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Friday, August 28, 2009

Grandmothers everywhere avoid BlackHorse Fund

By BlackHorse Management

July 28, 2009, Los Angeles California " Most grandmothers invest their life savings into something that is safe; something that may not return much but also won't lose much. BlackHorse Fund is not for her.

For grandmothers, financial management means keeping pennies at the bottom of their purse and making sure that they account for everyone. They wouldn't dream of taking on more risk for more reward.

For grandmothers everywhere, BlackHorse Fund stands as a strange, complex entity. This private forex fund has the primary goal of growing the capital of its investors and it does so with a talented team and a proprietary algorithm.

BlackHorse Fund operates in the forex market " the largest and most liquid market in the world. The forex market is the currency market where investors make thousands and even millions by trading one currency against another. It would shock grandma to learn that trillions of dollars change hands each day in this market. She probably remembers when houses sold for hundreds of dollars in a catalogue.

Risk is a four letter word for grandma. She avoids it except for the risk she takes when she decides to put raspberry jam on her toast in the morning. Knowing that risk can be managed by seasoned investors with years of experience won't make her feel any better.

The rewards, though, can be dramatic, too. BlackHorse Fund has delivered impressive returns for its group of private investors thanks to a commitment to its primary aim; and it fulfilled its commitment with its proprietary algorithm and its team of seasoned traders. Grandma would be impressed with the ROI but wouldn't know what to do with the money if she got it; she couldn't fritter it all away playing bridge with the ladies in her quilting club.

A successful track record is the reason that BlackHorse Fund can keep its group of investors small. They combine the strength of numbers to leverage larger opportunities with the strength of just a few in the group in order to stay flexible to the market and react when they need to react. Grandma simply doesn't understand that a successful fund like BlackHorse doesn't have to let just anyone in; instead, they operate on an invitation only basis accepting investors after a lengthy application process. - 23199

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Forex Analysis: Which Type Is effective?

By Brad Morgan

The analysis of the Currency market can be classified into two types:

1. Fundamental analysis concerns itself with scrutinizing socio-political and economic forces and concluding their effects on the market.

2. Technical analysis on the contrary , employs graphs and charts to deduce patterns that manifest price movement.

Choosing one over the other is not spontaneous. A cursory surveying of FX trading related forums and websites show traders being uncompromising advocates of either one of these approaches. Those who admire technical analysis assert that graphs are the solitary style that can predict way ahead of time the trends which is decisive to making a profit in trading.

Conversely the proponents of fundamental analysis will defend that it is the economic factors that drive the changes in currency prices and this is assuredly true, at least most of the time. From that stance they will argue that any patterns you might find on a chart are nothing more than coincidental.

That assertion should be taken with a grain of salt. While the direct and gigantic effects of economic changes is incontestable, in post major announcements situations and relatively event and change free times, technical analysis may be of aid in predicting movements.

If on the other hand you rely completely on your charts, you are likely to be caught out when a crucial financial event such as an interest rate change is unanticipatedly announced. You were not giving heed to the financial news and left a trade open at the wrong moment. That can result in calamity.

In the end, it is an irrefutable fact that economic aspects are behind most, if not all of the extreme price movements but it cannot be declined that there are trends that can be predicted by technical analysis for the shorter periods. So identifying these trends while being aware and up to date on current events is the most definite way to envisage direction of future currency rates. Close prediction is of course how one makes a profit on the foreign exchange market.

If we compare the forex market to an elastic object, it can travel in either direction and occasionally, return to the original place. Fundamentals maneuver the market. The extent of the movement and its return point is predicted by technical analysis.

So when you want to profit from foreign exchange trading it is better not to let your concentration to become fixed on either one. You ought to learn to balance the use of both forms of FX market analysis to make steady profits. - 23199

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Is It Possible To Avoid Bankruptcy?

By Emma Elvie

Chances are if you are reading this article then you are trying to learn how to avoid bankruptcy. No one ever wants to struggle with their finances; however there are so many people in our society who tend to continually struggle with their finances.

So if you have been wanting to learn how to avoid bankruptcy then you have come to the right place. We want to share some tips and advice of what you can begin doing to get back on your feet and overcome your financial difficulties.

1. Budget: If you do not already have a family budget set up; then it is time that you begin creating one. It is vital that we all know what we can afford to spend and what we need. If you find that you are spending more money than you make then it is time to stop before it is too late.

We all know what causes anyone to become financially strapped and the main reason is because you spend more than you bring in. If you like spending money; then you may want to find other ways that will help you increase your income.

2. Stress: Avoid letting yourself stress over things that you have absolutely no control over; people who become too stressed tend to find their finances become worse. You have to realize that you have put yourself in that situation and you are the only one who can get yourself out of it.

3. Be Honest With Creditors: I know that your first instinct is to avoid the creditors. However that is the worst thing that you can do; in fact things will be much easier if you are honest with them about your finances.

Be sure to visit our site below and find out what you can do to avoid bankruptcy and get some valuable bankruptcy advice that will help you get back on track. - 23199

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Forex News Straddling Strategy (Part V)

By Ahmad Hassam

You should know the problem of slippage and how to avoid it if you want to successfully trade the news. Slippage occurs when the price you intend to enter or exit the market is different from your actual transacted price. Currency prices tend to move very fast during highly volatile market conditions. The risk of slippage is usually very high when trading the news.

Placing stop or market entry orders under such times do not guarantee anything. Slippage is the biggest problem when the market moves fast. These orders do get filled but mostly at different prices than you had intended.

