So, here are a few suggestions that can help you totrading a funded forex account the right way:

Have a Plan

Most traders start without even having a plan. They think that if they traded profitably on their own, they could achieve the same success trading the funded account. I’m not suggesting to change your trading strategy completely. What I’m suggesting is tweaking your risk parameters to fit the risk parameters of the company you are trading for.

Check the requirements to become a qualified trader and make sure you don’t violate the company risk limits. In fact, one of the bestwith minimal requirements is provided by City Traders Imperium.

Start Small

Starting small is always best to win at trading. You don’t ever want to dive into it head-first and then lose all of your trading capital because of a mistake, misjudgement, or miscalculations. You are much better off taking your time and taking little risks in the beginning. That way, you can see what results can you achieve and whether you can simulate the same results of your testing phase. That way, you will develop confidence and consistency to achieve growth. Then, you’ll find the best way for you to be more comfortable when you decide to take more significant risks in the future.

Think Long Term

One of the biggest challenges for forex traders is that they lose money because of risking too much on a few trades. The problem is that they look to make the most money in the quickest period possible. This will often end up in a tragedy because they don’t think long term.

Let me ask you, is it better to make a lot of profit in 1 week and then losing it in the week after? Or is it better to make less profit, but consistently growing an account over a more extended period?

If you gradually build your way up over a longer period, your money will compound and grow exponentially. For example, if you can achieve 6% every month, which is achievable by most traders, you will be able to double your money in 1 year more than. And this is more than enough to grow your account with City Traders Imperium’s forex funded account.

If you can make 12% every 2 to 3 months, CTI willfund youup to $1.28m with a trading capital to trade and split the profits with you. So, if you prepare yourself for the big time and get ready, you could get some awesome results.

But before you start, you want to be sure that you’re doing the right thing and that you are thinking long term. You need to think of your long-term success as a trader.

To answer this question, is day trading profitable ? I will first establish a few points as the foundation. Whether day trading is profitable depends on 4 areas. Only when we are have mastered these 4 areas, then day trading can be very profitable.

These 4 areas are

1 Start up capital

You need a certain level of start up capital to make money from day trading. Depending on the instrument that you are trading, the margin required may be from 2% for forex, to 20% for commodities. Due to the leverage nature of trading, you do not need to put up the full value of the contract.

For starters, even for a small trading account, you would still need to fund about $10,000.

2. Technique and skill

Another important factor that will determine whether you are profitable with day trading is your level of skills in the techniques being applied. There are many techniques that day traders use to determine entry points, take profit and stop loss levels.

This ranges from reversion to the mean strategy to moving averages spring strategy and many others more. Moreover, different strategies makes use of a range of technical indicators which you would have to master.

We make money from day trading primarily by exploiting 2 concepts. One is the idea of trading in the trend whilst the other is trend reversals. All of the strategies and technical indicators is to help to decide on playing on either one or the other.

You can find out more about the different strategiesHere

3. Experience

Another crucial factor that determines how profitable day trading can be is the experience of the trader. A day trader has to be nimble to be profitable. The mantra is to get in fast, get out faster. This takes experience to exploit trend and short term trend reversals within the longer term trend. This is especially true during times of great volatility surrounding major events and announcements.

Day traders can trade anywhere from 1-2 minutes charts, up to 30 minutes chart. As the time duration is short, the price movement tends to be smaller in magnitude and therefore the size of your position relative to your account capital is crucial in determining your profitability and risk management. All these take experience

4. Control of emotions and mental strength

One of the most important factors to determine whether you can make good profits from day trading has more to do with your emotions and mental strength rather than anything else.

Day traders cannot let their emotions get the better of them or they will lose a lot of money. To profit from day trading, traders have to keep their emotions in check. When we got it wrong and our position is taken out by the stop loss, we have to continue and set up new trades.

When we have mastered the techniques and strategies and based on our experience, we must be confident that our winning calls to outnumber our losing calls. Another way to ensure that our wins will be bigger than our losses is risk reward ratio that we set for each trade which is usually 1:2. This means that when we win, we win double our losing trades.

