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Recently at a convention on FOREX Hedging there were people in the audience who had spent as much as 80,000 or more on trading courses. None of them had any success with trying to predict trends as directional traders. Most lost a lot of money in the process.

Apparently there are about 250,000 FOREX traders. I would guess that 98% of them are directional traders. Yes, 250,000 traders in a 3.2 Trillion/day market while there are 144 Million stock traders in a much smaller market place. The New York stock exchange is about 30 million a day and comes nowhere near the liquidity of the decentralized FOREX market.

So, why so few are hedging the FOREX market? I believe this is mostly because of a lack of a system that consistently works.

Most directional traders with any experience have thought of hedging the market but most come to the conclusion the hedge just cancels itself out over time. So, most just give up on it not knowing how to make it work. But, what if, instead of zeroing out all profits you could actually double your profits with the hedge?

Let’s take the EURUSD and the CHFUSD pairs.

These pairs are historically negatively 93-98% of the time. That is when one pair goes up the other goes down, and vice versa, up to 98% of the time. Now, over time these would pretty much just cancel each other out and you would not be left with much of a profit and maybe would even see a slight loss if the hedge was not in your favor.

Now what if you could ALWAYS buy low when one pair went down and sell high when the other correlated pair went up? And when the market corrected do the same in the opposite direction over and over and over again?

This is how I ‘trade’ the market. Really it is more like ‘investing’ since I do not look at charts, do no analysis of markets, care very little about fundamentals as long as the hedge is sticking. I also only spend about 5-15 minutes a week resetting my buy and sell limits. The rest is done automatically.

Now, that is the ONE of the ways that I build my equity. The other is daily interest paid at special negotiated rates from some of the biggest brokers in the US and Switzerland. Not all brokers are alike in the rates that they pay even though they are based on the rates set by the respective central banks.

Because the system I use is so consistent and works so well the brokers are not only willing to bend over backwards to give us the best interest rates available they are also willing to give us 400:1 leveraging. Some brokers extend this 400:1 leveraging up to one million dollars. Note that no other system to my knowledge gets this kind of leverage on that kind of money. It is a first in FOREX retail history and there is a good reason why.

Now, at first blush you may think that 400:1 leveraging is increasing our risk. In directional trading it certainly would be putting you in grave danger of losing your capital all that much quicker.

But, in fact, when you hedge the market as we do 400:1 leverage actually DECREASES your risk. Hence, the brokers are quite happy to provide this kind of leverage for this style of trading because it actually reduces the risk of a margin call and it makes the brokers that much more money.

Now, why is 400:1 so important to hedging the market in the way we do it? Well, because of the daily interest!

Let’s take an example and say you have $5000 in your trading account and a 10% margin set.

That means you have $500 allocated to the market. If the net interest we receive is 1.11% annually then this would not be a lot of money. We could do better at the bank! …well maybe…

But, what happens when this $500 is leveraged at 400:1? All of a sudden this 1.11% interest becomes 44% per annum! Now, I am sure you would agree that this is a return worth looking at and that most money managers would sell their mothers for this kind of return!

But, this return does not include the buy low/sell high profits. Add these all together and you have a system that on fairly conservative margin can produce very handsome and consistent profits without risking your shirt and without needing to sit in front of a computer all day and night watching charts until you go cross-eyed.

There is one more way that equity can increase or decrease. That is via the market fluctuations in the hedge. Sometimes the hedge will work in your favor and sometimes it will go against you. When it is in your favor you can see windfall profits beyond the daily interest and buy and selling process. If it goes against you it will cause a pullback in your equity for a period of time.

Compounding is also possible. When your balance and equity increase significantly over time your margin is going down. That means it is getting more conservative and safer if you just let it grow. But, if you want to keep your margin at say 10% then you can reallocate your portfolio and buy more lots which bring more interest and more buy low/sell profits.

Now, if you think that daily interest at 400:1 and 100% winning transactions makes sense what would you think if we could smooth out the fluctuations that give us the big profits and big pullbacks, i.e. volatility?

Well, we could up our margin could we not? We could increase our margin without incurring much more risk and in fact may even be able to reduce it when we hedge the hedge. The net result means more interest, more profit, and less risk while freeing up our time to spend the money we are making instead of ignoring our family stuck to a chart on a screen.

