Guidelines For Forex Traders

By Ahmad Hassam

If you don't use common sense than you might as well not trade at all! Someone had rightly said a long time ago that common sense is so common that nobody uses it. Well, if you are going to become a trader than you need a lot of common sense. OK, now a few common sense guidelines for you as a trader:

1) Don't fall into the trap of some unknown broker. Your ability to trade effectively depends on consistent spread and ample liquidity. You should always look for a reputable broker. Anyone can open a position. However, your ability to close a position at a good price is more important.

2) Trading is all about making a long term winning plan. Just try to make more winning trades as compared to losing trades and over the long term you will be profitable. Use the power of compounding over the long haul and you have made your fortune. Trading means making consistent steady profits! Learn prudent money management rules. Avoid using excessive leverage that puts your investment capital at risk. Always trade with a stop! Never try to win big in one single trade. This is not trading, it is gambling. Always live to trade another day. If you believe in winning big than quit trading and start gambling! But if you do that you will only ruin yourself.

3) You should know how to calculate the risk/reward ratio for each trade. Only enter a trade when your risk/reward ratio is less than . Set a reasonable risk/reward ratio for your trades. Never ever override yours tops for emotional reasons. Don't react to price action buying just because you think it is cheap or selling because you think the price is high now. Always use technical analysis to make your decisions. Never ever trade emotionally. Stick to your plan and maintain your trading discipline. Always develop and make a trading plan before you take up trading.

4) Always remember you should plan each trade before actually entering it. You are not a punter. Always plan each trade. Don't punt. Punting is trading for the sake of trading without any planning or view.

5) Don't leave stops at round numbers or obvious levels. If you do that chances are they will be triggered.

6) Don't add to a losing position unless it is part of a plan to scale into a position. In other words, don't double up just in order to recoup your losses. Only do that if it is part of a trading strategy.

7) When trading with a trend always use a trailing stop loss order. When trading against the trend be disciplined in taking profits and don't hold out for the last pip.

8) Avoid emotional highs or lows on individual trades. Consistency should be your target. Treat trading as a continuum. Don't base your success on one trade.

9) Try to trade multicurrency. This will hedge your risk. Always keep an idea on the crosses.

10) Markets hate surprise news. You should know the economic calendar. Don't trade just ahead of an economic news release. Always beware of volatility following the economic releases. Be cognizant of what news is coming out each day so that you never get surprised.

11) Beware of central bank intervention in illiquid markets. Stay away from illiquid times like holidays or pre-holidays when liquidity is thin. - 23211

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. Try These Cash Printing Forex Signals From Heaven. Know A Forex Trading System With An ROI of 3000% Per Month!

Dipping In The Risks Pool

By J. D Theis

Health insurance policies just like all other insurance policies are based on risk assessments from the insurance companies. The risks that the people should have been taking every day are transferred to the risks being shouldered by the insurance company.

The insurance companies are taking risks exactly at the moment they approved your insurance application. On the other hand, insurance companies are compensating for the risks that they are shouldering in behalf of the insurance policy holders through the premium that they are charging. In return, the insurance companies promise insurance coverage.

Knowing where and how you are putting your money on these health plans is a vital part in fully understanding the risks factor of insurance. Insurance companies that offer health policies prepare to shoulder the risks of insuring policy shoppers by the process of risk pooling. Insurance companies are able to pool the risks that they are shouldering through finding the common denominators of their policy holders. The frequency through having a common denominator allows companies to do risk pooling. This process not only reduces the risks that you are taking, but also the companies' risks.

The "law of large numbers" favors mot insurance companies in their attempts to pool the risks that they are taking. For example, insuring individuals who go to different work places are riskier as compared to insuring a certain block of professionals that go in only one working place. A successful attempt to have a group of policy holders with the same risks exposure is good for the insurance companies' business profiteering. The premium paid in medical insurance and other major health compensatory policies are computed through the risks exposures of the policy holders and shoppers.

Being included in a well coordinated health plan on the other hand will assure cheaper premiums in the end of the policy holders. Most insurance companies that offer low cost health insurance look for individuals who are members of a specific block of existing policy holders. It can be said that insurance companies in their own rights are specializing in specific groups of policy shoppers in their attempts of reducing the risks that they are taking. Policy shoppers in particular should take a closer look on the weight of the risks that they are making the insurance company to bear in their stead. A knowledge whether you are included or can be included in an existing risks pool is an edge you can use to press for lower premiums and higher benefits. - 23211

About the Author:

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An Overview Of ETF Trading For Beginners

By Patrick Deaton

Becoming successful at ETF trading will require some commitment and work in order to develop the knowledge and skills that are required to see a substantial gain on a trade. It is important that a person who is just looking at trading as a viable way to increase their portfolio that they have a basic understanding of how ETF works and what to expect from their trading efforts.

There are many Internet sites that offer information, materials, and courses on ETF trading. Some of these courses can be beneficial. However, it is important to do the research necessary to assure that the company or individual offering the book, course, or training is legitimate and has a history with ETF trading that will make the strategy or method they are teaching consistently effective.

ETF is a growing industry. With almost twice as many ETFs in 2009 as there were in 2008, a person has the opportunity to create diversified and valuable portfolio in a relatively short time. Many of the benefits that one gets from ETF trading are not available through other types of stock trading.

