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Article: FX Inside Traders Accusations

Posted by Nelayan Forex On 4/17/2015 12:08:00 AM 1 comments

FOREX MARKET

Word’s best inside FX traders

insider trading, AUDUSD, Reserve Bank of Australia, ASIC, Australian Dollar

The Australian financial regulator ASIC launched an investigation into the 'suspicious trading' responsible for the jump in the AUDUSD just prior to the release of the Reserve bank of Australia surprise decision to hold interest rates in March 3. On April 7 the Reserve Bank of Australia again surprised the market by holding rates. In the minute prior to the report release the market also reacted strongly. The financial regulator ASIC suggested this was evidence of inside trading. But is it really?

Closer examination of the charts casts a better light on this so-called inside trading activity.

The pair in focus is the AUDUSD. Here's the chart for March 3. Quite clearly there is a sharp move before the release of the report. The release time is shown as 13.00 on the 2 minute chart because we use local time on our computer system.

Ok, the major pairs often move together but note the move is not exactly the same as the AUDUSD pair. What happens with the smaller crosses? These CAD and HKD pairs show similar reactions, although the correction following the release is much greater than in the previous charts. Also there is more volume increase in the AUDCAD pair than the AUDHKD pair in the lead-up to the report release.

By now it's going to come as no surprise when the minor currencies like the AUDSGD cross behave in much the same way. However the doji candle pattern with AUDNZD is quite different from the AUDUSD pair and this shows the charts are created in response to completed trades.

Compare the March 3 charts to the release of Australian Reserve bank reports on April 7. The one minute charts from Oanda use our local time, so the official release of the Reserve bank decision is at 14:00. On every one minute chart the market moves dramatically at 13.59 in the minute before the official release of the decision.

AUDUSD

The Oanda 5 second chart for AUDUSD shows the move started at 13:59:50. The move is duplicated on all AUD pairs. By 14:00 all that was left was for the market to digest what had already happened and price activity moved sideways.

The same pattern is repeated on the 5 second chart for the AUDJPY, AUDCAD and AUDSGD pairs.

EUR/AUD

The EURAUD 5 second chart shows exactly the same pattern. The pattern is repeated on the GBPAUD chart

For inside trading to be present we would have to see a significant move in one or two crosses prior to 14:00 AND prior to the broad market move at 13:59. This does not happen.

Australia must have the world's best FX inside traders to be able to take such large positions in every AUD pair at exactly the same time! We take our hats are off to these traders because they have achieved the impossible.

Of course that explanation is plain garbage. A single inside trader might trade one pair, but it is highly unlikely they would have the inclination or the resources to trade EVERY AUD pair.

The exact replication of the fast up move in all AUD pairs in the 2 minutes or 10 seconds prior to the official release of the information is not best explained by inside trading. It is more reasonably explained by the early loading of Reserve Bank information to servers prior to the official release of the data. This is a global market reacting instantly to information as it becomes available to ALL PARTICIPANTS.

The charts clearly show that the Reserve bank information became available to many participants in the minute prior to the official release time. These moves are captured across all pairs by High Frequency Quantitative Trading Algorithms. They have algorithms running in the Dark Pools. These are on the institutional side, not the mums and dads.

The charts clearly suggest that the problem is in the way the Reserve bank loads this data to the web in preparation for its official release. The duplication of behaviour across all AUD pairs shows this information is available to many, if not all, participants at the same time. It's time to call of the FX witch hunt.

The FX market is the deepest and most liquid market in the world. It is arguably the most closely watched and monitored. This intense scrutiny makes it difficult to conduct inside trading. The real concern in the markets associated with the FX market is the manipulation of benchmark interest rates. That task is best left to the banks and other institutions who manipulated LIBOR interest rates and other benchmarks in 2008 and onwards.

Dary Guppy
Founder and Director
Guppytraders.com

Credit: FX Trader Magazine

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Book Review: Adventures of a Currency Trader

Posted by Nelayan Forex On 3/18/2015 04:29:00 PM 2 comments

Praise for ADVENTURES of a CURRENCY TRADER

"A truly easy, unique, and enjoyable read! Rob has done it once again to teach us in the funniest way possible how not to make the most common trading mistakes. If you are tired of reading how-to books, this is perfect for you. I highly recommend this book to all traders. Everyone will learn something about themselves by reading this book."

