Successful Intra-Day Traders

Being neutral to the profit and loss
You probably know people for whom the world merknet when they take a loss of $ 100, but if they earn $ 1000, you are at the top of the world. Definitely they are not neutral. If this applies to you, your intra-day trade, almost certainly, is controlled by fear and greed: reduced by $ 100, you probably do not want to take a loss just because you know that will suffer emotionally. Rising to $ 1000, you would like more, even if you must, just, take profits. Or you can take profits too early, because they fear that the position could turn against you. All this is not a good intra-day trade.

Professional intra-day traders do not permit daily fluctuations in their bills, disturb them. The results of one week is not important, do not even have the monthly results. This is only a small episode in their trading career. Daily variations actually have little meaning.

Emotional ups and downs is quite normal for beginners intra-day traders. If these emotions affect your shopping decisions too much, it is advisable to go back to trade on paper, in order to acquire confidence. You should not allow these fluctuations to overly influence you.

Being neutral to the price movements
You probably familiar with the situation when the trade goes against you and you start looking for reasons why it is still a good position and you should retain it. This is very dangerous for the intra-day traders, because it leads to their feet and big losses.

strategies in the trading process - the worst thing you can do. You can always find justification for their position to go up or down, but you do not see an objective price movement. You have moved from response to the anticipation! Within-day trader must not, under any circumstances, try to predict future price movements.

As the intra-day trader you must play on the actual price movement rather than on the motion, which must be! Please leave predictions to investors, you will sell during the day.
Most intra-day traders are included in the position, based on fundamental data. They mixed intra-day trade with the investment. It is also very dangerous. At the time, as may be reason to enter the position for the short-term trading, they regarded it as an investment, even if it goes against them.

Consider the famous example of
Think of "Enron".
Yes, were moments during the sale of "Enron", when the purchase was justified. Some bought Enron during the short recovery of $ 8.5 to $ 10. The problem is that if you base their entry on the confidence that the company is cheap and it should go up, you will be more and more inclined to hold their position or even add to it when the price becomes lower. The stronger your opinion about the market-based instruments, the harder to make decisions based on actual price movement.

Within-day traders do not have to do this. We strongly advise you to have a separate account to trade on fundamental data. In intra-day trade with the big lever, you could be tempted to take risks that would be too high!

We are not saying that bad to have expectations, trading within the day: everyone should know what the potential outcome of his position. If these expectations, however, is not true, within-day trader must recognize and respond according to what is actually happening.

Features of the national trade

No, probably it is in the blood of the population one-sixth of the land ... Everybody knows where it is free cheese, and many know about it, that "we are not so rich to buy cheap things, and still are very fond of halyavu. Even though not stoprotsentnaya ball, but to a less expensive ... So we buy the product in unlimited quantities of the Polish-Turkish-Chinese friendship, klyuem on the pyramid and all the confidence in the two hundred per cent per annum.
Almost the same can be said about the work on international currency markets. What do you think, where the bulk of the clients of brokerage firms, allowing the side of more than 1 00 and a minimum deposit of USD 1 000? True, they probably say porusski! And then you can not particularly straining to make a simple human desire to get where cheaper. As you select a thousand?
Very simply. Suppose you nachitalis on enrichment at the Stock and decided to try. You are getting so protected and hidden from his wife one thousand dollars, and start looking for a suitable office. You in the eye popadaetsya advertising company that offers such an environment: the shoulder 100 and a minimum deposit of 1 000 U.S. dollars. It suits you and that you give us your honest earn thousand ... and possibly two ... but clearly less than ten. By the way, we should note that for the success of the need always to keep abreast of market developments, and that at least a pair of triple-hundred a month, if not more.
Now consider a normal working day: 1 0 August 1 999, 1 4:25 GMT; at this time to EUR LOW = 1, 070 1 HIGH = 1, 0764 LAST = 1 0738 and the day is not over. The difference between these two values is EUR 0,0063, that when the amount of lots in the 1 00 thousand U.S. dollars is USD630, that is, more than half of your deposit. But in your contract probably will be a point that if you lose more than half the money in your account - the position is closed by a locked until you do not fill up or not zaberete their money. Now imagine that you have opened almost at the crest, thinking that the quotes will be even higher, and did not have time to close, when they went down. As a result, over time you lose a thousand dollars, and in the brokerage firm you smiling saying "come yet, they have already committed to you, maybe even ignorirovav orders to the opening position.
Thus, the greater the amount of leverage, the greater the risk is subject to your personal account, and the faster it can dry up. Even if you are lucky, a market movement against you, even briefly, can cost profit for several days.

Study indicators. Part One. Introduction

Introduction

This article was written to introduce the concept of indicators and explain how to use them in your analysis. We pour some light on the differences between advanced and lagging indicators, as well as examine their advantages and disadvantages. Many, if not the most popular indicators are as oscillators. Mindful of this, we also show how to read and oscillators to explain how to get signals. Later vetom number of indicators on, we turn our attention to certain indicators, and present examples of signals in action.
What is the indicator?

