Saturday, January 10, 2009

Market Participant

In market of currency ( Forex ) there are sidebuying ( buyer ) a currency and side selling ( seller ) other currency. They is we conceive of the participant of foreign currency market
participant of Market of foreign currency and money market , these days multifarious progressively manner. Survey conducted recently tend to to categorize all participant become like hereunder

o Governmental
o Central Bank
o International Banks
o Investment/ Merchant Banks
o ther o Financial institution
0 Big o Client / Whole Sale
o Client – client

Governmental
To various reason of, government from some State sometimes personating of participant of market of foreign currency without passing its banker that is Central Bank. Its Need in the form of payment of flower and debt instalment etcetera

Central Bank
Beside for the requirement of transaction to government or its client, central bank also is]often got mixed up with by transaction in market of currency (forex) in the form of action intervence in effort stabilize the exchange rate its currency. This institute not only holding responsible in the case of printing money and also manage its circulation but them also accountable for look after the market stability, especially at “ floating Exchange Rate System “ where rate of currency very influenced by supply and demand strength

International Banks
Possible biggest participant in market of foreign currency come from bank – bank International. Bank – this bank international is active involved at market of currency (forex), can be categorized again become the
• Trading Banks
• Commercial Bank

Investment / Merchant Banks
Usage of Term of investment banks ( reconstruction bank ) recognized also by merchant is bank in English. For a while role of merchant bank to serve the corporate finance and capital market of many conducted by financial institution of is non bank
Bank activity – this bank beside as guarantor of share emission / obligation, sindikasi loan and ready of finance service for the company of – big company, active brand also in money market and also foreign currency
Effect invesment – effect of foreign currency and and also beyond the sea good to its client need and also by xself generate the position of various currency of which is on finally need in covering

Other Financial Institution
Institute the – disagio institute, company broker – company of commodity and company – insurance company also represent the participant of foreign currency market. Activity institute the – the institute by international result incidence of exposure in so many foreign currency. action Hedging conducted by company of commodity and receiver of insurance premium and also payment claim in currency ( forex) by big insurance company result the requirement / excess of supply of foreign currency to covering

Big Client / Whole Sale
Company – company of multi national, company – international business concern including as big enough foreign currency market participant. Company – such company can be in the form of the a plutocrat international which must entangle the x'self in market of foreign currency good to target of transaction and also hedging

Client – Client
From other side the company – big company such as those which told above, there are also many company – active small company in market of foreign currency like :

Company export and import the
Institution – institution
Company – other small company
Individual

Activity – such client activity generally in scale small is not rarely channelled to through]its banker.

How to Use Elliott Wave Analysis to Boost Your Forex Trading

A Free Trading Video From the World's Largest Market Forecasting Firm

This video lesson features Elliott Wave International Senior Currency Analyst, Jim Martens, demonstrating how you can use Elliott wave analysis to identify opportunities in your Forex trading.
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Happy Trading!!

Forex Jourey

How to Use Elliott Wave Analysis to Boost Your Forex Trading

A Free Trading Video From the World's Largest Market Forecasting Firm

This video lesson features Elliott Wave International Senior Currency Analyst, Jim Martens, demonstrating how you can use Elliott wave analysis to identify opportunities in your Forex trading.
This is just a short excerpt. For a limited time, you can access the full $79 online trading course, FREE.
Visit Elliott Wave International for your free access.

You'll get all the details behind the analysis you see in this video preview.


Watch this full $79 course, FREE. Click Here!



Happy Trading!!

Forex Jourey

Market of Forex

Market of forex do not forever represent the physical market where buyer and seller meet directly somewhere, but only doing relation/link pass the telecommunications network
There are some place in world represent the very active money commerce center where certain hour all merchant is meeting each other to close the transaction or look for the information. The place referred asby stock of like for example London, Frankfurt, Chicago, Hongkong, Tokyo And Singapore

