Author Topic: How to Successful in International Trading / Best Trading System  (Read 15476 times)

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Offline Learner7

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How to Successful in International Trading / Best Trading System
« Reply #-1 on: February 05, 2009, 09:22:59 PM »
DO NOT SET YOURSELF TO FAIL

Follow under mentioned Rule to Succeed else to Broke

There are three types of Accounts of trading Commodities / Stocks / Forex in International Markets

1) Standard Account,--- Lot Size 100,000 (Std. Lot) -------- Minimum Recommended Amount  $100,000
2) Mini Account,--------- Lot Size 10,000 (Mini Lot)---------  Minimum Recommended Amount  $ 10,000
3) Micro Account,--------Lot Size 1,000 (Micro Lot)------------ Minimum Recommended Amount   $ 1,000


If you only have $70,000 open a Mini Account only for trading Mini Lots. 
If you only have $7,000 open a Micro Account only for trading Micro Lots.
If you only have $350, open a Demo Account only until you come up with the additional $650, then open a Micro Account.
« Last Edit: February 24, 2009, 02:38:27 PM by Learner7 »

Pakinvestorsguide

How to Successful in International Trading / Best Trading System
« Reply #-1 on: February 05, 2009, 09:22:59 PM »

Offline Learner7

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The Perfect Forex Trading System  
 
Trading the Forex market has became very popular in the last few years. But how difficult is it to achieve success in the Forex trading arena? Or let me rephrase this question, how many traders achieve consistent profitable results trading the Forex market? Unfortunately very few, only 5% of traders achieve this goal. One of the main reasons of this is because Forex traders focus in the wrong information to make their trading decisions and totally forget about the most important factor: Price behavior.
 
Most Forex trading systems are made off technical indicators (a moving average (MA) crossover, overbought/oversold conditions in an oscillator, etc.) But what are technical indicators? They are just a series of data points plotted in a chart; these points are derived from a mathematical formula applied to the price of any given currency pair.  In other words, it is a chart of price plotted in a different way that helps us see other aspects of price.
 
There is an important implication on this definition of technical indicators. The fact that the readings obtained from them are based on price action. Take for instance a long MA crossover signal, the price has gone up enough to make the short period MA crossover the long period MA generating a long signal. Most traders see it as “the MA crossover made the price go up,” but it happened the other way around, the MA crossover signal occurred because the price went up. Where I’m trying to get here is that at the end, price behavior dictates how an indicator will act, and this should be taken into consideration on any trading decision made.
 
Trading decisions based on technical indicators without taking price action into consideration will give us less accurate results. For example, again a long signal generated by a MA crossover as the market approaches an important resistance level. If the price suddenly starts to bounce back off that important level there is no point on taking this signal, price action is telling us the market doesn’t want to go up.  Most of the time, under this circumstances, the market will continue to fall down, disregarding the MA crossover.
 
Don’t get me wrong here, technical indicators are a very important aspect of trading. They help us see certain conditions that are otherwise difficult to see by watching pure price action. But when it comes to pull the trigger, price action incorporation into our Forex trading system will definitely put the odds in our favor, it will generate higher probability trades.
 
So, how to create a perfect Forex trading system?  
First of all, you need to make sure your trading system fits your trading personality; otherwise you will find it hard to follow it. Every trader has different needs and goals, thus there is no system that perfectly fits all traders. You need to make your own research on various trading styles and technical indicators until you find a concept that perfectly works for you. Make sure you know the nature of whatever technical indicator used.
 
Secondly, incorporate price action into your system. So you only take long signals if the price behavior tells you the market wants to go up, and short signals if the market gives you indication that it will go down.
 
Third, and most importantly, you need to have the discipline to follow your Forex trading system rigorously. Try it first on a demo account, then move on to a small account and finally when feeling comfortably and being consistent profitable apply your system in a regular account.

« Last Edit: February 05, 2009, 09:44:52 PM by Learner7 »

Offline Learner7

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Re: How to Successful in International Trading / Best Trading System
« Reply #1 on: February 06, 2009, 09:36:44 AM »
Only one MAJOR Reason of DEATH of Forex Traders

Why majority of the traders fail in this business?

