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Month: April, 2008

Forex Trading Fundamentals: Good News for the Dollar

19 April, 2008 | Currency Trading | By: andrews

Over the past six months it seems like almost every major finance magazine has published an article related to the weakness of the dollar. If you are a currency trader like I am then this topic is particularly relevant to you because you need to know what the long-term trends of each currency are so that you can make profitable trades.

What you probably have not been reading about in the news are some of the events that have been happening behind the scenes or that will be happening in the near future, and why the American economy will ultimately regain its strength.

The single most significant factor affecting the American dollar is the trade balance, and the biggest portion of this problem is related to our war in the Middle East that should never have been authorized, yet is still costing us billions of dollars every single day. I will not spend a lot of time talking about the horrendous actions of the Bush administration (namely that they defrauded their way into office in order to wage a cultural genocide for the sake of gaining control over oil), but there are truly good things that have been happening behind the scenes and that will be happening in the near future.

You will not hear about many of these things in the mass media news outlets in America such as CNN and ABC, and there is an exceedingly simple reason why these manipulated news networks try to convince the American people that there is a threat of danger when really none exists at all: War is profitable. There are powerful groups in our world today whose agendas are motivated by greed and control, and these people engage in heartless wartime profiteering so that they may satisfy their lust for power. But it is not all bad: I will discuss some of the wondrous events that are causing these groups to rapidly lose their power, and what all of this information means for the currency markets.

The Bush Administration has dropped to single-digit approval ratings, and millions of Americans have gone to websites such as Impeach Bush and spoken out about their opinions of why this man is no longer our leader. Dennis Kucinich, a representative from my home state of Ohio that I have had the pleasure of meeting, is leading the way for the eventual impeachment and forcible removal from office of Bush and his war-mongering cronies.

The Bush Administration has inadvertently caused a global recession with their desire to wage a heartless war, and the signs are strong that the global community has finally come together and told these warmongers “Enough!” They are rapidly losing power as people are becoming more conscious and aware of the fact that they have been lied to by the controlled mass media outlets.

If you are looking for really good forex trading opportunities, I would be willing to bet that when the news releases come out stating things such as Bush’s impeachment or other things that peace-loving people the world over are working to create, there will be a large jump in the value of the dollar in the window of a day or two.

The really good news for the dollar and for the American people is coming from Japan. The Japanese are the largest holders of foreign dollar reserves (around $5 trillion dollars), and they have openly declared that they will no longer fund the American war effort.

The reason why I remain optimistic about the future of the American economy is because of the two main presidential candidates that have come forward to lead our country. In my mind (and in accordance with recent political data), the two main candidates in the 2008 presidential election will be Barack Obama and Ron Paul. Both of these men are benevolent leaders and are sufficiently equipped to rectify the errors of the Bush Administration, and Ron Paul has openly stated that he will abolish the Federal Reserve and the IRS to create a more prosperous America.

In the last paragraph, notice that I said the “American economy” and not the dollar. This is an important point, because many benevolent and powerful leaders are discussing new potential monetary systems for the United States that can lead to greater prosperity. The Federal Reserve system is based upon perpetual debt, and it is not sustainable because it steals wealth from the American people and puts it into the pockets of a few. This is all very good news, and so you may be wondering how this plays into your forex trading.

The dollar will continue to go down so long as our war is not stopped, and so for the next few months until the Bush Administration is forcibly removed from office or until they simply fade away to be replaced by a new leader, there will still be a downwards trend for the USD.

After our war ends due to internal political pressure from our benevolent leaders as well as financial pressure from the Japanese, many Japanese leaders are discussing the possibility of using their foreign dollar reserves to create a global humanitarian mission where they can bring knowledge and modern telecommunications access to countries that have not been able to provide it for themselves.

As this happens the American economy will regain strength because our trade balance will become much more sustainable. So ultimately for your forex trading, the downwards trend for the dollar will continue until these big benevolent changes occur, afterwards the American economy (as well as the global economy as a whole) will regain its stability.

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Forex Triad: The Mrs. Robinson Trading System

18 April, 2008 | Currency Trading | By: foreximpact

Some traders are content with a trading method that only takes one type of strategy, but this doesn’t make sense if you want to make the most of the Forex market - or any market, for that matter. If the market isn’t always going in one direction, why have a system that only trades one direction?

