Forex Trading   and You

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So let’s get’s established…

MISTAKE # 10

PAPER TRADING TOO LONG

Paper trading is actually hypothetical trading. If your have did not traded something prior to, your will probably choose some paper trading. The benefit of paper trading is actually that it will assist the brand new trader become acquainted with the basics of interfacing with the markets. This might be frequently a “demo” account with a broker or freeing firm that provides real-time marketplace data but provides a theoretical balance. Your tend to be permitted to purchase and sell because much because your hope, simply like in a “live” or “real” account. Your theoretical gains and losses tend to be accrued against your very own theoretical account balance over duration. As occasion goes on, many traders notice that they can gain quite a surprising level of paper-profits in a really abruptly period of time. These traders tend to be nowadays completely convinced that they can easily duplicate those theoretical outcome in legitimate duration with actual money. They open their genuine trading account and POW! Within about three to four days they tend to be across usually a lot more than 50% of their equity. This might be not my opinion—this is actual fact. Ask any broker in the business what occurs to “paper-traders” who open a real account. The ratio of “paper-traders” to “winning traders” is about one in ninety. Precisely why does this happen? Because there had been did not any genuine danger to the trader. Leave me personally illustrate by asking your a facts: I am a personalized pilot. I soloed on my 17th birthday. In 1979 I had been an Air power academy appointee. I have flown a T-38 Jet fighter in extreme conditions. Simply understanding that, I think many people would think that I most likely have a some total of encounter flying airplanes. There in the suburbs outside of Chicago there is actually a little airport that has a “Fighter Pilot for a Day” plan. This might be in which your fly co-pilot with a retired military pilot in high-performance airplane. Your tend to be granted to fly the airplane (with the legitimate pilot’s give on the controls) in an try to “shoot across” an “enemy” fighter; which is another co-pilot flying another airplane with HIS retired military pilot. Your tend to be awarded a “kill” if your laser guns hit your opponent. It’s like a extremely expensive high-stakes game of laser-tag. I moved for a day to have some fun. As it changed out, I had been flying against a complete novice. Of program, I didn’t tell him I had some Air Force training. I asked my adversary exactly what type of training he had. He really confidently told me personally that he had been the ideal scoring “ace” from his on-line club and different some other nationwide systems of playing of high-tech video games. He told me personally that he could “out-fly” pretty mucan anybody in the Microsoft Flight Simulator in both the F-16 Falcon and F-15 Eagle. I agreed that his qualifications are really impressive and proceeded to blow him out of the sky no less than six times in 20 mins. To begin with, this beginner had do not flown in aerobatic conditions so he devoted many of his time period trying not to throw-up. He stalled and spun many of the different time. If he wasn’t flying with someone he’d be dead. In the end he had to stop early because he just couldn’t take the physical punishment. To add insult to injury, I have never starred Microsoft Flight Simulator (ever). I do the real thing. BIG DIFFERENCE between the two as your can observe. Choose your observe the point I’m getting at? PRETENDING to choose something is actually do not than exact same as in fact doing it. Yes, it is actually priceless up to a select aim to simulate some points but that can only choose you so far. In the case of air-to-air combat, PRETENDING to feel a fighter pilot will probably get your killed if your IN FACT go up against a trained fighter pilot. In fact, the US Military Air Corps figured out this the hard way back in WWI. They sent juvenile guys into fight with many times less than 10 hours of actual flying occasion. Just picture how fast those guys had been killed whenever they went man-to-man with Richthofen, Boelke and Immelmann. All concluded flying was “dangerous” whenever in fact it was the lack of training that was “dangerous” I’m not trying to wow your with my flying skills. I’m trying to wow on your that paper-trading is actually completely like playing Microsoft Flight Simulator. It is pretending to feel something you tend to be not while persuading your that your understand just what your are doing. Paper trading hides from your the need for genuine skills. Paper-trading will get your killed because after your go up against legitimate traders with legit funds it’s not a game anymore. If your create the completely wrong move you lose equity. There is actually no “choose over” button. If you stall your very own F-16 in the simulator, you get another potential; stall your very own F-16 in fight and you die. Lose cash in your very own paper-trading account; simply signal up for another trial account. Lose cash in your very own legit account and your go home broke. Paper-trading is actually a spend of occasion because paper-trading