You can make a lot of money in the stock market with minimum risk if you know a strategy that works. There is a proven method that you can profit on a trade nine out of ten times. Here is a little secret that will be revealed:
There are a few stock indexes in the market that have a repeated daily pattern for years. These particular ones are very volatile that go up a lot and down a lot throughout the whole day, but there is almost always an exact time that they will go up. When you know which trade has a pattern, you can use a strategy to maximize earnings. There are guides out there that can show you how to spot these particular stock indexes so you can learn the secrets of stock index day trading to earn maximum results.
Some people will tell you to listen to "robots" who give tips on what to buy. Robots are not flawless, and you should never listen to something who does not care how much money you make! You need to follow people who know the secret because they are the millionaires. They know the trading algorithm that works ninety percent of the time. They also do not put all their eggs in one basket.
It is a great proven method, however, there is a drawback. You need to be self-disciplined because a lot of people fail to succeed with the strategy when they get too greedy. You have to sell at the right time, but most people would let the stock rise in hopes that they can profit more.
by Kai Lo
Jun 19, 2009
Bse and Nifty stocks are meant to control the financial power of a country
The economic structure of a company is reflective of its business capabilities and standing in the trade market. With lot of things to understand in this sensex world, we should start with knowing what is it all about? Sensex India is, usually, a term referred to data information about share prices, their rise and downfall, capital raised by the companies in the market and the mergers or overtake of company. This index is the numeral of BSE 30 listed companies on the basis of free flow capitalization method. Capitalization method is the computation of figures taken out from readily available stocks and shares for trading in the open market.
The 30 listed companies are big business houses that have a reputation in the business world and have nationwide presence. Bse sensex has always been of special concern to people as it allows them to make certain preparation to face loss or enable them to think about ways to make use of their profits. Another thing to understand is the effect of stock wavering. First of all, it affects those business houses that are trading and adding to the foreign exchange. Secondly, it also affects the customers of the customers of the companies because they might have to buy the products costlier than before. This mars their monthly budget also.
Every human being keeps track of sensex news, whether it's an industry owner or a supervisory. These days, the situation of BSE included companies and index has been in news. It is showing irregular breakdown and uprights that people are giving different views. Another thing that can be checked out from sensex is that it tells you about the augment and decrease in various supplies. Moreover, news piece helps an individual to enhance his general knowledge about a particular topic. After all, it is also an essential part of our life.
Another side of the coin tells about Nifty stocks. Nifty is an unofficial name given to 50 top companies that have worldwide presence and whose business transaction affects economic structure of major countries. Every day, we see a lot of people holding financial newspapers or websites to check out daily stocks. After all, it is highly essential to be a master of your field and if it is finance; then, you have to be extra cautious of every step taken. It is because you would like to have a profitable business in this area of concern.
by Sourav
The 30 listed companies are big business houses that have a reputation in the business world and have nationwide presence. Bse sensex has always been of special concern to people as it allows them to make certain preparation to face loss or enable them to think about ways to make use of their profits. Another thing to understand is the effect of stock wavering. First of all, it affects those business houses that are trading and adding to the foreign exchange. Secondly, it also affects the customers of the customers of the companies because they might have to buy the products costlier than before. This mars their monthly budget also.
Every human being keeps track of sensex news, whether it's an industry owner or a supervisory. These days, the situation of BSE included companies and index has been in news. It is showing irregular breakdown and uprights that people are giving different views. Another thing that can be checked out from sensex is that it tells you about the augment and decrease in various supplies. Moreover, news piece helps an individual to enhance his general knowledge about a particular topic. After all, it is also an essential part of our life.
Another side of the coin tells about Nifty stocks. Nifty is an unofficial name given to 50 top companies that have worldwide presence and whose business transaction affects economic structure of major countries. Every day, we see a lot of people holding financial newspapers or websites to check out daily stocks. After all, it is highly essential to be a master of your field and if it is finance; then, you have to be extra cautious of every step taken. It is because you would like to have a profitable business in this area of concern.
by Sourav
Jun 10, 2009
Readiness & Survival In An Uncertain World; 5 Trends To Keep You Awake at Night
I recently stayed at a high-end Hotel for business and was struck by how empty the place was. No matter where I went I was alone, wandering the halls of a seemingly empty facility. It was unsettling and strange, like a plot out of a B-grade movie where suddenly one person finds that he is all alone in the world.