Mental strength is very important in that we must have the mental strength to stick to set up trades based on what is identified. Many times, we tend to end up having more losing trades when we lose this discipline, get overcome by emotions and set up trades that should never have been set up.

Is Day Trading Profitable ?

Once you have control of the 4 factors, day trading can be extremely profitable. For the same amount of startup capital, there can be many trading opportunities over the day. With such velocity, as long as we have a risk reward ratio of 1:2 and executes a higher number of winning trades over losing trades, the profit potential is huge

Forex Trading – Refining MACD Trading Strategies

by

ForexAbode.com

No indicator can give all correct signals all the time and hence continuous refinement in the strategies to use an indicator is a must to avoid as many false signals as possible. Getting a few signals which are good is always better than getting a lot of signals of poor quality.

Moving average convergence divergence MACD is used very commonly in technical analysis for trading. MACD is a lagging indicator and that means that any signals by the crossover of MACD and its signal line are generated with some lag in time. The signals are generated after a confirmation of the move in a particular direction this comes with a time lag. When the trend is weaker, this lagging would tend to cause more false signals. Why more false signals during weak trends or when the market is ranging or running sideways?: 1) Entry signal: By the time the entry signal is generated, the price may be reaching the reversal point because during the time lag the trend becomes further weaker and market is on the verge of reversal. 2) Exit Signals: By the time the reversal crossover takes place and signals that we should close our position to take profit, the price already reverses so much that the realized profits levels are much less than the realization levels if would have closed the trade sooner. Though the most important factor in trading are the skills, knowledge and trading discipline but there are always possibilities of improving our indicators also. The improvement can be either by the change in the logic by adding new conditions or by experimenting with different period settings. What we wish to always achieve is to have lesser and lesser percentage of false signals. Albin, Gunter and Kain came up with some refinements in the original MACD for reducing the percentage of false signals which may otherwise be generated. The first refined version is known as MACD R1 and the second is MACD R2 as the subsequent one. Let’s check what MACD-R1 and MACD-R2 are. Our trading platform most probably will not have these refined versions but considering the logics of these, we may think about improving our MACD trading strategies. MACD-R1: a) One more condition was added and that was to wait for three periods (days on daily chart) after the MACD line crosses the signal line upwards or downwards before we take a position. This wait was to ensure that the signal was not false and an immediate reversal does not take place as soon as we take a position. If during this 3 periods another crossover takes place then we forget the first crossover and wait for another 3 periods to ensure this reversal. b) To avoid the exit problem as mentioned in point number 2 above, MACD R1 has the profit taking levels as pre-decided percentages. In a nut and shell it says that don’t be greedy and come out of a trade with certain pre-decided percent of profits. These suggested profit taking percentages were 3% or 5%. So MACD R1 says that close the trade after 3% or 5% gain after the entry. In case a reversal crossover takes place before this pre-decided target of 3% or 5% then also we should close the trade. MACD-R1 – weaknesses: 1) Even with these additional conditions there still is higher number of false signals. 2) Loss in the profits: Let’s assume that it is a strong uptrend and after taking a buy position the prices move up by 8%. And what we did was, we closed the position after 3% or 5% profit and hence the opportunity of making higher gains was lost. basically we may end up in making a big loss in the profit and that goes against the mantra that let your profits run and cut your losses short. MACD-R2: To overcome the above mentioned issue of still higher number of false signals by MACD R1 an additional condition was added in terms of further refinement. The new refined version is known as MACD-R2. Let’s think why MACD-R1 still offers possibilities of reducing the false signals: Scenario: We wait for 3 periods to have the confirmation of the trend continuation by seeing that no reversal crossover takes place during this waiting period. And after this 3 periods we enter the market. As soon as we enter the market, a reversal takes place and we end up with losses. Now let’s see why the above mentioned scenario is possible and what did we miss to avoid it: This can happen because we waited for the confirmation but ignored another warning signal i.e. what did not happen may happen soon now. This may happen because though by the end of the 3 periods after the original crossover, another reversal crossover does not take place but the MACD line comes dangerously close to the signal line to indicate a reversal. The difference between the MACD and signal line reduces drastically. We are not keeping track of this development and ignore this reducing difference between MACD line the signal line even though it indicates the possibilities of a reversal crossover. What additional changes/conditions are there in MACD-R2: Now when we know what we missed, we have to add that condition so that we do not lose the track of the reducing difference indicating a reversal. An additional condition was added apart from the original concepts of MACD-R1 to design MACD R2. This condition is to ensure that we keep a track of the difference between the MACD line and the signal line and do not ignore a warning signal of a possible reversal. This condition ensures that a pre-decided difference maintains between MACD and MACD signal line even after waiting for 3 periods and then only we enter the market. If the difference between MACD line and the signal line goes lesser than the pre-decided level then we do not enter the market. Suppose we decide that the minimum difference between MACD and signal line should be at least 1.2% at the end of 3 periods. What it means is if the difference between these two lines is less than 1.2% then should not take trade position. We decide this difference percentage based on the experience that a difference less than this may indicate a possible reversal.

