Hatton aitonal Bank of Sri Lanka was recognized as the best bank in Sri Lanka by international finance magazine Euromoney at the Euromoney Awards for Excellence 2009 Asia Dinner in Hong Kong. Euromoney praised the bank for being able to post solid results during an economic backdrop that arguably worsened and a political situation that stabilized towards the end of the review period. Rajendra Theagarajah, managing director and CEO of Hatton National Bank, received the award from Euromoney Magazine managing director Simon Brady.
Monday, November 2, 2009
South Indian Bank bags Best Bank award ~ South
Indian Bank won the best bank award in the traditional bank's category at
the 10th Financial Express awards for India's best banks selected by Ernst & Young. Pranab Mukherjee, union finance minister, presented the award to Dr VA Joseph, managing director and CEO of the bank.
MCX Stock Exchange has signed a cooperation agreement with ITSE
MCX Stock Exchange has signed a cooperation agreement with ITSE, the global index provider, which will bring a range of international as well as new domestic indices to the Indian market. Seen on the occasion of the signing ceremony (L to R) are U. Venkataraman, executive director, MCX Stock Exchange; Donald Keith, deputy chief executive, ITSE; Jignesh Shah, vice chairman, MCX Stock Exchange; Paul Hoff, managing director - Asia Pacific, ITSE and Khozem Merchant, deputy chairman, Pearson India
Cisco Capital sets up office in Dubai
Capital has launched a captive financing arm in Dubai to serve Gulf, North Africa and Central Africa. Seen on the occasion are (L to R) Marwan Lootah, chief ClJ •• 'orate affairs officer, DIFC Authority; Amna Al Sayed, CEO, DII·c.. Global; Wayne Hull, general manager, CISCO Capital UAE; HE Dr Omar Bin Sulaiman, governor of the DIFC; Sam Kharrat, managing director, CISCO Capital, Gulf & Pakistan; David Clark, senior executive officer, CISCO Capital, UAE and Abdulla Al Awar, CEO, DIFC Authority.
~ Alok Kumar Misra is CMD of Bank of India
Alok Kumar Misra has assumed charge as chairman and managing director of Bank of lridia. Prior to being appointed CMD of Bank of India, Misra had been CMD of Oriental Bank of Commerce. Earlier, he was executive director of Canara Bank and held several senior positions induding managing director of Indo-Zambia Bank, a joint venture between Bank of India, Bank of Baroda, Central Bank of India and the government of Zambia. A post-graduate in statistics from Lucknow University, CAl!B, fellow of the Certified Institute of Bankers of Scotland and a post-graduate diploma holder in personnel management, University of Delhi, he began his career as a probationary officer
S.B.JAIN IN"STITUTE OF TECHNOLOGY, MANAGEMENT & RESEARCH Nagpur
cases. However, the leader who uses power in the service of his/her organization is using power in the most constructive sense. The leader who seeks power for its own sake and for personal satisfaction is at a level of personal maturity that will compromise his/her ethical position,
.Organizations also playa political game. Organizations seek influence.
Influence increases autonomy (freedom to control own assets);
organizational morale (the ability to maintain cohesion and effectiveness);
essence (sanctity of essential tasks and functions);
roles and missions (exclusion of options that would challenge these);
budgets (increased roles and missions will
always favor larger budgets) Photo two-- leader NATURE OF STRATEGIC LEADER POWER
Strategist argues that power at the strategic organization level is manifested and executed through three fundamental elements: consensus (general or widespread agreement among all the members of a group) cooperation, "Cooperative potential refers to an organization's capacity to catalyze cooperative interaction among individuals and groups." Culture, It refers to the management culture, its flexibility and adaptability.
INDMDUAL SKILLS AND ATTRmUTES AS SOURCES OF POWER
Research and observations emphasize the following characteristics as being especially important for acquiring and maintaining
strategic power bases:
High energy and physical endurance- It is the ability and motivation to work long and often times grueling hours .Absent this attribute other skills and characteristics may not be of much value.
Directing energy- It is the ability and skill to focus on a clear objective and to subordinate other interests to that objective.
Successfully reading the behavior of others- It is the ability and skill to understand who are the key players, their positions and what strategy to follow in communicating with and influencing them.
Adaptability and flexibility - It s the ability and skill to modify one's behavior. This skill requires the capacity to re-direct energy, abandon a course of action that is not working, and manage emotional or ego concerns in the situation.
Motivation to engage and confront conflict- It is the ability aI).d skill to deal with conflict in order to get done what you want accomplished. The willingness to take on the tough issues and challenges and execute a successful strategic decision is a source of power in any organization.
Subordinating one's ego: - It is the abilityand skill to submerge one's ego for the collective good of the team or organization. Possessing this attribute is related to the characteristics of adaptability and flexibil- ~ ity.
CONCLUSIONS
In corporations, public agencies, universities, and government, the problem is how to get things done; how to move forward, how to solve the many problems facing organizations of all sizes and types. Developing and exercising power require having both will and skill. It is the will that often seems to be missing."
S.B.JAIN IN"STITUTE OF TECHNOLOGY, MANAGEMENT & RESEARCH Nagpur
Future
" Photo one-power and organization '. The concept of organizational politics can be defined as who gets what, when and how. If power involves the employment of stored influence by which events, actions and behaviors are affected, and then politics involves the exercise of power to get something done, as well as to enhance and protect the vest
ed interests of individuals or groups. Thus, the use of organizational politics suggests that political activity is used to overcome resistance and implies la conscious effort to organize activity to challenge opposition in a prior
ity decision situation.
The preceding discus
sion indicates that the concepts of power and organizatil'mal politics
are related. We define organizational politics
as the use of power, with power. viewed as a source of potential ener
gy to manage relation
. ships.
" Photo one-power and organization '. The concept of organizational politics can be defined as who gets what, when and how. If power involves the employment of stored influence by which events, actions and behaviors are affected, and then politics involves the exercise of power to get something done, as well as to enhance and protect the vest
ed interests of individuals or groups. Thus, the use of organizational politics suggests that political activity is used to overcome resistance and implies la conscious effort to organize activity to challenge opposition in a prior
ity decision situation.
The preceding discus
sion indicates that the concepts of power and organizatil'mal politics
are related. We define organizational politics
as the use of power, with power. viewed as a source of potential ener
gy to manage relation
. ships.
POWER
AS A MOTIVl!
