How To Profit From Box Breakout Strategies In Ten Minutes Per Day

While there are several trading approaches that can be used to profit from currency trading, Box Breakout strategies remain one of the most popular. There attraction lies in the simplicity that they bring to trading as a well as the acknowledged potential to generate high profits. This approach to trading has long been used by traders for these very reasons. It is suited to both experienced traders as well as new traders who are looking for a reliable means of making their first profits from Forex trading.

One of the first rules of trading is that you should be able to understand the mechanics of your trading system. This is not only vital in terms understanding the logic of what the system is trying to achieve but will also able you to implement the strategy correctly. Complicated systems may offer you the chance to make profits, but if you are unable to execute them correctly then you will soon see any profits slip away.

The Box Breakout makes use of an easy to understand concept. The box that is alluded to in the strategy name is formed by upper and lower boundaries in the market with the sides of the box being formed from the start and finish time of the period of analysis.

As the second part of the strategy name suggests, what is looked for is a breakout from this range in either direction to signal a trade entry. Once the market moves beyond the ‘box’ and the move is confirmed, the expectation is that momentum will build as the market moves beyond the prior identified range. A stop level is placed usually either beyond the lower level of the box or below the level of the break.

Trading strategies based upon Box Trading are common and will usually be traded at set times of day. They work best at times of high volatility when the market is most likely to break a prior range. Typically the opening of a market session is used to trade these breakouts as the higher level of volatility at these times can see strong momentum build following the break. This allows not only offers the potential to back strong market moves but also provides a defined time for trading.

A good illustration of breakout trading is the opening of the London Forex markets. As the busiest time in the financial trading day strong breaks are often seen following the relative calm of the prior Asian session. While breakouts can occur on many currency pairs at this time of day it is the European based currencies such as the British Pound, Euro and Swiss Franc that will most commonly exhibit the strongest moves.

The key to maximizing your trading profits from this strategy is to wait for a confirmed move before entering the market. ‘False’ breakouts can often occur which can see the market suddenly reverse from its initial break. Therefore it is vital that any strategy you use has rules in place that help prevent the occurrence of false breaks or instead provides you with a strategy to profit from these moves as well.

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Forex Trading for Total Beginners

Stock investment, binary options, and foreign exchange (Forex) trading – these are some of the popular ways of generating additional income aside from choosing the traditional ways (building a small business or applying for a part-time work). Which do you prefer? Oh, so you’re already familiar with stock investment and binary options. You don’t mind trying them but you would be glad to learn about other potential sources of investment income. And so, your wish is my command! You landed here because you want to know some facts about Forex trading, didn’t you? This article won’t make you an expert on the subject, but it can certainly answer the simplest questions that you have at this moment. No need to beat your brains out!

The Basics of Foreign Exchange

Currencies and foreign exchange are important to various people in different parts of the world. They are needed to keep foreign businesses running. For example, you are an American tourist traveling in Europe. Of course, you can’t pay in dollars to go to the popular tourist destinations there. You will need to exchange your dollars for the local currency.

So you see, there is a continuous need to exchange currencies. Due to this fact, Forex market has become the biggest financial market in the world.

Forex Trading Defined

Doing this type of investment means you’re trading currencies against each other. You may opt to buy one while selling another. When you trade Forex, you basically attempt to make a profit by guessing that the value of one currency will go up or go down compared to another; for instance, a lot of EUR/USD. You choose when you want to close the trade. You can do it anytime the market is open.

Some Advantages

So, you can gain profits. What else? What makes this type of trading a lot more beneficial to you?

• You can try a free demo account.

This is mostly beneficial for beginners like you especially if you are a bit doubtful about yourself. Trying a free demo account prepares you for the time that you will need to really invest your money in the hopes of earning real profits. It likewise helps you figure out if Forex trading is for you.

• The market trades 24 hours a day.

So, you don’t plan to do it full-time. That’s just fine. You can trade at any time of the day because the market never sleeps.

• There is no fixed lot size.