will did not give your the legit abilities you want to trade. All paper-trading can choose is assist your understand exactly how to utilize the features of your trading system. In fact, that is a good thing. But as soon as you know the features of your system and your account is actually prepared to trade, every single thing you figured out paper-trading goes out the window because Right now IT IS DO OR DIE. There tend to be no second possibilities. Don’t prepare error #1; don’t think your understand just what your tend to be doing because your pretended to trade without taking any authentic danger. HOW TO PREPARE THIS MISTAKE WORSE: Continue paper-trading for much more than 30 days and/or go in return to paper-trading if your have missing funds in your very first actual account. ANSWER: Open the downright smallest account your broker will enable and trade for 90 days the downright smallest dimensions possible. If you tend to be forward, increase your equity dimensions and your trade dimensions by a factor of 20%. If your tend to be losing, stay with the authentic thing; it’s the exclusively method to know.   ---------------------------------------------------------------------------------------------------------------------------------------------------------- Forex arbitrage is a risk-free trading approach which enables retail forex traders to create a profit without open currency exposure. The approach involves performing swiftly about chances presented by pricing inefficiencies, whilst they exist. This kind of arbitrage trading involves the purchasing plus marketing of different currency pairs to exploit any inefficiency of pricing. If you take a consider the following illustration, you will better know how this approach functions. Example - Arbitrage Currency Trading The present exchange rates of the EUR/USD, EUR/GBP, GBP/USD pairs are 1.1837, 0.7231, plus 1.6388 respectively. In this case, a forex trader might purchase 1 mini-lot of EUR for $11,837 USD. The trader may then market the 10,000 Euros, for 7,231 British pounds. The 7,231 GBP, can then be available for $11,850 USD, for a profit of $13 per trade, without open exposure because lengthy positions cancel brief positions inside every currency. The same trade utilizing usual lots (instead of mini-lots) of 100K, might give a profit of $130. This is continued till the pricing mistake is traded away. As with alternative arbitrage tips, the act of exploiting the pricing inefficiencies usually correct the condition thus traders need to be prepared to act promptly. For this cause, these solutions are usually about for a really short-time, before being acted on. Arbitrage currency trading demands the accessibility of real-time pricing quotes, as well as the ability to act swiftly found on the solutions. To aid inside the ability to obtain these chances rapidly, forex arbitrage calculators are accessible. Forex Arbitrage Calculator Doing the calculations to obtain pricing inefficiencies oneself, is time intensive to really be capable to act on any chances found. For this reason, several tools have appeared over the Internet. One of these tools is the forex arbitrage calculator, that delivers the retail forex trader with real time forex arbitrage solutions. The Forex arbitrage calculator are available for a fee about various Internet websites by both 3rd parties plus forex brokers; plus is available for free or for trial by several on starting an account. As with all software programs plus platforms employed inside retail forex currency trading, it is very significant to test out a demo account when potential. The wide range of goods accessible, it happens to be close impossible to determine that is ideal. Trying out several treatments before selecting 1 is truly the only method to determine what exactly is right for the forex trader. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------   Hasta ahora, hemos visto que los indicadores se centran principalmente en la captura del comienzo de las nuevas tendencias. Y si bien es importante ser capaz de identificar las nuevas tendencias, es igualmente importante ser capaz de identificar dónde termina una tendencia. Al fin y al cabo, ¿de qué sirve una buena entrada sin una buena salida? Un indicador que nos puede ayudar a determinar dónde podría ser el final de una tendencia es el SAR (Stop and Reversal) parabólico (parada y reversión). Un SAR parabólico traza puntos en un gráfico que indican inversiones potenciales en el movimiento de precios. De la gráfica anterior, usted puede ver que los puntos cambian de estar debajo de las velas durante una tendencia al alza, a estar encima de las velas en una tendencia a la baja. Usar el SAR Parabólico Lo bueno del Sar parabólico es que es realmente effortless de utilizar. Básicamente, cuando los puntos están por debajo de las velas, es una señal de compra, y cuando los puntos están por encima de las velas, es una señal de venta. Este es probablemente el indicador más fácil de interpretar, ya que supone que el precio está subiendo o bajando. Con esto dicho, esta herramienta es mejor usarla en mercados hoax tendencias y que tienen largos picos y bajadas. NO querrá usar esta herramienta en un mercado donde los precios se mueven de lado a lado. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Lesson 1: The Basics

