 minutes, hours, day and weeks. A recommended time-frame is not less than 5 minutes.

This document contains only the information of educational character and an exchange of trading ideas. Anything mentioned in this document and as your interpretation of the information or diagrams, cannot be apprehended as trading advice. The trade undertaken on the basis of this educational information, is strictly yours own risk.

The Purpose of this document consists in helping traders to study system RSI/MACD, in its all completeness and also to understand, how itself trades on this system. Such by they will spend time at the monitor, studying practical use of this system instead of trying to understand, what principles of work of system. However this document explains only main principles of work of system. Many weeks are required from the monitor to you to seize this system completely. You do not become the successful trader if will not follow all instructions and to not spend long hours at the monitor. Study history and patterns. The basic attention to give do not find fault-low with the price, and to behavior of indicators. The price always is derivative chaos of the market, catching of a bottom and maxi - empty employment. Nobody can predict the price.

This document demands, that you followed your trading rules. It is a unique way at which you become the successful trader. RSI/MACD - very simple system. Rules are very simple. Do not allow lack of the intellectual control to destroy your trade. Concentrate on system, and you will succeed. Instructions will tell All of you, that you should know. Only follow them directly and precisely.

The System is based all on 3 indicators, candles: MACD 12/26/9 Close, RSI 9/3 Close, candles are used as the price indicator, a time-frame - not less than 5 minutes. These are standard adjustments of the combined indicators, on Close - work the majority of traders.

RSI/MACD system basics

To predict - for slaves..., to react - for kings?, the wise man operates in advance! Get Forex forecast!

You do not need to reflect, something to add or invent at trade on system RSI/MACD. system RSI/MACD represents a full set of instructions to which you should follow. It is not necessary to add anything to it. The system is finished, exact and has well proved in a reality during many years.

The majority of traders try to understand all "why" on the basis of which this or that trading system works. I believe it is correct. You should understand, as well as why that you do, works. However it is not necessary so to do at a grade level and development already proved as working trading system since it will not bring additional results. System RSI/MACD just also is such type of trading systems. Study system, trading on it on tools (a demo the account) while be not convinced of all. Study and penetrate in system gradually, not trying to understand all at once. Simply follow instructions, not setting a question why you should operate so. Then you will understand all "as" and "why" the system works.

System RSI/MACD is not similar to one other system. It is simple, finished, exact, clear and unambiguous. It forces to be mistaken much less often, than can seem. In system there are no inconsistent signals. Therefore be not afraid. You should not guess what. Patterns, entrance signals and signals on an output are clear and precisely certain. Simply reject all your doubts and follow instructions.

At testing on Omega TS the system shows 85% of successful transactions.

Indicator RSI has some nuances which it is impossible to explain in this document. They can be mastered only in due course, lead in an expert at the monitor. But all instructions which will be necessary for you, are resulted here and they will help long enough to you while you will not start to trade perfectly.

Danger of inputs-outputs is especially great at average values RSI and the unsteady trend.

I spent about 3 years on testing alive this system, therefore it and became simple, finished and profitable. In system RSI/MACD trading schemes are certain. They will let to you the know when it is necessary to begin trade and to leave it. This everything, that is necessary for you.

RSI/MACD - an outstanding system, because you do not need to think or guess to find out. Simply operate according to instructions. Any other system does not define trading schemes, inputs and outputs also is clear, as RSI/MACD does it for you. Take its advantages. Allow it to make for you all work.

Actually, the majority of other trading systems could be profitable for you if you had a clear and precise set of signals for actions which never would contradict each other. Usually other trading systems use late indicators and cannot provide clear signals on an input and an output. And without a clear and laconic set of trading rules you never can successfully trade. System RSI/MACD will provide you with clear and laconic patterns, signals and instructions. Follow them, and at All of you it will turn out.

One more problem of other systems consists that they mean the reference to too big number of indicators. You cannot trade with use of such big number of indicators because the analysis all of them will simply overload you. You cannot simply fulfill a signal. What for to add to your graphs so a lot of superfluous? Can be because nobody spoke you, to not do it. But now you know, therefore - do not do.

When the system uses too many indicators, it is insufficiently clear, and it is difficult to you to react to signals of an input and an output. Or, that is even worse, you enter into trade, but do not leave it because one of signals shows, that it is possible to remain in the market. RSI/MACD defines clear outputs. There can be no justifications to that you have remained in the market when there was a signal of an output. It is one of remarkable properties of system.

Probably, other systems are less effective because you do not understand, that presence and following to the exact plan of trade - a unique way to trade successfully. So, if you do not have own trading plan, or trade goes not so successfully, study system RSI/MACD to follow for it and to refuse bad trading habits.

The formula of indicator RSI is based on an impulse of the prices for the certain period of time. It is advancing, instead of the late indicator. It advances all other indicators. If to unite it with system RSI/MACD it is possible to win against all other systems of trade.

System RSI/MACD allows you to advance other traders at an input in trade on one or more bar, and also to advance at an output from it, that prevents greater losses. system RSI/MACD protects you from losses and increases profit. Do not spend all for nothing time.

Be focused on instructions. Think of them. Each time, discussing system, you try to expand, eventually, the knowledge and to improve results of trade. You constantly discuss some statements which you have learned from books, brochures, on websites or even have heard from people who, probably, never traded. Be focused only on RSI/MACD and trade under instructions. RSI/MACD deals directly with life cycle of the price.

System RSI/MACD cuts all problems which you could have at trade, - gives a full, exact and clear set of instructions. You "have learned" much about ways of trade from other trading systems or from books, however it has not so helped you. Actually, even injured you. Forget while about all this, find it useless. Only be focused on trade according to instructions, not thinking about what the friend. Do not try to understand, why. The market always moves in the direction, passengers enter and leave according to the intention and destination.

Also it is very important to observe not of absolute change under the account, and for % of change.

"Losses - a part of trade", "Reduce losses, allow profit to grow", "Do not trade against a trend", etc. to you spoke about it hundreds times, however it all the same does not work. Only follow system RSI/MACD which has taken care of all for you. The system defines all the rules necessary for full trading system so you should not think. Everything, that you should - react only to signals, and all will be fine.