The indicator - a number of data points, which are obtained by applying a formula to price data protection. Price data includes any combination of the opening (open), the highest value (high), the lowest value (low) or the closure of close) during the period of time. Some indicators can only use the closing price in tovremya others include in their formula for the volume and open interest. Introduce the price data in a formula and calculated

. For example, the average number of 3 closing price - provides a single point of data ((4 1 +43 +43) / 3 = 42.33).

However, one data point does not daetmnogo information and does not show that makes indikator.Dlya analysis requires a number of data points over time. By creating time-series data points, the comparison can be made between present and past levels. For purposes of analysis, indicators usually show in graphic form above or below the price chart (a chart). Shown in graphic form, the indicator can be compared with the corresponding price schedule. Sometimes the indicators are built on top of price schedule for a more accurate comparison.
With the proposed indicators?

The indicator suggests a different perspective to analyze the price movement. Some, such as moving averages of values derived from simple formulas, and mechanics is relatively simple to understand. Others, like stohastikov (Stochastics), have complex formulas and require more time to study, to fully understand and appreciate. Regardless of the complexity of the formula, the indicators can provide a unique perspective in defining the strength and direction of price changes.
Simple moving average (Simple moving average) - an indicator, which calculates the average

price on the number of periods. If extremely volatile price fluctuations, the moving average value can help smooth the data. Moving average value filters out random noise and offers a smooth-term price movements. Schedule of Veritas (VRTS) displays greater volatility, and the analyst may have difficulty in determining the trend. Applying the 1 0-day simple moving average value to the price schedule, random fluctuations smoothed to facilitate the opportunity to identify the trend.

Why use LEDs?
Indicators serve three broad functions: prevention, validation and prediction.
LED can act as a warning to examine the price movement of a little more closely. If momentum (driving force) is reduced, it could be a signal that can be expected to break through support. Or, if formed a more positive divergence (the difference), it can serve as a warning to watch for a sharp break through the resistance. LEDs can be used to confirm other technical analysis tools. If there is a drastic change in the price of the price chart, the intersection of the moving average values could serve as evidence of this breakthrough. Or, if the market punch line support, the corresponding indicator on the graph Low On-Balance-Volume (OBV), it could serve as a proof of the weakness of the market. Some investors and traders use indicators to predict the direction of future changes in prices.

Tips for using indicators.

Indicators show. This may sound too categorical, but sometimes traders ignored the change in the price and focus on the display. Indicators filtered price movement formulas. Also, they - and not derived directly reflect the price action. This should be taken into account when applying the analysis. Any analysis of the indicator should be taken, mindful of izmeneniitseny. As the indicator shows the change in prices? Price movement is becoming more powerful? Weaker?

Even though the situation may be obvious, sometimes indicators to generate signals for buying and selling, the signals must be taken in context with other technical analysis tools. The indicator may signal the purchase, but if the chart shows a downward triangle with a number of declining peaks, it could be a false alarm.

Figure Inktomi (INKT), MACD grew from April to August and formed a positive divergence in August. MACD signaled the possibility of buying, but the market was unable to overcome the resistance level and reach the previous peak. This is not confirmation of the market was a sign warning against long positions. For the record, the signal for the sale took place when the market prorval line support decreasing the triangle at the beginning of October 00.

As always in the technical analysis, the ability to read the indicators more art than science. The same indicator may show different behavioral models that are applicable to different actions. LEDs, which work well for IBM, c could not work for the airlines Delta. Expertise with the various indicators can be done through careful study and analysis.

Today, using hundreds of indicators, new indicators under construction each week. Technical analysis programs come with sets of indicators, which vstraivayut, and even allow users to create their own display. Given the number of fraud, which is associated with indicators, choosing an indicator that you will follow, the challenge of his ukroscheniya. Even with the introduction of hundreds novyhindikatorov, only a few offer an excellent prospect and worthy of attention. Strangely enough, but the indicators, which generally deserve more attention - those who have passed the test of time.

When choosing an indicator to analyze, select it carefully and sparingly. Attempts to reach more than five indicators is usually futile. Better to concentrate on two or three indicators, and to study their effect. Try to select indicators, which complement each other, rather than those that operate in unison, and generates the same signals. For example, it would be redundant to use two indicators, which are good to show perekuplennye and resell the levels, such as Stochastics and RSI . Both of them show momentum (driving force) levels perekuplennosti and pereprodannosti.

Advantages and disadvantages of "LEVERAGE"

The rapid development of Internet and the international currency market in mid-1990's led to a practical trade currency to extract income were involved hundreds of millions of private investors. Ability to deal with not only the currency exchange points in the bank, but also directly on the exchange, bypassing intermediaries, attracted to this market means many investors, increasing its liquidity. It is for this reason FOREX into a universal, high-yield, open and most liquid market in the world.