One evening while eating dinner in the hotel's restaurant, I mentioned my observation to the waitress. "Your right," she said. "I think with one exception you are the only person staying here. In fact, we just had to lay off a lot of our employees. Some had been here for years." I replied that I was sorry to hear that the economic crisis has hit them so hard.
"It's more than just the economy," she continued as she stared up at the ceiling; "Something just doesn't seem right. It's as if the world is off course or something. Just watch TV, its all doom and gloom. It reminds me of the months just after September 11, when the world went into a holding pattern while everybody waited anxiously for who-knows-what to happen. I'm nervous. All my friends are nervous." She paused and looked back down at me as she finished her musings, "Anyway, one thing is certain: we live in interesting times…"
I think that short story is the perfect place to begin this article on family readiness and survival in an uncertain world. Why? Because my waitress was right, we do live in interesting times; times that will likely present significant challenges to all of us. Please understand, this is not mere opinion, nor is it gloom-mongering. Scholars from many diverse disciplines agree that we live in an epochal time, an age where trends and events appear to be taking on a life of their own, some good and many bad.
Even President Obama in his recent inaugural address prophetically noted that there are 'gathering clouds and raging storms' on the horizon.
So what exactly is going on, and what should a reasonable person do about it? Those are the two central questions that I would like to explore in this article. First, I want to examine some significant trends that appear to be shaping our world and our future, and then I will offer some suggestions on what you and your family can do to meet the potential challenges that we may have to face individually and collectively as we live through these interesting times. Let's start with five trends that will likely raise your eyebrows.
1. Global Population & Resource Scarcity
Are you aware that global population has doubled in the past 40 years, going from 3.3 billion to just under 7 billion today? Think about that for a minute. Forty years is an insignificant number in the global scale of time, and yet, in the past 40 years alone we have doubled the number of people living on this planet. And while much of this growth has occurred in rapidly developing countries such as China and India, it should still concern you. Why? Because, according to the Worldwatch Institute, in the very near future food demand from China and India alone will likely exceed the current global agricultural production capacity, driving global food prices higher as countries compete for ever-dwindling agricultural resources. In fact, you are likely seeing evidence of this trend in your grocery prices right now. What's more, water tables on every continent are declining as we pump out water at greater rates than rainwater can replenish it, (and human waste continues to foul what water we have left). Right now, more than 400 million people suffer from water scarcity, and the Population Media Center predicts that number will hit the 2 billion mark soon - 25% of the entire planet's population. Two commodities that we all take for granted, food and water, will within your lifetime very likely become as precious as gold. And finally, exponential growth in population is mirrored by increases in demand for oil - that precious and incredibly efficient source of energy that our society relies upon. It may surprise you to learn that the world's supply of oil is diminishing, and according to most scholars on the subject, we have already 'peaked' in oil production at a time when demand is at an all-time high and expected to grow exponentially. Given that most of society relies upon oil for manufacturing, food production, supply and distribution, transportation, construction, etc., etc., what do you think our world will look like when oil prices skyrocket due to shortages. Think about it…
2. Global Warming & Climate Change
Perhaps more than any other trend in recent history, the issue of global warming has spawned tremendous and often contentious debate. This debate has left many observers confused and bewildered, and has regrettably muddied up what is an agreed upon fact. Here is the fact that has been lost: Global warming is real. What is being debated is the causative agent of this warming - is the current level of warming the result of human activity or a natural planetary cycle? And while this debate is interesting, it is a red herring because it distracts attention from what is really happening, which is that the world's increasing temperatures are causing the weather to act in weird, and frequently hostile ways. So what can you expect from a warming planet? Most scholars agree that warming will generate severe amplifications of normal weather patterns, resulting in significant infrastructure disruptions and power outages, changes to agricultural production, outbreaks of heretofore contained diseases, and the dislocation of entire populations of people as they run from harm's way. Thomas Friedman, in his seminal work Hot, Flat and Crowded, coined the term "Global Weirding" for the effects of our warming planet. Bottom line: expect to see weird and wild things from Mother Nature as our planet continues to warm up. (In fact, the Hazards Research Center in Boulder Colorado recently reported that 2008 disaster related deaths were three times the yearly average!)