—Kathy Lien, author, Day Trading the Currency Market, and Chief Strategist, www.dailyfx.com

"Adventures of a Currency Trader is a must read for anyone who has ever traded or is thinking about trading in the Forex markets. Rob Booker has a unique way of taking years of market knowledge and transforming it into an educational and entertaining experience. It has quickly become a cult classic in my trading library!"

—H. Jack Bouroudjian, Principal, Brewer Investment Group

"Brilliant! Rob's humor and humanity shine through in this parable about trading and life. Filled with wisdom and wit, it's an exhilarating rollercoaster ride through the peaks and valleys of the learning curve, with many valuable lessons learned along the way."

—Ed Ponsi, President, FXEducator.com

"Rob's fable of everyman 'Harry Banes' is destined to become a trading classic. This is both the missing piece and the foundation that comes before the strategies and methodologies. The search for the Holy Grail begins and ends in the heart and mind. The journey is authentic and real and if you're willing to take it with Rob, you will be rewarded in the end. Seldom has psychology and wisdom been so entertaining!"

—Raghee Horner, trader and author of Forex Trading for Maximum Profit and Days of Forex Trading

"In a series of insightful and entertaining vignettes, Rob Booker teaches both the novice and the experienced trader some hard won truths about the currency market. It's a must read book written by a guy who survived the trenches and went on to prosper in the biggest and most competitive financial market in the world."

—Boris Schlossberg, Senior Currency Strategist, Forex Capital Markets LLC, and author of Technical Analysis of the Currency Market

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Forex Trading In Islam

Posted by Nelayan Forex On 3/17/2015 01:41:00 PM 0 comments

FOREX TRADING IN ISLAM

ISLAMIC FOREX TRADING By Dr Mohammed Obaidullah

1. The Basic Exchange Contracts

There is a general consensus among Islamic jurists on the view that currencies of different countries can be exchanged on a spot basis at a rate different from unity, since currencies of different countries are distinct entities with different values or intrinsic worth, and purchasing power. There also seems to be a general agreement among a majority of scholars on the view that currency exchange on a forward basis is not permissible, that is, when the rights and obligations of both parties relate to a future date. However, there is considerable difference of opinion among jurists when the rights of either one of the parties, which is same as obligation of the counterparty, is deferred to a future date.

To elaborate, let us consider the example of two individuals A and B who belong to two different countries, India and US respectively. A intends to sell Indian rupees and buy U.S dollars. The converse is true for B. The rupee-dollar exchange rate agreed upon is 1:20 and the transaction involves buying and selling of $50. The first situation is that A makes a spot payment of Rs1000 to B and accepts payment of $50 from B. The transaction is settled on a spot basis from both ends. Such transactions are valid and Islamically permissible. There are no two opinions about the same. The second possibility is that settlement of the transaction from both ends is deferred to a future date, say after six months from now. This implies that both A and B would make and accept payment of Rs1000 or $50, as the case may be, after six months.

The predominant view is that such a contract is not Islamically permissible. A minority view considers it permissible. The third scenario is that the transaction is partly settled from one end only. For example, A makes a payment of Rs1000 now to B in lieu of a promise by B to pay $50 to him after six months. Alternatively, A accepts $50 now from B and promises to pay Rs1000 to him after six months. There are diametrically opposite views on the permissibility of such contracts which amount to bai-salam in currencies. The purpose of this paper is to present a comprehensive analysis of various arguments in support and against the permissibility of these basic contracts involving currencies.

The first form of contracting involving exchange of countervalues on a spot basis is beyond any kind of controversy. Permissibility or otherwise of the second type of contract in which delivery of one of the countervalues is deferred to a future date, is generally discussed in the framework of riba prohibition. Accordingly we discuss this contract in detail in section 2 dealing with the issue of prohibition of riba. Permissibility of the third form of contract in which delivery of both the countervalues is deferred, is generally discussed within the framework of reducing risk and uncertainty or gharar involved in such contracts. This, therefore, is the central theme of section 3 which deals with the issue of gharar. Section 4 attempts a holistic view of the Sharia relates issues as also the economic significance of the basic forms of contracting in the currency market.

