Fibonacci Numbers - Using Them For Bigger FX Profits

The Fibonacci Number sequence and trading Fibonacci retracements is very popular and are used to enter and exit trading signals with greater accuracy and make bigger profits - let's take a look at them in more detail.

Leonardo Fibonacci was an Italian mathematician.

He lived in the 13th century Italy The Fibonacci sequence was originally printed in the Liber Abaci, in 1202. The Book, introduced Hindu-Arabic numerals to European mathematics to replace Roman ones.

The Fibonacci number sequence was actually devised to solve the following problem:

How many pairs of rabbits would be produced from a single pair, assuming that each month each pair produces a new pair, which, from the second month, starts producing more rabbits again?

The definition of the sequence is a series of numbers where each number is the sum of the two preceding numbers; 1, 1, 2, 3, 5, 8, 13...

When applied to forex trading it's the ratios derived from the sequence that are used on forex charts:
236, .50, .382, .618, etc.

These Fibonacci retracements can then be used to execute trading signals into important areas of resistance.

The two Fibonacci percentage retracement levels considered the most important are: 38.2% and 62.8%.
Other significant ones are: 75%, 50%, and 33%.

So can the Fibonacci number sequence help you become a better forex trader?

The answer is no they cant.

This is not to criticize Leonardo Fibonacci who was a talented man or a brilliant mathematician, but the levels have nothing to do with trading and were he alive today, would probably be horrified at the way his theory has been applied by the far out investment community.

The myth that the Fibonacci number sequence can be applied to trading has been perpetrated by vendors who see a good story and sell systems based upon it, of course they don't work - it's a great story, but so's Harry Potter and I don't use that to help me trade either!

You will hear that the sequence is part of natural law, which postulates that human psychology is constant and therefore repeats in line with the numbers.

However if you think about it, human nature is not predictable and NOT scientific in anyway. If it was, we would all know the answer in advance and there would be no market.

The number sequence comes up a lot in conjunction with Elliot Wave and Gann which are other scientific theories which claim to predict the future.

How accurate are they?

Probably as accurate as your horoscope.

If it's a scientific theory should work ALL the time, otherwise it's NOT a scientific theory by definition. Of course, if these theories really did work, the vendors who sell them wouldn't need to part with them for a few hundred bucks, they could keep quite and make millions.

What you really need to do when trading is think of trading as a game of odds - not certainties - because that's what it is.

That doesn't mean you wont make a lot of money you will - sure, you will lose some trades but if you trade with the odds, you will win more times than you lose and make a lot of money over time.

So if you want to trust your forex trading to a theory based upon the copulation of rabbits then go ahead - but really there are better ways to make money
.

Leave the Fibonacci number sequence to the dreamers and lazy traders and trade the odds for profit.by kelly price

Market Timing - Predicting Tops and Bottoms In Advance

The aim of most forex traders is to get accurate timing and pinpoint market tops and bottoms and here we will look at the two major ways traders' use market timing to do this. The concept of predicting market tops and bottoms in advance is based upon these two beliefs.

1. Markets Move To scientific formula

Traders here use methods based around Elliot Wave, W D Gann and Fibonacci to do this. These theories are based upon the concept that as human nature is constant market behaviour repeats itself with scientific accuracy.

Markets however do not move to a scientific theory and its obvious why:

If they did, we would all know the price in advance and there would be no market. A market such as currencies moves on the basis that prices cannot be predicted. Furthermore, if it's a scientific theory it should be objective and tell you EXACTLY what to do with no subjective judgement - None of the theories above do - so they cannot be termed scientific.

As you can gather they are all subjective and don't work and are probably about as accurate at predicting market behaviour as your horoscope.

2. Buy Low sell high

Other traders try and predict markets and improve their market timing by buying "low and selling high" but is a misunderstand the concept.

For example, they see prices move to support and buy and this DOES not work.

Why?

Because if you do, you are hoping or guessing a level will hold and that's not a way to make money in any venture and will be disastrous in leveraged forex trading.

The way to do it properly is to get the odds on your side.

The way to do this is to make sure you have evidence that the level has held I.e. prices have reversed and turned back around the other way.

Sure, you miss the bottom but you can't predict that anyway. By buying at a higher price, you are ensuring the odds are on your side and with market timing that's exactly what you need - the odds on your side.