The Forex Triad trading system was developed by Jason Fielder through what he termed as observations, combined knowledge from investing, and common sense. This system was formed with a common sense question: how can you make money off a system that isn’t applicable (or is wrong for the market) literally 2/3 of the time?

Basically, the market is always doing one of three things, and only one of three things. The market is either:
1. Trending
2. Counter-trending
3. Breaking out

That’s it. Those are the only three patterns that the Forex market can be in, and the market will always be in one of these three states. So how can a breakout method be profitable when the market wasn’t usually breaking out? Same for trend and counter-trend. Jason Fielder wasn’t the only one who thought this, as several Forex trading systems try to be “adaptable,” having various technical trading strategies set up so that when the market goes a certain way you know what to do.

There are several different Forex trading systems that now have multiple strategies for trading, all based on how the market is moving. The Triad Trading Formula was the system developed by Jason Fielder to adapt to the market.

A portfolio is something every trader and investor knows about. Spread the eggs around so the collapse of one market (see Enron) doesn’t wipe you out. So if that is commonly held as wise practice, why was everyone trying to find a single way to trade the Forex? Part of the reason for this might be that it’s easier to teach a trading strategy that only has to deal with one part of the market. Unfortunately, that’s not practical in a real life situation.

The Triad Formula of trading is a portfolio of strategies that gives a trader the tools to always be making money in the market, whether the market is trending, counter-trending, or entering a breakout.

This way, no matter what the market is doing, there’s a strategy that can be used to profit. In theory, this will allow you the steady and impressive profits that you’ve been yearning for all along, with as much security as can be found in the Forex market.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder - Founder, ForexImpact.com

Margin Trading Revealed - How to Make Real Money With Forex

18 April, 2008 | Currency Trading | By: snoopstation

How is it possible to make real money by trading in the Forex market? Two words: Margin Trading. Margin trading is trading using borrowed money.

As you recall from part one, Forex is traded in lots, usually of $100,000. So you cannot for instance, purchase a hundred, or even five hundred units of any given currency. Some Forex dealers may offer Mini-Lots, which are $10,000 - or Micro-Lots of $1,000. Fortunately, you don’t need to have $100,000 lying around in order to get started in Forex trading.

Margin Trading is used extensively in Forex trading. The broker is paid a security margin, which will typically be between a quarter of a percent and five percent. You will then have control over a much larger amount of money. To trade a lot of $100,000 you will need a margin of $1,000 for the broker. You will need more than that in your Forex account, of course in case the trade does not work out well for you.

Say that at Ten in the morning, you sell $100,000 USD and purchase Euros. At that point, you will pay $1.4725 per Euro, meaning that you will be able to buy 67,912 Euros. Your Euros then have a value of $99,967 (you lose $33 from the bid/ask spread). You then close the trade at 5PM and sell your Euros and buy US Dollars. You’ll get $1.4770 per Euro, netting you $100,306. This will mean a profit of $306 for the day.

Margin trading is a form of leverage - where a small amount of money is used to leverage, or control, a much larger amount. Using Margin Trading, you can make or lose money from tiny changes in the relative value of currencies on the Forex market.

To trade this way, you will need more than the amount of the margin in your Forex account. In the case in the above paragraphs, you would need to have had more than a thousand to begin, otherwise you would have a negative amount in your Forex account.

Say you began with twice that in your Forex account. Again, $100,000 USD is sold and Euros bought in the morning. Your used margin would be $1,033, leaving a margin of $967 in your account. Now suppose the trade goes poorly for you. At noon, the quote is EUR/USD = 1.4578/1.4583, making the 67,912 Euros you purchased earlier worth $99,002. Your usable margin would then be only $2, and your trade would be automatically c;closed to prevent your account from going into the red. As a result, you would lose $1,998.

Now suppose that you had had $3,000 in your account, and your trade could have continued. If things had kept going badly, and the quote at one PM was: EUR/USD = 1.4570/1.4575 then your Euros would be worth $98,948. Your margin would be $2,052 used, with $948 left in your account. You could then keep trading, and hope for the Euro to recover against the US Dollar. If this occurs, and by five PM the quote is: EUR/USD = 1.4770/1.4775, you could then sell your Euros and make a profit of $306 for the day.

You should try to have at least twice your margin in your account always. The best move, if possible is to never trade with more than 10% of your Forex account at any given time.