Market of forex of each every morning started from market Wellington, Sydney, Tokyo And Singapore is later;then continued in the day time in center of finance of Frankfurt and London, is later;then caught up by market of New York and Chicago till morning. The market basically do not in concurrence to compete but is filling each other caused by difference of geografik and time. The market integrate very hand in glove so that together they represent an world market although separated by distance and time. By expanding it telecommunications equipments , the world market provide various information to all participant so that this market can be told by as market coming near perfection and represent the global market is which beropearsi from Monday to Friday of during 24 hour

Become in principle each every side doing / conducting conversion of an currency to get the other currency, meaning he have created the what is called with the Foreign Currency Market

Friday, January 09, 2009

Inside the Entrepreneurial Mind : From Ideas to Reality

Creativity and Innovation
• Creativity – the ability to develop ideas and to discover new ways of looking at problems and opportunities.
• Innovation – the ability to apply creative solutions to problems or opportunities to enhance or to enrich people’s lives.


Entrepreneurship
The result of a disciplined, systematic process of applying creativity and innovation to the needs and opportunities in the marketplace.

Entrepreneurs connect their creative ideas with the purposeful action and structure of a business.


Failure: Just Part of the Creative Process
• For every 3,000 new product ideas:
o Four make it to the development stage.
o Two are actually launched.
o One becomes a success in the market.
• On average, new products account for 40% of companies’ sales!!


Can we learn to become Creative?
YES !!!!!!!!

By overcoming paradigms and by suspending conventional thinking long enough to consider new and different alternatives!


Right – Brained , Creative Thinkers
o Always ask, “Is there a better way?”
o Challenge custom, routine and tradition.
o Are reflective.
o Play mental games.
o Realize that there may be more than one “right” answer.
o See mistakes as pit stops on the way to success.
o Relate seemingly unrelated ideas to a problem.
o Have “helicopter skills.”


Left – Brained or Right – Brained ?
Entrepreneurship requires both left- and right – brained thinking.
o Right – brained thinking draws on divergent reasoning, the ability to create a multitude of original, diverse ideas.
o Left – brained thinking counts on convergent reasoning, the ability to evaluate multiple ideas and to choose the best solution to a problem.


Barriers to Creativity
o Searching for the “right” answer
o Focusing on “being logical”
o Blindly following the rules
o Constantly being practical
o Viewing play as frivolous
o Becoming overly specialized
o Avoiding ambiguity
o Fearing looking foolish
o Fearing mistakes and failure
o Believing that “I’m not creative.”


Tips fro Enhancing Organizational Creativity
o Expecting creativity
o Expecting and tolerating failure
o Encouraging creativity
o Viewing problems as challenges
o Providing creativity training
o Providing support
o Rewarding creativity
o Modeling creative behaviour


Tips for Enhancing Individual Creativity
o Allow yourself to be creative
o Give your mind fresh input every day
o Keep a journal handy to record your thoughts and ideas
o Read books on stimulating creativity
o Take some time off


The Creative Process
Preparation > Investigation > Transformation > Incubation > Illumination > Verification > Implementation

Brainstorming
Goal is create a large quantity of novel and imaginative ideas.

Mind-mapping
A graphical technique that encourages thinking on both sides of the brain, visually displays relationships among ideas and improves the ability to see a problem from many sides.

Rapid prototyping
Transforming an idea into an actual model that will point out flaws and elad to design improvements.

Thursday, January 08, 2009

The concept of transaction Trading in Minor and major trends

Background Concepts

In foreign exchange market there are those who buy (buyer) of a currency and the selling party (seller) in other currencies. They reason that we call as "the market" foreign exchange.

Participants foreign exchange market and money market, nowadays more diverse. Survey conducted recently tended to categorize the participants as below:

o Government
o Central Bank
o International Banks
o Investment / Merchant Banks
o Other financial institutions
o Large Customer / Whole Sale
o Customer - client (speculator)

Market participants involved in the foreign exchange market have different purposes. Basically, can be grouped into three objectives, namely:

o Trading
o Hedging
o Speculating

Below is a type - the type of transaction that can be grouped in more detail, namely:

o Commercial: Export, import traffic capital, traffic and other services - other
o Funding: Loan foreign exchange, cash flow needs
o Hedging: For the purposes hedging risk on foreign exchange rate changes
o Investment: Commercial Investement, property investment and
portfolio investment
o Individual: Tourists to the needs of the individual or individuals


* So I can simpulkan that:
In addition to the foreign exchange with a large margin, there is also the foreign exchange is relatively small, also used the opportunity volatilitas a certain price range on the active exchanges in.