Most of the brokers had taken the opposite position themselves as the fast moving market did not allow them to offset these orders in the interbank market. As the broker has the opposite position, if you lose, the broker wins and makes profit. The broker is in fact trading against you now. Many forex brokers will wait till after the big market move is over. Then they will fill your entry order. Sometimes, these entry orders may even get filled past your stop loss or profit target. This means that you would be left with immediate net loss.

Many brokers will fill your stop loss or take profit before filling your entry order with wide slippage. It is a trick that many forex brokers use in order to make profit by filling your position with a negative spread.

Suppose you have set your long entry stop for EUR/USD at 1.2564 and your profit limit is 1.2594. The forex broker may first fill your take profit at 1.2594. Then fill your long entry stop at 1.2604 with a 40 pips slippage.

You were confident that you would make a winning trade. If the orders had been filled at the prices you wanted, your trade would have resulted in a profit. But now you have a net realized loss. If the trade goes against you, the forex broker may fill your stop loss order first and then fill your entry order with slippage after that so as to widen their profits. With slippage you cannot predict anything what the broker will do with you.

Suppose, you had placed your long entry stop at 1.2564. You place your stop loss at 1.2544. The broker could first fill your stop loss at 1.2544. Then fill your long entry stop at 1.2594 with a slippage of 30 pips. You now have a net loss of 50 pips due to slippage instead of planned 20 pips loss.

You should know as an individual trader that your orders will be kept pending till you get stopped out or your profit limit is reached during the release of news when the market moves fast. The more you stand to lose and the more the forex broker stands to make a profit, the larger the slippage you experience. Some forex brokers add slippage to any of your orders to increase their profits during times of fast moving markets when the volatility is high.

Many traders readily accept the risk of slippage as one of the realities of trading the news. However, they should know that slippage can eat up a huge chunk of profits and in the end affect their overall profit/loss. You can overcome the problem of slippage through the use of stop-limit entry order. More on it in the next article! - 23199

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Trading System Exit Strategy

By Maclin Vestor

Many good trading systems use multiple exit strategies. In normal trading system, you need to know when to exit from a gain, and when to exit from a loss. Generally you want to be cutting your profits short, and letting your profits run. At a minimum, you generally want nearly a 3:1 gain to loss. This means you should take profits at 3 times the percentage amount as you cut your losses short. We will use this system and do the following

1) Exit stop at a 7% loss. This stop-loss should sell ALL of your shares. The simple method is to just set the stop and leave it. There are dangers of this because people may be able to see someone make the stop order on the floor, and if they have enough money, they can take advantage of that, selling lots of shares of the stock, pushing the stock price down below the stop, then forcing you and others who may have stops out, and then buying the stock below your price, so the stock will stop out, and then quickly rebound. The more advanced mode is to just watch it, and if it is going to CLOSE below your stop, only then will you exit 10 minutes or so before the markets close. The sophisticated way is to just not use stops, and instead buy puts. this increases the cost of the investment and thus limits your win, but you give up a fixed amount for protection against large losses.. This would insure that the stock doesn't drop overnight. A failed breakout is signaled if a stock drops 7% below breakout point. If you are buying stocks on the pullbacks, a 7% drop should signify a breaking of support.

2) Set a profit target at 20%. You can use a limit sell order to sell here if you would like, particularly for those who don't have the time to watch the stock. You should be willing to wait a full 4 months for it to hit it's target. If it hits the target, you should sell 1/2 to 2/3rds of your shares, and let the rest ride. Also, if your stock hits the price target within 8 weeks (2 months), this signals that your stock is a good one, and you want to hold onto your winners. There is a simple strategy and a sophisticated strategy. The simple strategy is to hold onto your stock until the entire 8 weeks is up. The sophisticated strategy is to sell most or all of your shares, and convert them to an option that you should own at strike price, or very close to it. You should ensure that this transaction is such that in a worst case scenario, you still will have a 5% gain. Generally, you will own say 100shares, sell 100, and buy 1 call contract at the same strike price the stock is at, and secure a profit, while still maintaining the same upside leverage minus the cost of the option and the transaction.

3) Set a trailing stop of 25%. This should serve as a function primarily to exit the remaining 1/3rd to 1/2 of shares that you let ride after you hit your price target of 20%. It is possible that the stock goes up near your target, which will raise this stop to 5% below where you bought it, or if you aren't using a limit sell, it could spike way up to up 35% from where you buy it, and then quickly come down, and sell out a small portion of your shares for a small gain. This is fine. In this case, either the stock will then proceed to drop below your buy point and go and hit the 7% stop-loss, or it will then bounce and gain until it hits your 20% target. In either case, you will sell the rest of your shares. Of course, if this all happens in a short amount of time, you may attempt a swap as a sophisticated strategy, but generally you should be done with it.

4) You should always keep records. Record how many you bought at what price and which exit(s) were triggered. You want to check all these stocks in a year, or so, and see if you could have made more by adjusting your stops, or adjusting the size of which you sell.

5) Enjoy the profits.

If you are a good system trader, you will make sure that they trading system you use has an excellent exit strategy. At System Trading|Stocks Trading Systems you will learn that an exit strategy will allow you make sure that you have a trading system with greater returns on your average gains than you have losses on your average losses. This is only one small aspect of a trading system but it is a very important one. In fact, your exit strategy will be vital in determining how much capital you allocate when managing your money in a trading system.

In addition, if you can find a stock selection vehicle in combination with a good exit strategy, it will insure that any given investment has a positive expected value. In other words, with a good exit strategy and stock selection that picks winners often enough, you will win more than you lose, provided you manage your money right. Learn these tips as a system trader, and you stand a much better chance at being a profitable trader than someone who does not understand the importance of a good exit strategy within a trading system. - 23199

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