RSI/MACD will prompt, when to you to enter into the market, will help to receive solid profits, and to leave the market with small losses. It also will not allow you to trade against a trend. Only follow its instructions that is not difficult. Any other system of trade does not go so far in management of each aspect of trade.

One of improbable secrets RSI/MACD - that the system represents the opportunities not accessible before, and cleans all unnecessary. Thus, at this trading system does not remain unresolved problems. For example, you learned how to trade at the bear flags, gaps and a wedge in many various ways. So, on what way to stop? Probably, each time is necessary a new method? Here in what a problem. And as you have studied many ways of trade do not dare to follow simple rules. Forget all this. RSI/MACD gives new conditions for trade that you have not got confused.

At trade RSI/MACD everything, that it is necessary - to find RSI/MACD patterns. System do not interest, that remind price bars, it does not worry, that other indicators or other markets do. Any of these questions. It is focused only that now does your separate market and allows you to trade. This system is simple and consequently very well works.

RSI/MACD stops all doubts which arise at studying other websites, newsletters, books and clauses. Forget all this material. All this while is useless. Think of system, as about a new way of trade.

Unique application of price bars - to define a level for an enter/exit.

At installation of warrants remember that you advance others on 1 and more bar, warrants are better for exposing on a body of the previous candle, the price usually comes back.

Patterns of RSI/MACD allow you to trade very well. Follow instructions carelessly, nothing adding and complicating, and with you nothing to happen.

If you yet do not trust, that trade can be so simple, or are not courageous enough precisely to follow instructions how is told here then you can not read other part of this document. Throw out it, and go further.

(by Ivan Petrov,http://forex-forecast.net)

Application of long/turbo RSI+MACD (Part 1)

2007-09-12T14:41:00.000+08:00

Rules of data reading RSI/MACD.

Week, day, intraday, in intraday to consider day and weeks, that is the general situation in the market.
To choose a corresponding time-frame.
The Nobility extreme values of indicators for the chosen tool.
Each market will have own trend which should not be considered at trade in other market.
Inertia of the market - the market should cool down or heat up, then there is a consolidation.
In the price risks, and also a news background and expectations of traders are considered all.

The above picture is a full set of graphs which are necessary for trade on system RSI/MACD. Here three different tools and only one time-frame for everyone. I do not change a symbol of the graph and its time-frame within all trading day in system RSI/MACD. Absolutely everything, that is necessary to us for trade in the market, is on this set of graphs. And we do not pay attention on what another. All is simple.

We use only two RSI the indicator and one MACD at trade. The first is RSI with the period 9, displayed red color (a thick line) which refers to RSI. Another is RSI with the period 3, displayed as red (a thin line), and named Turbo RSI or TRSI. MACD 9 or 8 is displayed navy (a thin line) by color.

Establish the unique graph with the unique time-frame for the tool. At transition to other time-frame it is necessary to consider frequency rate a time-frame in during trading session.

Choose quiet colors. Establish the size and color of the text and any other element of the graph so that they strongly were not allocated. As much as possible allocate both RSI the indicator and MACD. Make their convenient for reading. They are the only thing, that we wish to allocate during trade. Any other information is not important. If something is allocated another besides patterns RSI you will be focused on it and worsen time of your reaction.

Everything, that you need to do within all day is to wait for occurrence RSI/MACD of a pattern. It will be uneasy employment. Good trade - by definition patient. Reconcile to it. We wait for entrance signal RSI/MACD. We enter into trade. We wait RSI/MACD a signal to an output. We leave trade. All simply and definitely, very clearly and well works.

Source:(http://www.forex-forecast.net)

Trading The MACD Divergence

2007-09-01T03:19:00.000+08:00

Moving average convergence divergence (MACD), invented in 1979 by Gerald Appel, is one of the most popular technical indicators in trading. MACD is appreciated by traders the world over for its simplicity and flexibility because it can be used either as a trend or momentum indicator.

Trading divergence is a popular way to use MACD histogram (which we explain below), but, unfortunately, the divergence trade is not very accurate - it fails more than it succeeds. To explore what may be a more logical method of trading MACD divergence, we look at using the MACD histogram for both trade-entry and trade-exit signals (instead of only entry), and how currency traders are uniquely positioned to take advantage of such a strategy.

MACD: An Overview
The concept behind MACD is fairly straightforward. Essentially it calculates the difference between an instrument's 26-day and 12-day exponential moving average (EMA). Of the two moving averages that make up MACD, the 12-day EMA is obviously the faster and the 26-day is the slower. In the calculation of their value, both moving averages use the closing prices of whatever period is measured. On the MACD chart, a 9-day EMA of MACD itself is plotted as well, and it acts as a trigger for buy and sell decisions. MACD generates a bullish signal when it moves above its own 9-day EMA, and it sends a sell sign when it moves below its 9-day EMA.

The MACD histogram is an elegant visual representation of the difference between MACD and its 9-day EMA. The histogram is positive when MACD is above its 9-day EMA and negative when MACD is below its 9-day EMA. If prices are rising, the histogram grows larger as the speed of the price movement accelerates and contracts as price movement decelerates. The same principle works in reverse as prices are falling. See Figure 1 for a good example of a MACD histogram in action.

Figure 1 - The above is an example of MACD histogram. Note that as price action (top part of the screen) accelerates to the downside, the MACD histogram (in the lower part of the screen) makes new lows and vice versa as prices turn.

As it responds to the speed of price movement, the MACD histogram is the main reason why so many traders rely on this indicator to measure momentum. Indeed, most traders use the MACD indicator more frequently to gauge the strength of the price move than to determine the direction of a trend.

Trading Divergence
As we mentioned earlier, trading divergence is a classic way in which the MACD histogram is used. One of the most common set-ups is to find chart points at which price makes a new swing high or a new swing low but the MACD histogram does not, indicating a divergence between price and momentum. Figure 2 illustrates a typical divergence trade.