3. Predictions, Prophecies, & Portents
Every generation has its doom's day scenario. Human history is replete with end-of-the-world predictions; whether religious or secular in motivation, we humans seem to be fascinated with our doom, and this current age is no different. However, what does appear to be different is that today there exists a strange and sobering confluence of multiple and varied predictions about the end of the world as we know it, all converging on or around the year 2012, (in fact, even Hollywood is jumping on the band wagon with a Summer 2009 blockbuster release titled "2012!"). Apparently, the year 2012 is when the ancient Mayans predicted the end of their 'Long Count', a calendar period of 5200 years, each of which was supposed to have ended in cataclysm. Interestingly, the current Long Count is considered to be the 5th and final 'Great Year', as the Mayans called it. Five Great Years equal 26,000 years, almost exactly the amount of time it takes the earth to complete one precessional revolution, which in astronomy is referred to as the "Precession of the Equinoxes". That numerical coincidence is just one of the many strange synchronicities that seem to link mythology with science as it relates to the year 2012, and why this date has so many people of various traditions alarmed and excited. But here is the real point of this short 2012 narrative: millions of people truly believe that 2012 will reveal some grand, global-scale event - either religious or worldly - that will change the world. In fact, many of them want it to. This should concern you because millions of people that want something to happen can actually make that thing happen if they want it badly enough.
4. Technology & Interdependence
Like population, technology grows exponentially, with each new generation building upon the one that came before it. Look around you right now; it is likely that you are looking at technologies that are fundamental to your current lifestyle (perhaps even your ability to make a living), that just 30 years ago didn't even exist. Society's technological advancements are truly mind-boggling, and they have made our lives easier and arguably more interesting. But there is a catch. As our technologies become more advanced and pervasive, so does our dependence upon them both individually and collectively. Now more than ever before we are dependent upon a webbed network of technologies, institutions and infrastructures that provide for us those things that just 100 years ago we had to provide for ourselves, such as heat, water, light, transportation, food and more. We have become an interdependent and dependent society, increasingly relying on outside technologies and institutions to survive. This is potentially dangerous because our technological dependence has created a form of collective complacency that has robbed us of vital coping and survival skills that used to be commonplace. Imagine a major urban center of 5 million people suddenly robbed of their technologies, having to live off the grid for 30 days or more; what do you think that picture would look like?
5. Economic Crisis
There is an old saying: anybody that tries to tell you what the financial markets are going to do is lying or trying to sell you something. Nobody knows for certain when the current financial crises will end, nor what our lives will look like just 12 months from now, much less five years from now. But one message does seem to thread throughout all of the predictions about the economy: it's going to get much worse before it gets better. In fact, Gerald Celente, founder of the Trends Research Institute and a highly respected futurist with an impressive track record for forecasting global trends, predicts that unemployment will skyrocket between now and 2012, and even goes so far as to suggest that people will be living in tent cities all across America. He refers to our upcoming economic challenge as the Greatest Depression, and expects a near-total collapse of the banking industry and financial markets, with ripple effects felt around the world. This argument is strengthened by the incredibly sobering and informative research presented by Chris Martenson in 'The Crash Course' -- an on-line documentary which explores some brutal facts about the clash between the Economy, the Environment, and Energy. You should watch it.
A Recipe for Disaster?
So, here is the question that I would like you to consider: What will be the synergistic effect of these five trends as they begin to collide? Imagine an overpopulated planet suffering from dramatic and unpredictable weather, fighting for scarce resources in what is likely to be the worst economic crisis in history, with millions of people looking around the corner expectantly for the apocalypse, all the while depending on outside technologies and institutions for personal survival… Sound like a crisis in the making?