I'll respond in detail later.

Offline Admin

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Re: How to Successful in International Trading / Best Trading System
« Reply #2 on: February 07, 2009, 12:19:11 PM »

Majority of the indicators used like rsi macd sts are short term 10 to 15 bars and does not clearly indicate a trend

moving averages combined with trendlines macd adx momentum would b a good system to understand overall trend and
trade accordingly 

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Re: How to Successful in International Trading / Best Trading System
« Reply #3 on: February 07, 2009, 01:29:16 PM »

Majority of the indicators used like rsi macd sts are short term 10 to 15 bars and does not clearly indicate a trend

moving averages combined with trendlines macd adx momentum would b a good system to understand overall trend and
trade accordingly 

Trend traders:
? NEVER attempt to predict where the market will go
? NEVER attempt to pick "tops" and "bottoms" of price action
? ALWAYS respect the trend and align their trades accordingly
? Let the market tell them when the trend is finished, not their "intuition"
? Realize that they will necessarily sacrifice some pips at the beginning and end of a
trend as they wait for confirmation that the trend beginning and end are authentic
? Look at price action from a long-term perspective and don't get shaken by volatility
? Understand that they will go through some potentially significant but temporary
periods of drawdown as the trend matures
? Understand that trend trading can lead to large gains but also equally large losses
? Understand that trends can take place on multiple time frames

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Re: How to Successful in International Trading / Best Trading System
« Reply #4 on: February 11, 2009, 12:39:57 PM »
Ten Things You Should and Should Not Do During Deflation
By Robert Prechter, CMT

1) Should you invest in real estate?

Short Answer: NO

Long Answer: The worst thing about real estate is its lack of liquidity during a bear market. At least in the stock market, when your stock is down 60 percent and you realize you've made a horrendous mistake, you can call your broker and get out (unless you're a mutual fund, insurance company or other institution with millions of shares, in which case, you're stuck). With real estate, you can't pick up the phone and sell. You need to find a buyer for your house in order to sell it. In a depression, buyers just go away. Mom and Pop move in with the kids, or the kids move in with Mom and Pop. People start living in their offices or moving their offices into their living quarters. Businesses close down. In time, there is a massive glut of real estate. – Conquer the Crash, Chapter 16

2) Should you prepare for a change in politics?

Short Answer: YES

Long Answer: At some point during a financial crisis, money flows typically become a political issue. You should keep a sharp eye on political trends in your home country. In severe economic times, governments have been known to ban foreign investment, demand capital repatriation, outlaw money transfers abroad, close banks, freeze bank accounts, restrict or seize private pensions, raise taxes, fix prices and impose currency exchange values. They have been known to use force to change the course of who gets hurt and who is spared, which means that the prudent are punished and the thriftless are rewarded, reversing the result from what it would be according to who deserves to be spared or get hurt. In extreme cases, such as when authoritarians assume power, they simply appropriate or take de facto control of your property.

You cannot anticipate every possible law, regulation or political event that will be implemented to thwart your attempt at safety, liquidity and solvency. This is why you must plan ahead and pay attention. As you do, think about these issues so that when political forces troll for victims, you are legally outside the scope of the dragnet. – Conquer the Crash, Chapter 27

3) Should you invest in commercial bonds?

Short Answer: NO

Long Answer: If there is one bit of conventional wisdom that we hear repeatedly with respect to investing for a deflationary depression, it is that long-term bonds are the best possible investment. This assertion is wrong. Any bond issued by a borrower who cannot pay goes to zero in a depression. In the Great Depression, bonds of many companies, municipalities and foreign governments were crushed. They became wallpaper as their issuers went bankrupt and defaulted. Bonds of suspect issuers also went way down, at least for a time. Understand that in a crash, no one knows its depth, and almost everyone becomes afraid. That makes investors sell bonds of any issuers that they fear could default. Even when people trust the bonds they own, they are sometimes forced to sell them to raise cash to live on. For this reason, even the safest bonds can go down, at least temporarily, as AAA bonds did in 1931 and 1932. - Conquer the Crash, Chapter 15

4) Should you take precautions if you run a business?