Figure 2 - Here is a typical (negative) divergence trade using a MACD histogram. At the right-hand circle on the price chart, the price movements make a new swing high, but at the corresponding circled point on the MACD histogram, the MACD histogram is unable to exceed its previous high of 0.3307. (The histogram reached this high at the point indicated by the lower left-hand circle.) The divergence is a signal that the price is about to reverse at the new high, and as such, it is a signal for the trader to enter into a short position.

Unfortunately, the divergence trade is not very accurate - it fails more times than it succeeds. Prices frequently have several final bursts up or down that trigger stops and force traders out of position just before the move actually makes a sustained turn and the trade becomes profitable. Figure 3 demonstrates a typical divergence fakeout, which has frustrated scores of traders over the years.

Figure 3 - A typical divergence fakeout. Strong divergence is illustrated by the right circle (at the bottom of the chart) by the vertical line, but traders who set their stops at swing highs would have been taken out of the trade before it turned in their direction.

One of the reasons that traders often lose with this set up is they enter a trade on a signal from the MACD indicator but exit it based on the move in price. Since the MACD histogram is a derivative of price and is not price itself, this approach is in effect the trading version of mixing apples and oranges.

Using the MACD Histogram for Both Entry and Exit
To resolve the inconsistency between entry and exit, a trader can use the MACD histogram for both trade-entry and trade-exit signals. To do so, the trader trading the negative divergence takes a partial short position at the initial point of divergence, but instead of setting the stop at the nearest swing high based on price, s/he instead stops out the trade only if the high of the MACD histogram exceeds its previous swing high, indicating that momentum is actually accelerating and the trader is truly wrong on the trade. If, on the other hand, the MACD histogram does not generate a new swing high, the trader then adds to his or her initial position, continually achieving a higher average price for his or her short.

Currency traders are uniquely positioned to take advantage of this strategy because with this strategy, the larger the position, the larger potential gains once the price reverses - and in FX, you can implement this strategy with any size of position and not have to worry about influencing price. (Traders can execute transactions as large as 100,000 units or as little as 1,000 units for the same typical spread of three to five points in the major pairs.)

In effect, this strategy requires the trader to average up as prices temporarily move against him or her. This, however, is typically not considered a good strategy. Many trading books have derisively dubbed such a technique as "adding to your losers". However, in this case the trader has a logical reason for doing so - the MACD histogram has shown divergence, which indicates that momentum is waning and price may soon turn. In effect, the trader is trying to call the bluff between the seeming strength of immediate price action and MACD readings that hint at weakness ahead. Still, a well-prepared trader using the advantages of fixed costs in FX, by properly averaging up the trade, can withstand the temporary drawdowns until price turns in his or her favor. Figure 4 illustrates this strategy in action.

Figure 4 - The chart indicates where price makes successive highs but the MACD histogram does not - foreshadowing the decline that eventually comes. By averaging up his or her short, the trader eventually earns a handsome profit as we see the price making a sustained reversal after the final point of divergence.

Conclusion
Like life, trading is rarely black and white. Some rules that traders agree on blindly, such as never adding to a loser, can be successfully broken to achieve extraordinary profits. However, a logical, methodical approach for violating these important money management rules needs to be established before attempting to capture gains. In the case of the MACD histogram, trading the indicator instead of the price offers a new way to trade an old idea - divergence. Applying this method to the FX market, which allows effortless scaling up of positions, makes this idea even more intriguing to day traders and position traders alike.

By Boris Schlossberg, Senior Currency Strategist, FXCM

** This article and more are available at Investopedia.com - Your Source for Investing Education **

What is Fibonacci retracement

2007-08-24T21:49:00.000+08:00

Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician Leonardo Fibonacci in the thirteenth century. However, Fibonacci's sequence of numbers is not as important as the mathematical relationships, expressed as ratios, between the numbers in the series. In technical analysis, Fibonacci retracement is created by taking two extreme points (usually a major peak trough) on a stock chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%. Once these levels are identified, horizontal lines are drawn and used to identify possible support and resistance levels. Before we can understand why these ratios were chosen, we need to have a better understanding of the Fibonacci number series. (For a more in-depth discussion of this subject, see Fibonacci And The Golden Ratio.)

The Fibonacci sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. Each term in this sequence is simply the sum of the two preceding terms and sequence continues infinitely. One of the remarkable characteristics of this numerical sequence is that each number is approximately 1.618 times greater than the preceding number. This common relationship between every number in the series is the foundation of the common ratios used in retracement studies.

For reasons that are unclear, these ratios seem to play an important role in the stock market, just as they do in nature, and can be used to determine critical points that cause an asset's price to reverse

Source:http://www.investopedia.com

Money Management & Trading Habits

2007-08-21T20:52:00.000+08:00

Money Management & Trading habits:

Maximum 2% risk per pair -What that means is when you calculate your stop losses your stop loss amount has to be within 2% of your account .If the trade goes against you, the maximum you will loose is 2% of your account. This way it also prevents you from getting panic attacks when the trade retrace against you resulting you close the trade pre maturely.
If your desired stop losses do not come within 2% of your account don’t take that trade. As I always say, you may miss one trade but there are millions more to come.

You always have to calculate your risk every time before you enter your trades.
Your risk to profit ratio has to be minimum 1:1. That means if you are taking a 2% risk on a trade make sure your profit target would be at least 2%.

Always have realistic targets. My aim is 300 % capital growth per year. The lesser your target is lesser the risk of losing your own money. Even if you have 50% capital growth per year you are doing better than 90% of the worlds biggest hedge funds.

More trades you take the more you expose your account for losses. No trader in this world can profit from every single market move.

Patience plays a big part in trading. Take the trades only if you are at least 90% sure of profiting from it. If you are not sure stay away from the trade. Staying on the sideline is as good as winning.

Never trade against the trend. Specially with a high volatile pair like GBP/JPY. It may give you couple of winning trades. But it’s going to get you in the long run.

Always have a trading strategy ... make a habit to stick to it doesn’t matter how desperate you are.

Always trust your strategy but not bloomberg or some statement from citibank. Don’t go with your gut feeling because 95% of the time your gut feeling is wrong.