READ COMPLETE ARTICLE HERE

Notes & References

1. These diverse views are reflected in the papers presented at the Fourth Fiqh Seminar organized by the Islamic Fiqh Academy,

India in 1991 which were subsequently published in Majalla Fiqh Islami, part 4 by the Academy. The discussion on riba prohibition draws on these views.

2. Nabil Saleh, Unlawful gain and Legitimate Profit in Islamic Law, Graham and Trotman, London, 1992, p.16 3. Ibn Qudama, al-Mughni, vol.4, pp.5-9

4. Shams al Din al Sarakhsi, al-Mabsut, vol 14, pp 24-25

5. Paper presented by Abdul Azim Islahi at the Fourth Fiqh Seminar organized by Islamic Fiqh Academy, India in 1991.

6. Paper by Dr M N Siddiqui highlighting the issue was circulated among all leading Fiqh scholars by the Islamic Fiqh Academy, India for their views and was the main theme of deliberations during the session on Currency Exchange at the Fourth Fiqh Seminar held in 1991.

7. It is contended by some that the above example may be modified to show the possibility of riba with spot settlement too. "In a given moment in time when the market rate of exchange between dollar and rupee is 1:20, if an individual purchases $50 at the rate of 1:22 (settlement of his obligation also on a spot basis), then it amounts to the seller of dollars exchanging $50 with $55 on a spot basis (Since, he can obtain Rs 1100 now, exchange them for $55 at spot rate of 1:20)" Thus, spot settlement can also be a clear source of riba. Does this imply that spot settlement should be proscribed too ? The fallacy in the above and earlier examples is that there is no single contract but multiple contracts of exchange occurring at different points in time (true even in the above case). Riba can be earned only when the spot rate of 1:20 is fixed during the time interval between the transactions. This assumption is, needless to say, unrealistic and if imposed artificially, perhaps unIslamic.

8. Islam envisages a free market where prices are determined by forces of demand and supply. There should be no interference in the price formation process even by the regulators. While price control and fixation is generally accepted as unIslamic, some scholars, such as, Ibn Taimiya do admit of its permissibility. However, such permissibility is subject to the condition that price fixation is intended to combat cases of market anomalies caused by impairing the conditions of free competition. If market conditions are normal, forces of demand and supply should be allowed a free play in determination of prices.

9. Some Islamic scholars use the term forward to connote a salam sale. However, we use this term in the conventional sense where the obligations of both parties are deferred to a future date and hence, are similar to futures in this sense. The latter however, are standardized contracts and are traded on an organized Futures Exchange while the former are specific to the requirements of the buyer and seller.

10. This is known as bai al inah which is considered forbidden by almost all scholars with the exception of Imam Shafii. Followers of the same school, such as Al Nawawi do not consider it Islamically permissible.

11. It should be noted that modern finance theories also distinguish between conditions of risk and uncertainty and assert that rational decision making is possible only under conditions of risk and not under conditions of uncertainty. Conditions of risk refer to a situation where it is possible with the help of available data to estimate all possible outcomes and their corresponding probabilities, or develop the ex-ante probability distribution. Under conditions of uncertainty, no such exercise is possible. The definition of gharar, Real-life situations, of course, fall somewhere in the continuum of risk and uncertainty.

12. The following traditions underscore the need to avoid contracts involving uncertainty. Ibn Abbas reported that when Allah's prophet (pbuh) came to Medina, they were paying one and two years advance for fruits, so he said: "Those who pay in advance for any thing must do so for a specified weight and for a definite time". It is reported on the authority of Ibn Umar that the Messenger of Allah (pbuh) forbade the transaction called habal al-habala whereby a man bought a she-camel which was to be the off-spring of a she-camel and which was still in its mother's womb.

13. According to a tradition reported by Abu Huraira, Allah's Messenger (pbuh) forbade a transaction determined by throwing stones, and the type which involves some uncertainty. The form of gambling most popular to Arabs was gambling by casting lots by means of arrows, on the principle of lottery, for division of carcass of slaughtered animals. The carcass was divided into unequal parts and marked arrows were drawn from a bag. One received a large or small share depending on the mark on the arrow drawn. Obviously it was a pure game of chance.