Moreover, profitability of operations in FOREX by several orders of magnitude higher than that of operations in exchange. This was made possible with the invention of machinery margin trading, which in a few years led to the formation of entire institutions, currency trading to help small investors to operate in FOREX an equal footing with larger players that determine the state of international economy and politics: national banks, large investment companies and other financial institutions, vorochayuschimi billions of dollars.

Happiness small investor is obliged to operate in FOREX only so-called shoulder, or by simply, in English - Leverage. We will thoroughly and in detail to give the exact calculations and clever formula. There are profound literature, margin trading, using Leverage is the foundation of all activities in the market FOREX. We just wanted to raise objections about the articles in the first issue FOREX MAGAZINE, the author of sokrushaetsya about - oh, horror! - The possibility of big losses when trading with leverage of 1:100, and even suspects terrible, terrible and treacherous brokers that they were lured to their specific network simple trusting lovely traders. Not without artful brokers in this world, of course. But we do not talk about them, as a tool - on the shoulder, that is on the basis of margin trading.

Let us leave on the conscience of the author's assertion that the shoulder will inevitably lead to losses. So you can agree to that and bricks down on somebody's head, is guilty of a crime, and therefore it should be once and for all ban. Investigate that gives Leverage, for which he needed, and well I use the shoulder, which we, traders, brokers provide. But at the same time, and what are the "shoulders" are found in the market, and which may, indeed, should not rely.

So, the most common size of the shoulder on the FOREX for investors operating amounts from 300 to 10-15 thousand dollars - 1:100. What happens to your money when you open the account with a broker, is starting to buy and sell currency? What does it mean that the shoulder?

After purchasing, for example, one standard lot, you actually bought a thousand dollars of your deposit with a broker in a hundred times more: 1000h100 = 100.000 dollars and exchange them for dollars. But really in the hands of the money you get can not, yet that had not yet invented a mechanism for a real deal, except robbery. That's the essence of margin trading: you get over the 100,000 U.S. dollars that you give to free loan, the amount of dollars that you can afford at the rate prevailing on the FOREX-market in the twinkling of the transaction. And if obmennike bank rate changes twice a day, the FOREX - every minute, and sometimes every second. If for example you are lucky (or you are clever), and now you buy for example, 78 740 dollars at the rate of 1.27, then after 5 minutes, saw that the rate of 1.2730 is already, you can sell 78 740 euro, with the account of the amount of 100,236 dollars. However, since 100000 you like to give credit, then you are obliged to return them, and your "fat" is 236 dollars.

So, actually, "shoulder" in itself - just a tool to operate in the market FOREX considerable amount, and get serious profit Taya work with very small by the standards of FOREX, the capital. Is there a risk? Of course there is. But the measure of the risk involved - it's your choice. If your capital of $ 10,000, then you have the right to take risks in a transaction not more than 3% of its capital, that is translated into concrete realities of the deal - you can afford in the moderate-risk strategy for trade to stop-loss, 30 points from the price (if you're working with one LOTO). However, if you're not lucky, and you will lose - that no more than $ 300. But if you have "guys are crazy and you do not take a lot for these conditions, as, for example, five, then your potential loss (with stop-loss of 30 points from the price) will have $ 1500 or 15% of the capital. And this has nothing to do with his shoulder. You or tolerated rollicking game, or make it clear what you can afford it or not. And if you do not like risk - and do not need to trade on the FOREX - put money in the bank and get their unfortunate 12-17% per annum. There is no leverage, no risk, no champagne. We should not lament about the terrible risks. They are on the FOREX is, and nothing would not be helped. Do you want to reduce them - save the experience, money, and as soon as you dial 30000 extra dollars - you can easily find a brokerage company with a "shoulder" from 1:50 to 1:30. Major brokerage companies are working with such amounts and with such "shoulders".

However, the market is extended to provide leverage and more than 1:100. For example, GCI (http://www.gcitrading.com) provide an opportunity to trade their clients $ 500 for a standard lot for all instruments, which is equivalent to approximately 0.5% margin or leverage of 1:200.

And here is the shoulder, of course, has a potentially much higher risk than even the much more common 1:100. But again - you need not make claims to the broker, and, above all, to himself. If you can afford such risks in terms of money management, and feel confident enough in the market, why not? Because the shoulder is not only bears the greater the risk - and huge profits. So - who is not in danger - do not drink champagne.

Be in yourself and your equity: if you want, you can and you know how to take risks and win - you no "shoulder" is not scared. If you prefer a conservative trade with less risk, and you have the risk capital of at least 30-50 thousand dollars - you must choose a reliable solid broker, providing the shoulder 1:30. If you are in zakromah "hundreds of millions of dollars, and you do not have to shoulder it - you can trade on FOREX as a major player - through its own bank.