Your charts are your forex bible. Everything what you need to know about forex is on your charts. You will learn something new everyday from you charts.

Specialize in one or two pairs. Every single pair has it’s own characteristics. No two pairs are the same. Don’t trade all the pairs your broker can offer. If you specialize in one or two pairs very soon you will be able to read the pair like a road map .

Stay away from the ranging markets. There will be enough of trend break outs on this pair than you ever want. Why take any extra risks trying to chase 20 pips on a ranging markets when you can grab 200 pips on a break out.

As Monarc mentioned traders are a greedy bunch. Less greedy once are the most successful once.

Don’t try to chase every single pip or market movement. Have a realistic weekly or monthly target as a percentage of your account . Not the number of pips. If you have already achieved that target stay away from the market. As I mentioned before.. the more you trade there is more risk of losing your money.

The losses are part of the game. Do not try to cover all your previous losses from your next trade. First your trading plan has to include at least 50% of losing trades. Then you can cut down on the number of losing trades while you gain experience and confidence.
When you start you must demo trade at least for the first 3 months to build a trading strategy. Then for the next 3 months trade on a demo account or a micro account and test your strategy coupled with a good money management strategy. When you are fully confident then trade with your real account.

Use minimum account leverage. Don’t abuse it. My recommendation for new traders is maximum one mini lot for every $2500 or one full lot for every $25000.

At last ... remember there is no easy way to become a good consistently profitable trader. No one can become a profitable trader overnight. As everything else in life it takes time, patience lots of sacrifices and learning. Don’t be afraid of mistakes.

It took me 8 months to make my first consistent $100 per week.
Since then making money is like a walk in the park.

(By: Jacko's Forex House of Pleasure and Pain)

Why Do I Trade Forex?

2007-08-21T13:08:00.000+08:00

Why do I trade Forex?
Because I am ABSOLUTELY CONVINCED that this is the best "business" in the world.

There are:
1. no rent of offices (that is, NO dealing with Realtors, Lawyers, and government departments...man, what a pain in the ass). Also no office fit-out costs

2. no staff, (man, unless you have had large numbers of staff depending on YOU for their paypacket each week, you cannot know what a huge pain in the ass it is. They ALL want you to solve their problems)

3. No inventory or stock to buy. No shrinkage (theft of stock) and no "slow moving" items. No massive amount of funds tied up in inventory

4. You can "borrow" as much as you want (by increasing your leverage), WHENEVER you want. (Try running a big business and going to the bank for a short term loan for $10 mill...it will take a month minimum). I am trading $10-12 mill all the time and I get it instantly through the brokers by the use of leverage.

5. If the business becomes a hassle for whatever reason, you can shut it down (that is, close all positions) instantly...and re-open (initiate new positions) whenever YOU want to re-open your "business."

6. You can "scale" your business to whatever size YOU want simply by increasing/decreasing your positions.

7. Absolutely minimal paperwork. Simply send your 12 month summary Profit and Loss Statement to your Financial Accountant for tax payment purposes.

8. You can trade from anywhere in the world. My wife and I travel most of the year. (take your laptop or PDA or whatever else they will come up with and trade while sipping a nice drink as close by as your local cafe or as far as some open air cafe in some remote little town in beautiful Italy while you watch a bocce match at the park.)

I could keep telling you more of the benefits of this business, but suffice to say...this is the best "business" in the world. I run a multi-multimillion dollar business from my laptop.

And did I mention that it was exciting and fun????

by: Jacko's Forex House of Pleasure and Pain

The World's Richest Men Have Forex As Part Of Their Investment Portfolios

2007-07-20T21:38:00.000+08:00

The World's Richest Men Have Forex As Part Of Their Investment Portfolios
Warren Buffett -
In Early 2005, Warren Buffett
Had $20 Billion Of Berkshire
Hathaway's Investment
Portfolio In Forex Markets.

In The 3rd Quarter Of
2004, Buffett Posted
Profits Of $412 Million.
{From Forex}
Bill Gates-
Bill Gates May Have
Been Following His Friend
Warren Buffett's Advice
As He Began
His Forex Investments.

Bill Gates Was 2006's
.World's Richest Man
George Soros-
George Soros Made His Name
By Earning $1 Billion On
1 Day, In 1992 In Forex

It Is Estimated That
Soros Has Made $7
Billion From Forex In
The 3 Decades From
1969 To 1999!

(Source:http://www.forxprofit.com)

A Beginner's Guide To Hedging: How Do Investors Hedge?

2007-06-08T04:28:00.000+08:00

How Do Investors Hedge?
For the most part, hedging techniques involve using complicated financial instruments known as derivatives, the two most common of which are options and futures. We're not going to get into the nitty-gritty of describing how these instruments work, but for now just keep in mind that with these instruments you can develop trading strategies where a loss in one investment is offset by a gain in a derivative.

Let's see how this works with an example. Say you own shares of Cory's Tequila Corporation (Ticker: CTC). Although you believe in this company for the long run, you are a little worried about some short-term losses in the Tequila industry. To protect yourself from a fall in CTC you can buy a put option (a derivative) on the company, which gives you the right to sell CTC at a specific price (strike price). This strategy is known as a married put. If your stock price tumbles below the strike price, these losses will be offset by gains in the put option. (For more information, see this article on married puts or this options basics tutorial.)

The other classic hedging example involves a company that depends on a certain commodity. Let's say Cory's Tequila Corporation is worried about the volatility in the price of agave, the plant used to make tequila. The company would be in deep trouble if the price of agave were to skyrocket, which would eat into profit margins severely. To protect (hedge) against the uncertainty of agave prices, CTC can buy a futures contract that allows the company to buy the agave at a certain price. Now CTC can budget without worrying about the fluctuating commodity.

If the agave skyrockets above that price specified by the futures contract, the hedge will have paid off because CTC will save money by paying the lower price. However, if the price goes down, CTC is still obligated to pay the price in the contract and actually would have been better off not hedging.

Keep in mind that because there are so many different types of options and futures contracts an investor can hedge against nearly anything, whether a stock, commodity price, interest rate, or currency.