Perhaps, or it could be an opportunity.
by Kevin Baum
One evening while eating dinner in the hotel's restaurant, I mentioned my observation to the waitress. "Your right," she said. "I think with one exception you are the only person staying here. In fact, we just had to lay off a lot of our employees. Some had been here for years." I replied that I was sorry to hear that the economic crisis has hit them so hard.
"It's more than just the economy," she continued as she stared up at the ceiling; "Something just doesn't seem right. It's as if the world is off course or something. Just watch TV, its all doom and gloom. It reminds me of the months just after September 11, when the world went into a holding pattern while everybody waited anxiously for who-knows-what to happen. I'm nervous. All my friends are nervous." She paused and looked back down at me as she finished her musings, "Anyway, one thing is certain: we live in interesting times…"
I think that short story is the perfect place to begin this article on family readiness and survival in an uncertain world. Why? Because my waitress was right, we do live in interesting times; times that will likely present significant challenges to all of us. Please understand, this is not mere opinion, nor is it gloom-mongering. Scholars from many diverse disciplines agree that we live in an epochal time, an age where trends and events appear to be taking on a life of their own, some good and many bad.
Even President Obama in his recent inaugural address prophetically noted that there are 'gathering clouds and raging storms' on the horizon.
So what exactly is going on, and what should a reasonable person do about it? Those are the two central questions that I would like to explore in this article. First, I want to examine some significant trends that appear to be shaping our world and our future, and then I will offer some suggestions on what you and your family can do to meet the potential challenges that we may have to face individually and collectively as we live through these interesting times. Let's start with five trends that will likely raise your eyebrows.
1. Global Population & Resource Scarcity
Are you aware that global population has doubled in the past 40 years, going from 3.3 billion to just under 7 billion today? Think about that for a minute. Forty years is an insignificant number in the global scale of time, and yet, in the past 40 years alone we have doubled the number of people living on this planet. And while much of this growth has occurred in rapidly developing countries such as China and India, it should still concern you. Why? Because, according to the Worldwatch Institute, in the very near future food demand from China and India alone will likely exceed the current global agricultural production capacity, driving global food prices higher as countries compete for ever-dwindling agricultural resources. In fact, you are likely seeing evidence of this trend in your grocery prices right now. What's more, water tables on every continent are declining as we pump out water at greater rates than rainwater can replenish it, (and human waste continues to foul what water we have left). Right now, more than 400 million people suffer from water scarcity, and the Population Media Center predicts that number will hit the 2 billion mark soon - 25% of the entire planet's population. Two commodities that we all take for granted, food and water, will within your lifetime very likely become as precious as gold. And finally, exponential growth in population is mirrored by increases in demand for oil - that precious and incredibly efficient source of energy that our society relies upon. It may surprise you to learn that the world's supply of oil is diminishing, and according to most scholars on the subject, we have already 'peaked' in oil production at a time when demand is at an all-time high and expected to grow exponentially. Given that most of society relies upon oil for manufacturing, food production, supply and distribution, transportation, construction, etc., etc., what do you think our world will look like when oil prices skyrocket due to shortages. Think about it…
2. Global Warming & Climate Change
Perhaps more than any other trend in recent history, the issue of global warming has spawned tremendous and often contentious debate. This debate has left many observers confused and bewildered, and has regrettably muddied up what is an agreed upon fact. Here is the fact that has been lost: Global warming is real. What is being debated is the causative agent of this warming - is the current level of warming the result of human activity or a natural planetary cycle? And while this debate is interesting, it is a red herring because it distracts attention from what is really happening, which is that the world's increasing temperatures are causing the weather to act in weird, and frequently hostile ways. So what can you expect from a warming planet? Most scholars agree that warming will generate severe amplifications of normal weather patterns, resulting in significant infrastructure disruptions and power outages, changes to agricultural production, outbreaks of heretofore contained diseases, and the dislocation of entire populations of people as they run from harm's way. Thomas Friedman, in his seminal work Hot, Flat and Crowded, coined the term "Global Weirding" for the effects of our warming planet. Bottom line: expect to see weird and wild things from Mother Nature as our planet continues to warm up. (In fact, the Hazards Research Center in Boulder Colorado recently reported that 2008 disaster related deaths were three times the yearly average!)