Analysis

The price movement of this closely related with the Supply and Demand, from the currency exchange rate.
Ex: Too much demand and prices tend to rise

In the forex market there are two factors that affect price movement:
Fundamental factors
Fundamental among other consists of political and economic factors (fiscal and monetary), and the sentiment and expectations.

Technical factors (Technical): Mapping kencendrungan price.
Some people argued that the foreign exchange rate is not influenced by the Fundamental factors, but only as a pattern repeated from time to time, so the actual direction of these changes can be predicted with the use of data - data that have been past.

The other factors that also affect price movements, namely:

Psychological factors
Request a quote or the perpetrators of the market based on estimates / ekspektasinya on the development of the exchange rate in the future with the purchase of a currency exchange rate are low and likely sell it after the exchange rate of the currency to rise or otherwise benefit from the transaction (investment / speculation)

Some investors predict movements in exchange rates by using secondary data

Based on the short-term trend may be time for:

Minor Trend (several days)
 Intermediate Trend (some sunday)
Major Trend (several months)

Based on the direction pergerakannya trend may be over:

 Uptrend
 Downtrend
 sideways trend


Concept

Experts said: "Trade with trend, never fight the trend." Trading is the best trading, which is always in line with the major trend, intermediate and minor trends trend.

Price foreign exchange moves are not linear, but as the waves that have peak and valley (move zig - zag).

Based on the background and analysis of the concept is more focused on the author of a relatively small market, but to actively do take advantage of trading opportunities from the minor difference in the price trend.

This concept is done through a mix technical factors (technical) and psychological factors regardless of market fundamentals, among others, namely:

Technical factors (Technical):

Through Software Metatrader only use Draw fibonacci Retracement (Counts Deret fibonacci),

This means taking a chance on the price and the range specified by Draw fibonacci Retracment combined with psychological market price that day yesterday! (Not the price of two or a few days ago), still provide opportunities tehadap rates running (now), as the minor actors in the market is very active to take advantage of opportunities that we often hear the price correction.

Action: Phase-phase implementation of the concept of "Trading in Minor Trend"

1. Once we download the software then we MetaTrader directly with the computer menginstalkan to us.

2. Opening the exchange rate of the desired suit us, with the type of bar chart or candle stick. Ex: GBP / USD

3. Using a standard time-scale program MetaTrader 1 hour (H 1)

4. Mengilangkan Grid, and enter a scale (Show Days / Show Period separators), so that it can memilah daily price movement.

5. Enter through the technical concepts fibonacci Retracment, selajutnya dissect / day yesterday to map out the movement as a standard input prices running (now) in other words "On The Spot Trading Price".

6. Selajutnya price range to see whether "the price goes up there on the range of 50% pergarakan price yesterday? or walk in the price range down from 50% pergarakan price yesterday? "
then we sempitkan array fibonacci retracment price range to run it.
Then we will find a range of fibonacci retracment minor.


As a note Retracment have fibonacci progression as follows:

0%, 23.6%, 38.2% 50%, 61.8%, 100%, 161.8%, 261.8%, 423.6%

Entry action:
Sell: In the range of 61, 8 - 100% target with 23.6%
Buy: In the range 0 - 23, 6% target with 61.8%

Exit Point: reversal / Switch
Switch Buy
If the price cut through chain-level 100%, above the target 161.8% fibonacci Retracment mapping according to normal (if the price risk going directly to cover the loss that occurred and the point becomes profit point.
Switch Buy
If the price level penetrate tier 0% 161.8% target under appropriate mapping fibonacci Retracment are normal or upside down (so if the price risk going directly to cover the loss that occurred and the point becomes profit point.


7. If the price has come through with the price level array fibonacci Retracment daily significantly yesterday in akibatkan by fundamental factors, the action in which to do is:
we map the range again in the range of line array fibonacci retracment minor, which occurred before, according to the price range of the latest row.