For this you need to use momentum indicators, we don't have enough time to discuss them here - but if you want to win you need to use them, so make learning about them an essential part of your forex education.

UNDERSTAND THIS!

If you are trading forex markets and looking for better market timing, remember that forex markets are a game of odds NOT certainties.

If you predict you are not trading with the odds and will lose, prediction is doomed to failure.

Traders who predict tend to be naive or lazy and think making money is easy, it's not - but its not hard either if you trade the odds correctly.

You are essentially playing the markets, like a good poker plays hands.

He doesn't predict the odds - he sees their in his favour and then acts from the cards on the table, He doesnt try and guess what may or may not come out of the pack.

He doesn't win every hand, just as you wont win every trade - but over time he will pile up a lot of money and that's your aim in currency trading - play the odds and win big.

If you understand the above in terms of market timing, you are well on your way to making big consistent gains and enjoying currency market success.by kelly price,

Forex Brokers - The Perfect Service for Novice Traders

If you are considering trading with a forex broker, here is news of a service that is great for seeing if you have what it takes and is much more realistic than a demo account. If you are interested in trading and worried about the risk, then these accounts look a great way to get started.

A protected account introduces potential traders to the lucrative world of currency trading - but unlike a demo account, allows them to feel what trading is really like with limited risk.

For a set period they get to trade as much as they like with a set leverage and can even trade with a negative balance at the end of the set period - any profits the trader keeps any losses the broker covers.

Low Initial Deposit

These accounts can be traded with a small amount and the only risk is the initial deposit and unlike a real trading account, if you go debit you still can trade for the period the account is set up for.

Leverage and Low Risk

At any point during the two-week period, a trader may control up to 100 times his initial deposit, regardless of the actual balance in the Protected Account. The trader may make as many trades as desired, 24 hours a day, using any currency pair.

At The End of The Period - clients Takes Any Profits Broker Covers Any Losses.

Positions are closed automatically at the end of a set period normally after two weeks.

If there is a positive balance, it will be transferred to the forex trader's regular account. If there is a negative balance, the broker covers it.

Getting the Feel Of Trading With Limited Risk

A regular demo account, though a very useful tool, for learning a trading platform or the basics of trading does not simulate the feeling of trading real money.

A Protected Account acts as a step up between a demo account and a real one, providing an authentic trading experience, with managed risk which many traders want, so they can test their skills before opening a full trading account.

Any trader will tell you that trading with money on the line is totally different to trading a demo account, as your emotions are involved, discipline needs to be kept and this is why 90% of traders who win with a demo account lose real time. A protected account lets traders feel what its like to trade for real, with a small risk, unlimited trades and limited risk in the period which is a great way to see if currency trading is for you.by kelly price

Forex Systems - What They Don't Tell You

There are a lot of things to consider when performing a forex system comparison. There are a lot of forex system providers out there, this top 10 list will assist you to pick the best one for you.

1. History - What kind of history does the system vendor provide? A good strategy method provider should be able to tell you how the system has performed on a monthly basis for at least the past year. If the strategy method has not been running for a year, ask what the back-test results were.

2. Draw-down - Drawdowns are unavoidable in trading the forex market. There are a lot of forex systems making 1000's of pips every year, but they fail to tell you that you could have lost all/most of your account before making those 1000's of pips. You should always check what what draw-downs the system has had in the past and use this information to determine your trading size to ensure your account is not wiped out. Think about the emotional impact of the draw-down, would you have stuck with it?

3. Reviews - Do a google search to see if others are trading the same forex strategy method. Have a look what others are saying about the system. Find out if the strategy method has its own forum and have a look at the feedback the strategy method is receiving. Often users have found a better way to trade the system by tweaking it, check what the latest settings are before you get started.

4. Win Ratio - Professional traders often have a win ratio of only 50%. They make profit by managing the trade, by cutting losses short and letting profits run. Systems that have an unusually high win ratio are not necessarily better and may be too good to be true.

5. Stop/Limit Orders - Find out that the strategy method uses stop orders. A stop order should be set to minimize your loss if the trade does not go in your favour. Without a stop order set your losses could be huge.

6. Paper Trade - Before trading any strategy method with real money you should paper trade it, or trade it using a demo account. This will give you a chance to get used to the strategy method until you feel comfortable with it, and give you an idea if you should trade it with real money. Many systems can also be back-tested to give you an idea of how the strategy method performed in the past.

