Monday, September 10, 2007

Forex Trading - 4 Common Myths Guaranteed To Make You Lose

I read a lot of good information online to do with forex trading but most of the information I read is rubbish, yet many forex traders believe it. The myths I am going to cover here are mostly spread by so called market gurus and system sellers, so lets look at them.

First of all before we look at the myths, lets answer a question: Why do vendors and gurus spread them, if they know they wont make money? The answer is they make money out of them - by selling systems and courses that dont work for the user, but earn the vendor lots of money. These people simply appeal to the greed and naivety of novice forex traders. Lets look at a few forex trading myths that are guaranteed to lose you money.

1. Day Trading Works

If it does, why do you never see a day trading track record that has made money? Because of course it doesnt work, yet vendors continually sell them backed by a hypothetical track record - thats a track record based upon KNOWING the market prices! Well we can all make money doing that.

They sell their systems and dont trade them because they havent got the confidence to trade their system because they know it wont make money, but they know some mug will believe it and buy the system. For the record - all short term volatility is random and prices can and do go anywhere in a day, so trading daily ranges is doomed to failure.

2. Markets move to a scientific law

Well if they did, there would be no market, as we would all know the price in advance! Duh? This is obvious to anyone, yet people still fall for the myth of scientific theories such as Elliot wave, or the Fibonacci number sequence. Elliot wave says markets move scientifically, yet gives no objective theory to make money! Well that gets rid of that theory, lets look at another favourite: The Fibonacci number sequence. This was actually based on the copulation of rabbits and had nothing to do with finance, but was hijacked by the investment community and the myth was born.

It actually predicts nothing in financial markets and the levels break, as often as they hold - If you dont believe this, try and see how quickly you lose your money. Apart from the fact these scientific theories cant work, you have to wonder if it was that easy to make money with them, why the vendor will sell it to you, for a few hundred dollars, when he could keep quite and earn millions.

3. Buy Low Sell High Will Make You Money

Try it and you will lose. No one can predict where a low point will bottom and when a high point will be reached. If you try and predict you are hoping that levels break or hold and the market will kill you. If you want to win dont try and predict, act on the confirmation of a level holding and that means looking at price momentum.

4. You can earn a regular income

No you cant. You have seen the ads earn $3,000 a month, 20 pips a day etc this myth doesnt need any explaining its obvious its not true and anyone who falls for it, deserves what they get an empty account. If you want to win at forex trading make sure you dont fall for any of the above myths everyone of them will ensure you lose your money.

The Good News is:

When you trade you take money off losing traders so if they believe the above forex myths it increases your chances of currency trading success!


On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at

Forex Trading - Why Trading Off News Stories Will Guarantee You Will Lose

Many novice traders like to pay attention to the huge amount of online news stories and try and trade off the information contained, however, this is a huge mistake and one that is guaranteed to make you lose.

If you dont believe the above consider this fact:

The ratio of winners and losers today, is the same as it was 50 years ago.

This is despite the advances in news and distribution and all the other tools that traders have available to them the ratio has remained the same.


Because they dont help you win!

Think about it if traders made money listening and acting on news stories, then they would all be rich and this is not the case.

Sure, the stories and arguments sound convincing, but thats all they are opinions and stories and the people giving these stories and opinions are NOT traders.

The market is a discounting mechanism and quickly reflects all news instantly its discounted and the market is looking to the future.

Trade the news and Your Trading The Past.

Also, if you listen to the news you will let your emotions get involved and trade with the herd and this is a bad place to be most lose!

Keep in mind that the market news is most bullish at market tops, remember 1987 and the tech stock bubble? Well, when they crashed the news was out and out bullish.

The best way to trade is to ignore the news and use a technical approach to trading. By doing this, you will see the reality of price as it is and act on it - this will keep your emotions out of your forex trading.

Will Rogers once said:

I only believe what I read in the papers

He was joking of course, but most traders base their forex trading signals on what they have seen in the news and then wonder why they lose.

There is a huge amount of news online, on TV and in the papers, telling you what has happened and for this its very good, however for telling you what is going to happen, it is of no use at all.

So if you want to win in online forex - trading dont pay attention to the news!


On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at

All About Forex Trading in Spot Market

Forex spot market is a security or commodities market where goods, both perishable and non-perishable as well, are been sold for cash and transported at once or within a little period of time. Contracts sold on a spot market are as well successful immediately. The spot market is other known as the cash market or also physical market. Purchases are settled in cash at the existing prices set by the spot market, as contrasting to the price at the time of delivery. An example of a spot market commodity, which is frequently sold, is crude oil; it is sold at the existing prices, and actually delivered later.

