Ways on How to Keep a Forex Trading Log

By Mark Thomas

Most traders will agree on the statement that keeping a forex trading log is important. Many people view log as something that is similar to a diary. On the other hand, a "trade log" is considered as something that one trader does when he or she wants to keep track of the details in trading. This refers to the activity wherein one will have a piece of paper and a pen or even a pencil and then it is time to write down the trade logs that they have been keeping up with for some days already. Actually, this is one of the methods that some of the traders presently use. However, this is not really advised because there is a great risk involved that one will lose the information that they have taken into account or in some instances, there might be another individual who will get through the data.

Keeping a trade log is easy if you know how to do it properly. Obviously, one of the best ways that you should do is through the use of computers. This is very useful since you can be sure that what you have jotted down will not be lost and it will be easily retrieved. You will be able to access the information in no time at all. Additionally, you can even bring it with you at all times without worrying that you will lose the data. Although there are some people who save it in a word document form, it will be a lot easier if you will utilize Excel or other similar programs.

A document in word format enables people to easily write down paragraphs or notes if they have some comments on a rate or exchange movements, which is useful if there is a need to be reminded of something important.

For Excel users, this is very appropriate if there are lots of data entries since it will look very organized but this is not really suitable when it comes to writing down remarks and other related things. You should be able to decide which one of them is the one that suits you but make sure that you are comfortable with the program that you have chosen.

Whether you go for manual forex trading log, recording or using the computer, you have to make sure that you are consistent with your method. This is because all the notes you have produced will only end up all over the place. - 23196

About the Author:

Mark Thomas, have developed a unique software tool called Trade On Track, which helps the Traders to Trade with Confidence , Security and Accuracy. To know more about Trade and useful tips on Trading, just log on to http://www.tradeontrack.com

Learn Carry Trading

By Hass67

In forex markets, carry trading is an easy way to take benefit of the basic economic principle that money is constantly flowing in and out of different markets. Markets with a high rate of return will generally attract more capital.

Carry trading is quite popular among professional forex traders. Hedge funds and investment banks also do leveraged carry trading to make profits. You as a retail forex trader can also benefit from carry trading.

Carry trading strategy entails going long or buying a high yielding currency and simultaneously going short or selling a low yielding currency. Carry trading tries to take advantage of the interest rate differential between two currencies.

Lets take an example: suppose New Zealand dollar offers an interest rate of 4.75% while the Japanese yen offers an interest rate of 0.25%.

An investor who wants to capitalize on this interest rate differential will buy New Zealand dollars (NZD) and sells Japanese Yens (JPY). The investor can earn a profit of 4.75-0.25=4.5% as long as the NZD/JPY exchange rate does not change. If the investor uses a leverage of 10:1, this 4.5% return will be magnified into 45%.

The good thing is if the currency pair NZD/JPY appreciates, the investor can get a capital appreciation as well as a yield on the investment. Most of the time, the currency pair will tend to appreciate as many investors will jump on the bandwagon when they see a good carry trading opportunity. The more investors carry trade, the more the currency pair appreciates.

Carry trades will generally be profitable when investors have low risk aversion and unprofitable when investors have high risk aversion. In times of high risk aversion, investors tend to take refuge in safe haven currencies.

By entering into a carry trade, an investor expects to profit from an interest rate differential between the two currencies. But if the low interest rate currency appreciates considerably for some reason or another, carry trade will become unprofitable.

How do you check the mood of the investors? By knowing whether the currency is overbought or oversold. For this you need to identify the current trend of the currency pair and see whether it is moving in the right direction!

MACD (moving average convergence divergence) indicator can help you in this regard. You should enter the trade when MACD crosses the zero line from below. You should exit the trade when it crosses the zero line from above. - 23196

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading; stocks and forex. Read about Trend Forex System. Best Forex Signal Service. Learn Forex Trading.

Brief Guidelines to Day Trading

By Amanda Gamdana

There is a great opportunity for anyone who is willing to ride the torrential waves of the stock market by becoming a day trader. It is wise to start off your day trading by learning some basic concepts and then proceed to bigger and more complex issues once you have built a particular level of mastery of the simpler issues.

It is good to start by learning the basic concepts of day trading. It takes skills and patience to develop the necessary level of mastery to be able to make a real killing in this trade.

This form of activity serves two major purposes of the stock market-it provides liquidity and keeps the market running active. To make accurate decision, one needs to get accurate information.

To be successful, one needs to master the psychology of day trading. The results are unforeseen and cannot be forecasted. One needs to have the right tools and knowledge to be successful in this undertaking.

Being a day trader is no guarantee that you will make millions of dollars in profits. Is day trading right for you? They only risk capital and those are rather affordable to lose.

Remember, day traders only hold on to a position for a few minutes. Always strive to build your trading skills with training. You need nerves of steel and a fast mind to prosper in this business. Keep your memories sharp and alert and avoid losing money at all costs.

It is the ultimate mistake to follow your own feelings when trading, instead be alert to current market trends and follow accordingly. The ultimate goal of a day trader is to produce profit in a single day. The management of risks is essential if you wish to be successful in this business.

The thing to remember is make sure you do have a good understanding of the Forex day trading before you decide to participate. One common characteristics is day trader will often watch the computer screen all day to follow the rise and fall of the stock market. The access to timely information is very important to ensure success.

Day traders would claim this form of activity to be very thrilling and intriguing. Day traders do believe in their own indicatory but they too are that there is no 100% in life that it will work. Successful day traders will sell on good days and buy on bad ones.