Power is attractive becau confers the ability to influel decisions, about who gets wi resources, what goals are PI sued, what philosophy ~ organization adopts wE actions are taken and who 51 ceeds and who fails
Advantages of power organization
Power also gives a sense
control over outcomes, aJ enhanced control. Particularly I decision issues become more co plex and outcomes become mo uncertain,
Power becomes more attractil as a tool for reducing·uncertainv Power and the ability to use I are essential to effective leadershi] The critical issue is why tl
leader seeks power an
how it is used. Som see power as a tool I enhance their abi~ ty to facilitate th work oftheir orgaru zations and group' Others value power for its own sake, an exercise power for the personal satisfactiOl it brings. There can be good and bad in bot)
Future
HE challenges faced by strategic leaders in implementing complex and longrange consequential decisions demand
that they be sophisticated with respect to issues of leadership, power and influence. The changes that are shaping the nature of work in today'scomplexorganizations require that we develop the political will, expertise and personal skills to become more flexible, innovative and adaptive. Without political awareness and skill, we face the inevitable prospect of becoming immersed in bureaucratic infighting, parochial. (narrow minded) politics and destructive power struggles, which greatly retard organizational initiative, innovation, morale and performance Making organizations more innovative, responsive and responsible requires focusing on a number of leadership, power and influence issues The issues influence developing teams at the strategic ~evel, as well as managing organizational processes linked to values and ethics, organizational culture, visioning and the management of change.
that they be sophisticated with respect to issues of leadership, power and influence. The changes that are shaping the nature of work in today'scomplexorganizations require that we develop the political will, expertise and personal skills to become more flexible, innovative and adaptive. Without political awareness and skill, we face the inevitable prospect of becoming immersed in bureaucratic infighting, parochial. (narrow minded) politics and destructive power struggles, which greatly retard organizational initiative, innovation, morale and performance Making organizations more innovative, responsive and responsible requires focusing on a number of leadership, power and influence issues The issues influence developing teams at the strategic ~evel, as well as managing organizational processes linked to values and ethics, organizational culture, visioning and the management of change.
The Mind Power
The Mind Power
-- LOTS of specialists and experts recognize that the human mind has a lot of untouched potentials. In many respects, the mind is l \la, more powerful than one's physical being. You . can sit in a chair or lie down in bed without
moving and you will not be able to achieve anya"-o; thing physically. The mind however is compeluaU: tent of traveling and reaching out to
1'\ 13; possibilities even if you are physiuO cally inert. The power of your mind '\~ can help you gain peace, foresee the -e future, get what you want and com-
~o municate with other like minds. If you are able to tap all these abilities . of your mind, you will be able to enjoy < better economic, social and personal rewards as well as achieve a health- ier o
ti in . ns. True fulfillm nt
however can only come from positive and good intentions. The greatest stumbling block to this fulfillment is your own negative outlook about life coupled .with a harassed and stressful existence. To be
able to tap the energies of your mind, you must first work towards establishing a soother well-being and a more optimistic view oflife.
You might not be able to unlock your mind power at first sitting. Just like any other task however, you develop your chances of succeeding by practicing.
Practice can be performed during formal or informal moments of reflection and meditation. You may for example attempt to draw what you want and desire in life by taking a few moments each day to repeat what you want and to believe that it will
come. Before you know it, you will have succeeded in eliminating all negative thoughts and energies and you will have become a more positive individual.
You don't need to move or apply physical effort when you use mind power. Even so, your physical self must be in some kind of harmony with your mental self. This simply means that it helps to' maintain' a physically fit and healthy body. In some cases, this can be achieved by partially using mind power. Once physical wellbeing is achieved, mental power is strength
ened.
Even with a guide, the true key to unlock mind power secrets is in you. You just have to believe and trust that you are capable of this just like everyone else. Just start unlocking and using your mind power from today.
-~
I
....J
r
(The author can be contacted at Email: mohitmanke@gmail.com)
•
-- LOTS of specialists and experts recognize that the human mind has a lot of untouched potentials. In many respects, the mind is l \la, more powerful than one's physical being. You . can sit in a chair or lie down in bed without
moving and you will not be able to achieve anya"-o; thing physically. The mind however is compeluaU: tent of traveling and reaching out to
1'\ 13; possibilities even if you are physiuO cally inert. The power of your mind '\~ can help you gain peace, foresee the -e future, get what you want and com-
~o municate with other like minds. If you are able to tap all these abilities . of your mind, you will be able to enjoy < better economic, social and personal rewards as well as achieve a health- ier o
ti in . ns. True fulfillm nt
however can only come from positive and good intentions. The greatest stumbling block to this fulfillment is your own negative outlook about life coupled .with a harassed and stressful existence. To be
able to tap the energies of your mind, you must first work towards establishing a soother well-being and a more optimistic view oflife.
You might not be able to unlock your mind power at first sitting. Just like any other task however, you develop your chances of succeeding by practicing.
Practice can be performed during formal or informal moments of reflection and meditation. You may for example attempt to draw what you want and desire in life by taking a few moments each day to repeat what you want and to believe that it will
come. Before you know it, you will have succeeded in eliminating all negative thoughts and energies and you will have become a more positive individual.
You don't need to move or apply physical effort when you use mind power. Even so, your physical self must be in some kind of harmony with your mental self. This simply means that it helps to' maintain' a physically fit and healthy body. In some cases, this can be achieved by partially using mind power. Once physical wellbeing is achieved, mental power is strength
ened.
Even with a guide, the true key to unlock mind power secrets is in you. You just have to believe and trust that you are capable of this just like everyone else. Just start unlocking and using your mind power from today.
-~
I
....J
r
(The author can be contacted at Email: mohitmanke@gmail.com)
•
Technical Job
18) Monotony and stress have contributed to increased attrition rate. So keep changing the duties or position of employees after fixes period.
19) Induction program and Exit interview are very important.
20) Identify the key employees.ofthe firm or categorize the employee according to need of the firm. It will help you to customize your retention program.
21)Your staff members must feel rewarded, recognizes and appreciated. Monetary rewards, bonuses and gifts make the thank you even more appreciated. Understandable raises tied to accomplishments and achievements help to retain staff. Offer an attractive, competitive, benefits package.
22)Select the right people in the first place through behaviour-based testing and cOIllpetency screening.
23) Demonstrate respect for employees at all times. Treat the employees well & provide a dignity of job.
24)If a key employee resigns, it should be taken up on a priority basis and kept confidential as far as possible and the senior management should meet the employee to discuss his reason for leaving and evaluate ifbis issues bear merit and whether they can be resolved.
25)People want to enjoy their work.
Makework fun. Engage,employ the special talents of each individual
So if we want to reduce attrition we can take the P9ints mentioned above for the same and can do best from our end to reduce attrition rate in IT-Sector. So the process is complete only with the joints efforts of the employer & employee.
The employee either experienced or freshers should also make them updated with the changing environment of the IT sector since it the most dynamic one .Updation will help the candidates to cope with the fastest IT environment and to have competitive advantage over others.
19) Induction program and Exit interview are very important.
20) Identify the key employees.ofthe firm or categorize the employee according to need of the firm. It will help you to customize your retention program.
21)Your staff members must feel rewarded, recognizes and appreciated. Monetary rewards, bonuses and gifts make the thank you even more appreciated. Understandable raises tied to accomplishments and achievements help to retain staff. Offer an attractive, competitive, benefits package.
22)Select the right people in the first place through behaviour-based testing and cOIllpetency screening.
23) Demonstrate respect for employees at all times. Treat the employees well & provide a dignity of job.
24)If a key employee resigns, it should be taken up on a priority basis and kept confidential as far as possible and the senior management should meet the employee to discuss his reason for leaving and evaluate ifbis issues bear merit and whether they can be resolved.
25)People want to enjoy their work.
Makework fun. Engage,employ the special talents of each individual
So if we want to reduce attrition we can take the P9ints mentioned above for the same and can do best from our end to reduce attrition rate in IT-Sector. So the process is complete only with the joints efforts of the employer & employee.
The employee either experienced or freshers should also make them updated with the changing environment of the IT sector since it the most dynamic one .Updation will help the candidates to cope with the fastest IT environment and to have competitive advantage over others.
workplace issues and colleagues.
workplace issues and colleagues.