The Downside
Every hedge has a cost, so before you decide to use hedging, you must ask yourself if the benefits received from it justify the expense. Remember, the goal of hedging isn't to make money but to protect from losses. The cost of the hedge - whether it is the cost of an option or lost profits from being on the wrong side of a futures contract - cannot be avoided. This is the price you have to pay to avoid uncertainty.

We've been comparing hedging versus insurance, but we should emphasize that insurance is far more precise than hedging. With insurance, you are completely compensated for your loss (usually minus a deductible). Hedging a portfolio isn't a perfect science and things can go wrong. Although risk managers are always aiming for the perfect hedge, it is difficult to achieve in practice.

What Hedging Means to You
The majority of investors will never trade a derivative contract in their life. In fact most buy-and-hold investors ignore short-term fluctuation altogether. For these investors there is little point in engaging in hedging because they let their investments grow with the overall market.

So why learn about hedging?

Even if you never hedge for your own portfolio you should understand how it works because many big companies and investment funds will hedge in some form. Oil companies, for example, might hedge against the price of oil while an international mutual fund might hedge against fluctuations in foreign exchange rates. An understanding of hedging will help you to comprehend and analyze these investments.

Conclusion
Because risk is an essential yet precarious element of investing, you should, regardless of what kind of investor you are, gain a fairly good awareness of how investors and companies work to protect themselves. Whether or not you decide to start practicing these intricate uses of derivatives, learning about how hedging works will help advance your understanding the market, which will always help you be a better investor.

By Investopedia Staff, (www.Investopedia.com)

A Beginner's Guide To Hedging: What Is Hedging?

2007-06-08T04:22:00.000+08:00

Although it sounds like it might be the hobby of your neighbor obsessed with his topiary garden full of tall bushes shaped like giraffes and dinosaurs, hedging is a practice every investor should know about - there is no arguing that portfolio protection is often just as important as portfolio appreciation. Like your neighbor's obsession, however, hedging is talked about more than it is explained, making it seem as though it belongs only to the most esoteric financial realms. Well, even if you are a beginner, you can learn what hedging is, how it works and what hedging techniques investors and companies use to protect themselves.

What Is Hedging?
The best way to understand hedging is to think of it as insurance. When people decide to hedge, they are insuring themselves against a negative event. This doesn't prevent a negative event from happening, but if it does happen and you're properly hedged, the impact of the event is reduced. So, hedging occurs almost everywhere, and we see it everyday. For example, if you buy house insurance, you are hedging yourself against fires, break-ins or other unforeseen disasters.

Portfolio managers, individual investors and corporations use hedging techniques to reduce their exposure to various risks. In financial markets, however, hedging becomes more complicated than simply paying an insurance company a fee every year. Hedging against investment risk means strategically using instruments in the market to offset the risk of any adverse price movements. In other words, investors hedge one investment by making another.

Technically, to hedge you would invest in two securities with negative correlations. Of course, nothing in this world is free, so you still have to pay for this type of insurance in one form or another.

Although some of us may fantasize about a world where profit potentials are limitless but also risk free, hedging can't help us escape that hard reality of the risk-return tradeoff. A reduction in risk will always mean a reduction in potential profits. So, hedging, for the most part, is a technique not by which you will make money but by which you can reduce potential loss. If the investment you are hedging against makes money, you will have typically reduced the profit that you could have made, and if the investment loses money, your hedge, if successful, will reduce that loss.

(Source :http://www.investopedia.com)

On My Way to Achieve it

2007-06-06T13:25:00.000+08:00

3 months ago, I never thought that, this opportunity can bring me JOY..
I was a dream to learn about FOREX, it was in my mind for the past few years..
There many seminars, workshops, bootcamps, ebook and etc in the market.
Finally, in March. I gave my myself a try with one of these classes, just give a try..
Never thought, this will be my final destination towards achieving financial freedom.

After the seminar, I try to trade using virtual money, then start to trade using real money "live trade" at marketiva. Start with $200 within a month manage to make it $400, then its drop till $100. Its okay.. Its just a learning process..
Then, I went to the same seminars for about 3 times plus an on-line coaching, I feel like there will be a bright future ahead of me.
Last week, my Live Fund is about $600, as at today, its gaining till $927..
I truly believe,that I'm on my way towards achieving Financial Freedom, Its Just like A DREAM COMES TRUE....
Thanks GOD.

HYIP MISTAKES 5

2007-04-23T17:58:00.000+08:00

Getting greedy
Making money with HYIPs isn't really the problem. It's keeping the money in our pocket that becomes difficult.

The temptation to reinvest every single cent to keep our profits growing is so great...

I remember a program that was paying 5% a day for 30 days. Every day I would wake up, check my egold account to find a nice little deposit. A couple of weeks pass and things are looking good, so I reinvested all of my profits. This goes on for about 3 months. By this stage I've grown my investment with this program by reinvesting all the profit. Now I can sit back and reap the rewards.

Unfortunately (you guessed it) the program stopped paying.

Obviously I got a bit greedy and wanted to multiply my profit quickly. As mentioned before a better approach might have been to reinvest half of the profit and take the rest to invest elsewhere.

Taken From :

http://www.hyipmistakes.com/hyip-mistakes.html

HYIP MISTAKES 4

2007-04-04T13:01:00.000+08:00

Mistake 4: Not getting your original spend back quickly
I'm sure you've heard this a number of times before. Always get your seed money back as soon as possible.

Given the fact that most HYIPs tend to fold within 6 months, this does make sense.

Figuring out when to start withdrawing your profit is more of an art than a science.

For example, should I deposit a large amount and start withdrawing straight away? Or deposit a small amount and start withdrawing after one month?

This really depends on how long you think the HYIP is likely to last and how long it takes to get your original spend back.

To date, all HYIPs tend to either slow right down: like one of the original cyclers that has been around for 2 years and now has a 200 day+ cycle time; or they go out of business within 6 months.

Side Note: I believe some HYIPs have good intentions but fail to manage the business side of things correctly so they close shop. I don't believe all HYIPs that disappear are scams.

Given the empirical evidence it's best to plan your strategy based on the worst possible scenario.