14. The holy prophet is reported to have said " Do not sell what is not with you" Ibn Abbas reported that the prophet said: "He who buys foodstuff should not sell it until he has taken possession of it." Ibn Abbas said: "I think it applies to all other things as well".

15. The Futures Exchange performs an important function of providing a guarantee for delivery by all parties to the contract. It serves as the counterparty in the exchange for both, that is, as the buyer for the sale and as the seller for the purchase.

16. M Hashim Kamali "Islamic Commercial Law: An Analysis of Futures", The American Journal of Islamic Social Sciences, vol.13, no.2, 1996

About Dr Mohammed Obaidullah

READ COMPLETE ARTICLE HERE

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6 Simple Tips Regarding Forex Technical Analysis

Posted by Nelayan Forex On 7/20/2013 11:49:00 AM 1 comments

To create big profits using technical analysis, forex traders need to know how to use it correctly and accurately. Technical analysis is based on data which is derived from historical prices. The forex trader needs to interpret this data correctly.

Here are six simple tips to help you manage technical analysis efficiently:

Always make sure that the data you are using is valid for what you are using it for. Forex charts are there to help you get a trading edge. Use the charts wisely and don’t fall into the trap of trying to day trade. Short term trends are random and contain noise and it is extremely difficult to make a profit as a day trader.

Look for the support and resistance levels. Use weekly and daily charts to check where the levels are and that they coincide on both charts. A level that has been tested at least three times in a couple of different time frames is probably valid.

If you want to spot and follow trends use time frames where the trend is obvious. Use the weekly charts to see the major trends. Trends tend to follow economic cycles which can have a duration of many years. These trends can be observed on weekly charts. Once you have spotted the trend it is then easy to spot where your entry and exit points should be.

Most major trends in forex trading tend to breakout from new market highs not from market lows. For some traders it goes against the grain to buy on a new high as they feel they have missed out on some heavy profit. However, breakout trends quickly move higher so wait for them and then get in there.

Use Relative Strength Index and stochastic as momentum indicators to predict when a currency will have price momentum and see that the support and resistance levels will not hold. Trading with momentum will get you better more profitable trades. If you trade without momentum you will lose your capital for sure.

Never ever trade because you feel you should be doing something. Keep it simple. If you don’t have clear forex signals don’t do anything. Have patience and wait for the right opportunities. Discipline is paramount to good decision making. When you do trade make sure your stop loss and limit loss are placed correctly. Don’t be greedy.

Following these six simple steps will give you a trading edge and enable you to make some reasonable profits.

The above simple yet important article can be originally found HERE.

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EUR/JPY: Your Very Own Barometer of Risk

Posted by Nelayan Forex On 6/21/2013 01:11:00 AM 0 comments

In order for someone to invest in a particular stock market, one would need the local currency in order to purchase stocks.

You can imagine what the effect of stock markets like the DAX (that's the German stock market), have on currencies.

In theory, whenever the DAX rises, we can probably expect the euro to rise as well, as investors need to get a hand on some euros.

While the correlation is imperfect, statistics show that it still holds pretty accurately.

We here at BabyPips.com did a little research of our own and found out that EUR/JPY seems to be highly correlated with stock markets across the globe. You should know that the yen, along with the U.S. dollar, are considered to be safe havens amongst the major currencies.

Whenever confidence in the global economy is down and traders are fearful, we typically see traders take their money out of the stock markets, which leads to a drop in the values of the DAX and S&P500.

With money flowing out of these markets, we usually see EUR/JPY fall as traders run for cover. On the flip side, when the sun is bright and risk appetite is rampant, investors pour their money into stock markets, which in turns leads to a rise in the EUR/JPY.

Take a look at charts below to see the correlation between the EUR/JPY and the DAX and S&P500.

Positive correlation of S&P 500 and EUR/JPY

The correlation seems to have held well this past decade, as EUR/JPY and both indexes rose steadily together, until 2008, when we were hit with the financial crisis. In late 2007, EUR/JPY had hit its peak, and so did the stock indexes.

If you want to see the raw data for yourself, check out Yahoo! Finance

This a great place to start digging and doing your own research.