In this concept, the need is in the readiness of the transaction include:

o Trading mentality.
o of the time.
o Discipline concept

Wednesday, January 07, 2009

The 7 Habits of Highly Effective People

Summary of Stephen R. Covey's

In his #1 bestseller, Stephen R. Covey presented a framework for personal effectiveness. The following is a summary of the first part of his book, concluding with a list of the seven habits.
Inside-Out: The Change Starts from Within
While working on his doctorate in the 1970's, Stephen R. Covey reviewed 200 years of literature on success. He noticed that since the 1920's, success writings have focused on solutions to specific problems. In some cases such tactical advice may have been effective, but only for immediate issues and not for the long-term, underlying ones. The success literature of the last half of the 20th century largely attributed success to personality traits, skills, techniques, maintaining a positive attitude, etc. This philosophy can be referred to as the Personality Ethic.
However, during the 150 years or so that preceded that period, the literature on success was more character oriented. It emphasized the deeper principles and foundations of success. This philosophy is known as the Character Ethic, under which success is attributed more to underlying characteristics such as integrity, courage, justice, patience, etc.
The elements of the Character Ethic are primary traits while those of the Personality Ethic are secondary. While secondary traits may help one to play the game to succeed in some specific circumstances, for long-term success both are necessary. One's character is what is most visible in long-term relationships. Ralph Waldo Emerson once said, "What you are shouts so loudly in my ears I cannot hear what you say."
To illustrate the difference between primary and secondary traits, Covey offers the following example. Suppose you are in Chicago and are using a map to find a particular destination in the city. You may have excellent secondary skills in map reading and navigation, but will never find your destination if you are using a map of Detroit. In this example, getting the right map is a necessary primary element before your secondary skills can be used effectively.
The problem with relying on the Personality Ethic is that unless the basic underlying paradigms are right, simply changing outward behavior is not effective. We see the world based on our perspective, which can have a dramatic impact on the way we perceive things. For example, many experiments have been conducted in which two groups of people are shown two different drawings. One group is shown, for instance, a drawing of a young, beautiful woman and the other group is shown a drawing of an old, frail woman. After the initial exposure to the pictures, both groups are shown one picture of a more abstract drawing. This drawing actually contains the elements of both the young and the old woman. Almost invariably, everybody in the group that was first shown the young woman sees a young woman in the abstract drawing, and those who were shown the old woman see an old woman. Each group was convinced that it had objectively evaluated the drawing. The point is that we see things not as they are, but as we are conditioned to see them. Once we understand the importance of our past conditioning, we can experience a paradigm shift in the way we see things. To make large changes in our lives, we must work on the basic paradigms through which we see the world.
The Character Ethic assumes that there are some absolute principles that exist in all human beings. Some examples of such principles are fairness, honesty, integrity, human dignity, quality, potential, and growth. Principles contrast with practices in that practices are for specific situations whereas principles have universal application.
The Seven Habits of Highly Effective People presents an "inside-out" approach to effectiveness that is centered on principles and character. Inside-out means that the change starts within oneself. For many people, this approach represents a paradigm shift away from the Personality Ethic and toward the Character Ethic.
The Seven Habits - An Overview
Our character is a collection of our habits, and habits have a powerful role in our lives. Habits consist of knowledge, skill, and desire. Knowledge allows us to know what to do, skill gives us the ability to know how to do it, and desire is the motivation to do it.
The Seven Habits move us through the following stages:
1. Dependence: the paradigm under which we are born, relying upon others to take care of us.
2. Independence: the paradigm under which we can make our own decisions and take care of ourselves.
3. Interdependence: the paradigm under which we cooperate to achieve something that cannot be achieved independently.
Much of the success literature today tends to value independence, encouraging people to become liberated and do their own thing. The reality is that we are interdependent, and the independent model is not optimal for use in an interdependent environment that requires leaders and team players.
To make the choice to become interdependent, one first must be independent, since dependent people have not yet developed the character for interdependence. Therefore, the first three habits focus on self-mastery, that is, achieving the private victories required to move from dependence to independence. The first three habits are:
• Habit 1: Be Proactive
• Habit 2: Begin with the End in Mind
• Habit 3: Put First Things First
Habits 4, 5, and 6 then address interdependence:
• Habit 4: Think Win/Win
• Habit 5: Seek First to Understand, Then to Be Understood
• Habit 6: Synergize
Finally, the seventh habit is one of renewal and continual improvement, that is, of building one's personal production capability. To be effective, one must find the proper balance between actually producing and improving one's capability to produce. Covey illustrates this point with the fable of the goose and the golden egg.
In the fable, a poor farmer's goose began laying a solid gold egg every day, and the farmer soon became rich. He also became greedy and figured that the goose must have many golden eggs within her. In order to obtain all of the eggs immediately, he killed the goose. Upon cutting it open he discovered that it was not full of golden eggs. The lesson is that if one attempts to maximize immediate production with no regard to the production capability, the capability will be lost. Effectiveness is a function of both production and the capacity to produce.
The need for balance between production and production capability applies to physical, financial, and human assets. For example, in an organization the person in charge of a particular machine may increase the machine's immediate production by postponing scheduled maintenance. As a result of the increased output, this person may be rewarded with a promotion. However, the increased immediate output comes at the expense of future production since more maintenance will have to be performed on the machine later. The person who inherits the mess may even be blamed for the inevitable downtime and high maintenance expense.
Customer loyalty also is an asset to which the production and production capability balance applies. A restaurant may have a reputation for serving great food, but the owner may decide to cut costs and lower the quality of the food. Immediately, profits will soar, but soon the restaurant's reputation will be tarnished, the customer's trust will be lost, and profits will decline.
This does not mean that only production capacity is important. If one builds capacity but never uses it, there will be no production. There is a balance between building production capacity and actually producing. Finding the right tradeoff is central to one's effectiveness.
The above has been an introduction and overview of the 7 Habits. The following introduces the first habit in Covey's framework.