3. Predictions, Prophecies, & Portents
Every generation has its doom's day scenario. Human history is replete with end-of-the-world predictions; whether religious or secular in motivation, we humans seem to be fascinated with our doom, and this current age is no different. However, what does appear to be different is that today there exists a strange and sobering confluence of multiple and varied predictions about the end of the world as we know it, all converging on or around the year 2012, (in fact, even Hollywood is jumping on the band wagon with a Summer 2009 blockbuster release titled "2012!"). Apparently, the year 2012 is when the ancient Mayans predicted the end of their 'Long Count', a calendar period of 5200 years, each of which was supposed to have ended in cataclysm. Interestingly, the current Long Count is considered to be the 5th and final 'Great Year', as the Mayans called it. Five Great Years equal 26,000 years, almost exactly the amount of time it takes the earth to complete one precessional revolution, which in astronomy is referred to as the "Precession of the Equinoxes". That numerical coincidence is just one of the many strange synchronicities that seem to link mythology with science as it relates to the year 2012, and why this date has so many people of various traditions alarmed and excited. But here is the real point of this short 2012 narrative: millions of people truly believe that 2012 will reveal some grand, global-scale event - either religious or worldly - that will change the world. In fact, many of them want it to. This should concern you because millions of people that want something to happen can actually make that thing happen if they want it badly enough.
4. Technology & Interdependence
Like population, technology grows exponentially, with each new generation building upon the one that came before it. Look around you right now; it is likely that you are looking at technologies that are fundamental to your current lifestyle (perhaps even your ability to make a living), that just 30 years ago didn't even exist. Society's technological advancements are truly mind-boggling, and they have made our lives easier and arguably more interesting. But there is a catch. As our technologies become more advanced and pervasive, so does our dependence upon them both individually and collectively. Now more than ever before we are dependent upon a webbed network of technologies, institutions and infrastructures that provide for us those things that just 100 years ago we had to provide for ourselves, such as heat, water, light, transportation, food and more. We have become an interdependent and dependent society, increasingly relying on outside technologies and institutions to survive. This is potentially dangerous because our technological dependence has created a form of collective complacency that has robbed us of vital coping and survival skills that used to be commonplace. Imagine a major urban center of 5 million people suddenly robbed of their technologies, having to live off the grid for 30 days or more; what do you think that picture would look like?
5. Economic Crisis
There is an old saying: anybody that tries to tell you what the financial markets are going to do is lying or trying to sell you something. Nobody knows for certain when the current financial crises will end, nor what our lives will look like just 12 months from now, much less five years from now. But one message does seem to thread throughout all of the predictions about the economy: it's going to get much worse before it gets better. In fact, Gerald Celente, founder of the Trends Research Institute and a highly respected futurist with an impressive track record for forecasting global trends, predicts that unemployment will skyrocket between now and 2012, and even goes so far as to suggest that people will be living in tent cities all across America. He refers to our upcoming economic challenge as the Greatest Depression, and expects a near-total collapse of the banking industry and financial markets, with ripple effects felt around the world. This argument is strengthened by the incredibly sobering and informative research presented by Chris Martenson in 'The Crash Course' -- an on-line documentary which explores some brutal facts about the clash between the Economy, the Environment, and Energy. You should watch it.
A Recipe for Disaster?
So, here is the question that I would like you to consider: What will be the synergistic effect of these five trends as they begin to collide? Imagine an overpopulated planet suffering from dramatic and unpredictable weather, fighting for scarce resources in what is likely to be the worst economic crisis in history, with millions of people looking around the corner expectantly for the apocalypse, all the while depending on outside technologies and institutions for personal survival… Sound like a crisis in the making?
Perhaps, or it could be an opportunity.
by Kevin Baum
Jun 4, 2009
Forex Courses Or Forex Expert Advisors, Which Should You Choose?
Should you trust a Forex Expert Advisor and try and make money with no effort or get a Forex course and learn skills. What we consider the best option is enclosed.