Roulette is not a very difficult, game to learn how to play and it can be very fun and rewarding. In roulette the players play against the house by betting on the outcome of colored numbers on a wheel. The casino is represented by a croupier, also known as the dealer or banker, who spins the roulette wheel and handles all wagers and payouts. After you place your bets, the dealer spins a small white ball in the opposite direction of the turning wheel. When the ball comes to rest in one of the slots, the dealer will call out the winning number and settle all bets.

  To win at roulette a player must predict where the ball will land at the end of each spin. The roulette wheel itself has 37 or 38 numbered slots, numbered 1 through 36, zero, and sometimes double zero. The double zero is only on American roulette wheels. Even numbers are colored red and odd numbers are colored black. Zero and double zero sections are green. The house advantage is 2.7% for single zero tables (European wheel) and 5.26% for double zero tables (American wheel). A roulette table usually accommodates 6 to 8 players at one time. Each player is assigned a different color chip to place bets with. This is done to keep track of which player is placing each bet. When you initially put down your money the croupier will give you a corresponding number of chips in one color. Each colored chip represents one betting unit for the denomination roulette table you are playing on. If the table is a $1 table then each chip in worth $1. When you win you will be paid in colored chips until you are ready to collect your winnings and move on. If you're just passing through and you want to place a quick bet on a certain number or on one of the other areas of the layout, you don't have to ask the croupier for a color. It is perfectly acceptable to put the house's chips, or even cash, down on the layout. If you win you will be paid in casino chips. However, if you're planning to play awhile it's best to sit down and get a color. There are several different bets in roulette. There are bets on individual numbers or groupings of numbers, called "inside bets". There are also more general bets on large sets of numbers, called "outside bets". These are discussed in more detail in the next lessons. As you play you will need to meet the posted minimum bet requirement. If the minimum bet is one dollar and you are playing 25-cent chips you need to play at least four chips bringing your total bet to $1. Many tables separate the outside from the inside when meeting the minimum bet requirements which means you are not allowed to split the minimum bet between the inside and outside betting areas. If you chose to play both you must meet the minimum both inside and outside. For example, on a $1 minimum table you must play at least $2 if you want to play both the inside and the outside betting areas, at least $1 inside and at least $1 outside. Also, each individual outside bet must usually meet the minimum requirement. If you want to bet on Even and Red you must bet at least $1 on each bet. Players place their bets on the roulette table themselves before each spin. A few moments after the croupier starts the spin the ball will begin to drop. At this point he will call "no more bets" and wave his hand across the table. No more bets can be placed and the bets on the table cannot be changed in any way. If you try to touch your bet after this point the croupier will not be very happy with you. When the ball drops onto a number the croupier will place a plastic marker on the winning number on the roulette table, collect losing bets and pay winning bets. You must wait until the croupier removes the plastic marker before picking up any winnings or placing the next bet. Not being patient and waiting is another good way to get on the croupier's bad side. Roulette tends to be much slower paced than most casino games. Always remember that roulette play is completely random and has nothing to do with any previous spin outcomes. Just because red came up the previous six times doesn't mean black is "due" to come up. The roulette wheel is completely unbiased, has no memory, and no target payout percentage. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

How To Reduce Holiday Debt

New Year's Eve may leave a very real hangover for many revelers, but a financial hangover is a much more commonproblem after the holidays are finished and the decorations are taken down. Many parents, spouses and partners overspend on their loved, ones over the holidays and start the New Year saddled with credit card debt and with their finances in relative shambles.The holidays are traditionally a time of excess. In this article, we'll show you how to avoid at least one type of holiday hangover.

December Debts December tends to be an expensive month, even if the costs of Christmas gifts are factored out. For the northern climates, this is a time when housing expenses - particularly the heating and electricity bills - increase. The cold weather and shortened days also result in higher transportation costs, as walking and biking lose their practicality. In the midst of this financial pinch, we have the most expensive holiday of the year. In 2011, the average American spent roughly $646 on gifts, according to the American Research Group. The financial crisis brought this number down around $417 in 2009. The National Retail Federation (NRF) estimate about 36% of those purchases were made with credit; if a person is using a high-interest store card to shop, even a $100 purchase can become a huge burden to carry into the New Year.