FROM DEPENDENCE TO INDEPENDENCE

Habit 1: Be Proactive
A unique ability that sets humans apart from animals is self-awareness and the ability to choose how we respond to any stimulus. While conditioning can have a strong impact on our lives, we are not determined by it. There are three widely accepted theories of determinism: genetic, psychic, and environmental. Genetic determinism says that our nature is coded into our DNA, and that our personality traits are inherited from our grandparents. Psychic determinism says that our upbringing determines our personal tendencies, and that emotional pain that we felt at a young age is remembered and affects the way we behave today. Environmental determinism states that factors in our present environment are responsible for our situation, such as relatives, the national economy, etc. These theories of determinism each assume a model in which the stimulus determines the response.
Viktor Frankl was a Jewish psychiatrist who survived the death camps of Nazi Germany. While in the death camps, Frankl realized that he alone had the power to determine his response to the horror of the situation. He exercised the only freedom he had in that environment by envisioning himself teaching students after his release. He became an inspiration for others around him. He realized that in the middle of the stimulus-response model, humans have the freedom to choose.
Animals do not have this independent will. They respond to a stimulus like a computer responds to its program. They are not aware of their programming and do not have the ability to change it. The model of determinism was developed based on experiments with animals and neurotic people. Such a model neglects our ability to choose how we will respond to stimuli.
We can choose to be reactive to our environment. For example, if the weather is good, we will be happy. If the weather is bad, we will be unhappy. If people treat us well, we will feel well; if they don't, we will feel bad and become defensive. We also can choose to be proactive and not let our situation determine how we will feel. Reactive behavior can be a self-fulfilling prophecy. By accepting that there is nothing we can do about our situation, we in fact become passive and do nothing.
The first habit of highly effective people is proactivity. Proactive people are driven by values that are independent of the weather or how people treat them. Ghandi said, "They cannot take away our self respect if we do not give it to them." Our response to what happened to us affects us more than what actually happened. We can choose to use difficult situations to build our character and develop the ability to better handle such situations in the future.
Proactive people use their resourcefulness and initiative to find solutions rather than just reporting problems and waiting for other people to solve them.
Being proactive means assessing the situation and developing a positive response for it. Organizations can be proactive rather than be at the mercy of their environment. For example, a company operating in an industry that is experiencing a downturn can develop a plan to cut costs and actually use the downturn to increase market share.
Once we decide to be proactive, exactly where we focus our efforts becomes important. There are many concerns in our lives, but we do not always have control over them. One can draw a circle that represents areas of concern, and a smaller circle within the first that represents areas of control. Proactive people focus their efforts on the things over which they have influence, and in the process often expand their area of influence. Reactive people often focus their efforts on areas of concern over which they have no control. Their complaining and negative energy tend to shrink their circle of influence.
In our area of concern, we may have direct control, indirect control, or no control at all. We have direct control over problems caused by our own behavior. We can solve these problems by changing our habits. We have indirect control over problems related to other people's behavior. We can solve these problems by using various methods of human influence, such as empathy, confrontation, example, and persuasion. Many people have only a few basic methods such as fight or flight. For problems over which we have no control, first we must recognize that we have no control, and then gracefully accept that fact and make the best of the situation.