Margin Percent = 100/Leverage
Leverage = 100/Margin Percent

Ian Armstrong is an avid Forex enthusiast.

He recommends using “Easy Forex” as a good way to start trading with small capital (as little as $100 USD), high leverage (200:1), and tight spreads. Full details at Easy Forex Platform

Making Sense of Forex Quotes and Pips

16 April, 2008 | Currency Trading | By: snoopstation

Forex quotes are always listed in pairs, these quotes reflect the exchange rates of the currencies. These pairs look like this: GBP/USD = 1.9714. The currency listed first is known as the base currency (being the base of the trade), the second is called the counter, or quote currency.

All well and good, but what do these numbers mean? The value of the pair is a ratio of one unit of the base currency to it’s equivalent in the quote currency. Supposing that you expect the value of the base to rise against the quote, buy the base currency and sell the quote currency, and vice versa. As an illustration, say that the value of the Euro (EUR) is expected to rise against that of the US Dollar (USD). In this case, buying Euros and selling US Dollars at the same time is what you would normally do. This is called going long.

Further, take the Forex quote CHF/USD = 0.8944 as an example. Say that the Swiss Franc (CHF) is expected to fall as compared to the US Dollar (USD). You would sell US Dollars and buy Swiss Francs - this would be going short.

Now, in an actual Forex trading situation, the exchange quotes will be listed at two slightly differing prices, for instance: EUR/USD = 1.7420/1.7425. The left quote is the Bid price, the right is the Asking price. The difference between these is call a Bid/Ask spread, or just Spread for short. The Bid price is the price you can sell your currency for, while the Ask price is the price at which you can purchase the currency.

This spread means that if you were to buy a great deal of currency, then sell it before there had been any change in the relative values of the two currencies, you would lose money on the trade, but the dealer would make money from the trade. A Forex dealer makes their money from the Ask/Bid Spread. They are in a good position, as they stand to make money whether or not you do well with your trade.

Forex quotes are typically quoted to four decimal places - for example:

USD/EUR = 0.6793
EUR/GBP = 0.7468
GBP/CHF = 2.2041
CHF/AUD = 1.0095

The exception to this rule, at least among the major currencies, is the Japanese Yen (JPY) . If the Yen is being quoted, then the Forex quotes are just to two decimal places, as in these examples:

USD/JPY = 109.32
EUR/JPY = 160.95

This is due to the value of the Japanese Yen being only about one hundredth of the value of one U.S. dollar.

A change of 1 in the last decimal place in a quote is named a Pip. this is the smallest amount by which the relative values of two currencies will change. Normally, a Forex brokers commission (the Ask/Bid Spread) will be somewhere between 2 and 5 Pips.

A movement of 20 to 50 Pips is a typical shift in the value of a quoted pair on any given day of Forex trading. The market can sometimes experience greater volatility though, with much larger movements being seen. In November 2007, there were some bigger shifts in the relative values of the US Dollar (USD) and the UK Pound (GBP), when the change in relative value of the two currencies was as much as 200 Pips on some days.

Usually, the daily changes in the Forex market are very small - so trading with very large amounts of money is the way to go if you are to make a sizable profit.

Let’s say that the Euro (EUR) is expected to rise against the U.S. Dollar (USD). Based on this, you buy 100 Euros at a quote of EUR/USD = 1.4720/1.4725. A hundred Euros would cost you $147.25. If the Euro rises fifty Pips against the dollar the quote is now EUR/USD = 1.4770/1.4775.

Then say you sell your hundred Euros and buy U.S. Dollars. Your Euros would then fetch $147.70, or a profit of only $.045. Not much - even had you purchased a thousand Euros, you would still only have $4.50 to show for a day’s trading. This is why Forex trading is generally done with much larger amounts of money.

Ian Armstrong is an avid Forex enthusiast.

He recommends using “Easy Forex” as a good way to start trading with small capital (as little as $100 USD). Find out how to set up your own Forex account at Easy Forex Trading Platform

Is Forex Better Than Stocks? 3 Reasons Why It Is

15 April, 2008 | Currency Trading | By: foreximpact

If you’re looking for the ultimate trading market, forget Wall Street. The Forex Market is where the largest volume in trading is going on, with an incredible amount of nearly $2 billion worth of trading in a 24 hour day. Why is the Forex Market better than stocks? Why is a dollar better than a nickel? Because it’s worth a lot more. That is one of the most basic and obvious answers to this question. There is a fortune that can be made in trading Forex because the Forex market is constantly trading.