This is a transaction that involves the purchase of securities in a single day. Be forewarned that this form of trading comes with a lot of risk. It is not something to jump into without considerable thought.

It comes with substantial risk. Do you need luck or skills to make it big? Nevertheless a successful trader can lose money out of nine out of ten transactions and still be able to make a profit even by succeeding in one single trade. There is a loft of fun here but it for some great challenges as well. - 23196

About the Author:

You welcome to visit: Health and Weight Loss plus Health Research With Weight for more reviewed accurate information.

Forex Hedge Trading: The HOG2 EURUSD-USDCHF Custom Indicator

By Sonja Schuyler

The latest entrant into the popular world of Forex Hedge trading methods will be reviewed in this article. We will examine a manual system designed to trade the EURUSD-USDCHF Hedge. This Hedge is one of the most popular Hedges in the world of Forex in large part because of its high degree of negative correlation. In other words, most of the time, when the EURUSD trends in one direction - the USDCHF heads the opposite way.

An advantage of trading a Hedge is that it tends to reduce your risk. The challenge is that trading more than one currency pair at a time is difficult to track. You are at a definite disadvantage without the ability to track multiple pairs.

What Gary at 4x-rox.com did is create a set of custom indicators that track the total value of the EURUSD-USDCHF Hedge. This will enable you to trade these two currency pairs as if they were one pair. His indicators also track five market parameters outside the Forex market that gauge the value of the EURUSD-USDCHF Hedge and plot the predicted value relative to the current market value. This arrangement shows you the push or pull pressure on the Hedge and gives you an early warning when large reversals are likely to occur.

This Hedge trading system is called The HOG2 Custom EURUSD-USDCHF Hedge Indicator or HOG2 for short. The HOG2 runs inside the Metatrader 4 trading platform. It is composed of four indicators in three indicator windows.

The HOG2 tracks the EURUSD-USDCHF Hedge in real time. It shows you exactly what this Hedge is doing before you place your trades. The HOG2 features a color-coded custom histogram that gives you the sell or buy strength of this Hedge and indicates good entry and exit points. This arrangement shows you, at a glance, when this Hedge as a whole is over sold or overbought.

If you are accustomed to reading indicators, then learning to trading with the HOG2 will be very straightforward. If you have never traded Forex before, or never manually traded Forex, then you will want to go slowly and not live trade until you are completely comfortable. The HOG2 comes with good instructions and the company offers excellent support.

The HOG2 is not a robot. The HOG2 is not for you if you are looking for a Forex robot. If what you're looking for is a solid, effective manual trading system for trading the EURUSD-USDCHF Hedge then you won't find an easier or more workable system than the HOG2.

The HOG2 combines formulas for inter-market analysis with a unique compound indicator and the result is a highly effective manual trading system for this Hedge. The unique combination of the HOG2's one of a kind trend lines and Custom Histogram provides that all-important 'bird's eye view' of your Hedge trade.

Are you ready to try out the HOG2 for yourself? When it comes to trading the EURUSD-USDCHF Hedge, the HOG2 combines formulas for inter-market analysis with a unique compound indicator and the result is a highly effective manual trading system for this Hedge. The unique combination of the HOG2's one of a kind trend lines and Custom Histogram provides that all-important 'bird's eye view' of your Hedge trade. - 23196

About the Author:

Sonja Schuyler and the team at www.4x-rox.com make it simple for you to flatten the learning curve and get you on to the Forex trading Profit curve. To claim your copy of the FREE eBook Successful Forex Trading Secrets Revealed, go to Forex Trading Today

Becoming a CTA Takes Time and a Savings Nest Egg

By Bill Johnson

Money controls every function of the world, and commodities trading advisors play a key role in that exchange. The National Futures Association defines a CTA as an individual or firm that directly or indirectly advises clients on the selling and buying of futures or options contracts. As professional money managers, CTAs are required to be registered with the Commodities Futures Trading Commission.

Although there's no formal education process to become a CTA, it's advisable to first work at a trading firm prior to beginning a CTA career. Previous experience with a firm doesn't guarantee your success, nor is it a federal requirement. Many CTAs with no formal trading education prove themselves successfully in the market. However, first trying your hand with such a firm could indicate if you have a talent for trading.

While there's no formal training that's required, you still need to have the credentials. Before applying to the National Futures Association, you must first pass the Series 3 exam- a 120-question, 2.5-hour test that measures your understanding of the makeup and regulations of the futures market.

There are numerous professional study guides available to help you prepare for the test. You can benefit from tips and test-taking suggestions, as well as try practice tests to keep you from being blindsided on test day.

First, you must determine if you are ready to become a CTA. How much success have you had playing the stock market over a long period time? A certain amount of success may be fleeting and simply a luck of the market. Real talent can sustain such success over an extended period of time through a variety of market conditions.

Also, consider your finances and personal situation. Starting an investment business is risky, and timing is everything. Unless your CTA firm has a substantial amount under management, you can pretty much count on not seeing a paycheck the first year or two. Even managing a $1,000,000 account with a 2 percent management fee would only earn you $20,000 a year, or $1,600 a month.

Not only that, but you'll also face trading costs, technology costs, fees for traditional support as well as rent. It's important to have secure savings before you even begin.

If you have a natural eye for investment, however, you should do pretty well in the long run. CTAs are a vital to the marketplace. Learning to spot the changes in the industry before they happen is the key to a sustainable and lasting career. - 23196

About the Author:

If you're interested in learning more about this career and want to become a CTA this site is a great place to learn more according to the author.