Want to participate with a small lot size, let’s say, $25? No problem! You determine your own position size.

There you have it; the set of basic pieces of information about Forex trading. Do you want to try it? Or do you want to learn more detailed facts? You better choose the latter for now. There are numerous things you need to know, and you should make the most out of your resources. The good thing is, there are lots of them! Indeed, you need to be very careful in trying to make an investment. But it also pays to be bold enough to take risks. Just make sure you are equipped with enough knowledge about what you’re doing.

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Multinational Companies (MNCs) Defined

Many authorities, scholars, and authors have variously defined multinational companies from different perspectives. Some of these definitions are meticulously written below:

The Research Machines (2004) gives four definitions to MNCs. First, it defines MNC as a corporation that has its facilities and other assets in at least one country other than its home country, or that, which has offices and / or factories in different countries and usually has a centralized head office where they coordinate global management. Second, it defines MNCs as a business enterprise with manufacturing, sales, or service subsidiaries in one or more foreign countries, also known as Transitional or International Corporation (TNC or INC).

The third definition given by Research Machines is that which sees MNC as a company or enterprise operating in several countries, usually defined as one that has 25 percent or more of its output capacity located outside its country of origin. The last definition as given sees MNC as a corporation or enterprise that manages production establishment located in at least two countries.

All these definitions, as given by Research Machines (2004) identify that MNCs operate outside its own home country. Research Machine's first definition point out to a crucial point that MNCs also acquire assets in these foreign countries where they operate and possibly own offices / factories to ease achievement of objectives. This means that they do prefer to make use of the available resources of the host country. Likewise, it added that MNCs do have a place; usually the global headquarters are also put in place. This means that reports on finances, sales, purchases, marketing, etc are properly coordinated and accounted for at the headquarters.

Research Machines' second definition points to another vital point about MNC stating that their services is not limited to manufacturing alone but also includes selling and reminding services through sales and service subsidiaries. Research Machines' third definition goes further to allocate percentage to MNCs output. It stated that for a corporation to be termed multinational, it should have gotten its output of 25 percent exported to other countries. What could be deduced from this is that a corporate may be operating outside its country of origin but can not be referred to as MNC except it has disposed 25 percent or more of its output to outside countries.

The Encyclopedia of Management (2005) put multinational companies as businesses concern with operation in more than one country. These operations outside the company's home country may be linked to the parent by merger, operated as subsidiaries or have considerate autonomy. According Drucker (1974), THE multinational company grew from the emergence of a genuine world market demand transcending national, cultural and ideological boundaries, due to the information explosion.

Iyayi, Agbonifoh and Ehiametalor (1984) see multinational companies as multi-management with several layers of management decision making bases from local to regional to global. In the words of Hodgetts and Luthans (1997), multinational companies are firms having operations in more than one country, international sales, and nationality mix of managers and owners. Coventry (1981) and Johansson (2000) give the same definition to MNCs, as companies that usually have a number of foreign production sites and thus a number of international markets.

Going by all these definitions highlighted above, it could be asserted that they all took a multinational company and defined it from structural, functional and geographical perspectives and from the point of scope covered geographically.

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The Kangaroo Tail Pattern in Technical Analysis

The kangaroo tail is a pattern that points trading opportunities for traders. It has been introduced in Alexander Elder's book, Come Into My Trading Room.

The tails could be used to mark trend reversals in markets. While trends need long time to form, the kangaroo tails are formed in just a few days.

The kangaroo tail pattern takes a minimum of three bars to form. A tail is a one-bar in bar chart or one-stick in candle stick chart, which spikes in the direction of a trend, with surrounded narrow bars at the beginning and at the end. That middle bar is the tail, but traders will not know for sure until it followed by a reversal in the following day, when a bar or a stick has sharply narrowed back at the base, letting the tail hang out.

Market tails often occur at turning points in the markets, offer a trading opportunity to traders. Traders should recognize tails and trading against them. Whenever traders see a tail, they should be ready to put on a position trading against that tail, before the close.

