November 2018 – Page 2

Currency Trading System – Building One For Big Profits in Simple Steps Part 1

Posted on November 13, 2018 by blogger

Most novice traders think building their own trading currency trading system is hard but it’s a lot easier than you think and here we will look at how to put one together that will win in 3 simple steps.

Most novice traders make the mistake of buying a currency trading system from a vendor which is normally an equation that has a simulated track record and lose.

Lets face it most systems sold online are junk but there are a few good ones and traders still manage to lose with these.

Why?

Because they are following someone else and don’t have confidence to follow the system through periods of drawdown to longer term currency trading success – this is precisely why you should develop your own.

This is the equation for market success:

Logical Robust Method + Discipline to Apply = Forex Trading Success

If you learn and understand your system you will have confidence in it and will be able to follow it with discipline. Discipline comes from understanding and confidence and that’s why you should take time to build your own.

When building a forex trading system there are a few points you need to keep in mind:

Simple Systems are Best

Simple systems are easier to understand, easier to apply and more robust in the face of brutal ever changing market conditions.

Trade Longer Term

Never day trade you will lose as all volatility is random choose currency swing trading if you lack patience or long term trend following if you are more patient.

Three Key Elements To Understand

The easiest way to trade for a novice is to use a breakout system.

It’s a fact that most major moves start from new market highs so you need to be prepared to buy them.

Most traders simply cannot do this and that’s precisely why it works. While you take the break they wait for the pullback that never comes.

Trading breakouts are when the odds are at their best and if the breakout is of an important resistance level a mega trend can often follow which accelerates away and doesn’t pull back and it’s a great feeling when you are on board and the losing herd are not.

Trading breakouts is simple to understand and easy to apply you only need two other elements that you need to understand.

Support and resistance and its validity

The more times a level has been tested the more valid it is and if these tests take place in time frames that are wide apart even better.

And

Confirming the move with 2 or 3 momentum indicators to execute your trading signal. These are simply leading indicators that you can use in forex technical analysis and apply on your forex charts to give an idea of shifts in price momentum and see if velocity of price supports your view.

In part of this article we are going to show you how to put this forex trading strategy and apply it for profits – will it work? The answer is yes and more importantly, as you will understand it you can apply it with discipline for currency trading success.

We need to elaborate on the following points but in part 2 we will bring it altogether and give you your currency trading system for profit. PROFESSIONAL FOREX TRADING COURSE and FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf’s with 90 of pages of essential info and an exclusive Currency Trading System visit our website at: http://www.learncurrencytradingonline.com/index.html

Emini Trading Room Facts Rookie Traders Should Know

Posted on November 10, 2018 by blogger

It is assumed when we want to gain knowledge of something different, most will unsurprisingly try to find the best foundation of expertise that can quickly supply us with the education we require to step up to speed on no matter what the area chosen may be. Emini trading is one topic which commands new participants to rapidly increase the needed expertise to be successful or risk blowing out their trading accounts. One way to gain understanding rapidly is by enrolling in a index futures trading room over the Internet watching knowledgeable traders as they execute trades.

Rookie traders ought to be cautious and steer clear of trading rooms which require considerable membership fees as this can have an influence on precious trading resources. If you’re like many green emini traders, you don’t have limitless money on hand to play the emini market and shell out unreasonable fees to a emini trading room. An emini trading room should be an education site for rookie traders, not the major basis of income for the trading room owner. The new trader should not have to go broke paying fees each month while learning to be self sufficient, hopefully and eventually reaching a spot where he no longer requires the help of knowledgeable traders.

Index futures trading rooms headed up by knowledgeable traders are best for learning to identify trading set-ups which boost success rates. Some set-ups are better than others with traders using them with differing amounts of success. Depending on existing market trends, the trader will use different set-ups to either go long or short the market. Charting patterns and sectors of support and resistance are favorites amongst future traders. Each trader has a unique character allowing each trader to exploit a broad variety of market entry.

Finding a emini trading room which has a confirmed record of success and also one that does not charge excessive monthly fees is the best route for traders that are interested in making emini futures trading a full time career to earn an income. Upon becoming a member, the apprentice will swiftly enhance his comprehension of the futures markets by observing as experienced traders carry out live trades throughout the market day. Several host of emini trading rooms will frequently permit their members after hours time to ask questions to help them better absorb the index futures markets once the daily session has ended.

On The Most Frequently Asked Questions Regarding Our Oil Derivatives Trading Business

Posted on November 3, 2018 by blogger

Are there certain laws you have to follow in International Global Trading?
The laws are UCP600, Incoterms 2000 and the ICC Paris. You want to make sure whatever you write and whatever documents you sign these laws are mentioned. These laws are applicable to all trading countries in the world including the US. Hence, If your payment instrument is a DLC then you would want to state in your document that your financial instrument is a Documentary Letter of Credit defined under UCP600 procedures. This prevents any misunderstanding of the type of payment being offered. Also, this removes any grief that could prevail without the UCP600 procedures.

2. What is a soft offer?
There is no such thing as a “SOFT OFFER”. A “Quote/Offer” is a soft offer. A quote need only to be confirmed. Once confirmed, a full offer is advised. Once accepted the contract is advised.