Short Answer: YES

Long Answer: Avoid long-term employment contracts with employees. Try to locate in a state with “at-will” employment laws. Red tape and legal impediments to firing could bankrupt your company in a financial crunch, thus putting everyone in your company out of work.

If you run a business that normally carries a large business inventory (such as an auto or boat dealership), try to reduce it. If your business requires certain manufactured specialty items that may be hard to obtain in a depression, stock up.

If you are an employer, start making plans for what you will do if the company's cash flow declines and you have to cut expenditures. Would it be best to fire certain people? Would it be better to adjust all salaries downward an equal percentage so that you can keep everyone employed?

Finally, plan how you will take advantage of the next major bottom in the economy. Positioning your company properly at that time could ensure success for decades to come. – Conquer the Crash, Chapter 30

5) Should you invest in collectibles?

Short Answer: NO

Long Answer: Collecting for investment purposes is almost always foolish. Never buy anything marketed as a collectible. The chances of losing money when collectibility is priced into an item are huge. Usually, collecting trends are fads. They might be short-run or long-run fads, but they eventually dissolve. – Conquer the Crash, Chapter 17

6) Should you do anything with respect to your employment?

Short Answer: YES

Long Answer: If you have no special reason to believe that the company you work for will prosper so much in a contracting economy that its stock will rise in a bear market, then cash out any stock or stock options that your company has issued to you (or that you bought on your own).

If your remuneration is tied to the same company's fortunes in the form of stock or stock options, try to convert it to a liquid income stream. Make sure you get paid actual money for your labor.

If you have a choice of employment, try to think about which job will best weather the coming financial and economic storm. Then go get it. – Conquer the Crash, Chapter 31

7) Should you speculate in stocks?

Short Answer: NO

Long Answer: Perhaps the number one precaution to take at the start of a deflationary crash is to make sure that your investment capital is not invested “long” in stocks, stock mutual funds, stock index futures, stock options or any other equity-based investment or speculation. That advice alone should be worth the time you [spend to read Conquer the Crash].

In 2000 and 2001, countless Internet stocks fell from $50 or $100 a share to near zero in a matter of months. In 2001, Enron went from $85 to pennies a share in less than a year. These are the early casualties of debt, leverage and incautious speculation. – Conquer the Crash, Chapter 20

8) Should you call in loans and pay off your debt?

Short Answer: YES

Long Answer: Have you lent money to friends, relatives or co-workers? The odds of collecting any of these debts are usually slim to none, but if you can prod your personal debtors into paying you back before they get further strapped for cash, it will not only help you but it will also give you some additional wherewithal to help those very same people if they become destitute later.

If at all possible, remain or become debt-free. Being debt-free means that you are freer, period. You don't have to sweat credit card payments. You don't have to sweat home or auto repossession or loss of your business. You don't have to work 6 percent more, or 10 percent more, or 18 percent more just to stay even. – Conquer the Crash, Chapter 29

9) Should you invest in commodities, such as crude oil?

Short Answer: Mostly NO

Long Answer: Pay particular attention to what happened in 1929-1932, the three years of intense deflation in which the stock market crashed. As you can see, commodities crashed, too.

You can get rich being short commodity futures in a deflationary crash. This is a player's game, though, and I am not about to urge a typical investor to follow that course. If you are a seasoned commodity trader, avoid the long side and use rallies to sell short. Make sure that your broker keeps your liquid funds in T-bills or an equally safe medium.

There can be exceptions to the broad trend. A commodity can rise against the trend on a war, a war scare, a shortage or a disruption of transport. Oil is an example of a commodity with that type of risk. This commodity should have nowhere to go but down during a depression. – Conquer the Crash, Chapter 21

10) Should you invest in cash?

Short Answer: YES

Long Answer: For those among the public who have recently become concerned that being fully invested in one stock or stock fund is not risk-free, the analysts' battle cry is “diversification.” They recommend having your assets spread out in numerous different stocks, numerous different stock funds and/or numerous different (foreign) stock markets. Advocates of junk bonds likewise counsel prospective investors that having lots of different issues will reduce risk.