A rule of thumb that I've heard thrown about is to withdraw your original investment as soon as possible then from there on keep half the profit and reinvest half.

I believe having a clear monthly plan is key to being successful with HYIPs. At the start of every month I ask myself the following question:

"What If one of my main investments goes under this month... will this be a problem for me?"

Based on the answer I can decide how much I should withdraw, how much I should reinvest and what new HYIPs I should join.
(article taken from www.hyipmistakes.com)

HYIP Mistakes - part 3

2007-03-22T11:14:00.000+08:00

Mistake 3: Focusing on individual programs instead of the overall plan

I think everyone (including myself) have their favorite HYIPs. Those HYIPs that pay us regularly and we feel comfortable with.

Maybe their web site color is our favorite color! Or they've worded things in a way that sings for us.

But every time I find myself focusing my spends on one particular HYIP I remember a piece of advice that I once got: "Focus on the overall plan and not on individual HYIPs".

To me this is a fantastic philosophy for managing a HYIP portfolio.

When you think about it, putting our faith in one, two or three individual HYIPs doesn't make any sense given the nature of these businesses.

So taking this philosophy I would much prefer to have 10 programs paying me $100 each to a total of $1000 than having 2 programs paying me $500 each.

It would be even better to have 30 programs paying a little bit each.

Obviously it's a lot harder to find 10-30 solid programs instead of focusing on 2 beloved HYIPs. But to me focusing on the overall picture and building multiple income streams helps me sleep at night.

source:www.hyipmistakes.com

Mistake 2: Not testing the withdraw function

2007-03-21T14:47:00.000+08:00

Mistake 2: Not testing the withdraw function

Has this ever happened to you: you've invested in an attractive HYIP, your profit is growing day after day, everything is going nicely ... until you decide to withdraw some of your profit.

Either the withdraw function doesn't work at all, or your withdrawal is forever pending.

After I make my initial test spend with any HYIP I do a test withdrawal. I don't invest any more funds until the withdrawal is successful.

(this article is taken from www.hyipmistakes.com)

HYIP Mistakes -part 1

2007-03-21T01:38:00.000+08:00

Mistake 1: Spending too much too soon
This is probably the biggest mistake I've made in HYIP land, and the one that taught me the most.

I'd been in HYIPs for around 9 months. Things were going strong, my confidence was growing and one of the programs had just paid out a very nice profit.

In my excitement I invest all of this profit into a single HYIP that I found in the top of one of the rating sites. It's been rated in the top 3 for the last 6 months. Everyone was writing rave reviews about it. It looks and smells like a sure thing, so why waste time making a small spend?

Not even 7 days later and the warnings started to come. By that stage I could see my investment drifting away.

That investment had taken me over 4 months to earn. Within a few hours of receiving it I was able to give it away. That's a pretty good effort eh.

The experience gave me a real good wakeup call. Up to that point I'd been putting large chunks of my investments into individual HYIPs.

That's when I realized what people meant by "test spends"... ahhh. So you spend a little bit, and if they pay you, THEN you spend the rest. What a novel and practical idea.

After gaining more experience with HYIPs I realized that a single test spend isn't enough. Some HYIPs will pay you for small spends, but when it comes to real (larger) spends you won't see a cent of profit.

And you can't rely on rating sites feedback because sometime they get better treatment from HYIP admins!

So now a days I spend a little at a time gradually building my active balance.
(this article taken from: http://www.hyipmistakes.com/hyip-mistakes.html)

Forex..oo.. forex

2007-03-06T22:59:00.000+08:00

I can make money when the market moves up, and you can make money when the market moves down. However, when the market doesn’t move at all, I'll have a very tough time trying to make money and probably will end up losing money.

RisK

2006-09-01T20:03:00.000+08:00

Nothing is ACHIEVEd without Taking a Risk

To keep LIVING, One has to RISK Death.
To keep Laughing, One has to RISK GrIeF,
To LOVE someone, One has to RiSK Rejection
To get MORE MONEY, One has To RISK the CAPITAL INVESTMENT
To get Success, One has to Risk FAILURE

Make money??.. HYIP

2006-08-19T19:33:00.000+08:00

Didn't updates my blog for ages...
I'm really busy calculating Money..hahaha.. just kidding..
I did invest in a few High Yield Investment Programmes (HYIP).. The result is some wins and lost..hehe.. I have to pretend to be normal when I lost.
In actual Fact.. I feel like SUCKS, damn it its scam..
I lost my money in amroinvest, Nippon Hyip and WS-invest or something..I can't remember the actual name.
But..
I make 92% daily, from these HYIPs.. ParadeHYIP and Notafund.com.

Actually its normal when you invest, some win & lose..... its a fact. High Yield and High Risk..

HYIP : aspects to take into consideration

2006-07-24T13:45:00.000+08:00

Before investing in High Yield Investment Programs (HYIP) there are several aspects to take into consideration. Here’s a list of the most important ones:

1› Always get some knowledge about the High Yield Investment industry before making a decision to invest your money in High Yield Investment Programs. A good advice is to read every page of this website before doing anything else. As mentioned before, when done right, High Yield Investments are extremely profitable, but without knowing the industry and which programs to invest in you’ll most likely lose your money. Knowledge is one of the major keys to success in the HYIP arena.

2› Think about what your reasons for investing are. Are you looking at it as a solution to your financial problems you shouldn’t even think about it. As mentioned several times on this website, High Yield Investments are risky, and if you’re unlucky enough you could eventually end up without any money at all.

3› Always think over your financial situation before taking the step to invest in HYIPs. Never invest more than you could afford to lose.· Are you a gambler or more careful? Even if High Yield Investing is much like gambling there are options that seem to be safer than other. Decide how big risks you are willing to take.

4› If you’ve made the decision to start investing, find a few programs that you believe in, and invest in all of them. Diversifying your investment on several programs will reduce the risks and you won’t lose everything if one program goes out of business.

5› Before investing in a specific program, do some research on it.

Does the website look professional?
Do they provide any contact information?
Where are they based?

Check this out before making a final decision.