Pick Your PoisonWhen you are in the thick of holiday shopping, adrenaline flowing, a game system under your arm, a teddy bear clenched in your teeth and a credit card in your hand, it is worth taking a moment to consider with what kind of debt you're buying all of this.A store card, for all its apparent benefits in discounts, is usually a poor choice to hold debt because these are issued with an interest rate that reflects the qualifying requirements - basically the ability to go to the till and ask for the card. These ,high interest cards are fine as long as you pay the complete balances before the billing period expires. If you don't, all of the gifts you buy become even more expensive with the additional interest expenses.A revolving line of credit is the easiest way to do this if you don't have cash on hand. Getting one requires a strong credit rating, but they offer flexible capital at low interest rates. If you aren't in a position to start one, you can roll the store card balances onto lower interest credit cards. If you will be consolidating your debts into a fixed loan, it is best to wait until you're done shopping. Thinking Ahead Christmas has been celebrated on December 25 for more than 1,500 years, so there is no ,excuse for being unprepared. In the case of known expenses, it is better to save to spend rather than to spend and then pay off the debts plus interest. If you shop for the holidays on credit, the real cost of what you buy may exceed the actual worth of the goods purchased. This is never a good thing. A savings program requires discipline and forethought, but there are evenChristmas club ,accounts designed for this purpose. These are automatic withdrawal savings accounts that pay out the balance plus accrued interest when the holidays roll around. It may be too late this year, but there is no excuse to be caught by surprise next year - start planning now! Thinking ahead also means making a list, checking it twice, and going after the lowest price rather than getting caught up doing your thinking in store. That's how a person ends up overbuying for others as well as finding the odd deal for him or herself. In 2010, the average shopper is expected to spend about $112 of his or her holiday total on themselves, according to the NRF. One thing you can do to keep your spending under control is to write up a gift plan and take it with you on your shopping trips. If it isn't on your list, don't buy it.

Damage Control

If all of these things come to naught and you get swept up in a mixture of credit card madness and Christmas cheer, don't despair. There is a way out. If you have overextended your credit sources and are unable to consolidate at a low rate, you will have to clear your debts slowly and systematically.The best way is to use the seasonally appropriate snowball method. This common-sense technique involves putting the most money you can against the debt with the highest interest rate, while paying the minimums on other debts. Once the ,highest interest debt is clear, you focus on the next highest, and so on down the line. This will lessen your overall interest payments and shorten the length of time it takes you to repay your total. It will also have the extra benefit of encouraging you to prepare better next year. Gifts from the Heart

Gift giving is always a tricky thing. Many manufacturers go for the "nothing says 'thinking of you' like buying your loved one (insert random product)" approach; this is made slightly ironic by the fact that the token of individual love they're toting is ,being mass marketed.

It can be more meaningful and more affordable to put more creativity and effort into making a gift rather than trying to show love by paying more to buy one. Few people marvel over the craftsmanship of a cell phone or develop a sentimental attachment to a fondue set. If you're creative and thoughtful, you may be able to come up with something that will be used more regularly and remembered more fondly than a factory gift.Alternative gifts also give you the ,opportunity to defer costs. If you opt for a vacation package in the summer,  you will be able to put off the expense until summer or whenever you want to book the trip. In these cases, whether a trip to Mexico or a renovated bathroom, the presentation may be made at Christmas, but the cost will come later. This will give you time to save up properly and incur the holiday expense when your regular expenses are generally lower than they are in winter.

The Bottom Line

No one is advocating turning Scrooge for the holidays. It's OK to be full of Christmas Spirit, but you shouldn't allow your generosity to haunt you into the New Year. With some forethought and proper debt management, you can have the joy of giving from your heart without the pain of overextending your pocketbook.

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HOW TO TRADE FOREIGN STOCKS

It’s always useful to have the possibility to trade foreign stocks. These stocks are primarily listed on their local exchanges. But how can a trader trade them? Do you need to have trading access to every international exchange worldwide? No it isn’t necessary. It’s possible to trade international stocks on the American markets. Yes US markets are biggest and most liquid stock markets in the world. There are so popular that many of international stocks are listed not only on their local exchanges, but also on American stock exchanges. Trading of these stocks in USA is better form of foreign online trading then direct access to local ,exchanges. There is quite good protection of individual investor in the USA. There is also easier to manage risk with trades on US stock ,exchanges then individual trades on foreign exchanges. But if you prefer to go to local foreign exchanges then best stock brokers from the USA or Europe, offer also such a possibility.

FOREIGN STOCKS LISTED IN THE USA

The first possibility is to simply find U.S. listed international stocks available for foreign online stock trading. There are some international stocks that are primarily listed on U.S. stock markets instead of their local markets. You can easily find canadian stocks that are traded in the USA or chinese stocks listed on major american exchanges. The second possibility is to find an ADRs. As mentioned on Wikipedia: "An American Depositary Receipt (or ADR) represents the ownership in the shares of a foreign company trading on US financial markets. The stock of many non-US companies trades on US exchanges through the ,use of ADRs. ADRs enable US investors to buy shares in foreign companies without undertaking cross-border transactions. ADRs carry prices in US dollars, pay dividends in US dollars, and can be traded like the shares of US-based companies.” As you can see these ADRs could be placed into your portfolio and represent the best dividend stocks, from foreign markets.

INTERNATIONAL ETFS

Another possibility is to use an advantage of International ETF stocks. These funds represent ,baskets of stocks pertaining to the specific foreign market. There are already International ETFs for a lot of countries and practically every region is covered, Europe, Emerging Markets, Latin America, Australia, Asia and more.