This “strategy” is bogus. Why invest in anything unless you have a strong opinion about where it's going and a game plan for when to get out? Diversification is gospel today because investment assets of so many kinds have gone up for so long, but the future is another matter. Owning an array of investments is financial suicide during deflation. They all go down, and the logistics of getting out of them can be a nightmare. There can be weird exceptions to this rule, such as gold in the early 1930s when the government fixed the price, or perhaps some commodity that is crucial in a war, but otherwise, all assets go down in price during deflation except one: cash. – Conquer the Crash, Chapter 18

Offline Learner7

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Re: How to Successful in International Trading / Best Trading System
« Reply #5 on: February 19, 2009, 11:35:41 AM »
AN EXCELLENT TOOL

We can RePlay Trading Session of any previous date / period of any Forex pair or Stocks / Futures etc. of any market, to check out strength of our Trading System?

If anyone interested let me know.






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Re: How to Successful in International Trading / Best Trading System
« Reply #6 on: February 19, 2009, 03:42:56 PM »
AN EXCELLENT TOOL

We can RePlay Trading Session of any previous date / period of any Forex pair or Stocks / Futures etc. of any market, to check out strength of our Trading System?

If anyone interested let me know.







interested

Offline Sadiq Jafri

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Re: How to Successful in International Trading / Best Trading System
« Reply #7 on: February 19, 2009, 03:47:40 PM »
a backtest program? sure....which one?

Offline Learner7

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Re: How to Successful in International Trading / Best Trading System
« Reply #8 on: February 19, 2009, 03:59:37 PM »
AN EXCELLENT TOOL
If anyone interested let me know.
interested

Pl guide me how can i attach the tool with my post?

a backtest program? sure....which one?

Doctor bhai, compatible with MT4 only,
If you wanna use this for back testing then you have to open a Demo account at MT4 platform.

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Re: How to Successful in International Trading / Best Trading System
« Reply #9 on: February 19, 2009, 04:50:31 PM »
AN EXCELLENT TOOL
If anyone interested let me know.
interested

Pl guide me how can i attach the tool with my post?

a backtest program? sure....which one?

Doctor bhai, compatible with MT4 only,
If you wanna use this for back testing then you have to open a Demo account at MT4 platform.


upload it on 4shared.com and post the link


Offline Learner7

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Re: How to Successful in International Trading / Best Trading System
« Reply #10 on: February 19, 2009, 08:56:32 PM »
AN EXCELLENT TOOL
If anyone interested let me know.
interested

Pl guide me how can i attach the tool with my post?

a backtest program? sure....which one?

Doctor bhai, compatible with MT4 only,
If you wanna use this for back testing then you have to open a Demo account at MT4 platform.


Here it is

Trade_Simulator_Installer.exe
http://www.4shared.com/file/88464840/403c63fa/Trade_Simulator_setup.html


enjoy.
« Last Edit: February 19, 2009, 09:02:25 PM by Learner7 »

Offline Learner7

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Re: How to Successful in International Trading / Best Trading System
« Reply #11 on: February 20, 2009, 08:37:12 PM »
USEFUL TIP

Try to trade the Trend which is formed about 02:00 p.m. PST.
The trend will give you 35 - 40 pips / points in about 1 - 2 hours.
Verify it at your end.

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Re: How to Successful in International Trading / Best Trading System
« Reply #12 on: February 24, 2009, 11:37:10 AM »
DO NOT SET YOURSELF TO FAIL

Follow under mentioned Rule to Succeed else to Broke

There are three types of Accounts of trading Commodities / Stocks / Forex in International Markets

1) Standard Account,--- Lot Size 100,000,-------- Minimum Recommended Amount  $100,000
2) Mini Account,--------- Lot Size 10,000,---------  Minimum Recommended Amount  $ 10,000
3) Micro Account,--------Lot Size 1,000,------------ Minimum Recommended Amount   $ 1,000


If you only have $70,000 open a Mini Account only for trading Mini Lots
If you only have $7,000 open a Micro Account only for trading Micro Lots
If you only have $350, open a Demo Account only until you come up with the additional $650, then open a Micro Account.

And Never Risk more 2% of your capital in open trades.



agreed one should not leave a trade open if the capital is less than 2%

second how important is placing a stoploss ??
should a stop be place or not ??