Presently such an enhancement is in testing and may soon to be released to the public if tests are successful. If you want to keep updated on this new development be sure to subscribe to my update list.

By learning how to HEDGE the FOREX you not only increase your profit and reduce your risk. You can also get a life! That to me is the most attractive part of this whole system.

The great thing is it is not difficult to learn either. I personally coach people in the system I use and it usually takes a couple of hours and about 10 minutes a week to monitor before my students are on their own.

Wayne Nash is a semi-retired investment professional, FOREX trader, and online entrepreneur with over 15 Years of online marketing, coaching, and investing experience and serves a large international investors network from almost every country in the world. Wayne speaks fluent Japanese and has lived in Japan since 1985 and spends part of the year in his native BC in Canada.

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The best way to catch pips quickly is by scalping. Scalping is available for all traders in the Forex market.

If you don’t want to sit in front of your computer all the day watching the chart, then scalping can put smile on your face. Lazy traders use this.

Now back to the story: What Is Scalping?

Scalping is a focused technique that involves making a minuscle trade to generate profits within short period of time. This method of trading the Forex market is high probability trades which extremely small risk stops and predefined profit objectives.

It is also a means of taking million trades to make a million dollars.

There are different types of traders:Position traders, Day traders and Scalpers. A position trader would engage in trades that are intended to last for multiple days or month with huge pips target of hundreds to thousands. A day trader could typically engage in trades that might last for less than a day aiming for targets of 20 to 100pips while Scalper often engages in trades that might last for few minutes and the minimum targets could be 5 pips plus.

Now pick you calculator and calculate 5 pips on 2. 00 standard lots of 5 days trades per day for 20 trading days. Your answer will be $10, 000 monthly if all the scalping technique is adhered to. Are you saying it’s not possible! Just demo trade this for a month and see what I am saying.

A Scalper normally trades higher lots size or volume depending on your account size and risk acceptance for the fact that this technique requires a minimum stop loss of 20 pips, you must also maintain a good equity management principle.

As a scalper, you could rake in more profits to your bank account without stress compared to day or position traders.

That’s all about scalping. Happy Trading.

Do you want to know how to trade the Forex without losing a dime? Then go over to http://quickforexpips.blogspot.com You will get free informations there.

Not only is technique and analysis of data important to the success of a professional trader, but also the way they manage their money. Proper money management is crucial, because it can minimize losses and allow for the highest possibility of profit. By keeping spending and losses within set boundaries, a trader will always be able to stay ahead of the game and make a fine living.

Professional traders need to understand their market so that they can prepare a budget regarding trade spending. Money management means that the amount risked is dependent on factors such as trend or market strength (whether bull or bear). The safer a trade is, the more money is allocated to this portfolio. High risk trades receive the lowest investment amount, but if successful they also bring the highest net returns which once again adds to profits and not losses.

Another reason why money management is so important to professional traders is that it can keep most of the profits made safe and in their pockets. This is done by taking only small percentages of each profit and re-investing them based on the risk factor. Once a certain loss has been achieve, the professional traders then pull out and don’t risk losing their returns over a bad trade. Diversifying trade deals, that is trading a wide array of things, also provides the greatest opportunity to make a gain.

Professional day traders need to manage their money especially carefully. This is because they need to minimize losses on a daily basis and have to keep constant eye over the trends throughout the day.

Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. For a limited time get his free Money Management to a Million Dollars e-course here: http://www.pipsalot.com

There are many stories about people making it big on the Internet. The mere fact that a lot of companies, including multinationals and very big local corporations, are now investing a lot of money to have a slice of the untapped Internet market is enough proof that internet can offer you a chance to earn a million dollars if you only knew how.

To put it another way the money is there. The market is there. You *can* create one million dollars online.

If you are truly interested in getting rich and making money via the internet, you need to have a lot of patience in studying the ins and outs of the cyber world. Below are some ways on how you can make millions of dollars online:

Online auctions

A lot of people have really made it big with the help of online auctions. Even before online stores were put up, online auctions have already established themselves as venues where you can buy and sell almost anything under the sun.

(Hint: Start small and focus on what works. Then, focus on consistent growth, not hitting it big instantly.)