ETFs can be traded throughout the trading day. Unlike with mutual funds which can only be traded at the end of the day, this gives ETF traders a tremendous advantage and opportunity. Changes happen in fifteen second increments on the stock index. This means that a great deal of activity can happen during the day. This activity can provide a trader with opportunities to increase the gains and sell when it is most advantageous for them to do so.

Tracking an index like the S&P500 or MSCI EAFE makes ETFs very easy to work with. A unique symbol is given to each basket in ETF so that they can be easily identified. ETF values are based on the weighted average or price of the combined stocks and bond of the companies within a basket or sector. This can confuse some people who expect larger gains because they have not included the calculation for all stocks and bonds in their figures.

For trading purposes, ETFs act just like other stocks. A person can use a stop-loss order, limit order, bracketed buy order, etc. Another advantage of ETFs is that a person can short sell at any time. Other stocks cannot be sold short if the price of the stock is below its last price. With an ETF a trader can short sell when the stock needs to be moved immediately.

Many individuals are learning about the existence of ETFs because they are seeing them as an offering in their mixed portfolios. More large companies are including ETFs in their offerings because long term ETFs offer low risk to the overall portfolio of an investor and steady growth. Many large businesses are buying creation units so that they can diversity the options within their programs even further.

When deciding to enter ETF trading a person will want to do the research necessary to be successful. It is important to learn about how ETF is structured, how trading works, and what strategies can be employed to have a successful trading career. Discussing ETF with a person who knows the intricacies of the fund will provide one with the information and direction they need to become a successful ETF trader. - 23211

About the Author:

Learn how it's very possible to make 6% per month in your investment accounts using etf trend trading! "Big A" is a recognized expert in the world of etf trend trading system and reveals trading and investment secrets that have been kept under wraps by hedge traders for years. Give him your email and get a free report and webinar today!

Lowering Health Insurance Quotes

By J.D Theis

Health insurance is a necessity for most people these days since paying medical bills independently can be very hard. Health insurance helps people pay for medical expenses and medical bills when something goes wrong. The following paragraphs will tell you how you can get low health insurance quote so that you get cheap insurance and maximum benefits.

The first way to get low health insurance quotes is by making a list of the features you want. Many insurance companies offer features that are not necessary and by opting for only necessary features you can get a low quote. The second way to get low health insurance quotes is by comparing health plans and prices. By comparing features and prices you will understand which company offers more benefits for a cheaper price. Some websites allow users to compare health insurance prices online for free.

The third way to low health insurance quote is by staying healthy. If you smoke or drink alcohol then you should try to limit your intake. Although completely leaving these substances is considered the best, you will get a lower quote if you reduce your intake by 25 - 50%. Insurance companies charge a less premium to people who do not smoke, do not drink or who smoke and drink less. By stopping dangerous activities like paragliding, bungee jumping, mountain climbing or deep sea swimming you can also get a lower quote.

You can also get a low quote by increasing your deductibles. People who pay more out of their pockets are asked to pay lower premiums by insurance companies. Another way to get a low quote is to change your co insurance ration. The co insurance ratio is a term used for the total amount to be paid after you have met your deductibles. The common ratio for health insurance is 80/20 which means that your insurance company will pay 80%. By increasing how much you will pay you are assured to get a lower quote. Some health insurance companies use the credit score as a basis for premium so if by settling any pending dues you can get a low insurance quote.

If you want to take health insurance for you and your family then you should consider opting for group saving plans. These plans have a lower premium provided a certain number of people register and significant benefits are also offered in such plans. - 23211

About the Author:

Insurancecaredirect is the website that is designed to answer all your questions relating to individual insurance. You will also be able to get good health insurance quotes from which you can choose.

Looking For Ways To Receive Free Car Insurance Quotes - Look No Further

By Andy Zain

Every driver in the United States is required by law to provide proof of insurance coverage if they get pulled over by the police. If a driver cannot provide law enforcement with proof of insurance, they will likely be faced with a hefty fine, along with a suspension of their driving privileges. In order to help people obtain adequate coverage, many insurance companies offer free car insurance quotes to potential customers.

The first way you can get free auto insurance quotes is to make some phone calls. Call around to your local auto insurance companies and ask them for free quotes. Most companies will jump at the chance to provide this service to any potential customer. In most cases, you will be required to answer some questions to help determine a specific price. The questions also help to determine which type of policy might work best for you.

The only downfall associated with getting a free quote via the telephone is this. Suppose you decide that you are satisfied with the quote you are given. If you wish to go with this company, there is no way to get your proof of insurance instantly. Your choices then would be to wait for it to arrive via postal mail, or visit the local branch of the company in person.

An alternative to using the telephone to help you, you can visit your local insurance companies in person in order to get your free quotes. They will have you fill out an application, so they can figure out which type of policy will fit your needs the best, as well as what rates to charge you. If you go to the insurance companies in person, they will give you a copy of your policy, as well as your insurance cards, before you leave their establishment.

Some people chose to mix the above methods of getting free car insurance quotes. They will use the phone to get the initial quotes, then go into the office to purchase the policy. This way they can get the proof of insurance they may need instantly.

Lastly, most households in the United States include a computer. You can get free insurance quotes from many insurance companies by utilizing the computer. Company websites often provide a short application in order to receive your free quote. It is also possible to purchase your policy via company websites, thus, allowing you to receive physical proof almost immediately. You can opt print your insurance card from your very own printer.

It can be a fairly simple task to get free quotes for auto insurance. If you follow the advice above, you can make the task even more simple. - 23211

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