Once traders enter trades by using tails, they should place protective stops at approximately half-way of the tails. If the tails are being chewed up, exit without delay. As for the profit-taking targets, they might be established using moving averages and channels.

The kangaroo tail pattern is one of the most reliable reversal patterns, especially when it is supported by signals from other indicators. Furthermore, the pattern could be used in any time-frame. A tail in a longer time-frame usually generates a bigger move than a tail in shorter time-frame.

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The Pros and Cons of Using Technical and Fundamental Analysis in Forex

There are basically 2 primary methods that Forex traders use to analyze the market. They are technical and fundamental analysis. Pure technical analysts will say that it is impossible to trade on the news, because the market moves so fast and whatever news out there the charts will tell you too. On the other hand, fundamentalists will say that only the news moves the market. Technical indicators are always the followers. So which methods should we use? To find out, let’s look at the pros and cons of both of these methods.

Technical Analysis

Technical analysis involves tracking past currency price movements and use indicators to help identify in which direction the current price may be heading. This analysis can be performed manually or automatically. Under the automated system traders use software (expert advisor) or robot to help them find trades and identify entry and exit points. Technical traders believe that all of the required information needed to place a trade is contained in the charts.

Fundamental Analysis

Fundamental analysis focuses on key underlying economic, financial and political factors to determine the price direction of a currency. Fundamental traders believed that currencies movements, whether it becomes stronger or weaker, are related to the strength of the economy, financial and political situations. Hence, fundamental reports and news are important to them. News and reports such as interest rates, employment, trade balance and GDP are of great important. Others information such as retail sales, durable goods, home sales and ISM will also impact the price movement.

Technical Analysis

Advantages

-It helps provide specific entry and exit point for traders during trading.

-Charting can provide everyone an easy way of identifying trends immediately. This is possible because the same data is also being watched by millions of traders, as a result if a large number of Forex traders do the same, this will potentially create a self-fulfilling prophecy of reinforcing the trends further.

-It focuses on charts and indicators. It is without doubt the easiest and most precise method used by many traders so far.

-Charts and tools can also sometime help point out when a trend is about to start or end. Hence help traders to plan their profits and stop losses more accurately.

Disadvantages

-If many traders place their stops around the same areas, this could prompt a reverse in price movement as it can potentially allows bigger players in the market to intentionally trigger these stops.

-The tools used are basically lagging indicators. It can be dangerous to rely totally on the assumption that the current price and trend will predict future prices. They often do, but not necessarily.

-Relying completely on charts mean that you may not pick up other signals that may potentially change the trend.

Fundamental Analysis

Advantages

-Fundamental analysis increases our knowledge and understanding of the global market. Hence help us to get a clearer picture of the general health of the world economy.

-We can use fundamental analysis to explain some of the unexpected movement of the prices. Hence know what move the prices higher or lower.

-Major news release can sometime ignite large price movement when there is a big difference between expectations and actual results. If you can predict and capture this price movement, it can be very profitable.

-Fundament analysis is better used for forecasting longer term exchange rate movement.

Disadvantages

-There is so much information that one can easily be confused.

-It is very difficult to use all this information to pin point a specific entry or exit point to trade.

-Sometime short term news release may provide a false signal and mislead trader into opening a trade. This signal often develops a knee-jerk reaction in the market.

-Sometimes the information or news released may already have been priced into the market. Hence, the information has no significant impact to the price movement.

-It requires a person with at least some basic knowledge of economic background.

-News releases can sometime produce dramatic and fast price movement for a currency pair in both up and down directions as the Forex market try to digests the news. Inexperience traders may find themselves caught in a string of losses.

Conclusion

In my opinion, there is no ideal or best method of analyzing the Forex that will guarantee you a 100% results all the time. Technical analysis and charting will assist short-term traders to make their decisions, whereas long-term traders will need to keep themselves abreast of the latest economic news and data pertaining to the country currencies they are trading in. Note that these analysis methods are just tools. If used correctly, it can generally help you to trade more effectively. This is why most Forex traders tend to use both analysis approaches to make trading decision.