LOCAL STOCK EXCHANGES

And finally another possible solution is to find some brokerage, firm (preferably a discount ,stock broker) that has access to a lot of international stock exchanges. There are such firms in the U.S. and also in Europe or Asia. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

WHAT IS AFTER HOURS STOCK TRADING

 

AFTER HOURS STOCK TRADES COULD BE VERY RISKY

After hours stock trading and pre-market time are jointly known as extended trading hours. But what does it ,mean? And how is after hours and pre-market trading on exchanges possible, and can it be profitable?

STANDARD HOURS FOR STOCK EXCHANGES

First, the basic knowledge is that there are standard opening market hours. During these standard hours everything works under the rules offered by stock exchanges. Take the U.S. market trading hours as an example. They’re from 9:30 a.m. till 4:00 p.m. Eastern time (New York time).

PRE AND AFTER MARKET STOCK TRADING HOURS

But it’s also possible to enter orders and execute trades outside these opening hours. There are several marketplaces connected to the main stock exchanges or parts of stock exchanges that allow entry and execution orders during extended trading hours. Pre-market trading hours are typically from 8:00 a.m. till 9:15 a.m. ET (New York time) for NASDAQ and NYSE stocks. But using NYSE Arca ECN you can enter and execute orders from 4:00 a.m. to 9:30 a.m. ET. After hours market trading can be done from 4.00 p.m. till 8:00 p.m. on the NYSE and till 6:30 p.m. on NASDAQ. I do not do trades during these extended trading hours. Market prices are not as stable; alsothe  liquidity is not so good. No price is guaranteed, and a price can be manipulated a lot (by the news, etc.).

CAN BE AFTER MARKET STOCK TRADING PROFITABLE?

I personally know traders who use special event driven momentum short term strategy and trade, mostly during these hours – and are profitable. But this type of trades is very specific, and strategy must be learned and perfected. Such strategy for momentum trades is based on an earnings results research and the psychology of a reaction. As most companies publishes their quarterly earnings results during these extended hours, such strategy should be traded during this time.

WHY ARE AFTER HOURS STOCK TRADES RISKY?

There is a big risk in trades during this time. There is not guaranteed liquidity in extended time for trades. The Bid / Ask spread could be very ,wide and could be very complicated to open or close stock trades. I personally do not recommend to open new position during these hours. Only option is to exit a position as mentioned above. This advice holds true also for usage on international stock markets, not only the US equity market. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Blue-Chip Stock

Definition of 'Blue-Chip Stock' Stock of a well-established and financially sound company that has demonstrated its ,ability to pay dividends in both good and bad times. These stocks are usually less risky than other stocks. The stock price of a blue chip usually closely follows the S&P 500. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Unrealized Gain

Definition of 'Unrealized Gain' A profit that exists on paper, resulting from any type of investment. An unrealized gain is a profitable position that has yet to be cashed in, such as a winning stock position that remains open. A gain becomes realized once the position is closed for a profit. An unrealized loss, on the other hand, occurs when an investor is holding onto a losing investment, such as a stock that has dropped in value since the position was opened. A loss becomes realized once the position is closed for a loss. Unrealized gains and unrealized losses are often called "paper" profits or losses, since the actual gain or loss is not determined until the position is closed. A position with an unrealized gain may eventually turn into a position with an unrealized loss, as the market fluctuates and vice versa. An unrealized gain occurs when the current price of a security is higher than the price that the investor paid for the security. Many investors calculate the current value of their investment portfolios based on unrealized values. In general, capital gains are taxed only when they become realized. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Buy-And-Hold Investing Vs. Market Timing