SUMMARY OF THE SEVEN HABITS
Habit 1: Be Proactive
Change starts from within, and highly effective people make the decision to improve their lives through the things that they can influence rather than by simply reacting to external forces.
Habit 2: Begin with the End in Mind
Develop a principle-centered personal mission statement. Extend the mission statement into long-term goals based on personal principles.
Habit 3: Put First Things First
Spend time doing what fits into your personal mission, observing the proper balance between production and building production capacity. Identify the key roles that you take on in life, and make time for each of them.
Habit 4: Think Win/Win
Seek agreements and relationships that are mutually beneficial. In cases where a "win/win" deal cannot be achieved, accept the fact that agreeing to make "no deal" may be the best alternative. In developing an organizational culture, be sure to reward win/win behavior among employees and avoid inadvertantly rewarding win/lose behavior.
Habit 5: Seek First to Understand, Then to Be Understood
First seek to understand the other person, and only then try to be understood. Stephen Covey presents this habit as the most important principle of interpersonal relations. Effective listening is not simply echoing what the other person has said through the lens of one's own experience. Rather, it is putting oneself in the perspective of the other person, listening empathically for both feeling and meaning.
Habit 6: Synergize
Through trustful communication, find ways to leverage individual differences to create a whole that is greater than the sum of the parts. Through mutual trust and understanding, one often can solve conflicts and find a better solution than would have been obtained through either person's own solution.
Habit 7: Sharpen the Saw
Take time out from production to build production capacity through personal renewal of the physical, mental, social/emotional, and spiritual dimensions. Maintain a balance among these dimensions.


Tuesday, January 06, 2009

Secrets to Successful

Small Talk by Peter Murphy

Next to public speaking, making small talk is probably one of the things that most people dread - or even fear. The thought of coming up with something witty or interesting to say to a complete stranger, a new acquaintance, your boss, a neighbor - anybody whom you not normally have a conversation with can prove to be quite a daunting experience. However, you need to be able to make small talk if you want to survive any given social scene.
Take a look at these small talk tips to help get the conversation going:

1. Be comfortable with who you are.
Self-confidence plays a big role in gathering the courage to actually go out of your way and engage the new people that you meet in small conversation. If you are not comfortable with who you are, you may just remain timid and keep to yourself, even though there is an opportunity for you to widen your social circle through making small talk.

Thus, the key to being comfortable enough to make small talk is to try and feel comfortable when you are with other people. Remember that you are not the only one who feels awkward deep inside - the person that you are talking with most probably feel the way! So to save yourself the trouble, you should muster enough self-confidence to make small talk and be a social success.


2. Remember that practice makes perfect.
Don't you just envy the ability of other people to make strangers feel perfectly at ease by engaging them in small talk and a short, friendly conversation? If you do not have the natural inkling to engage in small talk, practice.

If you have never called your landlady by her first name, start getting to know her more by casually chatting with her. If you happen to see tourists or new faces in town, try welcoming them in the neighborhood by engaging them in small talk. You need to start somewhere if you would like to develop those 'rusty' conversational skills.