2) Let employees know that their opinions are valuable. Ask them to open up. Listen to employees ideas; never ridicule them.
3) Compliment and Thank your employees for their valuable contribution. Recognize and celebrate their success.
4) Setting up a feedback mechanism to maintain consistency in performance and high motivation levels. Offer performance feedback and praise good efforts and results. Criticize but Praise publicly.
5) Give them job security.
6)Providing opportunities oflearning by constantly upgrading the skills of
employees. •
7) Paying attention to employees personal needs and participation.
8) Gauging the needs of the employees through open communication and polls.
9) Communicate goals, roles and responsibilities so that people know what is expected from them and feel a part of crowd.
10)Keep employees informed about the happening in the company so that they will be confident about the future or not to look for better option.
11) Encourage. humor & laughter in workplace to deal with stress which will ensure that the employees are happy which gets reflected in their services especially critical in voice based transaction.
15)The attrition battle could be won by focusing on retention, making work a fun place, ongoing learning and treating applicants and employees in the same
2) Let employees know that their opinions are valuable. Ask them to open up. Listen to employees ideas; never ridicule them.
3) Compliment and Thank your employees for their valuable contribution. Recognize and celebrate their success.
4) Setting up a feedback mechanism to maintain consistency in performance and high motivation levels. Offer performance feedback and praise good efforts and results. Criticize but Praise publicly.
5) Give them job security.
6)Providing opportunities oflearning by constantly upgrading the skills of
employees. •
7) Paying attention to employees personal needs and participation.
8) Gauging the needs of the employees through open communication and polls.
9) Communicate goals, roles and responsibilities so that people know what is expected from them and feel a part of crowd.
10)Keep employees informed about the happening in the company so that they will be confident about the future or not to look for better option.
11) Encourage. humor & laughter in workplace to deal with stress which will ensure that the employees are happy which gets reflected in their services especially critical in voice based transaction.
15)The attrition battle could be won by focusing on retention, making work a fun place, ongoing learning and treating applicants and employees in the same
UPSC NDA & Naval Academy Entrance Exam 2010
Union Public Service Commission (UPSC) in New Delhi has issued the notification for he National Defence Academy (NDA) and
aval Academy lNA) - (I) entrance exam 2010. It is conducted for selecting students into Army, Navy and Air Force wings ofthe National Defence Academy (NDA), for the upcoming session 2010.
Date of Exam April 18, 2010 Test Centers
Agartala, Gangtok, Panaji (goa), Ahmedabad, Hyderabad Patna, Aizwal, Imphal, Port Blair, Allahabad, Itanagar, Raipur. Bangalooroo, Jaipur, Ranchi, Bareilly, Jammu, Sambalpur, Bhopal, Jorhat, Shillong, Chandigarh, Kochi, Shimla, Chennal Kohima, Srinagar, Cuttack, Kolkata, Thiruvanathapuram, Dehradun, Lucknow, Tirupati, Delhi, Madurai, Udaipur, Dharwad, Mumbai, Vishakhapatnam, Dispur, Nagpur (The test centers are liable to changes on the directives of the Commission)
Fee: See the prospectus How to Apply
Interested candidates can apply in the Common Application Form devised by the Commission for its examination, which are available for sale at the designated Head Post Offices/Post Offices (specified in Appendix-Ill of the Notice) throughout th~ country against a cash payment of Rs 20 (Rupees twenty only). Each such Form can be used only once and only for one examination.Fee of Rs 50 for General I OBC candidates is to be paid through Central Recruitment Fee Stamp only. SC/ST candidates are exempted from payment of Fee. Thereafter, the completely filled application from must reach the Secretary, Union Public Service Commission, Dholpur House, Shahjahan Road, New Delhi-110069 eith~f by hand or by Post/Speed Post or by Courier, on or before the last date mentioned. In case a ny difficulty in obtaining application forms from the designated HPOs I POs, the candidates should immediately contact the concerned Post Master or UPSC's FORMS SUPPLY MONITORINGlCELL over Telephone No.011- 23389366/Fax No.011- 23387310.
Date of issue of Application Form October 17, 2009
Last Date of submitting Application Form November 16, 2009
November 23,2009 [For candidates residing in remote areas specified in the Notice, only by Post I Speed Post only (not by Hand or by Courier»)
EMPLOYERS should not ask why are you leaving? rather they should ask when you start searching for a job?
Getting an insight and inside scoop can really help. It gives information about internal problems, employee's perceptions of the organization, underlying
Sunday, October 25, 2009
Forex Training: Deadly Forex Mistakes That Assure Failure
Before venturing into your trading journey there are some things you need to be aware of, otherwise you could succeed on your trading adventure, and we don't want that to happen, do we? This Forex training guide will help you track the most costly mistakes Forex traders do.
First of all, make sure you don't have a trading system. Having a trading system might increase the odds of your success. If you have a system, you will have an objective way to get in and out the market. When traders create their trading systems they think objectively since there is no position to be taken at the moment. If there is no position to be taken, there is also no money at risk, if there is no money at risk, we do think objectively and are open to every possibility, thus we are able to find low risk trading opportunities. So make sure you don't have a system and trade based on a randomly approach.
If you have already created your system, then don't follow it, be undisciplined. If you follow your system, there is a possibility that you can profit from the Forex market based on the trading opportunities you have found. If you want to fail on your trading, be sure to be undisciplined.
Don't get educated. Most successful traders are very well educated in the market they trade (stocks, Forex, futures, etc.) If you get educated, you might acquire the knowledge and experience you require to master the Forex market. Don't read about the Forex market, don't enroll into Forex training programs and don't even look at historical charts.
Don't use any money management technique. The purpose of money management is to avoid the risk of ruin, but at the same time it helps you boost your profits, allowing them to grow geometrically. For instance, by using no money management techniques, there is a possibility that in loosing 10 trades in a row you could empty your trading account. On the other hand, by applying simple money management techniques you can avoid it. So make sure, if you want to fail, don't even consider money management.
Forget about psychological issues. You need to get every trade to win. Successful traders know that they don't need to win every trade in order to profit from the market. This is one characteristic that is hard to understand and really apply. Why? Because we are taught, since kids, that any number below 70% is a bad number. In the Forex trading environment, this is not true.
Don't even consider using a Risk-reward (RR) ratio greater than 1-1. If you use a RR ratio of 1-2 (willing to make twice the amount risked in one trade) then you only need a system that is right around 50% to make money. If you use a RR ratio of 1-3 (willing to make three times the amount risked in one trade) then you will need a system that is right around 40% of the time to make money. So make sure to use a RR ratio below 1-1.
By applying every point outlined in this Forex training guide, you will almost assure your failure in your Forex trading journey. Do the opposite, and you will have the possibility to achieve what every trader is looking for: consistent profitable results.
First of all, make sure you don't have a trading system. Having a trading system might increase the odds of your success. If you have a system, you will have an objective way to get in and out the market. When traders create their trading systems they think objectively since there is no position to be taken at the moment. If there is no position to be taken, there is also no money at risk, if there is no money at risk, we do think objectively and are open to every possibility, thus we are able to find low risk trading opportunities. So make sure you don't have a system and trade based on a randomly approach.
