Trade The Plan not The Belief System

It’s very important to recognize that we all have a belief system already in place, and it can be at odds with what is happening in the rest of the world, and therefore what’s happening in the markets. We are all individuals and that is a great thing.

Variety, as the saying goes, is the spice of life. As individuals we have our own ideas, our own preferences, our own comfort levels; some of us are more outgoing and some are more reserved, some more conservative and some more tolerant, some of us like to make quick decisions, while others like to take their time and get input from others, and we all have our opinions.

All these differences make up who we are, which in-turn determines our personal belief system. It is our belief system which is going to determine both the day to day decisions we make and the longer-term plans we undertake. This individuality that makes you who you are is very powerful. So powerful in fact that even the highest power cannot change it until you decide you want to change it. This fact can either work for, or against a trader or investor. It does not, however, have to.

The best example I can give you would be my own experiences over the past several years. In 2008, despite knowing that it is a characteristic of markets, and commodities in particular, to overshoot and undershoot the most ambitious of targets, I found it ridiculous that crude oil continued to climb above $120 per barrel, then $140, then $160.

For some reason it was so offensive to me that I couldn’t participate in it, even though at the time it was one of the main driving forces in the financial and commodity markets. Talk of $250 per barrel oil surfaced and it was a common held belief among less experienced traders that the US Dollar index was going to 50 if not lower. I remember seeing one fellow wearing a cowboy hat on a Sunday morning talk show respond to a question about how the rapid run-up in oil prices was wreaking havoc on the economy and thus driving the U.S. President’s approval ratings down, with a “Well yeah, but they sure love him in oil country in West Texas. Hahaha”. I realized afterward that despite how the situation disturbed me at the time, that it was not my job to “feel” anything but to adhere to the “plan”.

In early July of ’09 I knew enough to not get attached to short yen-pair trades when the daily chart told me to exit – buy back shorts — even though the weekly stock indices and yen-pairs had just shifted south the previous Friday. It didn’t matter what so many U.S. traders were saying about the likelihood of failure of the economic stimulus plan and an impending economic collapse. It was my job to follow the plan, not listen to the opinion of others. Stocks turned higher on a dime on 7/13/09 and the yen pairs went on to make higher highs and blow a lot of traders out along the way. My plan had said to buy the daily close above the hammer on Monthly Pivot Support 2 – no questions asked.

Over the years it has been hard-wired into me that regardless of the experience of the trader or analyst, talk is talk, and all that matters is the trading plan. Along the way I’ve seen a lot of good traders pull up short with a busted wheel or two because they allowed pre-determined opinions, or outright politics to get in the way of riding the waves, and as always I learned from my own mistakes and the mistakes of others. Always remember pundits and bloggers get paid by the key-stroke; for traders it’s always the opposite. The world always turns, and the smartest players in my book are the happiest ones. They have confidence in their plan and can separate that from opinion. They know that the most important divergence to avoid is the conflict between what they think about a condition or occurrence, and what their trading plan is telling them to do.

(Taken from trading-u.com)

Knowing when to buy in forex

There are two essential conditions for buying:

1. The trend is up (identified by EMA or a weekly trend-following indicator).

2. Bear Power is negative but rising.

The third and fourth conditions are desirable but not essential:

3. The latest peak in Bull Power is higher than the previous peak.

4. Bear Power is rising from a bullish divergence.

Do not buy when Bear Power is positive. This occurs in runaway uptrend, when the entire bar rises above the EMA. If you buy when bears are being held up in the air, you are betting on the greater fool theory - paying a high price and hoping to meet a greater fool down the road willing tobuy from you at an even higher price.

Fundamental Factors

Fundamental Analysis of Major Currency

Every currency traded in Forex is influenced by the conditions in its country of origin, and the external relations that affect its value. Economic Indicators (GDP growth, import/export trade accounts), social factors (unemployment rate, real estate market conditions) and the country’s central bank policy are the factors that determine the currency value in the Forex market. Each one of the six major currencies has its particularities, and we are going to analyze the fundamentals that drive the currencies individually.

The U.S. dollar (USD) is the most traded currency in the Forex market. It is also used as a measure to evaluate other currencies and commodities. The reserves in USD are by far the largest being held by different nations, and they compose 64% of the world reserves. Globally speaking, the fundamentals that drive the U. S. Dollar are several. Since the largest amount of metallic commodities and the oil are mostly traded with prices in USD, significant demand variations in these markets will reflect directly on the currency value, as it happened in 2008 with the EUR/USD reaching 1.60, being the oil price a big contributor for this event. In the domestic market, the biggest factor that has been moving the dollar are the industry indicators and the real estate boom, and both were caused by an unsustainable credit system which could not be paid, causing a domino effect in the United States economy, and consequently, worldwide. During the last few years, the USD has been losing ground for other currencies, thanks to the credit bubble, and erroneous social policies, but it will still remain as one of the most powerful currencies for an undetermined period of time.