Reason #1 Why Forex is Better Than Stocks Because:
The Forex market trades a larger volume than any other market in the world. The stock market trades roughly $10 billion in volume a day. That’s not bad at all, but it isn’t even 1% of what the Forex market trades daily. Not even close.

The Forex market trades an average of $1.8 TRILLION dollars of currency a day. No other market in the world comes remotely close to this figure. $1.8 Trillion dollars is only the first reason that the Forex is better than stocks.

Reason #2 Why Forex is Better Than Stocks:
No Enron, no WorldCom, no Tyco. These currencies are based on the strength of an entire nation’s economy, not the reports of one company. This doesn’t mean there isn’t risk - every market has risk and Forex is no exception, but usually stable countries don’t fall overnight.

I had a friend who went to college, got into stock trading, and had a personal stock portfolio worth six figures by the time he was only 27. Not bad. But almost all of it was McCloud, Enron, and MCI WorldCom. Nearly overnight his small fortune was worth less than $20,000.

All because of false stock reports from CEOs. This can’t happen in the Forex. While economies can go up or down, there is both technical and fundamental analysis that can help you identify ahead of time the potential for a currency that is going to drop. Forex trading has risks like anywhere else, but one corrupt CEO is not one of them.
Also, when one currency goes down, the other in the pair goes up, so being on the right side can mean that one country’s misery can still makes you a fortune.

Reason #3 Why Forex is Better Than Stocks:
There’s always action. Unlike the stock market, which has a daily close to the market day, the Forex market is open every day, except Saturday. There is only one close in the Forex for an entire week, meaning almost any day, any time, you have the ability to trade. This allows a great flexibility in when, where, and how you can trade. Options are good.

These are only three of several reasons why the Forex is better than stocks, but if you want to trade where the most action is, there’s no question you want the Forex market.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder - Founder, ForexImpact.com

Forex Scalping: Fast Precision Forex Trading for Profit

15 April, 2008 | Currency Trading | By: foreximpact

If you’ve looked around online for information about Forex and Forex trading strategies, then it’s likely you’ve come across the practice of “scalping.”

In the Forex market scalping is an extreme example of day trading which involves traders who buy into a position intending to see a quick market movement, and then sell. Most scalping trades last only a few minutes, and none more than a day.

While technically some one or two hour trades can be considered scalping, generally that’s just referred to as normal day trading. When someone in the Forex market mentions scalping, the image is of that “surgical precision” trade. The scalper who is trading the Forex is a trader who opens and closes a position in literally minutes - or in rare cases maybe even less than a minute.

The theory behind scalping is that by anticipating an immediate surge to a news release or other evens, a trader can jump in, and since the movement is so quick, they can show a profit, then immediately exit to help minimize the risk. By doing this effectively, a trader in theory could collect smaller profits bit by bit while avoiding any large violent market swings that could cause you to lose a lot of pips.

One of the most important parts of scalping is to have a stop and exit in mind before entering into a position. That way as soon as the market moves in either direction, the position is immediately closed. Even a few pips difference can be a big deal, since the leverage in the Forex market allows them to make a profit off even the smallest pip gains.

Scalping may limit potential losses, but since all transactions are so quick, it can also limit potential profits, since it would require a quick exit from what could end up being a breakout market.

So like any trading strategy, there are positive and negative points to this strategy. While scalping my be a favorite practice among some day traders, if you’re just starting in the Forex market, it’s best to find a solid Forex trading system that concentrates on long term strategies.

Learning to use a dependable long term system is the first step of profiting from Forex trading, and needs to be taken before even considering moving on to anything else, especially to something like scalping, which is an extreme version of day trading and not an easy skill to learn effectively.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder - Founder, ForexImpact.com

Retail Sales: Even Christmas Sales Affect the Forex

15 April, 2008 | Currency Trading | By: foreximpact

Retail sales are one of the major economic indicators that Forex traders need to be aware of. The retail sales report attempts to measure the total projected retail sales of all the retail stores in a country to give a number of how much is being bought. In the United States the retail sales report tends to be released on or around the 13th of the month, and this released report lists and analyzes the nation’s consumer spending from the month before.