If you have already created your system, then don't follow it, be undisciplined. If you follow your system, there is a possibility that you can profit from the Forex market based on the trading opportunities you have found. If you want to fail on your trading, be sure to be undisciplined.
Don't get educated. Most successful traders are very well educated in the market they trade (stocks, Forex, futures, etc.) If you get educated, you might acquire the knowledge and experience you require to master the Forex market. Don't read about the Forex market, don't enroll into Forex training programs and don't even look at historical charts.
Don't use any money management technique. The purpose of money management is to avoid the risk of ruin, but at the same time it helps you boost your profits, allowing them to grow geometrically. For instance, by using no money management techniques, there is a possibility that in loosing 10 trades in a row you could empty your trading account. On the other hand, by applying simple money management techniques you can avoid it. So make sure, if you want to fail, don't even consider money management.
Forget about psychological issues. You need to get every trade to win. Successful traders know that they don't need to win every trade in order to profit from the market. This is one characteristic that is hard to understand and really apply. Why? Because we are taught, since kids, that any number below 70% is a bad number. In the Forex trading environment, this is not true.
Don't even consider using a Risk-reward (RR) ratio greater than 1-1. If you use a RR ratio of 1-2 (willing to make twice the amount risked in one trade) then you only need a system that is right around 50% to make money. If you use a RR ratio of 1-3 (willing to make three times the amount risked in one trade) then you will need a system that is right around 40% of the time to make money. So make sure to use a RR ratio below 1-1.
By applying every point outlined in this Forex training guide, you will almost assure your failure in your Forex trading journey. Do the opposite, and you will have the possibility to achieve what every trader is looking for: consistent profitable results.
Forex Trading Psychology: What Makes A Successful Forex Trader?
The Forex market has changed through the years, growing in volume and expanding across multiple time zones.
Brokerage houses have changed, too, going online with sophisticated software and powerful servers.
Economic indicators and technical analysis have become more sophisticated, too, until the Forex market of today bears little resemblance to what it used to be.
But there’s one thing that hasn’t changed: most traders lose.
Despite all the advances in the Forex marketplace, the ratio of winners to losers remains low. Experts agree that the most hopeful number that can be advanced is a measly 10%, which means that 90% of all traders on any particular day will lose.
Experts also agree that the reason most traders lose is because they allow their emotions to cloud their judgment.
Most people trade on hope and fear, rather than facts. Rather than basing their trades on what the charts and the indicators actually say, these people trade on what they want them to say. They hang onto a losing trade and follow the graph down, hoping the currency pair will turn around. Or they exit a trade too soon, fearing the trend won’t last, and are satisfied with pennies that even the best Forex money management cannot balance against their losses.
Other people lose through greed, by trying to pick the highs and lows too nicely to maximize their profits to the penny. Rather than waiting to place a trade when the indicators confirm the market’s movement, they jump in too soon and are disappointed when the anticipated break-out never occurs.
Remember, there is no magic software or fool-proof trading scheme. If you cannot control your emotions, then you cannot become a winner despite yourself. But there are things you can do to improve your chances of being one of the winners, and the most powerful is to follow these rules of Forex trading:
strategy of your choice—then trade your plan. Don’t alter your plan or fudge your criteria if you don’t see a good trade for a few days; wait for the market to fulfill your requirements before risking your money. Remember the law of averages: sooner or later, the market will come around.
Prepare a trading plan, using good Forex money management skills and the trading Use stops, and trailing stops when possible, to control losses and protect your profits. Remember to set your stops far enough away from the entry price so that you aren’t closed out by normal market jitters.
Paper trade with a demo account until you are efficient and feel comfortable in the market.
When you move on and start trading with real money, it feels different than paper trading! But this is no time to change your plan. To minimize the effects of emotion, set a small, realistic initial goal and trade until you achieve your goal more often than not. Use small sums in micro or mini accounts. Only when you are comfortable risking your cash and sometimes losing it should you attempt to trade with larger sums of money.
Study your trading record and try to figure out what went wrong when you lost. To put it simply, learn from your mistakes. That alone will put you ahead of the crowd!
Brokerage houses have changed, too, going online with sophisticated software and powerful servers.
Economic indicators and technical analysis have become more sophisticated, too, until the Forex market of today bears little resemblance to what it used to be.
But there’s one thing that hasn’t changed: most traders lose.
Despite all the advances in the Forex marketplace, the ratio of winners to losers remains low. Experts agree that the most hopeful number that can be advanced is a measly 10%, which means that 90% of all traders on any particular day will lose.
Experts also agree that the reason most traders lose is because they allow their emotions to cloud their judgment.
Most people trade on hope and fear, rather than facts. Rather than basing their trades on what the charts and the indicators actually say, these people trade on what they want them to say. They hang onto a losing trade and follow the graph down, hoping the currency pair will turn around. Or they exit a trade too soon, fearing the trend won’t last, and are satisfied with pennies that even the best Forex money management cannot balance against their losses.
Other people lose through greed, by trying to pick the highs and lows too nicely to maximize their profits to the penny. Rather than waiting to place a trade when the indicators confirm the market’s movement, they jump in too soon and are disappointed when the anticipated break-out never occurs.
Remember, there is no magic software or fool-proof trading scheme. If you cannot control your emotions, then you cannot become a winner despite yourself. But there are things you can do to improve your chances of being one of the winners, and the most powerful is to follow these rules of Forex trading:
strategy of your choice—then trade your plan. Don’t alter your plan or fudge your criteria if you don’t see a good trade for a few days; wait for the market to fulfill your requirements before risking your money. Remember the law of averages: sooner or later, the market will come around.
Prepare a trading plan, using good Forex money management skills and the trading Use stops, and trailing stops when possible, to control losses and protect your profits. Remember to set your stops far enough away from the entry price so that you aren’t closed out by normal market jitters.
Paper trade with a demo account until you are efficient and feel comfortable in the market.
When you move on and start trading with real money, it feels different than paper trading! But this is no time to change your plan. To minimize the effects of emotion, set a small, realistic initial goal and trade until you achieve your goal more often than not. Use small sums in micro or mini accounts. Only when you are comfortable risking your cash and sometimes losing it should you attempt to trade with larger sums of money.
Study your trading record and try to figure out what went wrong when you lost. To put it simply, learn from your mistakes. That alone will put you ahead of the crowd!
Easy Forex Trading - How to Trade Forex Easily and Profitably!
When an individual would hear the word 'Forex' it is expected that the initial reaction is that it is a complicated and mind-bugling issue to take. Although this is true at some point, it does not actually work always that way especially if an individual is aware of all the prerequisites of the game. Now, to open each eye about easy Forex trading, this article was created.
• It is easy Forex trading since you need not to overdo things. If you are just new on the Forex trading arena then you can begin with making a profit of only a 20 pips. Do not try to add up more, instead study the tactic that you will have to do the next day.
• You need not to waste all your time; it could be spent on 15 minute chart as well as 1 hour chart only.
• The 5 miniature chart is not there so you could waste yourself into. If you spend too much of your time here then it will only distract you in making a good trading decision.
• Easy Forex trading also means not using the complicated MACD to buy and sell since it only arrive the individual to meaningless trades which anyone would see as a waste of time.