The site offers historical price data for almost all currency pairs and equity markets.

You can compare historical prices and come up with your own barometers of risk.

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Intermarket Analysis Cheat Sheet

Posted by Nelayan Forex On 6/21/2013 01:01:00 AM 0 comments

That's a lot of inter-market correlations to remember so let's do a quick recap. The price action of currencies is often driven by their relationship with commodities, bonds, and stock indices.

Here's a neat one-page cheat sheet for you to bookmark and make it easy for you!

If	Then	Why
Gold	USD	During times of economic unrest, investors tend to dump the dollar in favor of gold. Unlike other assets, gold maintains its intrinsic value.
Gold	AUD/USD	Australia is the third biggest gold producer in the world, sailing out about $5 billion worth a year.
Gold	NZD/USD	New Zealand (rank 25) is also a large producer of gold.
Gold	USD/CHF	25% of Switzerland's reserves are backed by gold. As gold prices goes up, the pair moves down (CHF is bought).
Gold	USD/CAD	Canada is the 5th largest producer of gold in the world. As gold price goes up, the pair tends to move down (CAD is bought).
Oil	USD/CAD	Canada is one of the top oil producers in the world. It exports around 2 million barrels of oil a day to the U.S. As oil prices goes up, the pair moves down.

Gold	EUR/USD	Since both gold and euro are considered "anti-dollars," if the price of gold goes up, EUR/USD may go up as well.
Bond yields	Local Currency	An economy that offer higher returns on its bonds attract more investments. This makes its local currency more attractive than that of another economy offering lower returns on its bonds.
Dow	Nikkei	The performance of the U.S. economy is closely tied with Japan.
Nikkei	USD/JPY	Investors consider the yen as a safe-haven and tend to seek it during periods of economic distress.

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Another Millionaire Trader by InstaForex - Sergei Kovalenko

Posted by Nelayan Forex On 6/07/2013 03:46:00 AM 0 comments

InstaForex has already proven itself as one of the best brokers worldwide. Numerous prizes and awards, more than a million accounts of clients from all over the world – that is the best evidence of broker's merits. Every day we diligently improve our services to make trading with InstaForex not only comfortable but also beneficial. That is why high achievements of our clients are the best award for the company.

Recently we told about an astounding success of trader millionaire Akhmad Arief who managed to earn $1,000,000 just in two weeks. And now the story repeats, but this time the Lady Luck has picked up Sergei Kovalenko from Belarus. He has not only achieved Akhmad’s record but even improved it up to $1,500,000!

The chart depicts the dynamics of Sergei’s trading balance. Since November 13, 2012 and within two weeks the trader was demonstrating a stable increase in profit. Later there were some insignificant losses and then an incredible hike in earnings during the first days of December. As of December 4, at 17:00 the balance hit $1,464,992.92 million. The rest of the month was more or less successful for Sergei but at the end of December the profit was lost.

"Prolonged and laborious work eventually helped me to successfully enter the market and take profit. Of course, I have made many mistakes, but now I have got a deeper understanding of my actions; I can rationally consider my abilities and knowledge. As the result, I have new goals!" - Sergei shares his impressions.

Unfortunately, new millionaire could not keep the victory for long and quite soon the balance started to decrease and the cherished sum of money was lost. However, Sergei is not in despair, he is analyzing his actions and is getting ready to conquer another high of $2,000,000.

"The luck is short-lived, you cannot count on it - only work, studies and understanding the market can bring good results. I have experienced that myself."

InstaForex wishes Sergei to achieve new goals. We hope that every company’s client will find the way to successful trading gaining full support from InstaForex.

С InstaForex миллионером может стать каждый!

Sergei's Kovalenko Interview

InstaForex: How long have you been on Forex?

Sergei: I started my way on Forex in late 2004 after hefty losses within HYIPs. By the way, I’m still studying; I keep attending various training courses, etc. Trading is not a game for me, but a job.

InstaForex: Which trading platform do you employ?

Sergei: I mostly trade using MetaTrader 4.

InstaForex: Do you pay attention to analytical reviews when trading?

Sergei: Yes, I definitely do. I actually mull over plenty of information before I decide to open a trade. All factors matter, even those related to astrology.