On the face of it making money with no effort is appealing and most Forex Expert Advisors only cost around 200 dollars, so you get a lifelong income for a small outlay! Well that's the message the advertising portrays but it's no surprise to learn they don't work. If they did, everyone would buy financial freedom for the cost of a night out! So can a Forex course help?
The answer is the right ones can teach you the skills you need to win at Forex, give you confidence and cut your learning curve, so what should you look for in a course?
Here is a checklist
Always look for a 100% money back guarantee in the first 30 days, so you have time to study the material and see if it lives up to the advertising copy.
What Edge does it Give You?
Most courses simply explain technical analysis and cover various indicators but that's no use, that's all free anyway! You need to have a system that can give you a trading edge, if you don't get one you may as well just buy a book from Amazon.
Unlimited Support
If you're a newbie, make sure you get this, as you're bound to have questions or queries on the system and you don't want to be stuck trying to work it out on your own. All the best courses have unlimited email support.
Trading Advice
Look for newsletter and daily commentary, all the best courses did this, so you can see how the vendor trades the system. This means you can learn alongside them and also evaluate how good the system is, nothing beats seeing a method traded in a live trading scenario.
So there you have it, if you want to win at Forex trading you need to learn skills and make an effort but if you find the right course, you will cover the cost in just one good trade and have skills which will last a lifetime. No other venture gives you the profit potential of Forex trading, so get the right education and enjoy currency trading success.
by kelly Price
On the face of it making money with no effort is appealing and most Forex Expert Advisors only cost around 200 dollars, so you get a lifelong income for a small outlay! Well that's the message the advertising portrays but it's no surprise to learn they don't work. If they did, everyone would buy financial freedom for the cost of a night out! So can a Forex course help?
The answer is the right ones can teach you the skills you need to win at Forex, give you confidence and cut your learning curve, so what should you look for in a course?
Here is a checklist
Always look for a 100% money back guarantee in the first 30 days, so you have time to study the material and see if it lives up to the advertising copy.
What Edge does it Give You?
Most courses simply explain technical analysis and cover various indicators but that's no use, that's all free anyway! You need to have a system that can give you a trading edge, if you don't get one you may as well just buy a book from Amazon.
Unlimited Support
If you're a newbie, make sure you get this, as you're bound to have questions or queries on the system and you don't want to be stuck trying to work it out on your own. All the best courses have unlimited email support.
Trading Advice
Look for newsletter and daily commentary, all the best courses did this, so you can see how the vendor trades the system. This means you can learn alongside them and also evaluate how good the system is, nothing beats seeing a method traded in a live trading scenario.
So there you have it, if you want to win at Forex trading you need to learn skills and make an effort but if you find the right course, you will cover the cost in just one good trade and have skills which will last a lifetime. No other venture gives you the profit potential of Forex trading, so get the right education and enjoy currency trading success.
by kelly Price
Forex Accounts
Good money management is the essential key that many currency traders miss. Many traders ignore adapting good money management rules at their own peril. As a consequence, they get their account blown in a few weeks of trading. You need to become a disciplined trader. Trading discipline means developing a trading system based on money management rules that limit your risk and avoid making trading decisions based on emotions. In the end, every trader has to develop his/her own insights and systems.
Without sufficient capital in your account, you wont be able to make meaningful capital gains. One of the worst blunders that forex traders can make is to trade without sufficient capital. Low capital increases your chances of getting blown out too soon. This does not mean that you should have a lot of capital before you start trading. You need to have sufficient capital in your account in order to take advantage of the movements in the currency markets. Low capital will never give you that opportunity.
A trader with limited capital is always a worried traders always looking to minimize losses beyond the point of realistic trading. The minimum amount required to open a standard account with most forex brokers is $2000. You can start with $2000 but it is recommended by most of the professional traders that you should start with $5000-$10,000 to get good results.
A regular account or a standard account often also called 100k account lets you trade a $100,000 standard lot with a $1000 deposit. This $1000 is kept as the margin by the broker. This is a 1% margin.