If you want to make it big on online auctions you need to provide items that are rare, inexpensive, or unique and creative. Collectibles, hard-to-find toys, first edition books, antique furniture command very big money. Therefore, if you are willing to part with your own collections or have an eye for finding good bargains, you will surely make millions of dollars on the Internet in no time.

(Hint: Find a “secret supplier” and you’ll make a million dollars online faster than you can imagine.)

Another way of getting rich via online auctions is by looking for suppliers that will give you huge discounts on popular items. For example, you can make big bucks by buying popular items, such as toys or books, at wholesale prices and selling them at regular prices.

Again, the key here is finding suppliers that will provide you with bottom prices and a big profit margin.

Creative and unique items are also hot on the Internet. Most items that popular celebrities have used, such as toothbrush, a half-eaten sandwich, a table napkin with a lip imprint, are bona fide cash cows. Moreover, personal items of political figures, literary icons or well-loved artists are also in demand on the Internet. If you have access to these things, you can really make it big.

Secret: Leverage your connections and your assets. Leverage your knowledge. Write an ebook and sell it on eBay again and again. Remember, focus on what works, then focus on growing that.

Beware selling celebrity items…

The only problem with such items is how you can prove to the public that what you have is the real thing. If you defraud people into believing that what you are selling is authentic, even if it is not, there is a big chance that your customers will give you bad reviews and will be sending out emails about your actions. Thus, you must remember to be honest and fair when dealing with online customers.

How else can you make a million online? Sell your goods over the internet.

Aside from online auctions, you can also sell your goods or services via the internet through your personal or company website. If you are a producer or a manufacturer, your target customer base will expand, including potential customers overseas. Thus, you can instantly make your small local company into a global entity with the help of the World Wide Web.

Remember, your million dollar online business can start with just one ebook on a topic you are an expert on. Think about it!

Since you are dealing with different people from different countries, you need to ensure that you already have a good grasp of freight or delivery rates before you even start selling online. People shop online because they do not want to go to shops anymore and would just like to receive the things that they bought in the comforts of their own homes or offices. Thus, you must look for delivery services that are not only fast, but also affordable.

Aside from goods and products, you can also sell your services over the internet. You *can* be a consultant, and you *can* make a lot of money from it.

There are many freelance writers, fashion designers, architects, translators and even secretaries that make big money just by providing their services to companies or people via the Internet.

Here’s another way…

Online Forex trading

In just a couple of months, you will be able to earn millions if you know how to trade currency online. However, forex trading is very risky, so you need to study the market, the currency fluctuations and news all over the world before you start dipping your hand to such an undertaking.

Ensure that before you even invest a dollar on online forex trading, you should have at least attended free forex trading tutorials or have read books about currency trading.

There are many factors that affect the rise and fall of currencies so you need to have a good grasp of what these factors are and how these would affect the basic currencies you want to trade.

Hint; If you’re serious about making a million bucks online you need a business. (That is certain.)

So…

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Are you really interested in making money online, with almost no effort?

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Apparently, several prominent politicians were getting large campaign contributions from Fannie Mae and Freddie Mac. Banks that spent 10s of millions of dollars in lobbying efforts to allow them to keep the money flowing. If you will recall many politicians called for more loans to be made for low-income folks buying homes in poorer, underprivileged and ethnic neighborhoods; well, it turns out one of these politicians was Barrack Obama, stating that black-Americans in black neighborhoods had historically not been able to get home loans.

Thus, these policies were changed, but didn’t Barrack Obama take out one of those special loans to buy his home? If he hadn’t written his two books, he may have been part of the foreclosure generation, although such talk is speculation, after all he is a US Senator and gets a decent paycheck at the taxpayer’s expense.

Unfortunately, Senator Barrack Obama also was the largest receiver of mega campaign contributions from Fannie and Freddie. Of course, he is running for President and it does take a lot of money to do that. His campaign has spent nearly 500 million dollars so far. Some political Republican pundits say that;

“I think he is part of the problem not anything close to a solution, I don’t think he even understands what is going on here and his so-called economic advisors; heck many of them were in on it too.”

Well, it is an election year and the blame game always comes around during any national crisis and since Barrack Obama is running for President, has a home loan in a targeted area and did receive large campaign contributions, well, he now has some questions to answer, so let’s see how this scandal plays out and if there is anything to it?

“Lance Winslow” - Lance Winslow’s Bio. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/.