InstaForex: What leverage do you trade with?

Sergei: Leverage depends on the amount of your deposit. As a rule, I start with the largest leverage possible with my broker.

InstaForex: How could you explain the fact that you made a fortune with a relatively small initial deposit?

Sergei: It’s a result of a daily grind. Thanks to hard work, I managed to successfully enter the market and lock the profit in. I did make a lot of mistakes, but through time I have grown more aware, concentrated. Moreover, I have developed a sober mind, the ability to give my skills and knowledge realistic estimates. Now I’ve got new aims ahead! My nearest target is earning $2 million.

InstaForex: Which currency pairs do you prefer and why?

Sergei: I trade eight currency pairs. This quantity of currency instruments suits me best, as I have enough time to make profound analysis and build some forecasts. But I only enter the market if there’s a clear signal and the time and
date coincide for a certain pair.

InstaForex: Which indicators do you rely on?

Sergei: I’m one of the Gann masters at the online academy, so I prefer Gann methods.

InstaForex: What timeframe do you usually choose?

Sergei: Basically, I opt for H1.

InstaForex: Is this sum exactly what you had planned to earn at
the very start?

Sergei: Of course, it’s not. After I lost around $150,000 in HYIPs, my only dream was to pay the debts. But very soon, in summer of 2012, I could make as much as $450,000. And that was when I set my first aim — $1 million. I hit it in
December.

InstaForex: You made huge accomplishment indeed. How do you feel about the loss? What conclusions did you draw?

Sergei: My conclusions are as follows: mistakes are great lessons to learn; never give up and rush forwards with your head cool! As for the loss, what can I say... It frustrated me of course, but what makes me glad and proud is the fact that I DID IT!!! And I will do it again!

InstaForex: Will you go through it all again?

Sergei: No doubt, YES!

InstaForex: If you succeed once again, what will you spend the money on?

Sergei: I will dedicate it to charity. I own a house in Cyprus, and I already bought a house for my parents too. So, I don’t need anything for myself.

InstaForex: What do you think help traders to make money on Forex ― years of practical experience or luck?

Sergei: Luck is evasive; it is not worth relying on. Good results are fuelled by hard work, studying and understanding the market. This is what I realized after years of trading.

InstaForex: Do you consider your profit to be a result of hard work or just a fluke?

Sergei: I don’t mean to brag, but I think it’s the fruit of my labour.

InstaForex: What would you advise beginners to do?

Sergei: First of all, get rid of illusions like "I will become rich with $100". You really need to study the basics of the currency market and find a good teacher, an expert in trading! Jokes aside, all you need is love trading. As a financier, I’m fond of figures. This realm is my vocation. And I wish everyone to enjoy the job!

_________________________________________________________
The above original article can be found here:
https://cabinet.instaforex.com/partner/sk/news/company_news/1/3207

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Successful and Legendary Forex Traders...

Posted by Nelayan Forex On 5/14/2013 10:28:00 AM 0 comments

Here is a list of 10 successful and legendary forex traders, whose profit at the Forex market is calculated in millions of dollars...

1) Warren Buffet - according to the Forbes magazine ranking he is among the top five richest people in America, his fortune is estimated at $36 billion. Buffet is called a great investor: he has an outstanding ability of super-successful investments. He buys stocks, providing strong assets in the hope that sooner or later market will evaluate these securities at their true worth.

2) George Soros - he owes his success to the gift of financial foresight. Soros became famous after 'Black Wednesday' - 16 September 1992 when his one day profit amounted to over a billion dollars. Currently his fortune is estimated at 11 billion dollars.

3) Larry Williams became a successful forex trader due to the forex trading strategy at the world exchange stocks, which he developed and which helped him to make millions of U.S. dollars. He opens a position and holds it open from 2 to 5 days. Larry Williams is a typical example of the American dream which came true - making a fortune from scratch, in a short time.

4) Steve Fossett made his fortune at the New York Stock Exchange, however he became famous for his records in aviation and sailing. According to the Chicago Stock Exchange Director Fossett very quickly became 'one of the most risky forex traders'. At the peak of his career in 1980 Steve Fossett founded one of the largest U.S. trading corporations in the USA - Lakota Trading Inc.