You can change the margin account to whatever you feel comfortable with. When you open an account with the broker, you must determine what the default margin is. If you start at 2% margin, then it will cost you $2000 to trade one standard lot.
You can get a leverage of up to 200% in most of the standard accounts. Using 200% leverage means trading $200,000 with a $1000 deposit. Too much leverage is dangerous. Dont use more than 4% leverage while trading in the beginning.
I am not saying that leverage is bad. You need to know it is a double edged sword that can cut both ways. It can increase your ROI but at the same time it can wipe you out in case of a slight market move going against you. Its just that you need to understand and learn how to use leverage. You can only do so with practice and with practice and more experience; you can increase the level of leverage in your trading.
The mini account was developed to accommodate investors who were looking for diversification of their stocks portfolios. You can open a mini account with a deposit of $300. This small dollar requirement allows many investors to participate in the forex markets who were previously unable to do so.
One lot on a mini account is equal to $10,000. This is known as a mini lot. As compared to a standard account, on a mini account you have a different lot size. You only need $50 to trade a mini lot of $10,000. This means a leverage of 200%. As compared to the standard account, pips size on a mini account is also small. A pip size on the mini account is equal to $1. 1 pip is equal to $10 on a standard lot.
If you lose 100 pips on a mini account, it means losing only $100. Losing 100 pips equal $1000 on a standard lot. A mini account reduces your risk by 10%. But it also reduces the profit that you can make by 10%. Start with at least $500 on a mini account. A mini account is a great way for new traders to practice forex trading. First develop the feel of how the forex markets work. Once you become an expert, trade on a standard account. Standard lot gives you the opportunity to make good ROI.
by Ahmad Hassam
Without sufficient capital in your account, you wont be able to make meaningful capital gains. One of the worst blunders that forex traders can make is to trade without sufficient capital. Low capital increases your chances of getting blown out too soon. This does not mean that you should have a lot of capital before you start trading. You need to have sufficient capital in your account in order to take advantage of the movements in the currency markets. Low capital will never give you that opportunity.
A trader with limited capital is always a worried traders always looking to minimize losses beyond the point of realistic trading. The minimum amount required to open a standard account with most forex brokers is $2000. You can start with $2000 but it is recommended by most of the professional traders that you should start with $5000-$10,000 to get good results.
A regular account or a standard account often also called 100k account lets you trade a $100,000 standard lot with a $1000 deposit. This $1000 is kept as the margin by the broker. This is a 1% margin.
You can change the margin account to whatever you feel comfortable with. When you open an account with the broker, you must determine what the default margin is. If you start at 2% margin, then it will cost you $2000 to trade one standard lot.
You can get a leverage of up to 200% in most of the standard accounts. Using 200% leverage means trading $200,000 with a $1000 deposit. Too much leverage is dangerous. Dont use more than 4% leverage while trading in the beginning.
I am not saying that leverage is bad. You need to know it is a double edged sword that can cut both ways. It can increase your ROI but at the same time it can wipe you out in case of a slight market move going against you. Its just that you need to understand and learn how to use leverage. You can only do so with practice and with practice and more experience; you can increase the level of leverage in your trading.
The mini account was developed to accommodate investors who were looking for diversification of their stocks portfolios. You can open a mini account with a deposit of $300. This small dollar requirement allows many investors to participate in the forex markets who were previously unable to do so.
One lot on a mini account is equal to $10,000. This is known as a mini lot. As compared to a standard account, on a mini account you have a different lot size. You only need $50 to trade a mini lot of $10,000. This means a leverage of 200%. As compared to the standard account, pips size on a mini account is also small. A pip size on the mini account is equal to $1. 1 pip is equal to $10 on a standard lot.
If you lose 100 pips on a mini account, it means losing only $100. Losing 100 pips equal $1000 on a standard lot. A mini account reduces your risk by 10%. But it also reduces the profit that you can make by 10%. Start with at least $500 on a mini account. A mini account is a great way for new traders to practice forex trading. First develop the feel of how the forex markets work. Once you become an expert, trade on a standard account. Standard lot gives you the opportunity to make good ROI.
by Ahmad Hassam
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