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Food Commodities

Food commodities are traded to international markets across continents and distributed to reach remote places also. The food commodities are ranked based on availability productivity, and demands of the increasing population. Non-processed food items such as whole grains, pulses, spices, cashews, frozen foods, fruits, vegetables, milk, eggs and many more are food commodities that are traded to native or internal markets and international markets. Processed food commodities include edible oils, butter, cheese, cedars, fruit juices, sauces and all types of flours. The food industry is a multi-billion dollar business and the world's largest industry.

Handling food commodities includes many important factors that can not be ignored such as storage, shelf life and temperature conditions. Storage space requirements should be given careful attention, as the amount of space necessary in a warehouse depends upon the total volume of food stored and on the number of different commodities. Separate stacks require more usable volume than one large stack; hence, each commodity should be stacked separately. Shelf life refers to the average amount of time a product may be stored without nutritional deterioration. A food commodity can deteriorate for several reasons such as aging, microbiological decay, chemical and physical degradation and texture changes. Deterioration of food commodities can be reduced or slowed by careful processing, packaging, handling and storing. Universal guidelines for controlling temperature and humidity conditions to suit the various food commodities are impossible, because these conditions and the operating environment vary from place to place. However, some basic instructions can be followed such as keeping all food commodities in dry conditions, storing wet and dry foods separately, cross-ventilation in the warehouse, sunroofs and covering food commodities during transportation.

Besides food commodities being a profitable trading business, large quantities of food items are donated through food distribution programs as relief measures. The commodities required food programs use inexpensive food staples to provide basic nourishment to populations in extreme food security emergencies, as well as for development activities designed to address food security goals.

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Currency Future Trading

If you have been investigating trading futures, you know it is an advanced form of speculation. It applies to a variety of markets including the commodities market and currency future trading. In basic terms, it is a situation in which a seller and a buyer both want to exchange a quantity of an item at a certain time, each believing that the deal will turn out in his favor when in actuality only one comes out ahead. This is similar to trading options, but with futures, there is an obligation to buy or sell the commodity or the currency. Novice investors should beware: currency future trading can be complicated and requires a lot of research and practice to be done well. However, once you get the hang of it, you can stand to make quite a bit of profit. The key is to know which direction the market is heading and to buy or sell accordingly.

Historically, this kind of trading began between farmers and commodity dealers. Farmers would consent to sell a fixed amount of their crops, and dealers would agree to buy those crops in advance. If the crop was bountiful, the farmers would end up with a better deal. In the case of a shortage, the dealers profited. Over time, investors with no vested interest in the actual crops themselves began to broker these contracts in hopes of turning a profit. As time passed, the futures market became what we know it as today.

Futures are similar to credit, since those who trade them do so with items or currency that does not yet exist. Buyers and sellers trust each other to provide the item as soon as it can be exchanged. Since deals are made beforehand, there is an element of mystery and chance. Only one party will benefit from the exchange.

It is not advisable to jump into this form of trading without significant research into market and price trends as well as a solid understanding of the item or currency being traded. Fundamental and technical analysis, or the full understanding of a way a product works, is absolutely necessary.

Whether you are interested in commodities or currency future trading, realize that it can be risky. If you're just starting out in the investment world, it might be something to put off until you've had a bit more real life experience. After you have a better understanding of market fluctuations and product trends, you'll have a better chance of profitable ventures. You could also talk with a trusted broker who could wisely invest your money in this type of venture.

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Candlestick Charting – What Does Solid Candlestick Mean?

Candlesticks have grown in popularity considerably over the last decade and a bit and originally a guy by the name of Steve Nison introduced them to the western world. Whilst the scope of candlestick charting is extremely wide and varied we are going to concentrate on what does a solid candlestick mean when looking at the charts.

The first thing you'll note about candlesticks is that you can have open and solid candle and you usually have different colour candlesticks too, namely red and green.