• You can make use of trailing stops during times when you unstoppably keep on moving your Forex proceeds just to cover all your losses. Also keep in mind to practice first with the demo before actually dipping your toe on the real scene.
through the use of 12-15 pips stop in Forex trading. As expected, you will primarily lose 3 out of 10 trades thus is sensible to hinder your losses to a certain percent and always practice proper money management.
• Some would say that is easy Forex trading given that one can rely only on 'gut feel'. • You can carry out everything that you can probably do in order to protect your cash This is not an intuition game; this is a real thing since your money is at risk. Being very much dependent on 'gut feeling' will only lead to financial dilemma thus it is best to control your emotions.
• You need to have a precise and detailed log of every good or bad trade that you had before to serve as your guidelines not to make any erroneous decision later on.
• Every people has their personal indicators thus what work for your friend may not always work for you, be unique.
• Indeed, it is definitely an easy Forex trading but in case you cant compose yourself to be serious on what you are doing then there is no point of even starting.
There are other lists of guideline that would present why it is known as easy Forex trading. For the trader, you have to practice and study every step that you make. Be patient and do not just rely on your inkling if you really want to bag the money all the time.
• It is easy Forex trading since you need not to overdo things. If you are just new on the Forex trading arena then you can begin with making a profit of only a 20 pips. Do not try to add up more, instead study the tactic that you will have to do the next day.
• You need not to waste all your time; it could be spent on 15 minute chart as well as 1 hour chart only.
• The 5 miniature chart is not there so you could waste yourself into. If you spend too much of your time here then it will only distract you in making a good trading decision.
• Easy Forex trading also means not using the complicated MACD to buy and sell since it only arrive the individual to meaningless trades which anyone would see as a waste of time.
• You can make use of trailing stops during times when you unstoppably keep on moving your Forex proceeds just to cover all your losses. Also keep in mind to practice first with the demo before actually dipping your toe on the real scene.
through the use of 12-15 pips stop in Forex trading. As expected, you will primarily lose 3 out of 10 trades thus is sensible to hinder your losses to a certain percent and always practice proper money management.
• Some would say that is easy Forex trading given that one can rely only on 'gut feel'. • You can carry out everything that you can probably do in order to protect your cash This is not an intuition game; this is a real thing since your money is at risk. Being very much dependent on 'gut feeling' will only lead to financial dilemma thus it is best to control your emotions.
• You need to have a precise and detailed log of every good or bad trade that you had before to serve as your guidelines not to make any erroneous decision later on.
• Every people has their personal indicators thus what work for your friend may not always work for you, be unique.
• Indeed, it is definitely an easy Forex trading but in case you cant compose yourself to be serious on what you are doing then there is no point of even starting.
There are other lists of guideline that would present why it is known as easy Forex trading. For the trader, you have to practice and study every step that you make. Be patient and do not just rely on your inkling if you really want to bag the money all the time.
Understanding Forex Technical Analysis For Successful Forex Trading
We are going to look at some of the different varieties of charts used in Forex technical analysis and provide some useful guidelines for readings such charts.
Price Charts contain information regarding FOREX prices at specific time intervals. Intervals range anywhere from one minute to several years. Prices are usually displayed in the form of line graphs, and occasionally the change over each given time period is depicted in the form of a bar graph or candlestick graph.
Line graphs are useful for providing a broad overview of price fluctuations over time. They display the closing price at the end of the given time period. Line graphs possess several advantages when compared to other types of graphs: they are are quite easy to understand and they are useful for finding patterns over a long period of time. However, a key disadvantage is that they lack the degree of detail possessed by bar and candlestick graphs.
In contrast, bar graphs provide a greater amount of information than line graphs. The length of each bar demonstrates the price difference for the specific time interval – a longer bar indicates a bigger separation between high prices and low ones. Furthermore, each bar contains two tabs. The left tab on a given bar displays the price at the beginning of an interval, while the right tab demonstrates the price at the end of an interval. Using this system, it is easy to see price fluctuations over a given time interval, and to understand specifics of the variation in price. At times, it can be difficult to read bar graphs which have been condensed and printed on paper, but most computerized graphs usually possess a zoom feature, which makes it easy to see the specifics.
Candlestick graphs originated in Japan, where they were frequently used in order to analyze rice sales. These resemble bar charts in that they indicate prices at the beginning and end of a certain time interval, as well as the peak and low prices over that interval. Furthermore, these charts are color coded, which assists in the ease of understanding. Green candlesticks are associated with increasing prices, while red candlesticks demonstrate decreasing prices.
Candlestick shapes - these shapes, when viewed in comparison with neighboring candlesticks, provide information regarding market fluctuation. This information is helpful in analyzing graphs. Different shapes of candlesticks come as a result of several values: price diffusion, and the disparity between prices at the beginning and end of a given interval. Candlestick patterns have been dubbed names which correlate with their physical shapes; names including 'morning star' and 'dark cloud cover'. When an individual learns these shapes, he or she is easily able to find them on a graph, and utilize this information in identifying tendencies in the current market.
Price graphs are frequently supplemented with various technical indicators. Many of these technical indicators fall into various differing categories. Some of these categories include trend indicators, strength indicators, volatility indicators, and cycle indicators. Each of these indicators is a tool which can be used to predict fluctuations in the market.
Common technical indicators frequently used in FOREX are as follows:
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Since the recent yen cross meltdown started I've been trying to keep from getting caught on the wrong side of any massive downward moves.As I generally trade only the AUDJPY, mostly on the long side, things have been pretty quiet!However, we are now facing some resistance at 74.50 on the 1hr -- which should be illustrative. We have done what might be a triple bounce off of support in the vicinity of 70.90 or so too. I'm thinking we may have another downturn to confirm support but we could certainly get right back to business without it.In any case, as the market is starting to act rational, I'm just about ready to start trading according to my own particular style.
Price Charts contain information regarding FOREX prices at specific time intervals. Intervals range anywhere from one minute to several years. Prices are usually displayed in the form of line graphs, and occasionally the change over each given time period is depicted in the form of a bar graph or candlestick graph.
Line graphs are useful for providing a broad overview of price fluctuations over time. They display the closing price at the end of the given time period. Line graphs possess several advantages when compared to other types of graphs: they are are quite easy to understand and they are useful for finding patterns over a long period of time. However, a key disadvantage is that they lack the degree of detail possessed by bar and candlestick graphs.
In contrast, bar graphs provide a greater amount of information than line graphs. The length of each bar demonstrates the price difference for the specific time interval – a longer bar indicates a bigger separation between high prices and low ones. Furthermore, each bar contains two tabs. The left tab on a given bar displays the price at the beginning of an interval, while the right tab demonstrates the price at the end of an interval. Using this system, it is easy to see price fluctuations over a given time interval, and to understand specifics of the variation in price. At times, it can be difficult to read bar graphs which have been condensed and printed on paper, but most computerized graphs usually possess a zoom feature, which makes it easy to see the specifics.
Candlestick graphs originated in Japan, where they were frequently used in order to analyze rice sales. These resemble bar charts in that they indicate prices at the beginning and end of a certain time interval, as well as the peak and low prices over that interval. Furthermore, these charts are color coded, which assists in the ease of understanding. Green candlesticks are associated with increasing prices, while red candlesticks demonstrate decreasing prices.