7. Timing - Find out what kind of time commitment the strategy method requires and consider how this fits in with your schedule. You should also check when you need to be at your computer to trade the strategy method.

8. Money Management - What kind of money management strategy method does the strategy method use? Systems that recommend you increase your trade size after a loss are not generally recommended by the trading community.

9. Additional Costs - Find out what additional costs you will incur to run the strategy method. Does the strategy method require a specific charting package or data feed to run?

10. Refund - Find out if a refund is offered and what the conditions are and if they can be met easily.by Jon Provencher

Factors that Affect Forex Trading

There are several external factors that affect Forex currency trading. These factors include trade reports, GDP, unemployment, international trade, manufacturing etc. The growth or decline in these factors affects a country’s currency value.
Foreign exchange is a continuous global market, providing a 24-hour market access to its players. Since it is open only 5 days a week, so weekend is the closing period. Although foreign exchange is the most liquid of all markets, the fact that it is an international market and trading 24-hours a day, the time of day can have a direct impact on the liquidity available for trading a particular currency.
The major centers and time zones are that of Sydney, Tokyo, London, and New York. Therefore, forex alerts must consider which players are in the market, since in the modern interconnected financial world, events that occur at any hour, in any part of the globe, can affect some or all parts of the investment community.
In forex trading, you are not ignorant like one remains in stock for a considerable period of time about the news affecting the liquidity of a stock. In stock market, you come to know about inside trading, revision in earnings only after the market has reacted upon it.
But in forex currency trading, this is not the case. Here you get various forex signals. Significant information affecting a particular currency becomes known to everyone in the trade instantaneously. There isn’t anything as insider trading in a forex market.
There are many online forex trading startegy sites. They all maintain a global economic calendar. This calendar indicates the major forthcoming economic, financial and business related events all over the world and which can have important bearing on foreign exchange market. What you have to do is to keep a track of all important events and news.
Certainly, it will not be an easy task to watch constantly all the factors affecting foreign exchange trading market. They change in importance over time and condition. But the information is available to anyone and for use to one’s benefit. A currency trader has got a chance to react immediately to any new information.
Unlike stock market, another important advantage forex trading offers is that you can do foreign currency trading almost from anywhere from the world. There are so many online forex trading signal platforms available to get instant information and to act within time.
Most important GDP figures that affect forex trading are of USA, Japan, Canada, Australia and Britain. China is also expected to be a major force in online paper trading in near future.
Central banks play a significant role in the forex market because they have the responsibility of changing the country’s “base” interest rate. A central bank has to maintain growth in the economy in accordance with inflation, so it creates a good balance in interest rates. The bank’s decisions on whether to raise, cut, or hold the interest rate fuels speculation in the forex market, where the value of a currency, or group of currencies, changes in real time. Natural disasters, terrorist attacks, and militarily actions in a sensitive region can have a significant impact on the forex market as they create a disturbance in the world. by Maco

Become An Affiliate Free of Cost

Do you have a website? That alone can get you rich! You may participate in one of the abundant affiliate program opportunities available on the Internet. You need to simply put a link to your partner website on your site and you will start earning money each time you send them a customer!

If you're currently not participating in any affiliate program, partnering with a well known company that offers an affiliate program for free, will give your website the tools and revenue it needs to seize a part of this highly lucrative market.

For an affiliate partnership that demands zero or minimal investment, the only requirement is a computer with an Internet connection. You need to become an affiliate for a good company and start earning commissions by promoting their products, and converting visitors to your website into customers of your affiliate sponsor. So, there's no need for you to have your own product to sell, but you are just promoting someone else’s product to generate sales for the same, and get paid in return. However, this does not mean that there is no work involved as an affiliate. Some effort is to be put in the marketing strategy exercised to promote products through your web site or newsletter. An affiliate free of cost does not mean hard work is not required.

To become a successful affiliate you should be able to understand your role and your duties. You should be able to generate leads for your sponsor company using email newsletters, but a web site is essential if you hope to make serious income. Today, it is even possible to have your own website without having to pay a cent to create one, nor is it necessary for you to be technically knowledgeable. There are a lot of web sites offering free web space without any cost. You just have to register yourself and you can easily develop your own web site by just clicking a few links. Once, you have a free website, it's time to research affiliate companies!