5) Laura Pedersen began working at Wall Street when she was 17. At the age of 20 she became the youngest participant at the American Stock Exchange. Lora Pedersen earned 1.5 million dollars before she reached the age of 24.

6) William Delbert Gann is a very interesting and unusual personality in the world of stock trading; he was able to predict not only forex market behavior but world historical events as well. He was considered one of the most mysterious and great figures of his time. He gained a reputation of a successful forex trader trading on two accounts simultaneously. He earned $25 000 in 3 months with the help of his first account (originally the account had 300 dollars). The second account gave him 12 000 USD within 30 days (originally the account had 130 dollars).

7) Legendary Jesse Livermore, the most successful stock market trader in the history of exchange. He made his first deal when he was 15, by the age of 30 he was already a millionaire. It was Jesse Livermore who caused market wreck in 1907 making 3 million dollars in one day. At the time of the forex market crash in 1929 he managed to make profit of a hundred million dollars.

8) Nicolas Darvas - made a fortune of 2 million dollars out of 36 thousand dollars for 18 months. In his book 'How I Made $2,000,000 in the Stock Market', published in 1960 he shared his secrets of forex trading.

9) Alexander Gerchik, one of the most successful and well-known forex traders of America and in SIC. From 1998 to present he is a professional de-trader of NYSE. He is a managing partner of one of the largest brokerage in the U.S. since 2003. Since 1999 Alexander Gerchik has never had a single unprofitable month.

10) Edd Seykota he gained a fortune of 14 million dollars out of 5 thousand USD presumably for 13 years. One of his profound statements which became well-known nowadays:' Everyone gets his wish from the market'.

Think of your wishes!

It is very probable that Forex can make your wishes come true: as you can see, there are some above mentioned examples to illustrate this.

_______________________________________

The above original article can be found HERE.

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Forex Millionaires

Posted by Nelayan Forex On 5/14/2013 09:48:00 AM 0 comments

The basic aim and whole essence of trading in general, and Forex trading in specific is extra profit. The ambitious traders push it to become more than ‘extra’ profit but a respectable amount. The realistic dreamers who allow themselves to dream big, but are grounded enough to work hard are the ones who reach the ultimate dream of becoming millionaire and billionaire traders.

Be wary and cautious, be careful with your risks, and do not lose your money; so the story goes. Of course this is solid and very good advice. Throwing all your life savings into a trade will not open up doors to a future of exotic trips, expensive drinks, and luxurious mansions. On the other hand no one makes it big without ever taking a risk.

The hard truth is that not everyone can make it. Everybody can perform the action of trading, everybody has the mental capacity to observe the market and make predictions, but very few have the immense talent to go the extra mile, create their own strategies, follow their very own systems and find an even combination of skills and requirement to lead the way.

The father of all successful traders to this day is the legendary Jesse Livermore. Born in 1877, he had earned thousands of dollars through trading by the age of 15, after running away from a farmer’s life which he was intended to follow. He became history’s most successful trader by following his own rules and strategies. The core of his work revolved around increasing the size of his positions as the market moved in his favor, and quickly cutting his losses. He was a bit of a wiz when it came to predictions and he left no event untouched, like the 1907 and 1929 market crashes through which he made huge amounts of money. He made millions upon millions during his 63 years of life, but he also suffered great losses through his risk taking. He worked endlessly through long days and nights to become what he became.

Many business owners and millionaires who made it up from scratch made their initial fortunes through trading. Like Warren Buffet who according to Forbes magazine is now in America’s to 5 richest people with a net-worth estimated at 36 billion dollars. He established this empire through big risks, accurate predictions and smart trading.

Another impressive story is that of Laura Pedersen who joined Wall Street at the mere age of 17 making her the youngest employee of the trading institution, she turned into a self-made millionaire by the age of 24.

A more recent example of Forex millionaires is the now well-known Alexander Gerchik. He is now a managing partner in one of the biggest brokerages in the United States, and he started by making his money through trading. He has not had an unprofitable month since 1999.

Many traders do not become millionaires but they do make thousands a month and continuously bring in huge profits which make their lives more comfortable, and make trading worth their while.