The euro (EUR) is by far the newest currency traded among the major pairs traded on Forex markets. It is used by 16 European Union member countries and it tends to enlarge during the next few years. The fundamental factors that move the Euro are often based on the strongest economies using the new common currency, such as: France, Italy and mainly Germany. The countries’ indicators regarding export trade, inflation and unemployment rate tend to have a high impact on the EUR movements, considering that countries such as Germany are larger exporters of manufactures and technology. Europe still remains an energy dependant from the Russian gas and the Middle Eastern Oil, making higher demands for these commodities to have a negative reflect on the European Union common currency.

The pound sterling (GBP) is the national currency of the United Kingdom, and the fundamental factors that move it are as complex and variable as the British economy and its global influence. The London commodity market plays a fundamental role in the GBP trends, being a reference for oil and gold trading. Nevertheless, as a powerful and globally dynamic economy, the United Kingdom indicators, social situation and the housing sector are perhaps the main determinant factors for the GBP price. Lately, the British economy has faced inflation issues, which led the interest rates to be cut, industrial recession, and other domestic factors that made the trading movements to naturally flow from the GBP towards other strong economically backed currencies, such as the EUR.

The Japanese yen (JPY) is the strongest and by far the most traded currency in the Asian market. Japan’s economy is mainly orientated to the industrial production exportation, and the economic situation of its main commercial partner, the USA, tends to have a direct influence on the JPY market. The JPY is a low-yield currency, being the GBP/JPY the most volatile pair traded on Forex, usually the scalper’s favorite one.

Switzerland is a small country located in the European Alps, yet, its strong international trade and money influx, made the Swiss franc (CHF), one of the main currencies traded on Forex. The CHF is often preferred by low yield investors. In times of financial instability, such as for the last years with the USD, many traders choose the CHF as a safe investment. The CHF trends can be often compared to those of the gold, increasing their value while other markets’ tends to depreciate during economic downturns.

The Canadian Dollar (CAD) faces a similar situation with the other commodity currencies, being majorly an export-dependable. Most of the Canadian production is exported to the USA. Facing the very same credit bubble problem that dragged America into recession, Canada has to deal also with a decreasing demand for all commodities. The CAD usually correlates positively with the prices for the all commodities.

Take Online Opportunities

At one point in you life, you'd be asking yourself "How do I make money online?" Thank god there is an answer to that question! There are so many ways that you can make money online. Lets look at these 3 opportunities which is Associated Content, Cash Crate and Forum booster.

So what is associated content? In Associated Content, you are required to write a content which also means articles. Associated Content will pay you about $3 to $40 for your content. You just write about anything under the sun, from your interests, hobbies or even your surroundings

However, your content are will be paid for much less than $10 most of the time. Nevertheless, this is still an effective way to make money online fast just by writing several articles per day. Don't be surprised earning a part time online income through writing articles for Associated Content is fairly easy

Let's take a look at this next website called Cash Crate. Cash Crate will pay you to take online surveys and you will be paid from a dollar to maybe a hundred dollars and all you have to is just to take a survey.

Sounds good? But why? Simple, it is because large corporations will pay you lots of money for your in-depth views and opinions from you, their consumers They want to find out what exactly is the opinion of the public about their product or services so that they can make it better

Still wondering how can you make money online fast? Well if you don't fancy taking surveys and writing tons of articles, then you might want to look at Forum Booster. Make a post on a forum and Forum Booster will pay you $0.10 for each post. This is will be ideal for those individuals who like to read and post on forums. Let's say you post hundred posts in 1 hour, you can make $10, It is quite easy to make money online isn't it?

It may not be much, but you can really make money working from your own home, posting endlessly on these forums and get paid for doing it. Just type 12 words or more for each posts and you'll be paid, it is easy isn't it?

It is not difficult to make money online fast but what you see above are just the tried and tested and fairly easy to accomplish. Remember, you have to know where to look and who to listen to and hopefully you are successful one day.

If you are really serious about making money online fast and want to make a full time income online, please check out: http://4acd56t2np499m54vbpjsdikif.hop.clickbank.net/ or you can also check this place out: http://c2e1ax04pj3b5udkm6mcw2cz6y.hop.clickbank.net/

New to Forex Jungle

I would like to start this blog by sharing some words about forex. I started to get interested in Forex after knew about HYIP (High Yield Investment Program). My friend introduced me to this program and he said that I could get a lot of money by joining this program. After joining this program for a while, I knew that this business will not last forever, don't count the scam HYIP that I joined. I lost some amount of money by investing in this program. They ran away...After investing in them for a while, they just gone. Offline.

There are some good HYIPs and you can count on them. The key point is never attempted with high percentage. Try to get the 1-1.4% per day, and you're good. Also, try to get more information on the website that you want to invest in. The more you know about them, the more confident you will be. Here's some good HYIP, and I've been investing in them. They paid their bill, believe me. Click on this link to get into their website:

Panamoney.net is real good, here's the link:

http://www.panamoney.net?ref=15793

Then, I know Marketiva. I started the virtual mode for a while, then I started to put some money in it. I'm still learning until now. Need to study more about the market. About the instruments, etc.

I hope I really can make money out of this and become a succesful trader.

By the way, if you want to join Marketiva Program, you can click on this link:

http://www.marketiva.com/?gid=26185

You can trade as small as USD$ 1, and if you sign up, you will get free USD$5. Easy right? Try it! You might got lucky and earn more money from this. But remember, don't be greedy and keep your emotion down.