Candlestick shapes - these shapes, when viewed in comparison with neighboring candlesticks, provide information regarding market fluctuation. This information is helpful in analyzing graphs. Different shapes of candlesticks come as a result of several values: price diffusion, and the disparity between prices at the beginning and end of a given interval. Candlestick patterns have been dubbed names which correlate with their physical shapes; names including 'morning star' and 'dark cloud cover'. When an individual learns these shapes, he or she is easily able to find them on a graph, and utilize this information in identifying tendencies in the current market.
Price graphs are frequently supplemented with various technical indicators. Many of these technical indicators fall into various differing categories. Some of these categories include trend indicators, strength indicators, volatility indicators, and cycle indicators. Each of these indicators is a tool which can be used to predict fluctuations in the market.
Common technical indicators frequently used in FOREX are as follows:
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Since the recent yen cross meltdown started I've been trying to keep from getting caught on the wrong side of any massive downward moves.As I generally trade only the AUDJPY, mostly on the long side, things have been pretty quiet!However, we are now facing some resistance at 74.50 on the 1hr -- which should be illustrative. We have done what might be a triple bounce off of support in the vicinity of 70.90 or so too. I'm thinking we may have another downturn to confirm support but we could certainly get right back to business without it.In any case, as the market is starting to act rational, I'm just about ready to start trading according to my own particular style.
Why You Need To Adopt A Forex Trading System To Make Money With Forex
Trading in currency can be very exciting and also very rewarding but before rushing in find out why you need to adopt a Forex trading system to make money with Forex. There isn’t one right system but you just need to have a system that you stick to so your strategies make sense.
Currency markets are different than stock markets and you will need to spend a little time determining what system works best for you which is why you need to adopt a Forex trading system.
You could adopt a Forex technical approach or a more fundamental approach. Both are successful trading systems but combining the two together results in a much more powerful trading system which is why you need to adopt a Forex trading system. You can plot a very specific trading course while having a look at the bigger picture.
There are many analytical tools that you can use and that is why you need to adopt a Forex trading system. In addition as you gain more experience you will get to better understand each of those tools and how to get the maximum benefit. You’ll suddenly be a pro at trading with Forex.
Consider watching for resistance levels which are prices that are much higher than where the currency generally trades. Just a couple more reasons why you need to adopt a Forex trading system. If a currency price manages to break through either the resistance level or the support level the prices usually continue in that direction. They are seen as bullish and usually continue on this trend.
Moving of averages is another Forex tool that you need. SMA is the simple moving average which shows the average price during a selected period of time which is usually either 7 or 14 days for which it is plotted against. Moving averages are commonly used to eliminate short term price fluctuations and to help give a clearer picture of how the currency prices will move. If you know when and why you need to adopt a Forex trading system you’ll be ahead of the game.
Fundamental analysis is also a helpful tool because it can be used to reinforce the indications that come from your technical analysis. Another reason why you need to adopt a Forex trading system What ever your trading system this is why you need to adopt a Forex trading system that works for you.
Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)
Currency markets are different than stock markets and you will need to spend a little time determining what system works best for you which is why you need to adopt a Forex trading system.
You could adopt a Forex technical approach or a more fundamental approach. Both are successful trading systems but combining the two together results in a much more powerful trading system which is why you need to adopt a Forex trading system. You can plot a very specific trading course while having a look at the bigger picture.
There are many analytical tools that you can use and that is why you need to adopt a Forex trading system. In addition as you gain more experience you will get to better understand each of those tools and how to get the maximum benefit. You’ll suddenly be a pro at trading with Forex.
Consider watching for resistance levels which are prices that are much higher than where the currency generally trades. Just a couple more reasons why you need to adopt a Forex trading system. If a currency price manages to break through either the resistance level or the support level the prices usually continue in that direction. They are seen as bullish and usually continue on this trend.
Moving of averages is another Forex tool that you need. SMA is the simple moving average which shows the average price during a selected period of time which is usually either 7 or 14 days for which it is plotted against. Moving averages are commonly used to eliminate short term price fluctuations and to help give a clearer picture of how the currency prices will move. If you know when and why you need to adopt a Forex trading system you’ll be ahead of the game.
Fundamental analysis is also a helpful tool because it can be used to reinforce the indications that come from your technical analysis. Another reason why you need to adopt a Forex trading system What ever your trading system this is why you need to adopt a Forex trading system that works for you.
Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)
Thursday, September 10, 2009
) Easy Forex Trading - How to Trade Forex Easily and Profitably!
When an individual would hear the word 'Forex' it is expected that the initial reaction is that it is a complicated and mind-bugling issue to take. Although this is true at some point, it does not actually work always that way especially if an individual is aware of all the prerequisites of the game. Now, to open each eye about easy Forex trading, this article was created.
• It is easy Forex trading since you need not to overdo things. If you are just new on the Forex trading arena then you can begin with making a profit of only a 20 pips. Do not try to add up more, instead study the tactic that you will have to do the next day.
• You need not to waste all your time; it could be spent on 15 minute chart as well as 1 hour chart only.
• The 5 miniature chart is not there so you could waste yourself into. If you spend too much of your time here then it will only distract you in making a good trading decision.
• Easy Forex trading also means not using the complicated MACD to buy and sell since it only arrive the individual to meaningless trades which anyone would see as a waste of time.
• You can make use of trailing stops during times when you unstoppably keep on moving your Forex proceeds just to cover all your losses. Also keep in mind to practice first with the demo before actually dipping your toe on the real scene.
• You can carry out everything that you can probably do in order to protect your cash through the use of 12-15 pips stop in Forex trading. As expected, you will primarily lose 3 out of 10 trades thus is sensible to hinder your losses to a certain percent and always practice proper money management.
• Some would say that is easy Forex trading given that one can rely only on 'gut feel'. This is not an intuition game; this is a real thing since your money is at risk. Being very much dependent on 'gut feeling' will only lead to financial dilemma thus it is best to control your emotions.
• You need to have a precise and detailed log of every good or bad trade that you had before to serve as your guidelines not to make any erroneous decision later on.
• Every people has their personal indicators thus what work for your friend may not always work for you, be unique.
• Indeed, it is definitely an easy Forex trading but in case you cant compose yourself to be serious on what you are doing then there is no point of even starting.
There are other lists of guideline that would present why it is known as easy Forex trading. For the trader, you have to practice and study every step that you make. Be patient and do not just rely on your inkling if you really want to bag the money all the time.
• It is easy Forex trading since you need not to overdo things. If you are just new on the Forex trading arena then you can begin with making a profit of only a 20 pips. Do not try to add up more, instead study the tactic that you will have to do the next day.
• You need not to waste all your time; it could be spent on 15 minute chart as well as 1 hour chart only.
• The 5 miniature chart is not there so you could waste yourself into. If you spend too much of your time here then it will only distract you in making a good trading decision.
• Easy Forex trading also means not using the complicated MACD to buy and sell since it only arrive the individual to meaningless trades which anyone would see as a waste of time.
• You can make use of trailing stops during times when you unstoppably keep on moving your Forex proceeds just to cover all your losses. Also keep in mind to practice first with the demo before actually dipping your toe on the real scene.
• You can carry out everything that you can probably do in order to protect your cash through the use of 12-15 pips stop in Forex trading. As expected, you will primarily lose 3 out of 10 trades thus is sensible to hinder your losses to a certain percent and always practice proper money management.