Goods are essential products which is identical with other like type commodities. Some good examples of commodities are grains, beef, oil, gold, silver, and other natural gas. Technology has pierced the industry with commodities like cell phone minutes and as well the bandwidth. Commodities are actually consistent, and should meet exact standards to be sold on the spot market.

The world spot market, or Forex trading (Foreign Currency Exchange), is a giant spot market. It is the instantaneous exchange of one countrys currency for anothers. The way it works is through a trader choosing a currency pair. Great Britain (GBP) and the United States (USD) currency is an ordinary pair, which is bought and sold on the globe spot market. If the GBP is ahead strength against the USD, the trader buys. If it is puny, he sells. The advantage of Forex trading is that it is very runny; a trader could enter and egress the market as he chooses.

Another factor, which affects Forex spot market prices, is whether the commodity or goods are perishable or non-perishable. Non-perishable goods like gold or silver would sell at a price that appears in near future price movements. A perishable commodity like grain or fruit would be affected by supply and demand. For instance, oranges bought in April would reveal the existing extra of the commodity and would be less luxurious than in January, when demand for a lesser crop drives costs up. An investor cannot buy oranges for a January delivery at Aprils prices, making oranges an ideal example of a spot market commodity.

Chris David is a SEO Copywriter of Online Forex Broker. He written many articles in various topics.For more information visit: Online Forex Trading. contact him at

Online Trading Strategy: Collecting Cash when Stocks Go UP - It PAYS to Know More than Others

When it comes to stock market trading it PAYS to have more knowledge than the rest of the pack. Pure gold can be harvested in each profitable trade that you accomplish.

But when you don't know what you are doing stock trading can become a very difficult and life consuming business. You can lose a lot of money and time. Valuable time of your life. Stock trading can resemble the closest thing to a get-poor-fast system when you don't implement a proven stock trade strategy.

Even when there are traders that can make more than $5000 on a single trade, it's not unusual for a novice stock trader to lose $1000 in less than 3 minutes from the comfort of his own home, or waste a lot of family time thinking about the stock he should trade for tomorrow "according to the charts and the stars" and other confusing technical analysis trading indicators.

As an online stock trader your homework is all about learning and testing different online trading strategies that can help you take advantage of stocks and at the same time protect your profits. Just always keep in mind that a good stock trading strategy is simple and practical. Complicated stock systems will always make you slow in your decision making process or confuse you right from the start.

There are some very good sites on the web where you can access practical stock trading strategies that are easy to implement. One of those sites is Smart Day Trading

They focus on momentum stock trading strategies that can help you identify and handle hot stocks while reducing your trading risk.

All in all, online stock trading is all about picking the best stock opportunities and following your buy and sell signals with ease and simplicity. Once you learn to master your trading decisions, you can aspire to produce consistent profitable results.

Learn how to stock trade in a practical way every day at Smart Day Trading helps day traders worldwide pick and trade momentum stocks every day in practical way.

Dedicated Support - Superior Products - Software Company Still In Business After 20 Years

Twenty years is a long time in the investment software industry. What is the key to AIQs success?

Much of the success of AIQ is due to the dedication and experience of our staff; they are key to providing outstanding support to our clients and to building better products. The average tenure of AIQ staff members of over 10 years is a reflection of the commitment of the AIQ staff to the company. AIQ has always been more than just a software vendor. We strive to provide the best service possible to our clients by listening to their needs and acting on those needs as quickly and efficiently as possible.

We dont bake cakes or build cars; we provide powerful trading tools and trading systems and support these tools with educational newsletters, seminars, tutorials and webinars (online seminars). Our goal is to help our clients become better traders and investors.

How have AIQ products evolved over the years and was this crucial to the company's success?

AIQs first product, StockExpert, was introduced in 1987 and provided basic charts, Expert Ratings, and some technical indicators. MarketExpert, a market timing system, quickly followed. Each of these packages included one of AIQs signature features, the Barometer Control Panel that gives a quick visual assessment of each of the technical indicators. Demand for derivative software les to the creation of OptionExpert and IndexExpert being added to the product line solely for options analysis. All of these products were very successful and provided the impetus for the development of TradingExpert.

Critical to AIQ's success was the decision to combine many of our packages into one suite, similar to the approach Microft does with Office. With the advent of TradingExpert, AIQ combined the strengths of MarketExpert and StockExpert into one powerful package and added group and sector analysis, a revolutionary concept at the time. Finally, a Portfolio Tracker was included and AIQ had one of the first really comprehensive trading packages on the market. Over the years, more and more powerful features were added to TradingExpert, including the Expert Design Studio, AIQs trading system writing and testing tool. This tool allowed our users to create their own trading systems and their own custom indicators.