6› Always check what the rules are regarding withdrawals before investing in program. Some programs let you withdraw your money whenever you want. Others keep your money locked for months.

7› Do some calculation using our high yield investment calculator to find out how long it will take before you’ll get your investment back.

Sometimes High Yield Investment can tend to be very much like gambling. And yes, it is very much about luck and about finding the right programs. However, if you follow the advice given above you’ll dramatically increase the chances of winning the game.

This article is taken from (http://www.hyipinvestment.com/general/geninvestmentadvice)

Investor: Knowing Ourselves and Limits

2006-07-19T11:37:00.000+08:00

First and fermost, New investor should never invest money that they cannot afford to lose.
We cannot blame an investment for loosing money becuase all investments have its own risk.

Bear in mind, there many type of products/investment available. Investments do not always make quick bucks. Its by nature will grow and drop in value.

Buying and selling investments by emotions is not a good strategy in addition it's a financial SUICIDE.
Smart investors know that investing is not about timing the market but It's about time in the Market.

Then, as a new investor. Whatshould we do?..

First, you should know how much money that you afford to lose (Dare to fail's money) and what is your specific goals and objective.

2nd, Do your own study and research, research, research. There are more than 10,000 , 15,000 mutual funds and stock issues specifically available worldwide.

3rd, Then from the 1st and 2nd steps, you will know what kind of investments are most suitable for you to invest in. do not put all your eggs in one basket, Diversify it.

Malaysians Showing a lot of Interest In Foriegn Investment..

2006-07-04T15:24:00.000+08:00

I thought, most of Malaysian are very negative about foriegn investment. Based on my experience, when talking about foriegn investment, thier first impression is Scam!!.. Some of them is very narrow minded, they even don't want to accept any fact about foriegn investment or event the words of FORIEGN INVESTMENT its self. hahahaha.. I'm not saying about average people, but I have this experience when dealing with an educated people(with an attitude of I know everything, even better than you). I just want to tell them that, its a fact and now it has been a significant wave that swept all over the globe.

However recently, Malaysian shows a significant interest in Foriegn Investment.
I'm pleased with a statement made by Piyush Gupta, Citi Group Country Officer and CEO Citibank Berhad. (taken from starbiz,pg B4, 4 july 06)

Here are The answer by Piyush Gupta, When he was ask by reporter(The CEO Survey, H1 2006) on How is Citibank coping with the TRENDS in the World and Local Economy?

"Malaysian have taken a lot of interest in foriegn investment opportunities with the liberlisation of foriegn administration last year. Evidance includes over RM6bil assets invested in Mutual Funds with mandates to invest fully in foriegn equities/assets (since July 05)"Piyush Gupta, CEO Citibank Berhad.
"We also ride the wave of liberlisation that sweeping the Globe. In Malaysia Itself, the move by Bank Negara to allow residents to invest abroad has been positive to Citibank as investors continue to seek to diversify their portfolio and obtain better return."Piyush Gupta, CEO Citibank Berhad.
"Foriegn currency deposits also picked up and there is an increasing demand for STRUCTURED PRODUCTS (either as a hedging tool or for investment purposes)"Piyush Gupta, CEO Citibank Berhad.
"At Citibank, we continue to leverage on advancements in technology to improve product and service offerings, accordingly. We anticipate on going focus on cutting edge products that allow us to everage technologies in coming day."Piyush Gupta, CEO Citibank Berhad.

Then, what should I say... you can choose whether to follow the trends or you'll be left behind. There are financial products currently offered on-line such as HSBC - OFFSHORE(Product:UK On-line Growth Fund) and SWISS MUTUAL FUND (1948) S.A (Product: Swisscash)...

Mutual Fund: RISK FREE???

2006-06-04T19:43:00.000+08:00

Life is all about taking risk.. someone thought mutual fund is Risk Free....

"First of all, mutual fund investments are not insured by the FDIC or any other federal insurance program or government agency. Even in cases where mutual funds are purchased through a bank (some may even bear the name of the bank), it is possible to lose money when mutual fund investing. Also mutual fund investments come with costs and fees that can affect the amount of return you receive on a mutual fund investment. It is important to know the costs of mutual fund investing before buying the funds. The Securities and Exchange Commission offers an online mutual fund investment cost calculator at its website which allows potential mutual fund investors to investigate the costs associated with the mutual fund they are interested in.

What is a Mutual Fund Anyway?

A mutual fund is actually a company that operates by taking money from a group of investors (all those that buy the fund) and then invests it in stocks or bonds, short term money market instruments, securities, options, or some combination of these investments. If the investments pay off, the investors make money. Because most mutual funds are run by people with a certain amount of financial savvy and stock market experience, mutual fund investing is often considered rather safe, but the potential for loss is real and must be considered.

Mutual fund investing can be advantageous because there are a number of federal regulations in place that are designed to protect investors. The actual investments that the fund makes are watched closely by market analysts and financial managers whose job it is to make appropriate decisions regarding the mutual fund’s investments. The downsides include costs, taxes, and fees which must be paid regardless of how the fund performs." (taken from global-investment-institute)

OFFSHORE - High RISK ???

2006-05-09T13:31:00.000+08:00

When talk about OFFSHORE INVESTMENT, normally people will excited about the Returns of Investment 'WoW... what a great return'.. but then, most of them will compare it with their local banks offered, then they will say 'Oo..this is new to me, I already invest at my local bank for ages and its realy safe'.. or..'I don't want to RISK my money in the Offshore Bank, cause this things is new to me, its not located in my country, it is scam, its not safe enough and etc'...

So..its about RISK.. some might heard about calculated risk, then how should we calculated them?.. In finacial management theory.. we can calculate RISK.. the risk telorance and etc.. BUT In REALITY.. that doesn't really count.. when It fails..its fail.. whether the probability to fail is 50% or 1o%.. its also same in the other hand.