• Some would say that is easy Forex trading given that one can rely only on 'gut feel'. This is not an intuition game; this is a real thing since your money is at risk. Being very much dependent on 'gut feeling' will only lead to financial dilemma thus it is best to control your emotions.
• You need to have a precise and detailed log of every good or bad trade that you had before to serve as your guidelines not to make any erroneous decision later on.
• Every people has their personal indicators thus what work for your friend may not always work for you, be unique.
• Indeed, it is definitely an easy Forex trading but in case you cant compose yourself to be serious on what you are doing then there is no point of even starting.
There are other lists of guideline that would present why it is known as easy Forex trading. For the trader, you have to practice and study every step that you make. Be patient and do not just rely on your inkling if you really want to bag the money all the time.
Monster Scalps With AUDJPY
I've been shamelessly scalping the AUDJPY this week (via Oanda). It may be hard to fathom, at least when you see the numbers, but I'm not entirely happy with my results.Jun 28: 00.28% NAV+Jun 29: 06.65% NAV+Jun 30: 11.66% NAV+So far this week, if I can hang onto it, I'm up over 19% on my trading account.Now, you may be wondering why I'm not satisfied with my trading. Basically, I've made too many mistakes. From time to time my discipline is lacking and I jump into a position at what is realistically an unwise entry point.This keeps me from capitalizing on later opportunities until I've extracted myself from the position foolishly entered. It also subjects me to a lot more stress while I wait out moves on a larger timeframe.Anyhow, I've decided to quit fooling around, scalp myself a decent stake, and get serious about trading. Now, if I can just work out my discipline issues I'll be set.
Understanding Forex Technical Analysis For Successful Forex Trading
We are going to look at some of the different varieties of charts used in Forex technical analysis and provide some useful guidelines for readings such charts.
Price Charts contain information regarding FOREX prices at specific time intervals. Intervals range anywhere from one minute to several years. Prices are usually displayed in the form of line graphs, and occasionally the change over each given time period is depicted in the form of a bar graph or candlestick graph.
Line graphs are useful for providing a broad overview of price fluctuations over time. They display the closing price at the end of the given time period. Line graphs possess several advantages when compared to other types of graphs: they are are quite easy to understand and they are useful for finding patterns over a long period of time. However, a key disadvantage is that they lack the degree of detail possessed by bar and candlestick graphs.
In contrast, bar graphs provide a greater amount of information than line graphs. The length of each bar demonstrates the price difference for the specific time interval – a longer bar indicates a bigger separation between high prices and low ones. Furthermore, each bar contains two tabs. The left tab on a given bar displays the price at the beginning of an interval, while the right tab demonstrates the price at the end of an interval. Using this system, it is easy to see price fluctuations over a given time interval, and to understand specifics of the variation in price. At times, it can be difficult to read bar graphs which have been condensed and printed on paper, but most computerized graphs usually possess a zoom feature, which makes it easy to see the specifics.
Candlestick graphs originated in Japan, where they were frequently used in order to analyze rice sales. These resemble bar charts in that they indicate prices at the beginning and end of a certain time interval, as well as the peak and low prices over that interval. Furthermore, these charts are color coded, which assists in the ease of understanding. Green candlesticks are associated with increasing prices, while red candlesticks demonstrate decreasing prices.
Candlestick shapes - these shapes, when viewed in comparison with neighboring candlesticks, provide information regarding market fluctuation. This information is helpful in analyzing graphs. Different shapes of candlesticks come as a result of several values: price diffusion, and the disparity between prices at the beginning and end of a given interval. Candlestick patterns have been dubbed names which correlate with their physical shapes; names including 'morning star' and 'dark cloud cover'. When an individual learns these shapes, he or she is easily able to find them on a graph, and utilize this information in identifying tendencies in the current market.
Price graphs are frequently supplemented with various technical indicators. Many of these technical indicators fall into various differing categories. Some of these categories include trend indicators, strength indicators, volatility indicators, and cycle indicators. Each of these indicators is a tool which can be used to predict fluctuations in the market.
Common technical indicators frequently used in FOREX are as follows:
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Since the recent yen cross meltdown started I've been trying to keep from getting caught on the wrong side of any massive downward moves.As I generally trade only the AUDJPY, mostly on the long side, things have been pretty quiet!However, we are now facing some resistance at 74.50 on the 1hr -- which should be illustrative. We have done what might be a triple bounce off of support in the vicinity of 70.90 or so too. I'm thinking we may have another downturn to confirm support but we could certainly get right back to business without it.In any case, as the market is starting to act rational, I'm just about ready to start trading according to my own particular style.
Price Charts contain information regarding FOREX prices at specific time intervals. Intervals range anywhere from one minute to several years. Prices are usually displayed in the form of line graphs, and occasionally the change over each given time period is depicted in the form of a bar graph or candlestick graph.
Line graphs are useful for providing a broad overview of price fluctuations over time. They display the closing price at the end of the given time period. Line graphs possess several advantages when compared to other types of graphs: they are are quite easy to understand and they are useful for finding patterns over a long period of time. However, a key disadvantage is that they lack the degree of detail possessed by bar and candlestick graphs.
In contrast, bar graphs provide a greater amount of information than line graphs. The length of each bar demonstrates the price difference for the specific time interval – a longer bar indicates a bigger separation between high prices and low ones. Furthermore, each bar contains two tabs. The left tab on a given bar displays the price at the beginning of an interval, while the right tab demonstrates the price at the end of an interval. Using this system, it is easy to see price fluctuations over a given time interval, and to understand specifics of the variation in price. At times, it can be difficult to read bar graphs which have been condensed and printed on paper, but most computerized graphs usually possess a zoom feature, which makes it easy to see the specifics.
Candlestick graphs originated in Japan, where they were frequently used in order to analyze rice sales. These resemble bar charts in that they indicate prices at the beginning and end of a certain time interval, as well as the peak and low prices over that interval. Furthermore, these charts are color coded, which assists in the ease of understanding. Green candlesticks are associated with increasing prices, while red candlesticks demonstrate decreasing prices.
Candlestick shapes - these shapes, when viewed in comparison with neighboring candlesticks, provide information regarding market fluctuation. This information is helpful in analyzing graphs. Different shapes of candlesticks come as a result of several values: price diffusion, and the disparity between prices at the beginning and end of a given interval. Candlestick patterns have been dubbed names which correlate with their physical shapes; names including 'morning star' and 'dark cloud cover'. When an individual learns these shapes, he or she is easily able to find them on a graph, and utilize this information in identifying tendencies in the current market.
Price graphs are frequently supplemented with various technical indicators. Many of these technical indicators fall into various differing categories. Some of these categories include trend indicators, strength indicators, volatility indicators, and cycle indicators. Each of these indicators is a tool which can be used to predict fluctuations in the market.
Common technical indicators frequently used in FOREX are as follows:
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Since the recent yen cross meltdown started I've been trying to keep from getting caught on the wrong side of any massive downward moves.As I generally trade only the AUDJPY, mostly on the long side, things have been pretty quiet!However, we are now facing some resistance at 74.50 on the 1hr -- which should be illustrative. We have done what might be a triple bounce off of support in the vicinity of 70.90 or so too. I'm thinking we may have another downturn to confirm support but we could certainly get right back to business without it.In any case, as the market is starting to act rational, I'm just about ready to start trading according to my own particular style.
