Archive for the ‘Forex Tips’ Category

When you hear market manipulation you may think is some big player like Goldman Sachs running a high frequency program or maybe a government trying to push their currency in their favor, but in the forex market your worst enemy may be your own forex Broker.

In March of 2006 Meta Quotes Software, the same company that created the most popular currency trading software, the MetaTrader 4, put out a Support Article on their Web Site explaining some of the features of a software your broker can purchase for an extra charge that can potentially manipulate your trades to maximize their profits.

Some of its features include:

=> Delaying customer’s orders by 5 seconds to give the customer the worst possible price.

=> Increase in spreads in order to trigger stops losses.

=> Watching symbols gaps, so stops are activated at the gap price and not at the client’s requested prices.

=> Disabling, setting, modifying or deleting pending orders during news times.

=> Automating the move of spread, limited and stop levels ahead of news event.

=> Reduce the leverage to force the liquidation of the largest positions of their customers.

=> And more…

MetaTrader is the world’s preferred Forex trading platform. According to some estimates more than 70% of all brokers offer the Metatrader platform and more than 90% of the total retail Forex volume is executed through it.

The name of this software is the “Virtual Dealer Plug-in”, this plug-in can be used to manipulate Stocks, CDFS, Gold, Futures and basically any other instrument your broker offers.

Now we will explain some of the plug-in features in more detail. When you ask MetaTrader for a Market order you would expect to get the current price as displayed on your terminal, but when the plug-in is running your order can be delayed up to 5 seconds, during the imposed delay, your broker will analyze the prices and it will try to give you the worst possible price, so the broker can pocket the difference, it could be just 1 or 2 pips or as high as 10 or 15 pips and if the price moves in your favor the broker can re-quote the price several times until it moves their way.

Not only you could get the worst possible price when you open a position, the broker can also manipulate the price feed to trigger your stop loss, and when you try to close a position the plug-in will try to split the price in the broker’s favor but never in the customers favor. These manipulations go usually unnoticed and if you ask your broker about it they will always blame it on the market, connection issues or other factors that are hard to corroborate.

We had an account that had been opened for several months and had a balance of around 8K USD, we had been trading a successful strategy from this account for the first three months, but then we started to notice re-quotes on almost every trade and other strange activity, we decided to open a new account with the same broker so we could compare the spread, executions times, re-quotes, profit and losses etc.

We opened a position on both accounts at the exact same time, and just on our first trade we noticed that the new account closed with a 15 pip profit while the same position on the existing account was re-quoted several times until it finally closed with a 5 pip loss. On other trades there were spread variations of 5-30 pips between accounts, which caused many positions to reach the stop loss while on the new account the same trades closed with a profit.

We repeated the process on different days with numerous trade combinations and obtained very similar results. These discrepancies were also clear when visually comparing charts side by side.

At the end of the first month our newly opened account had a profit of 181 pips while our old account had a loss of -46 pips while executing identical trades. By the third month both accounts started to perform the same way and at this point it became virtually impossible to make any profitable trades.

We confronted our broker with the facts and after some time of discussion they finally admitted that it was standard practice for most Forex brokers to run the virtual dealer plug-in. We of course closed our accounts immediately.

During an audit in July 2009 the NFA discovered that Gain Capital (aka: forex.com) was using the virtual dealer plugin to manipulate trades that benefited Gain to the detriment of its customers.

You can read the official NFA document below:

http://www.nfa.futures.org/basicnet/CaseDocument.aspx?seqnum=2461

You can find more information about the virtual dealer plugin by reading the official PDF document at the url below:

http://bit.ly/dYQquR

Professional Forex Indicators and tools for Metatrader.

Penny Stock prophet is a Penny Stock Picker.It can identify profitable penny stocks and inform you as soon as it find good penny stocks. So you can do your penny stock investment accordingly. The Penny Stock Prophet created an algorithm to analyze the penny stock market to identify what stocks were going to do. Then the program was used to identify what stocks were about to increase in value and about how high it would rise before it would start to fall in value. The system used the algorithm, instead of a stock broker, to become a millionaire using the predictions to successfully trade penny stock. The algorithms predictions were not dead on all the time, but enough that the Prophet was able to become a wealthy and successful penny stock trader.

This penny stock picker system is entirely based on cold hard market data and winning algorithms so consequently it is the most full proof way to trade and without any chance of emotions factoring in. Sometimes it recommends consecutive trades, enabling you to begin by investing a relatively small amount of capital such as a couple or few hundred dollars, and multiplying this into the thousands in a short period of time as I did when I first begin with it.