If you were to ask 10 people what long-term investing meant to them, you might get 10 different answers. Some may say 10 to 20 years, while others may consider five years to be a long-term investment. Individuals might have a shorter concept of long term, while institutions may perceive long term to mean a time far out in the future. This variation in interpretations can lead to variable investment styles. For investors in the stock market, it is a general rule to assume that long-term assets should not be needed in the three- to five-year range. This provides a cushion of time to allow for markets to carry through their, normal cycles. However, what's even ,more important than how you define long term is how you design the strategy you use to make long-term investments. This means deciding between passive and active management. Long-Term Strategies Investors have different styles of investing, but they can basically be divided into two camps: active management and passive management. Buy-and-hold strategies - in which the investor may use an ,active strategy to select securities or funds but then, lock them in to hold them long term - are generally considered to be passive in nature. Figure 1 shows the potential benefits of holding positions for longer periods of time. According to research conducted by Charles Schwab Company in 2012, between 1926 and 2011, a 20-year holding period never produced a negative result.   Active Management On the opposite side of the spectrum, numerous active management techniques allow you to shuffle assets and allocations around in an attempt to increase overall returns. There is, however, a strategy that combines a little active management with the passive style. A simple way to look at this combination of strategies is to think of a backyard garden. While you may plant different crops ,for different results, you will, always take the time to cultivate the crops to ensure a successful harvest. Similarly, a portfolio can be cultivated along the way without taking on a time-consuming or potentially risky active strategy. A good example of this method would be in tax management for taxable investors. For example, a security or fund may have an unrealized tax loss that would benefit the holder in a specific tax year. In this case, it would be advantageous to capture that loss to offset gains by replacing it with a similar asset, as per IRS rules. Other examples of advantageous transactions include capturing a gain, reinvesting cash from income and making allocation adjustments according to age. Timing When it comes to market timing, there are many people for it and many people against it. The biggest proponents of market timing are the companies that claim to be able to successfully time the market. However, while, there are firms that have proved to be successful ,at timing the market, they tend to move in and out of the spotlight, while long-term investors like Peter Lynch and Warren Buffett tend to be remembered for their styles. Figure 2 below shows returns from 1996 to 2011.   This is probably one of the most commonly presented charts by proponents of passive investing and even asset managers (equity mutual funds) who use static allocation, but manage actively inside that range. What this ,data suggests is that timing the market successfully is very difficult because returns are often concentrated in very short time frames. Also, if you aren't invested in the market on its top days, it can ruin your returns because a large portion of gains for the entire year might occur in one day. The Bottom Line If volatility and investors' emotions were removed completely from the investment process, it is clear that passive, long-term (20 years or more) investing without any attempts to time the market would be the superior choice. In reality, however, just like with a garden, a portfolio can be cultivated without compromising its passive nature. Historically, there have been some obvious dramatic ,turns in the market that have ,provided opportunities for investors to cash in or buy in. Taking cues from large updrafts and downdrafts, one could have significantly increased overall returns, and as with all opportunities in the past, hindsight is always 20/20. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Long Term

Definition of 'Long Term' Holding an asset for an extended period of time. Depending on the type of security, a long-term asset can be held for as little as one ,year or for as long as 30 years or more. The media frequently advises people to "invest for the long term", but determining ,whether or not an investment is long term is very subjective. A day trader, for example, would define "long term" much differently than a buy-and-hold investor, who would consider anything less than several years to be short-term trading.   -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Unrealized Gain

Definition of 'Unrealized Gain' A profit that exists on paper, resulting from any type of investment. An unrealized gain is a profitable position that has yet to be cashed in, such as a winning stock position that remains open. A gain becomes realized once the position is closed for a profit. An unrealized loss, on the other hand, occurs when an investor is holding onto a losing investment, such as a stock that has dropped in value since the position was opened. A loss becomes realized once the position is closed for a loss. Unrealized gains and unrealized losses are often called "paper" profits or losses, since the actual gain or loss is not determined until the position is closed. A position with an unrealized gain may eventually turn into a position with an unrealized loss, as the market fluctuates and vice versa. An unrealized gain occurs when the current price of a security is higher than the price that the investor paid for the security. Many investors calculate the current value of their investment portfolios based on unrealized values. In general, capital gains are taxed only when they become realized. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

What are unrealized gains and losses?

An unrealized loss occurs when a stock decreases after an investor buys it, but he or she has yet to sell it. If a large loss remains unrealized, the investor is probably hoping the stock's fortunes will turn, around and the stock's worth will increase past the price at which it was purchased. If the stock rose back above the original price, then the investor would have an unrealized gain for the time he or she still holds onto the stock. For example, say you buy shares in TSJ Sports Conglomerate at $10 per share, and then shortly afterwards the stock's price plummets to $3 per share, but you do not sell. At this point, you have an unrealized loss on this stock of $7 per share, because the ,value of your position is $7 dollars less than when you first entered into the position. Let's say the company's fortunes then shift and the share price soars to $18. Since you have still not sold the stock, you'd now have an unrealized gain of $8 per share ($8 above where you first bought in). Gains or losses are said to be "realized" when a stock is sold. This is especially important from a tax perspective as, in general, capital gains are taxed only when they are realized. Unrealized gains and losses are also commonly known as "paper" profits or losses, which implies that the gain/loss is only real "on paper." This may be true ,from a tax perspective, but remember that a loss is a loss, whether it's been realized or not. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Short Term

Definition of 'Short Term' 1. In general, holding an asset for short period of time.