For more details please check

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Moving Averages

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Forex Trading – Refining MACD Trading Strategies

By Zack Forester

How much rent can I afford?

As a guideline in NYC, you can expect to spend approximately 25% of your gross annual income on rent. For example, if you earn $80,000 per year, plan to spend $2,000 a month on rent. What do landlords commonly require? Most landlords require their tenants to be of good credit and gross an annual income of 40 to 50 times the monthly rent.

What is a Guarantor?

A guarantor, also called a co-signor, is someone who is willing to guarantee your lease. The guarantor is responsible for all terms of your lease and your rent payment, should you default.

Do I need a Guarantor?

If you do not meet the financial or credit requirements, a guarantor is one way for you to secure an apartment. Most students and young individuals require a guarantor due to their inability to meet income requirements. When it is an issue of bad credit, however, a guarantor in conjunction with extra security might be needed. Please let your agent know if you will need a guarantor so he/she can better prepare your application.

Who can be a Guarantor?

A guarantor does not have to be a relative, but many landlords require the guarantor to live in the tri-state area: New York, New Jersey or Connecticut. Try to prepare your potential guarantor in advance. Speak with them about what they would be responsible and the paperwork that would be required of them. Timelines for apartment applications are subject to change. As a result, you might have to act quickly and the guarantor’s cooperation may be critical for your approval.

So what does a guarantor need to do? A guarantor needs to fill out an application form and provide the same required documents as the applicant. In terms of income, they are required to gross an annual income of 80 to 100 times the monthly rent of the apartment. The guarantor does not have to be present at the lease signing unless otherwise stated by the management company.

Rentals: The landlord owns the entire NYC building. Stabilized and non-stabilized apartments are included in this category.

What you need to know: The approval process for NYC rentals are relatively short, taking approximately seven days. It is based upon a credit check and financial requirements. Usually the tenant is expected to have a net income of 40 to 52 times the monthly rent. The security deposit is usually equal to one month’s rent for NYC rentals.

Condos: The apartments in the building are owned by individuals for residential and/or investment purposes. Owners are able to determine rent and length of leases for NYC rentals that are condominiums.

What you need to know: The approval process can take up to 30 days and is based on a credit check and the individual owner’s requirements. Application and move-in fees are common. Usually the tenant is expected to have a net income of 40 to 52 times the monthly rent. The security deposit for your NYC apartment may exceed one month’s rent.

Co-ops: The building is structured like a corporation. Individuals do not own an NYC apartment but shares of the building according to the size and value of their unit.

What you need to know: There are many restrictions on the rentals of co-ops including rent price, length of lease, roommates, etc. The approval process can take up to 45 days. Prospective tenants must submit extensive personal and financial information as well as interview with the co-op board. Usually the tenant is expected to have a net income of 40 to 52 times the monthly rent. One can also expect sizable application and move-in fees. The security deposit may exceed one month’s rent. Also, applying to a co-op can be problematic for diplomats or new hires without an established credit history.

Metropolitan Property Group the Manhattan-based commercial and residential brokerage is set to open a fourth office in Midtown West later this month. CEO and founder’s recent interview: http://therealdeal.com/blog/2012/03/09/metropolitan-property-group-expands-in-midtown/

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