A successful affiliate is one that picks the right product to promote. It has to be something that is not only connected to your line of business, but a product that interests you and is also popular in the market. For instance, if you have a website that renders information and advice about health and fitness, it would be great to enroll with an affiliate program of a fitness equipment selling company or a website that promotes yoga, and so on. Not only will you and your website be closely linked to that product and service, you'll end up earning a very high commission on every product sold.

As mentioned earlier, registering with an affiliate program is not the end of the story and merely doing that is not going to bring you dollars. The success of an affiliate marketing business is promotion. If your site can draw people’s attention and then direct them to the affiliate company's web site then your earning potential is limitless.

However, looking out for an affiliate program that is merely free isn't the best of ideas. It's good to deal with companies that have the same customer service attitude that you and your company have. Besides, the affiliate program you choose must be the best performing and professionally run affiliate program. Look for a great staff that is easy to work with that offers great service!

Paynet Systems, a name to reckon with in the Credit/Debit Card Processing industry, is also a leading provider of the most successful and innovative affiliate program in the marketplace. Partners at www.paynetsystems.com are supported with cutting edge technology, highly competitive travel products and industry leading support.

Why the affiliate program at Paynet Systems? That's because the trend of using credit cards, and credit card processing is growing globally, and Paynet Systems at http://www.paynetsystems.com/html/affiliates.htm can help you get a piece of the most popular online consumer service.by Paynet Systems

How to Promote an Affiliate Program Using Powerful Endorsements

If you want to know how to promote an affiliate program successfully, you must choose the appropriate words in your promotions, as well as deliver your marketing message in a way that influences prospects to build an intense desire for the product. Learn how to promote an affiliate program using persuasive endorsements, and you will soon find yourself earning massive affiliate commissions.

Here are some excellent tips to write compelling endorsements or advertising messages in promoting affiliate products.

1) Master the art of writing attention-grabbing headlines and subject lines. Your promotional messages will not be read unless you grab the readers' attention right at the start. You have to entice them enough to make them stop what they're currently doing and read your message. This is probably the most important step on how to promote an affiliate program effectively.

2) Target the emotions. People respond better to emotions than logic. In fact, research suggests that we rely on our emotions most of the time when making decisions. Therefore, you should aim to expound more on the affiliate product's benefits (which appeal to the emotions) more than the features (which appeal to logic). Here are examples of features and their corresponding benefits:

Feature: This drink contains catechins.
Benefit: This drink prevents the growth of cancer cells.

3) Organize related sections and group them into subtopics. Each subtopic should have a convincing subheadline. For easier reading, use bullets when you have a list.

4) Know the product you're promoting inside out. Buy it, then read or use it. List the negative points (if any), before countering them with the overwhelming benefits. Write an unbiased review or testimonial after using or applying the product. Make sure that you relate your actual experience and not make up something just to make some quick sales. Earning your customers' trust is of utmost importance.

5) Write short sentences and limit each paragraph to 4 lines if possible. Long sentences and paragraphs are harder to read. The more effort the reader exerts, the more chances he will get discouraged to read further.

6) Use simple yet hypnotic words. Use the software from mobysaurus.com to come up with the most appropriate words to use. Highlight the most important words or statements. Try to include the word "because." People have reasons for everything, so state the reason "why" because it justifies your cause.

7) Include endorsements/testimonials from famous people, as well as people whose personality/occupation fits with the product. A copywriter's endorsement for a persuasion book is better than a chef's. (The case would be different though, if the endorsement comes from a well-known personality. In this case, the endorsement will be well received notwithstanding the product.)

When the endorser's reputation has been tainted, remove his testimonial from your promotions.

8) Write a riveting story that connects with the product you're selling and the action you want people to take. When you tell a story, you lower the readers' resistance, make complicated things easier to understand, and perk up their emotions. You get them to escape temporarily from the real world and enter another dimension. When they are in storyland, their minds are more open to accept concepts and ideas that they have previously denied.

Engage as much of their senses as possible. Let them see, hear, smell, taste, and feel the various aspects of your story, then tie them in to the affiliate product.

Now you know how to promote an affiliate program using compelling words and messages. Apply these useful tips now and boost your affiliate earnings! by Michael Lee