2. In accounting, an asset expected to be converted into cash in the next year, or a liability coming due in the next year. Also known as current assets and liabilities. 3. For investing, a security that matures, in one year or less. 4. For taxes, a holding period of less that one year. Investopedia explains 'Short Term' As you can see from above, the exact definition depends on the context. However, in general, you can think of short term as within the next year. The determination can be very important for taxes. Assets held short-term are generally taxed at a higher rate than assets held for more than a year. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Definition of 'Income Tax'

A tax that governments impose on financial income generated by all entities within their jurisdiction. By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public. Investopedia explains 'Income Tax' Most countries employ a progressive income tax system in which higher income earners pay a higher tax rate compared to their lower earning counterparts. The first income tax imposed in America was during the War of 1812. Its original purpose was to fund the repayment of a $100 million debt that was incurred through war-related expenses. After the war, the tax was repealed, but income tax became permanent during the early 20th century. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Definition of 'Capital Loss'

The loss incurred when a capital asset (investment or real estate) decreases in value. This loss is not realized until the asset is sold for a price that is lower than the original purchase price.

Investopedia explains 'Capital Loss'

A capital loss is essentially the difference between the purchase price and the price at which the asset is sold, where the sale price is lower than the purchase price. For example, if an investor bought a house for $250,000 and sold the house five years later for $200,000, the investor would realize a capital loss of $50,000.   --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Tax Bracket

Definition of 'Tax Bracket' The rate at which an individual is ,taxed. Tax brackets are set based on income levels; individuals with lower income levels are taxed at a lower rate than individuals with higher income levels. Tax brackets serve as cutoff points for given income tax rates; therefore, if an individual's annual taxable income exceeds the cutoff point, that person is taxed according to the next tax bracket. Most countries tax individual, incomes using a system of tax brackets. This structure implements what is referred to as a progressive tax system, in which taxation progressively increases as an individual's income grows. This contrasts with a flat tax structure, in which all individuals are taxed at the same rate, regardless of their income levels. Proponents of the ,use of tax brackets and a progressive tax system contend that individuals with high incomes are more able to pay income taxes while maintaining a high standard of living, while low-income individuals struggle to meet their basic needs, and should be subject to less taxation. Furthermore, the use of tax brackets has an automatic stabilizing effect on, an individuals' after-tax income, as a decrease in salary is counteracted by a decrease in tax rate, leaving the individual with a less substantial decrease in after-tax income. -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Long Term

Definition of 'Long Term' Holding an asset for an extended period of time. Depending on the type of security, a long-term asset can be held for as little as one year or for as long as 30 years or more. Investopedia explains 'Long Term' The media frequently advises people to "invest for the long term", but determining whether or not an investment is long term is very subjective. A day trader, for example, would define "long term" much differently than a buy-and-hold investor, who would consider anything less than several years to be short-term trading. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Open-End Fund

Definition of 'Open-End Fund' A type of mutual fund that does not have restrictions on the amount of shares the fund will issue. If demand is high enough, the fund will continue to issue shares no matter how many investors there are. Open-end funds also buy back shares when investors wish to sell. Investopedia explains 'Open-End Fund' The majority of mutual funds are open-end. By continuously selling and buying back fund shares, these funds, provide investors with a very useful and convenient investing vehicle. It should be noted that when a fund's investment manager(s) determine that a fund's total, assets have become too large to effectively execute its stated objective, the fund will be closed to new investors and in extreme cases, be closed to new investment by existing fund investors. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Net Asset Value (NAV)

It is useful to understand some of the common, terms associated with investment companies, funds and REITs. Understanding these terms provides insight into how the investments work and how to evaluate them.

Net Asset Value (NAV) Investment vehicles such as mutual funds, REITS and exchange-traded funds, hold multiple underlying investments, including stocks, bonds, real estate and other assets. When the total value of these assets is added up, liabilities are subtracted and the remaining number ,is divided by the number of outstanding shares; the resulting value is referred to as the net asset value (NAV). The NAV represents the per-share price investors would spend to purchase a single share of the investment. NAV per share is computed once a day for open-end mutual funds, based on the closing market prices of the securities in the fund's portfolio. Buy and sell orders are processed at the NAV of the trade date; however, investors must wait until the following day to get the trade price. Because ETFs and closed-end funds trade like stocks, their shares trade at market value, which can be a dollar value above (trading at a premium) or below (trading at a discount) NAV. Because many pooled investment vehicles pay out virtually all of their income and capital gains, changes in NAV are not the best gauge of mutual fund performance, which is best measured by annual total return. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Forex Strategy - 20 points in day

Forex Strategy “20 points in a day” can always earn 20 pips a day - it really can enable you to learn how to earn on Forex every day working week. This forex strategy worked for years, so I do not think she has a tendency, to stop working in the near future, but anything is possible …

• I recommend selecting a Broker Forex with Terminal MetaTrader 4

So Algortm trading forex strategy “20 points in the day”:

1. Time work on the forex strategy - only after 11:00 GMT.

2. Before you start trading you want to view calendar forex news and see if there are any important news scheduled for this day.