Perhaps the best thing about Penny Stock prophet is that anyone can dominate the day trade market so long as they follow the recommended investments closely and accordingly. With today’s bearish market, there has never been a better time to use an effective penny stock picker with so many stocks ripe for turnaround picking.

The publishers of this system even stand by their product enough to offer a 60 day full money back guarantee if you are dissatisfied with your results on any level. Once you have the system, you don’t even have to risk or invest a penny of your own money to confirm its effectiveness first hand as you can simply review the emailed stock pick recommendations and compare them to the real market data as it unfolds in real time, thus making this penny stock picker entirely risk free.

Penny Stock Prophet is an opportunity that you should not pass up. You can really make huge amount of profits from investing in small and microcap stocks. This is absolutely not a scam.There is no better way to make a healthy second income from home than stock trading. Imagine, you have now the power to make huge profits without having to experienced any hardship. Everything has been done for you, all you have to do is follow. This is a great strategy that will give you the ability to pick the breakout penny stocks just days before they experienced incredible gains! So, what are you waiting for? Remember this opportunity is available for limited slots only!

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Forex Time Machine by Bill Poulos of Profits Run – The Best of all the Forex Trading Courses.

If you are only starting out and just learning forex trading, it can be hard to get yourself wrapped around everything. There are the terms ; bid price, ask price, bid/ask spread, cross currency, margin, leverage and so very much more. Sometimes it can be maddening making an attempt to wrap your-self around this entire idea. When beginning, it’s important to remain focused, and not wander around making an attempt to figure things without a direction.

When you are learning forex trading, it is good to take in numerous ideas from other traders and see if you can evolve them to your tactics to improve your trades. Learning is a never ending process, and you only stop learning when you stop permitting yourself to learn. As a day trader it is vital to always be teaching yourself the newest trends and what’s hot for the market. Not knowing where you are when you are making a trade is one of the commonest beginner mistakes.

Like I said, learning forex trading is crucial to do well. Who do you believe makes more in the foreign-exchange market? A now and then self taught trader or a consistently changed trader that is up to date? You’ve got it, the adapted trader that has the most up to date coaching about the industry. As a trader that’s new to the market, the most significant thing when starting it proper coaching. There’s nothing worse then a new trader just cutting their profits from not being taught the right techniques.

When starting learning forex trading I discovered that it had been a great help to gain from fellow traders, and to become more surrounded with successful traders, this gets you into the mind set that you are successful. Doing this can make you would like to be as successful, and will give you incentive and drive to achieve more.

Start truly learning forex trading and get an edge over the average trader. There is a small thing that I can assist you in learning, that’s the easy way to make your personal computer work for you. Now how the heck can you get a P. C. to work for you? Well what if you got it to be a trader, but not just any trader, a highly sophisticated trading machine that may trade better than the average day trader. Take the next step in the correct direction, and open yourself for the new idea of having your personal computer trade for you. Discover more about my guide, and you could get yourself to easy profits in no time!

Forex Time Machine Online Course

The Forex Time Machine – Does it meet our criteria?

What is it : forex Time Machine teaches 3 individual yet synergistic techniques for attacking the currency exchange markets, all in a single trading course.

Who it’s designed for : This is one of the few courses that crosses over the trading style lines. The methods can be applied to any timeframe – so whether you are a day trader or an end of day trader, or, an informal trader, the strategies taught in this course will work for you.

Account size : 0 and up — this was a huge selling point for us. This course can be used for micro, mini and standard lot trading ; we’ll debate this more in the danger Management section below.

Course Style : forex Time Machine teaches technical indicator-based trading, using common indicators in an exceedingly strong way. This is not a mechanical or automated program. Instead it puts the power to trade in YOUR hands, which is where we believe it belongs.

What you get : The course contains a group of 7 cds and full-color indivdual reference manuals. These manuals make it easy to find the info your’re looking for if you do not happen to have the cds with you. — both of which are perfect for self-paced learning. You also get 3 card-stock ‘blueprints’ that summarise the trading strategies and make it easier and faster to spot potential trades without con stantly having to refer to a manual or a cd. Also included is Bill’s exclusive Broker Selection Scorecard and a quick Start Guide to help get moving thru the course faster.

FTM – The Breakout Method