This report is important among Forex traders (not to mention other traders) because it is a timely indicator that gives a good sense of the general spending patterns of consumers - which is often a good indication of general belief on how the economy is doing and whether consumers are confident or not. Consumer confidence always has a huge influence on how the economy of a country is going to be, especially in the short term.

These reports can be used to predict the performance of other important lagging indicators used in technical analysis, as well as keeping focus on the immediate health of an economy. This makes this report very important for active Forex traders.

The retail sales report doesn’t simply concentrate on just large stores like Wal-Mart and Target, but also looks at small-town independent businesses and local franchises. This allows a much more accurate picture of how the over all economy is doing on both a local and national level. This accurate picture will be able to give you an in depth feel for how a nation’s economy might stack up compared to others.

Most importantly, because of how quickly this information is turned around, this is considered a timely indicator that can tell you how the nation’s economy is doing RIGHT NOW! That’s huge for a fluid market like the Forex.

Retail sales reports are known for causing sudden volatility in the stock market, but the report also affects the Forex market. When retail sales are high, especially unexpectedly high, you can expect to see a hike in a nation’s currency price, while an unexpected downturn could cause a sudden “sell” run on a nation’s currency, which would cause the price to fall.

The retail sales reports will almost always provide you some of the most up to date information on a nation’s economy, and remains absolutely necessary reading to any Forex trader looking to keep a solid fundamental base in their trading strategies. If you want to know how things are doing right now, this is the report to look for.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder: Founder, ForexImpact.com

Trade Balance Report as a Critical Forex Indicator

15 April, 2008 | Currency Trading | By: foreximpact

There are five major economic indicator reports that Forex traders pay strong attention to, and the Trade Balance Report (also referred to as a Balance of Trade Report) is one of those major five. The Trade Balance report measures the difference between a nation’s imports and a nation’s exports.

A positive number (surplus) means the country is sending out more than it is bringing in, while a negative number (deficit) means the nation is bringing in more than it is sending out.

This can be a major indication of how a nation’s overall economy is doing.

Don’t let those terms trick you, a trade deficit is not necessarily a bad thing. That can be a sign of increased consumer buying, meaning that the deficit may simply be a result of a strong economy that gives the average consumer a lot more money to spend.

This report often times will have a major impact on GDP and can influence the value of a currency, making it important to Forex traders.

This report can give a lot of information that will be helpful in determining how one nation’s economy is doing versus another, but knowing what to look for is important. For example, the United States has had a trade deficit for over 20 years, but no one is going to argue that the economy in the late 1990s wasn’t much better than the late 1970s.

A deficit can be bad or good, or sometimes a little bit of both. It just depends on how that report fits into the overall situation.

Part of the reason for such a long deficit is that the U.S. economy kept expanding during all that time, and other nations have not been able to keep up the same pace. As other nations catch up, this could change. The main concern that worries some people is what is going to happen long term if more money keeps flowing out than coming back in. This is an issue for another report.

The Trade Balance report can move the Forex market, and is interesting because it may be the least predictable from month to month of all the major reports, meaning that it has more ability to surprise individual traders and cause a quick swing in a currency’s perceived value.

The trade balance report is one of the major reports, and learning to pounce on this information as it is released will help give you the edge you need in order to thrive in Forex trading.

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder: Founder, ForexImpact.com

The Dangers of Trading Forex

14 April, 2008 | Currency Trading | By: snoopstation

One thing to be kept in mind if you are thinking of getting into Forex trading - this is a business, and should be treated as such. Forex trading is NOT gambling, and you should never trade with money you cannot afford to lose. This is the most important principle of Forex trading. Don’t trade on the Forex market with the rent or grocery money.

Trading with these sorts of funds is gambling. Trading with money you can’t afford to lose is an unwise move - it is a near certainty that you will make poor decisions and lose money if you look at Forex trading in this way.

You Won’t Always Make A Profit

No one bats a thousand every time. This is true of Forex trading also. You’ll make money on some of your trades, and lose some on others. The pros have ups and downs too - and keeping a realistic attitude towards trading will keep you from becoming discouraged.

A prime example here is Nick Leeson, maybe you recall the name. Before Forex trading became feasible to the general public, there was futures trading, which Mr. Leeson engaged in. Futures trading works in a similar manner to Forex trading, which is why we are using Mr. Leeson as an example. Nick was a banker, and made some very large trades in the early 1990’s. He made over 20 million for his employer in one year, and seemed unstoppable.