3. Broaden your knowledge of a wide range of topics.
The weather is probably one of the most worn-out topics of conversation between strangers. To move on from this topic to something more, try broadening your knowledge of a wide range of topics by reading everything from newspapers to magazines to the latest New York Times bestseller.

Watch television and get updates on the news, sports, current events, even politics. It is easier to kick off the small talk if you have knowledge in a multitude of topics that will interest others.



4. Ask questions and listen.
One of the misconceptions that a lot of people have when it comes to making small talk is that they feel that they have to do all the talking. Remember that a good conversation is a two-way street. You also need to be polite enough to express interest in what the other person has to say. You can even 'listen' for clues on what seems to be interesting to that person, and the conversation should kick off to something more interesting from there.

Asking questions is also an important part of making small talk. By asking questions which may or may not relate to what has already been said, then you are basically giving them an excuse to continue chatting with you, which essentially breaks the ice and gets rid of any awkwardness.
By following these small talk tips, you will benefit in such a way that you will be able to survive any potentially awkward social situation. Engaging others in small talk is also a polite gesture, and not only that, it also helps boost your confidence and widens your social circle.

By giving the 'go' signal to others that you are easy to talk with, they will feel comfortable enough to respond to your attempt at making small talk.

Monday, January 05, 2009

THE MONEY MANAGER TRADING STRATEGY

An effective trading strategy is only part of a successfully trading plan. If you
want your trading to perpetuate, you better have some form of money man-
agement built into your overall trading approach. Money management
involves examining the concepts of risk and return in reference to investor
preference. The objective is to choose a desired rate of return and then mini-
mize the risk associated with that rate of return. Money management concepts
should be used to make the most efficient use of trading capital. We can’t
emphasize enough the importance of using money management in a trading
plan. The Money Manager strategy is a simple system that incorporates and
demonstrates some simple money management concepts. The concepts we are
presenting go beyond simple profit objectives or protective stops. These ideas
fall within the realm of the underlying trading strategy. We go beyond this and
move into the areas of capital allocation. The concepts that are presented in
this strategy are based on capital preservation and market normalization. We
all know what capital preservation is, but some may not understand the concept
of market normalization. The ability to diversify equal amounts of capital
across a portfolio of different markets is the backbone of any money manage-
ment scheme. If we want to risk 5% of our equity on soybeans and 5% on
Treasury bonds, we need the ability to treat the two markets on apples to
apples basis. Most of the time one contract of Treasury bonds exhibits more
risk than one contract of soybeans. Since we want to maintain a constant
amount of capital to risk on the two markets, we will need to trade less Trea-
sury bonds and more soybeans. Let’s say the implied market risk for Treasury
bonds is $1000 and $500 for soybeans. If we were risking $2000 on each mar-
ket, we would then trade 2 contracts of bonds and 4 contracts of soybeans. We
are maintaining the same amount of risk by varying the number of contracts
for the two markets.
Measuring market risk is the first step in the market normalization
process. Money managers use several different measures to monitor market
risk: average true range, mean change in closing prices, standard deviation in
closing prices, and numerous others. The Money Manager strategy uses the
standard deviation in closing prices to calculate market risk.
Inputs: initCapital(100000),rskAmount(.02);
Vars: marketRisk(0),numContracts(0);
marketRisk = StdDev(Close,30) * BigPointValue;
The StdDev function returns the standard deviation in terms of points, so we
multiply by BigPointValue (dollar value of a big point move) to get market risk
in terms of dollars. Once we know the market risk, we then can calculate the
number of contracts
Building Winning Trading Systems with TradeStation
numContracts = initCapital * rskAmount / marketRisk;
For demonstration purposes, let’s assume we are trading the Japanese Yen and
the market risk is equal to $750. The number of contracts would be calculated
by using the formula from above:
numContracts = 100000 * .02 /750
numContracts = 2000/750
numContracts = 2.66667
Since we can only trade with whole contracts, we round down to the nearest
whole number. Since market risk is the denominator in our formula, whenever
market risk increases the number of contracts decrease, hence, the risk aversion
component of our money management scheme. In similar fashion to the Ghost
Trader, the Money Manager was designed as more of a template than an actual
trading strategy. We wanted to provide the tools necessary to build a money
management platform. The source code for Money Manager follows.
The Money Manager Code
{The Money Manager}
{Demonstrates the programming and use of a money management scheme.}
{The user inputs initial capital and the amount he wants to risk on each
trade.}
Inputs: initCapital(100000),rskAmt(.02);
Vars: marketRisk(0),numContracts(0);
marketRisk = StdDev(Close,30) * BigPointValue;
numContracts = (initialCapital * rskAmt) / marketRisk;
value1 = Round(numContracts,0);
if(value1 > numContracts) then
numContracts = value1 - 1
else
numContracts = value1;
numContracts = MaxList(numContracts,1); {make sure at least 1 contract is
traded}
Buy("MMBuy") numContracts shares tomorrow at Highest(High,40) stop;
SellShort("MMSell") numContracts shares tomorrow at Lowest(Low,40) stop;
if(MarketPosition = 1) then Sell("LongLiq") next bar at Lowest(Low,20) stop;
if(MarketPosition =-1) then BuyToCover("ShortLiq") next bar at
Highest(High,20) stop;
Overall the logic should be easy to follow. However, there is some code that
may not be totally intuitive. The formula that we used to determine the num-
ber of contracts doesn’t always produce a whole number. Since we are trading