An Open Candlestick

An open candlestick simply means that the closing price for the day closed higher than where it opened at, resulting in a rise in the share price between the open and the close.

A Solid candlestick

A solid candlestick means that the closing price for the day closed lower than where it opened at, resulting in a fall in the share price between the open and close.

A red candlestick

A red candlestick usually refers to a down day relative to the previous trading day. For example the previous day's close was $ 25 and today it closes at $ 24 resulting in a red candle.

A greed candlestick

A green candlestick usually refers to a positive day relative to the previous trading day. For example the stock you are trading might have closed yesterday at $ 30 and today it closed at $ 31 resulting in a green candle.

An open red candlestick

An open red candlestick may be new to most people as their charting program may not have the functionality or depth to show these candles. An open red candlestick simply means the closing price today is lower than the close of yesterday but the closing price today is higher than the opening of the day.

A solid green candlestick

A solid green candlestick shows us that the closing price today is higher than the closing price of yesterday but the closing price today is lower than the opening price of the day. So as you can see, candlesticks can paint a very impressive and graphical picture and once you get used to them you'll be able to see some advanced patterns to profit from.

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How to Trade the ZUP Indicator

When the ZUP pattern is properly identified, the trader can enter a high probability trade. The main advantage of this trade is the ability to set tight stop loss orders in case of pattern failure. As with any trading system, this pattern is best used in conjunction with other reinforcing indicators. Support, resistance, and pivot points would be an example of this.

This style of trading is sometimes referred to as Harmonic Trading. No trading systems work all of the time. A 70% win rate with a controlled risk makes this pattern based system an excellent trading system for many types of traders.This is a universal trading indicator and can be applied to any market. Stocks, Forex and futures are examples of these markets. This indicator is published and available to the MT-4 Forex trading platform.

This technical trading system is used by banks, trading syndicates, hedge funds, and nearly every trader at a professional level. Anyone with modest intelligence and a little discipline can trade this system. This indicator can be applied to various markets such as stocks and currencies.

I am not a software engineer. The signal software was developed by others. I am an experienced trader. There are no secret “holy grail” trading methods. Think about it. The more traders that use a system, the better it works! Of course the Central Banks will set a currency price at will. We can’t second guess the Central Banks but we do know when they trade and we can choose not to trade at that time. The Forex markets are open 24/5 so we can select our trading times.

No trading method is easy and I’m not saying this is easy. The problem with most novice traders is that they are lazy! That’s why they get into this business,looking for easy money. There is no easy money but there are profits if you are willing to do the simple tasks that are required in a well managed trading system. Well are you willing?

You can read all about Leonardo Fibonacci on the internet. The bottom line is that he developed a sequence of numbers found throughout nature. These ratios have been applied successfully to trading charts. Every charting program out there provides Fibonacci tools.The markets tend to obey these ratios for reasons unknown. I don’t much care about why it works. I do care about if it works. Traders must realize, if you find something that is working, then go with it. You do not need to analyze the WHY.

The “powers that be” are able and willing to manipulate the markets at will. They have very deep pockets and can bury us at will. If you can’t beat them join them. Most of the trading in all markets is program trading. Computers are programmed to make the trades. What does a computer need? RULES! The rules they follow are whatever they are instructed to follow. That is why your favorite indicator will work fine one day and not the next. Big money rules!

But there are certain rules that are universally followed (most of the time). These rules are SUPPORT, RESISTANCE, and FIBONACCI. Trend lines also get a piece of the act. When you combine the effect of these universal indicators to price action you end up with a high probability trading system. Trading is all about probabilities. There is no such thing as a 100% accurate system.

The ZUP indicator provides us with a valuable tool to build a successful trading system. This indicator may be a major part of the equation but the successful trader must also consider money management and many other important factors.

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Is There Any Form of Formal Education for Forex Traders?

As far as I know, there is no formal degree which is Forex specific. However there is a certification program, which measures your proficiency in many aspects of finance which correlates to a lot of things involved in Forex trading. I am referring to the Chartered Financial Analyst, or CFA for short. The curriculum of most CFA programs covers subjects such as ethics, quantitative methods, economics, corporate finance, financial reporting and analysis, security analysis and portfolio management.