3. Isn’t the buyer with the money the most important thing in securing an oil deal?
Not understanding why the supplier needs to be secured first can get an intermediary in a lot of trouble. If an end buyer issues a DLC (Documentary Letter of Credit) to your account (the controlling intermediary) under the impression that you have a supplier (because of quotes you received from another intermediary seller) and the intermediary seller really did not have a supplier then you can and will be charged on fraud. The end buyer went through an expense setting up the DLC and in return was defrauded by you. It is without say, you are in a serious situation. So secure the supplier first, find the buyer second. Once you get a quote from the person who is in actual possession of the product (supplier) then seek the buyer.

4. Is there a difference in a “RFQ” (Request for Quote) from an End Buyer to a Buyer/Seller as opposed to a “RFQ” from the Buyer/Seller to the Supplier?
Yes, there is a difference between the End Buyers RFQ and the Buyer/Sellers RFQ. The RFQ from the End Buyer to the Buyer/Seller is a request for a quote to buy the product. The RFQ from the Buyer/Seller to the Supplier is a request for a quote to sell the Suppliers product. This is why an intermediary cannot give an “ICPO” to a supplier. The intermediary is not purchasing the product. Only the person who is taking possession of the goods is purchasing the product. The intermediary only takes possession of the Title not the product. The intermediary deals in documents only not the product itself. The “Quote from the Supplier is the first most important document. Without a quote from a real supplier you have nothing to start a deal. Supplier first, buyer 2nd. Here is a small example of a RFQ transaction:… Your neighbor Joe has a sports car in his driveway for sale and you say to him (“Hey Joe how much do you want for your sports car; I think I know someone who might want it.) You have just requested for quote from Joe to sell the car, not to buy. Now you advertise that sports car and a potential buyer asks, how much for the car?. The buyer is requesting in here for a quote to buy.

5. If I have secured a supplier should I ask for a mandateship?
No. A mandate to a supplier is an agent who acts on behalf of a disclosed principal. A mandate is not just given to a person; (as implied so often). It has to be earned, after a strong relationship has been built from many years of dealing with a principle supplier. The mandate agent can only act under the instructions of their principle (supplier) who must disclose to end buyer immediately when the offer is made to an end buyer; and in closing the deal, the mandate agent would be paid a by the supplier is often the end result. The mandate agent gets no commission from the buyers side of the deal.
A mandate agent has to close many deals in order to get any reasonable commission amount from the supplier. Many intermediaries claim mandateship because they think being next to the supplier as a mandate agent is putting them in a great position. This is incorrect. An intermediary in a chain deal will make a great deal more money than a mandate agent. The best position in a deal is the controlling buyer/seller intermediary. The buyer/sell must know procedures really well and act in the best interest of all parities on both sides of the deal. Forget about becoming a mandate holder of a principal as it is not a feasible position to hold if you are looking to make the big money. Learn the proper procedures, rules and policies and become the legally defined Buyer/seller.

6. What is really POP?
P.O.P as often seen on the Internet is basically Proof of Product. Intermediaries cannot give POP if they have never even seen the goods; and even if one goes to the supplier’s country and looks at the goods he is going to purchase, there is no guarantee that the goods he has seen, will not be sold to someone else tomorrow. A Proof of Product (‘POP’) is often requested by buyers or intermediaries who believe it will give them some guarantee of the existence of the product and ability of the supplier to deliver. Many POPs produced are fake. The POP offers no proof at all, because once a POP has been drafted, it is automatically out of date. The product could have been sold to another buyer and no longer exists. If an end Buyer were dealing with a supplier, anything can be suggested especially in matters of POP. But no matter what the End buyer demands, he will still need to produce the financial instrument to pay for the goods before a supplier will even consider making any effort in getting goods ready for delivery. When an end buyer asks a buyer/seller he needs a POP before financial instrument is in place, he is really saying : Please tell me who your disclosed principal is so I can circumvent you. POP really does not really give any proof, but it will give the opportunity for circumvention.

7. What does NCND or NCNDA mean?
NCNDA stands for (Non Circumvention, Non Disclosure Agreement.) This document is not worth the paper it is written on. If you have your name on this document and get circumvented, do you have hundreds of thousands of dollars to pay to take this through the international courts? This is a document that is very hard to enforce. Only a misinformed or unskilled intermediary/broker would send you a NCNDA.

8. Is the NCNDA any protection for an intermediary?
Not even close to protection. The NCND is totally useless piece of paper unless the product is in your own country. Internationally, this documents floating around the Internet is impossible to enforce in a court of law.

9. What does FPA, IFPA or IMFPA mean?
IMFPA stands for (Irrevocable Master Fee Protection Agreement.) The FPA (Fee Protection Agreement) and NCND are usually attached to each other. FPA / NCND is not the proper way to protect intermediary/brokers interests. Beware if someone claims to be the Mandate, Supplier, End Buyer while at the same time requesting FPA and NCND. A real mandate never fears circumvention as he is protected by the one who extended the mandate to him. A real supplier and a real End Buyer dont get commissions.

10. Does the MFPA (Masters Fee Protection Agreement) enforce payment of commission?
The flawed document MFPA does not protect a commission payment. There are documents under International Law that can protect your commission but the MFPA is not one of them.