Sunday, January 04, 2009

FX CLEARING

FX Clearing Group Inc.. (Ontario Corp.) registered in the Ministry of Government Services (Carolyn Ministry of Consumer and Business Services) on 15 Sept. 2006. Regristrasi number 1710457.

No permit on the FOREX in Canada, and we do not need to obtain permission in the field of securities (stocks, etc.), if the client does not receive Canada.

With the approval of the report we laws FinTRAC, the organization of government anti-money laundering Canada.

We decided to provide that trading conditions are very good, transparent operation, automatic execution, and other benefits that are usually only available to clients in large institutions.

FX Clearing Group, Inc. to meet the following rules:

Meet the rules PIPEDA

FX | Clearing movement of the business as the online Forex Dealer for foreign investors based on the Personal Information Protection of Electronic Documents Act (Action for the Personal Information Protection Electronic Documents Will) Canada, called "Act".

As a Forex Dealer, FX | Clearing required by law to collect information from each individual: name, birth data, address, occupation, and my copy of the document published by the government.

Personal information provided on FX Clearing is confidential and FX Clearing will not sell or distribute in any way on any parties except 3 requested by the concerned or the data required by the Financial Transaction Reports and Analysis Center of Canada ( "FinTRAC") - Center for Analysis of Financial Transactions and Reports, or request relating to other regulations.

FX Clearing also required by law to sensitive to "suspicious activities" and "suspicious transactions" in which all activities and transactions FX Clearing is reported to FinTRAC, and FX Clearing must be sensitive to the activities the individual terrorist, unity, unity, and the countries identified by United Nations agencies and other national and international.

In order to meet the demand for documentation of, FX Clearing has been appointed for the officers who could be contacted for questions and complaints about the treatment of personal information on the FX Clearing, namely compliance@fxclearing.ca

PT. Victory International Futures

PT. VICTORY INTERNATIONAL FUTURES company is moving in the field of investment products with a focus on investment in forex, index futures, and precious metals, with the support of the media and the Internet as a point of the transaction is expected to reduce the fee / transaction costs compared with using the phone as the media the usual in the era of 1990 - the beginning of 2000. With the ease of accessing your account using the platform of the Victory trader customers can make / take decisions whenever and wherever transactions are either using a PC / Notebook and even ease of transaction can also be done using a PDA / Smartphone.

PT. VICTORY INTERNATIONAL FUTURES permit has been obtained from BAPPEBTI business with the number 18/BAPPEBTI/PN/4/2008. PT. VICTORY INTERNATIONAL FUTURES at the same time takes membership of PT. Clearing Berjangka Indonesia (Persero) with the number 1/AK-KBI/II/2008. Member of PT. Exchange Berjangka Jakarta with SPAB-080/BBJ/08/04 number.

With the support of professionals in his PT. VICTORY INTERNATIONAL FUTURES become one of the company and a global financial services company is the best.


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