3. If the output of important events still is - that open trade is only after this news.

4. If no important news is not, then the trade should be to 12:30 GMT.

5. To do this, set the chart moving average - SMA with period 20, and f,orex indicator - Momentum 5 (these forex indicators are standard indicators for MT4).

6. Time interval - 30 min (M30), the currency pair - any, but better GBPUSD, USDCAD, or any vysokovolatilnaya.

7. Open a deal to buy - if the candle closes and remains ,above the 20 SMA, and Momentum is above average.

If the price rose and remained below the moving average of 20 SMA, and Momentum is below the average - a deal on open sale.

8. Put Teyk-profit - at least 20 pips, but I would ,certainly recommend using a trailing stop on a trip or a standard terminal for the rearrangement of the order when reaching 10-15 points - at zero, and then take out 30-50% of the transaction with profit-20- 30 points, while the remaining 70-50% treylinguete, while profit may reach garazdo more than 20 points!

9. Stop-loss is the same - you can put 20 pips (set immediately at the ,opening of trading transactions) or you can set for Moving Averages, or high (or low) the last candle, which crossed the removals (SMA 20). 10. Be suspicious if the price after the opening ,of a trade deal 20 SMA crosses and closes it, you need to immediately close the bargain!

This forex strategy can be applied to any other time, interval if during the trade there is enough volatility in the foreign exchange market. I have to this strategy, forex chose American session, as name on it is almost always seen a strong movement in the market, but on request it can be used well and at the European session.

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Forex Strategy “Forex Profit”

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Skalping simple forex strategy 

 

one is very simple, without indicator forex strategy, based on a system of 3-screens, which nonetheless can conclude very good deals that are more likely to be profitable, and with proper risk management and strict adherence to straightforward rules This forex systems - earn on Forex!

Currency pair - any, that This forex strategy is multi-currency!

• I recommend selecting a Broker Forex with Terminal MetaTrader 4

This forex strategy can be described only by 3 lines:

1) Look at the last candle on the 4 timeframes: M5, M15, M30 and H1

2) If all the past, which closed green candles - buy!

3) If the latter, which closed, red candles - sell!

Create a trading terminal 4 windows of the same, currency pair, for example GBPUSD, with different timeframes: M5, M15, M30 and H1. For clarity, the menu item Metatrader 4 “Window” select “Vertical”, then all 4 of the screen will be placed on the trading terminal poporyadku in adjacent boxes, approximately as shown:

All are now waiting for all the latest candles will be shut down as the green - to buy or red - for sale.

Describe, to clarify all the terms and conditions in the figure above:

1) on the interval H1 11-hour candle closed at 12.00, in green.

2) go to the range M30 - 11.30 candle closed just 12.00 in the green.

3) go to the interval M15 - candle 11.45 just closed at 12.00, in green.

5) go to the interval M5 - candle 11.55 closed at 12.00, the same green.

All terms and ,conditions of this strategy are made - we conclude a deal to buy at the current price!

On the example of, course is an ideal example, but if, for example, H1 and M30 conditions are fulfilled, and the M15 was closed in red candle, then wait for the next candle.

Remember - before entering into transactions in the, range M5 - always check whether all painted close of the previous candles in one color! - Only in this case opens a trading position.

Stop-loss and profit target:

1) establish a fixed stop-loss at a distance of 15-20 points ,of entry into the market. In this case, take-profit is equal to 30-40 points. When the price reaches 15 pips - move the stop-loss to breakeven or fix a part of the trading position or fully close the deal. Likewise, if you choose to use the trailing stop (standard, built-in MT4 or Universal trailing stop).

2) Stop-loss is placed under the nearest local minimum (fractal) - for the transactions on purchase or on the nearest ,local maximum (the inverse fractal) - for bargains on sale. A profit target for this to be possible, at least 2-3 times greater than the stop-loss. Profit on the same scheme as described in paragraph (1).

Download a template for Metatrader 4 (pre-need unzip) - skalping_4.tpl

Warning - this is a template for all of the 4 time-frames, it must be set equal to 4 currency pairs, but at different time intervals!