In the late 1990s, AIQ merged all the add-on products into the TradingExpert software to create a power package that became known as TradingExpert Pro. While TradingExpert continued as a basic analysis tool, most of AIQs clients moved to the new combined systemTradingExpert Pro. Today, some 10 years since TradingExpert Pro was first introduced, it remains our premier package.

How has your industry changed over the years?

Times change, and few investment software companies have succeeded as long as we have. Product is shipped on CDs now rather than 5 inch floppies. Data is delivered over the internet rather than using computer modems. Todays computers are lightning fast, allowing retail investors to employ tools that were only available to elite institutional investors.

There is no doubt that charting is now a de facto commodity provided by almost every investing or trading software service. Many of the free charting tools available on the internet provide basic price bars, including even Candlesticks and moving averages. However, while these tools provide good looking charts, they lack the power tools that the informed investor and trader needs.

Most brokerage companies also provide some technical analysis tools for their clients. However, very few offer high-end analysis tools like those incorporated in AIQ TradingExpert Pro.

The industry has also experienced big changes in software and data prices. AIQs four stand-alone DOS products originally sold at about $1500 each. And to use the software you had to subscribe to a data vendor. In the early 1990s, data cost anywhere from $60 to $100 a month but fell in price steadily over time. The biggest change in pricing for AIQ came about in the late 1990s when AIQ first offered TradingExpert Pro bundled with myTrack as a monthly subscription service. The software no longer had to be purchased with data paid for separately. Instead, you paid one monthly fee for the data and software combined. And the other bonus was never having to pay for an upgrade again.

What do you consider are the strengths of AIQ and what have they contributed to the success?

The depth of knowledge and experience of the AIQ staff is our most invaluable strength. Our experience and knowledge has led to the development of many of the unique and powerful features in TradingExpert Pro.

Our industry group and sector rotation features were revolutionary when TradingExpert was released, and they remain unmatched today. We have powerful breadth management tools that are useful in identifying market tops and bottoms. Market Breath Builder and Breadth Analyzer allow users to create breadth and volume statistics on any set of stocks or any set of indicators. Other software packages now have back testing capabilities but none are as easy as AIQs. We realized most people dont like to program code, even if the language is supposedly easy. To that extent weve created over 250 pre-built rules that users can cut and paste as they create and test trading systems. Portfolio Simulation was another pioneering breakthrough that has given AIQ an edge. As many traders and investors have discovered, back testing only goes part of the way when youre developing a trading strategy. Something more realistic was needed, so our programmers developed a new tool called Portfolio Simulator. Portfolio Simulation does real life walk forward testing under real trading conditions. Only through this kind of testing can you prove that a strategy works for your trading style. What sets us apart is our desire for our users to become successful traders. We dont just give you the tools, we provide educational support and most of the support is free of charge.

We also offer a variety of webbased seminars every month covering a wide range of technical topics. Most of these webinars are free and are archived for viewing at your convenience. They are found at Finally, this year we will hold our 18th annual Lake Tahoe Seminar October 1-3 at Harveys Resort and Casino at Lake Tahoe.

Where do you see AIQ going in the future?

Regarding analysis tools, AIQ is currently focused on two directions. First, we are in the final stages of rolling out an automatic Chart Pattern Recognition system. For each pattern found, the system generates supporting information such as strength of confirming volume, direction, and trend. Patterns are also stored historically for back testing as part of a trading strategy. Chart Pattern Recognition will be an add-on service for TradingExpert Pro users.

Second, we are incorporating many of our primary analysis tools into a browser environment so that it will be possible to access your AIQ analysis tools wherever a browser is available.

As our technical analysis tools have matured and advanced over the years, so have the features requested by AIQ clients. Every request is recorded and analyzed for suitability and desirability as a feature in a future release. We value all feedback. It is this feedback from our clients in conjunction with our own ideas that leads to the development of new power features.

Steve Hill is President of AIQ Systems. For the past 14 years he has been involved in all aspects of AIQ Systems, from support and sales to programming and education. Steve is a frequent speaker at events in the U.S. and Europe, talking on subjects as diverse as Portfolio Simulation Techniques, Advanced Chart Pattern Analysis and Trading System Design. Steve is an avid martial artist and cross-country skier. currently holding the rank of Shodan (first degree black belt) in Shito-Ryu Okinawan Karate. He also serves on the board of the Ralph Parks Portfolio Trust.

AIQ Systems is a world leader in intelligent trading software. Their web site can be found at