"Risk must be evaluated not by the fear it generates in you or the probability of your success, but by the VALUE of the Goal" (John C. Maxwell)

For me.. Its(offshore investment) worth to take risk, since its exploring a new financial opportunity and its Discover the SECRECT OF RICHEST. (Why rich people become richer)

(The reality is thet everything in life is risky. If you want to avoid all risk, then don't do any of followings:

Don't ride in an automobile - they cause 20% of all fatal accidents.
Don't travel by air, rail or water - 16% of all accidents result from these activities.
Don't walk in the street- 15% of all accidents occur there
Don't stay at home - 17 % of all accidends happen there

Everything in life brings RISK. Its true that failure if you try something bold because you might miss it. But you also risk failure if you stand still and don't try anything ) Taken fromFailing Forward - turning Mistakes into stepping stones for sucess, by John C. Maxwell.

"Decide whether or not the goal is worth the risk involved. If it is, stop worrying" (Amelia Earhart,First female pilot to fly solo over the Atlantic Ocean 1932)

SO.. ??? YOU HAVE NO CHOICE.. LIFE IS ABOUT TAKING RISK '-)

Outsmarters and Partakers

2006-03-16T00:28:00.000+08:00

"There are two kinds of investor: Outsmarters and Partakers".

"Outsmarters believe they're so clever they can beat the system,through inside advice and superior brainpower."

"Partakers understandthat the best way to make money is to share in the profits ofsuccessful businesses, by buying stock in [them]... "

"There are, for example, the day traders, who think they can profit from tiny ups and downs of stocks over minutes or hours. I do not doubt that some people can make a profit this way....But beyond a tiny cadreof the super-talented and super-dedicated, day traders get eaten up bythe transaction costs -- the commissions, the spreads between bid andasked prices, and the interest incurred in buying stocks on margin." -- James K. Glassman, "The Secret Code of the Superior Investor," pp.63-64.

WarNinG!!!!

2006-03-09T02:25:00.000+08:00

Investing is a great & exciting opportunity, but it should be approached in an educated manner!!!

Investment principles is your pillars, used it along with any game plan.
The Greaters potential threat is what you don't know.
Avoid emotional decision, don't rush. (It takes only seconds to lose money by being impulsive)
The more option we have, the more difficult to make WISE investment decision.
Always approach any games intelligently and responsibly.
Maintain a reasonably safe and sane investment marketplace

There are thousands of investment opportunity around the world, thanks to the Internet.

What is Hedge Funds?

2006-03-07T15:40:00.000+08:00

Todays Lesson: What is HEDGE FUND?

Hedge funds are are one of the fastest growing investment alternatives to traditional equity and bond portfolios. The term hedge fund is applied to investment vehicles with a wide range of aggressive investment strategies and objectives. Until recently, investing in hedge funds has only been open to the wealthy investors. Now you can invest in a hedge fund with as little as $1000.

What is the difference between a Hedge Fund and a Mutual Fund?

The main difference between hedge funds and mutual funds is how they are regulated. Mutual funds are one of the most highly regulated investment instruments on the market, while hedge funds have virtually no regulation and investment restrictions. As a result hedge fund managers have more flexibility than traditional mutual fund managers in structuring their portfolios. Hedge funds are also able to use strategies such as futures and currencies. These riskier strategies give them the potential of earning a higher return than traditional mutual funds. Of course, this can also result in a greater loss than what one might traditionally find with mutual funds

Money Don't Work 4 Me :-(

2006-03-07T01:39:00.000+08:00

This afternoon, i went to a local investment company to redeem my mutual fund investment. Sad to hear that the fund which i invested 2 years ago at $15,000 currently valued at $13,659. then i ask the staff, currently, which fund is the best to invest in?... she said"The overseas fund".

A decade ago, average people invested in their country except for the Rich.

Now, everybody can invest anywhere you want. Thousands of individuals and companies that are spending billions of dollars to exploit its access to hundreds of millions global investors.

Now I'm thingking of being an Investment Strategiest, at least for my own good. coz Money will disappear if I make a bad investment decision...

The desire alone is not enough.. I HAVE TO BE PREPARED, KNOWLEDGEABLE AND DISCIPLINED..... I need to further my studies in Financial Planning coz my degree in accounting & finance can't help me to make money work for me... SLOW BUT SURELY MY MONEY WILL WORK FOR ME

Financial Freedom : Forex Trading ??

What is the best pair to trade using chanelling Technic?

A Long Journey... But Its worth..

Still a Relevant Method

Strategy for 'Visualize' People

Chart Pattern n SHI Channel

A. 1st article

How does the SHI Channel indicator work?

How to trade using the SHI Channel indicator?

B. 2nd article

other links on SHI Channel:

Chart patterns are the depiction of trading psychology in motion

Chart Patterns : Trends & Breakout

Chart patterns

Learn to Trade Triangle Chart Patterns Part 1

Trading Plan - could help to rectify trade problems

Discipline

My Learning Platform (FX)

THIS VERY UNUSUAL AND RARELY USED STRATEGY (Jacko's Way)

Trading in 8 Pairs - Q & A

Trading in 8 Pairs - When to Buy?

Trading in 8 Pairs - Part 1

What is a "Get-Rich-Quick" scheme?

RSI/MACD System Basics

RSI/MACD system basics

Application of long/turbo RSI+MACD (Part 1)

Trading The MACD Divergence

What is Fibonacci retracement

Money Management & Trading Habits

Why Do I Trade Forex?

The World's Richest Men Have Forex As Part Of Their Investment Portfolios

A Beginner's Guide To Hedging: How Do Investors Hedge?

A Beginner's Guide To Hedging: What Is Hedging?

On My Way to Achieve it

HYIP MISTAKES 5

HYIP MISTAKES 4

HYIP Mistakes - part 3

Mistake 3: Focusing on individual programs instead of the overall plan

Mistake 2: Not testing the withdraw function

Mistake 2: Not testing the withdraw function

HYIP Mistakes -part 1

Forex..oo.. forex

RisK

Make money??.. HYIP

HYIP : aspects to take into consideration

Investor: Knowing Ourselves and Limits

Malaysians Showing a lot of Interest In Foriegn Investment..

Mutual Fund: RISK FREE???

OFFSHORE - High RISK ???

Outsmarters and Partakers

WarNinG!!!!

What is Hedge Funds?

Money Don't Work 4 Me :-(