What do they have that most other people don’t? Understanding currencies, economies and markets probably does come easier to them than it does to most other people, but there are millions of number wired brains out there, and they still aren’t millionaires.

Truthfully there isn’t any one answer, and there are no hidden secrets. The common denominator between all Forex millionaires is their hard work and dedication. A lot of time and effort needs to be applied before reaching a place where millions are being generated through trading and continue flowing.

A starting point, a very important starting point is to be innovative and be a trader at heart. There’s much more than simply technical knowledge to successful trading. One man who started making huge profits shortly after learning to trade, created his own rule of not investing his money before doubling his profits three times in a row through the demo account. He stuck to the plan and never put in one cent of his own money before reaching that goal; from thereon he turned his 1000 dollars into millions.

Another trader kept trading with small amounts which would not harm him financially, until he had managed to reach 50,000 dollars in profit within a short period. That’s when he decided that he was ‘on to something’ and risked bigger.

The one story which really stands out is the trader who spent so much time trading, creating his own strategies and systems that he eventually designed his very own trading robot, in which he implied his own accurate methods, and allowed the robot to do constant trades for him earning him millions.

The bottom line is there are no guarantees, and not everyone is made to find success through trading, although everyone is capable of it. Once you have tested your predictions, your trading skills, and you truly feel that you understand trading inside out, you are able to easily use strategies and even create your own, and you are very much aware of the market and all the movements which are occurring then you know that you are a trader at heart, and you may just be the next success story.

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Published in TRADINGFOREX.COM Blog on Wednesday, 13 February 2013 14:58

Written by Deema Osman

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Forex Scalping Extensive Guide

Posted by Nelayan Forex On 5/09/2013 05:22:00 AM 0 comments

This article is the last part of our guide on how to use scalping techniques to trade forex. If you haven't already, we recommend you read the first part of the series on forex scalping.

Not all traders will do well in scalping, but many can acquire the necessary skills for this strategy by careful practice using a step-by-step approach. As with most other activities, it is better to begin your training at the most basic level and to add upon your gains at each pace to approach perfection.

Controlling your emotions will probably be the first challenge you face as a beginning scalper. It may be difficult to adapt to the violent swings that you will have to deal with routinely, but by avoiding certain time periods, and adjusting your stop-loss order accordingly, there should never be too big a danger in scalping.

We’ll conclude this article by briefly listing the principles which must be adhered to by a committed scalper before consistent profitability is attained.

1. Discipline

Scalping is for disciplined traders. A methodical, even mechanical approach to trading currencies will increase the potential profits of any scalper, and if automation is necessary, there is no logic in delaying it. Acquiring mental discipline may require time and effort, but its beneficial in every aspect of life, and nothing will be lost as you put your trading career in order. If a trade must be closed, it must be closed. If losses need to be taken, they must be. Scalping doesn’t allow the trader much time for vacillation or worry, and whining and complaining have no place in this style. Face the realities and act in accordance: success is just around the corner.

2. Patience

Impatient, or arrogant traders don’t have a stellar future in scalping. Many people have attained great profitability in trading, but only through persistence and determination. It is even more so in scalping, where minuscule profits are expected to combine into sizable gains.

3. Calm

Scalpers need to remain calm in the face of market turmoil, especially those who want to trade directional, trending markets. Without emotional restraint, trading choices will be confused and arbitrary, and that is the least of what can be afforded by a committed scalper. Get used to losses and mistakes. Accustom yourself to mending the errors. And all should be well.

4. Regular Trade Sizes

This is always a necessity in trading, but even more so in scalping. Don’t make the mistake of doubling your trade sizes in response to a chance streak of wins. Don’t blur your vision by entering orders arbitrarily. Be disciplined, and ensure that your trades can be analyzed easily by standardizing your order sizes.

5. Concentration

Scalping can be an intense activity, and a good scalper needs to have a mind which can concentrate effectively on the task at hand for profit. If you’re scalper, make sure that the place and time period during which you’re active in the market is as peaceful and calm as possible. Have the kids sleep or play, let your spouse tend to her own duties. Ensure that you’re not distracted while scalping the forex market.

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The above article is the final part of a series written in portal: www.forextraders.com, entitled: Extensive Guide on How to Scalp Forex.

Recommended for further reading!

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