You need bachelors degree in order to be eligible for CFA certification. There are many schools on and off the Internet which offer study materials for the CFA exam.

While this would go a long way in helping you understand the mechanics of Forex trading, it is by no means exhaustive, and neither does it cover everything that a good trader needs to know. However many Forex related companies would look favorably at candidates who possess a CFA certification. That perhaps is where it makes the most sense, if you are planning to work for a Forex broker or some other Forex related business.

Many experienced traders however would recommend Forex specific courses which don’t come with a certification but they do call for much more ground with respect to Forex trading and analysis. One excellent program that has received many positive reviews is Peter Bains Forex Mentor program, which you might want to check out. In fact even if you do decide to go for CFA certification, it might be a good idea to go on the Forex Mentor program concurrently with your CFA studies. Since the CFA program covers more ground, it ends up being a more general view of the different elements involved in financial analysis. On the other hand the Forex Mentor program, and other similar Forex training programs, are specific to Forex trading and studying them concurrently, while trading demo accounts would provide a much higher caliber of education and training compared to studying either one of them by themselves.

Never underestimate the value of using demo accounts in your Forex education. In Forex, what is important is the real world trading. There are so many different ways of analyzing the market and while it’s good to know most if not all of them, eventually you will need to focus on just a couple of analysis tools because the use of too many tools will slow down your trading and will result in missed opportunities due to overanalysis. So the Forex specific programs will show you the fundamentals of the different tools for analysis. The CFA on the other hand will provide you with the knowledge necessary to analyze fundamentals effectively. Taken together, you will be equipped with a fundamental and technical tools needed to chart your Forex trading direction. Then by using the demo account you are able to select and fine-tune your analysis tools of choice until you’re able to come up with your own personalized, and effective trading system.

Forex trading does involve quite a bit of studying, but the great thing about it is that you are able to get instant gratification in the sense that you are able to see the connection between what you are studying in what you’re doing, or intend to do trading wise.

You can also look into a coach, mentor or advisor. here is a cool article I found online that looks into the advantages of having someone help you (hope it is OK to copy and paste here…)

Why Have a Mentor When Using Forex

Forex has enabled beginners to catapult themselves into the exciting world of foreign exchange trading, but currency exchange is not a guessing game, and novices aren’t generally successful right off the bat. Like anything else Forex trading requires training and know-how. Consider the following reasons why you should consider using a Forex mentor, tutor or platinum training solution to improve your trading abilities:

Understand the Unknown

When trading currencies, or any commodity, you will undoubtedly encounter alien looking charts and figures. Platinum Trading Solutions says that without formal training you will not be able to properly interpret daily information feeds, which will harm your ability to do informed trading.

Know your Resources

When trading Forex you will need to regularly consult a list of critical resources. If you do not feel comfortable using: the law of the charts, probabilities, Investopedia, Forex news, Daily FX, Forex blogs, the Forex Symbol Table, historical currency exchange rates, and more.

Learn Patience and Timing

The most important, and difficult, aspect of trading is knowing when to buy and sell. Novice buyers often sell out of excitement and anticipation, regardless of correct timing. A Forex mentor from Platinum Trading Solutions can teach you the patience you need, and show you how to recognize the right time to buy and sell. Remember that this is an art form and being precise is critical.

Frustrations

As a novice trader, you are going to get frustrated. Nobody is successful on Forex overnight and there are many hurdles you must get past in order to be successful. A mentor, tutor from platinum training solution can help you get through the tough times and ensure you make it to the light at the end of the tunnel.

Save Time

For those eager to make it rich on Forex quickly, save yourself the time and effort of learning the hard way. When you go it alone on Forex you will undoubtedly make a lot of mistakes on your way to success, and this is ok, but it will cost you precious time. A mentor or platinum training solution will carry you over those hurdles by glossing over the mistakes (and the costs associated with them).

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