Offline Learner7

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Re: How to Successful in International Trading / Best Trading System
« Reply #13 on: February 24, 2009, 02:47:55 PM »
agreed one should not leave a trade open if the capital is less than 2%

second how important is placing a stoploss ??
should a stop be place or not ??

Well emphasis of my post is to open a micro account if one has less than $ 10,000.
Say if one buy a micro lot of Oil, then one dollar move is oil equal to 10 dollar profit / loss.
While in Mini lot 10,000 One dollar move in oil is equal to 100 dollar profit / loss.

In micro account one has the option to trade multiple lots, even if desire he can trade equivalent to mini lot.
So Micro Account is highly recommended.

Yes one not to open position more than 2% of his capital, but later how much Drawdown he can bear, it is still need to be worked out.
And as regards SL, as i myself usually trade without SL, so no comments & as i myself learning about SL.
« Last Edit: February 24, 2009, 02:53:30 PM by Learner7 »

Offline Sadiq Jafri

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Re: How to Successful in International Trading / Best Trading System
« Reply #14 on: February 24, 2009, 06:33:13 PM »
If u have more than 5000-10000 dollars, open a real brokerage a/c with an actual broker....and trade equities and futures and etf's on full margin....that reduces your leverage to the lowest possible if not to zero...micro, mini or whatever else, these are products offered by introducing agents, not real brokers who route directly thru exchanges....

Offline Learner7

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Re: How to Successful in International Trading / Best Trading System
« Reply #15 on: February 24, 2009, 07:06:33 PM »
If u have more than 5000-10000 dollars, open a real brokerage a/c with an actual broker....and trade equities and futures and etf's on full margin....that reduces your leverage to the lowest possible if not to zero...micro, mini or whatever else, these are products offered by introducing agents, not real brokers who route directly thru exchanges....

Dr. Bhai, what is being highlighted here is not the broker
rather Money Management.

Ok for example lets take your view point, pl let us know:
if a person buy a minimum allowed lot of Dow Jones Futures from a actual broker
then how much he will get profit if DowJone move up 100 points?
 

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Re: How to Successful in International Trading / Best Trading System
« Reply #16 on: February 24, 2009, 07:40:09 PM »
 :) i suppose everyone has their own take on risk mitigation and what money management means....

dow profit and loss wud be 5 dollars per point, and the margin required to trade 1 contract wud be $6875....thats the margin required by the cbot futures exchange to route 1 contract thru the exchange server....it keeps u from overtrading....if u have 10000 or less, one shudnt be trading futures often anyway....one shud stick to trading stocks or etf's on cash only, without any margin....

if u want to do money management and risk mitigation, start from the beginning....what exactly are u looking to do in these mkts or by trading? most of us just want to make a huge pile of cash, betting long or short...those who trade with that desire dont often succeed.....u shud keep a small amount of your trading portfolio for those kinds of speculative trades which can be in futures or options etc....but the bulk of your trading portfolio shud be geared toward cash based, no margin, no leverage, low risk, stoploss based trading which can get us an income, not fuel dreams of hitting jackpots....

imho thats the sort of money management people shud do....it pays in the medium to long run....

Offline Learner7

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Re: How to Successful in International Trading / Best Trading System
« Reply #17 on: February 24, 2009, 09:16:05 PM »
Wolla,

5 dollar per point,
And if Dow suddenly move 100 point against position without SL then 5 x 100 = $500 loss.

No No. this is a killing scenario. In this scenario Beginners cannot even think to enter in the markets. And in a few trades 10K account will be vanished and after that one cannot even think to enter once again in the markets.

What I endorsing that with Micro Account a Beginner can enter in the markets with FREEDOM OF MIND  with lowest capital.
As with one Micro Lot, 100 points move of Dow is equal to just 10 $.

Hence there is no Comparison of $10 with $500 loss against the 100 points move.
FREEDOM OF MIND is only with Micro Lots.   
And This is for the beginners to enter and learn, polish their skills, test their methodologies of trading with real live account and excel if they have the potential.

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Re: How to Successful in International Trading / Best Trading System
« Reply #18 on: February 24, 2009, 09:43:12 PM »

With hymarkets 100 points dow futures move is worth 50$ margin 150$
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