But by 1992, he was on a losing streak. He had lost about 4 million dollars, and was still ahead. By 1994 however, his losses had multiplied a hundredfold, and he began embezzling from the bank to continue trading. His desperation drove him to ever more spectacular trades, and ever more dismal failures. By early 1995, he had lost nearly one and a half million dollars.

This was far more than his bank had in assets - as a result the bank went under, and Nick Leeson went to prison.

You can be successful at Forex trading - the idea is to keep making more profitable than losing trades.

You can sharpen your trading skills by opening a demo account (it’s free) and paper trade using virtual money for a few months before getting into Forex trading with your own money. If you can consistently perform a profitable trade two thirds of the time, you may be able to begin trading on the Forex market for real.

Any Forex trader with whom you will want to do business will offer these free demo accounts, which can give you the skills you need to get started. It is in the trader’s best interests to see you succeed - when you make a profitable trade, they win too, and will likely keep you as a client.

Try a demo account from the broker you are considering going with. You’ll get a good handle on how they operate, which will help you to do well in the Forex market.

You may find at first when you start using your own money on Forex, that you are having a lower success rate. This is likely due to you having some apprehensions about losing money interfere with your decision making process. Use your analyses, not your gut when you are trading on the Forex market.

Ian Armstrong is an avid Forex enthusiast.

Some of the most popular trading systems have been objectively reviewed - based on actual performance - at Forex Trading Platforms

You Will Never Make Money Trading Stocks, Futures Or Forex Part 4

13 April, 2008 | Currency Trading | By: DeanWh

Over 90% of traders fail to reach any success simply because they are not equipped for success, especially in key components such as money management and emotional control. This is true for most things in the civilized world. We are programmed for failure and as such as easy prey for the trap that is the financial markets.

If you are bad with money, then guess what, trading wont fix that. I’ve seen first hand my parents win $500,000 and lose it all in less than 4 years. What they never did was assess their bad habits.

Bad habits are addictions which are fueled by our minds chemical pharmacy. We’re all the same, and it is nature’s way of allowing us to evolve and stay alive. Habits are automatic programs that start with a memory which then creates an emotion, which in turn creates a chemical which then feeds the body and all its cells. This is a habit; our body’s addiction to naturally produced chemicals.

If you keep doing the same thing over and over again, but expect different results, you’re fighting a system that has been in creation for millions of years. However, change what you are doing and you break the cycle.

Traders who continuously make the same mistakes are doing it by habit. The problem is that they are unaware they are doing it, or they choose not to accept who they are or what they are doing. Those who become aware and those who become humble will open new exciting doors to much more than just successful trading.

A lot of what occurs soon after beginning a trading career is based on pie in the sky thinking, and very little planning. Apart from needing to construct a business plan to achieve your goals, you need to see yourself as already there doing what needs to be done.

When you were younger and you were deciding what it is you wanted to become you had mental pictures in your mind. This is what helped you to see what interested you the most. If you saw yourself being an engineer and it felt good seeing that in your minds eye, then pursuing that career felt like the right thing to do. Using the markets to achieve your goals is no different.

There are many things you can use your minds eye to imagine, such as your online trading account balance being very large, your transactions being very large, placing less and less trades over time, becoming more accurate in your forecasts or improving your win rate, being emotionally in control as your trades close whether in the black or the red, seeing yourself allowing the really big trades to run for as long as your system permits and so on.

Of course, it only becomes apparent once you begin trading for a while that you need to see yourself doing the opposite of something undesirable (such as cursing at the computer screen), however even when starting out trading for the first time, envisioning your long term goals as being achieved is very necessary.

If you think this is hocus pocus then there’s not much I can say other than, there are massive amounts of proven facts and research now available on how our mind functions, and the systems our brain has in place to be able to say, if you’re not prepared to imagine yourself as a success on a consistent basis, your brain will give you what it is programmed to give you and if you are like the herd, it will be failure.

Dean Whittingham created A Traders Universe - Trading System Development in 2005 as a resource site for traders of all levels, with education, courses, brokers, tips, free videos, newsletters, trading systems, simulations and a free 7 step process for building a profitable stock, futures or forex trading system. His coaching program is at Pentagonal Trading System Development