Why You Need To Adopt A Forex Trading System To Make Money With Forex
Trading in currency can be very exciting and also very rewarding but before rushing in find out why you need to adopt a Forex trading system to make money with Forex. There isn’t one right system but you just need to have a system that you stick to so your strategies make sense.
Currency markets are different than stock markets and you will need to spend a little time determining what system works best for you which is why you need to adopt a Forex trading system.
You could adopt a Forex technical approach or a more fundamental approach. Both are successful trading systems but combining the two together results in a much more powerful trading system which is why you need to adopt a Forex trading system. You can plot a very specific trading course while having a look at the bigger picture.
There are many analytical tools that you can use and that is why you need to adopt a Forex trading system. In addition as you gain more experience you will get to better understand each of those tools and how to get the maximum benefit. You’ll suddenly be a pro at trading with Forex.
Consider watching for resistance levels which are prices that are much higher than where the currency generally trades. Just a couple more reasons why you need to adopt a Forex trading system. If a currency price manages to break through either the resistance level or the support level the prices usually continue in that direction. They are seen as bullish and usually continue on this trend.
Moving of averages is another Forex tool that you need. SMA is the simple moving average which shows the average price during a selected period of time which is usually either 7 or 14 days for which it is plotted against. Moving averages are commonly used to eliminate short term price fluctuations and to help give a clearer picture of how the currency prices will move. If you know when and why you need to adopt a Forex trading system you’ll be ahead of the game.
Fundamental analysis is also a helpful tool because it can be used to reinforce the indications that come from your technical analysis. Another reason why you need to adopt a Forex trading system What ever your trading system this is why you need to adopt a Forex trading system that works for you.
Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)
Currency markets are different than stock markets and you will need to spend a little time determining what system works best for you which is why you need to adopt a Forex trading system.
You could adopt a Forex technical approach or a more fundamental approach. Both are successful trading systems but combining the two together results in a much more powerful trading system which is why you need to adopt a Forex trading system. You can plot a very specific trading course while having a look at the bigger picture.
There are many analytical tools that you can use and that is why you need to adopt a Forex trading system. In addition as you gain more experience you will get to better understand each of those tools and how to get the maximum benefit. You’ll suddenly be a pro at trading with Forex.
Consider watching for resistance levels which are prices that are much higher than where the currency generally trades. Just a couple more reasons why you need to adopt a Forex trading system. If a currency price manages to break through either the resistance level or the support level the prices usually continue in that direction. They are seen as bullish and usually continue on this trend.
Moving of averages is another Forex tool that you need. SMA is the simple moving average which shows the average price during a selected period of time which is usually either 7 or 14 days for which it is plotted against. Moving averages are commonly used to eliminate short term price fluctuations and to help give a clearer picture of how the currency prices will move. If you know when and why you need to adopt a Forex trading system you’ll be ahead of the game.
Fundamental analysis is also a helpful tool because it can be used to reinforce the indications that come from your technical analysis. Another reason why you need to adopt a Forex trading system What ever your trading system this is why you need to adopt a Forex trading system that works for you.
Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)
The Forex Mini Account - The Best Way To Start Off Trading Forex On Low Capital- Part #1
A lot of people assume that forex trading will require a huge capital base. As a result, they would instantly decline to entertain any proposal to start trading in forex, preferring to remain with trading stocks and shares which is more affordable. This is simply not true, because in forex trading, you can start off with minimal capital when you utilise a forex mini account.
There are four main advantages of a Forex Mini Account.
1. Low Minimum account size
$300 will allow you to start a forex mini account. This is affordable for most people to start off with in forex trading. When you consider forex trading as a business, there are very few businesses costing only $300 as a startup capital offering lucrative prospects of earnings within a very short time.
2. High leverage
You can get leverage of 200:1 In the mini forex account, there is a small margin deposit required fixed at $50 for per lot traded. This amounts to a stunning leverage of 200 to 1. One of the key factors to accelerate profits is to use trading vehicles of high leverage, and a forex mini account certainly meets or fulfils the definition of high leverage.
3. One pip is equivalent to $1
Trading in pips allows the new forex trader to scale down his risk. With such a low denomination, the trader is able to deal with forex trading with less pressure and more discipline. For example, a 20-pip floating loss is approximately $20, so that if you have a 20-pip sudden move against the direction of your trade on a 100K account, that is translated into a $200 floating loss. In every transaction, by using a Mini account, the trader does not end up with a total loss as he loses only a small amount on every losing transaction. This allows him to follow his trading strategy in a disciplined manner.
4. A smaller trade size
The mini forex account trades in smaller contract sizes of 10,000 units which is 1/10 th the size of the standard account. This smaller trade size allows traders an opportunity to trade live with less overall risk. As a result, a beginner can transit or move into forex mini trading quickly from paper trading. While the standard lot is 10,000 units, the beginner trader can increase trading to more lots or units as he gains experience and confidence, and as his profits increase as a result of disciplined trading.
One hidden benefit of trading the mini forex account is that traders can become familiar with the quality and also the reliability of the forex trading platform or trading station of his broker. This is because the forex mini account utilises the same state-of-the art trading software as that for normal sized forex trading.
Mini accounts are recommended for traders with account balances of less than $10,000, allowing them more trading opportunities without over leveraging their account and hence get more staying power in the market.
We will discuss how you can exploit these features of a forex mini account to your advantage in Part #2 of this article so that it is easier to earn a consistent income trading on low capital and lower risk.
There are four main advantages of a Forex Mini Account.
1. Low Minimum account size
$300 will allow you to start a forex mini account. This is affordable for most people to start off with in forex trading. When you consider forex trading as a business, there are very few businesses costing only $300 as a startup capital offering lucrative prospects of earnings within a very short time.
2. High leverage
You can get leverage of 200:1 In the mini forex account, there is a small margin deposit required fixed at $50 for per lot traded. This amounts to a stunning leverage of 200 to 1. One of the key factors to accelerate profits is to use trading vehicles of high leverage, and a forex mini account certainly meets or fulfils the definition of high leverage.
3. One pip is equivalent to $1
Trading in pips allows the new forex trader to scale down his risk. With such a low denomination, the trader is able to deal with forex trading with less pressure and more discipline. For example, a 20-pip floating loss is approximately $20, so that if you have a 20-pip sudden move against the direction of your trade on a 100K account, that is translated into a $200 floating loss. In every transaction, by using a Mini account, the trader does not end up with a total loss as he loses only a small amount on every losing transaction. This allows him to follow his trading strategy in a disciplined manner.
4. A smaller trade size
The mini forex account trades in smaller contract sizes of 10,000 units which is 1/10 th the size of the standard account. This smaller trade size allows traders an opportunity to trade live with less overall risk. As a result, a beginner can transit or move into forex mini trading quickly from paper trading. While the standard lot is 10,000 units, the beginner trader can increase trading to more lots or units as he gains experience and confidence, and as his profits increase as a result of disciplined trading.
One hidden benefit of trading the mini forex account is that traders can become familiar with the quality and also the reliability of the forex trading platform or trading station of his broker. This is because the forex mini account utilises the same state-of-the art trading software as that for normal sized forex trading.
Mini accounts are recommended for traders with account balances of less than $10,000, allowing them more trading opportunities without over leveraging their account and hence get more staying power in the market.
We will discuss how you can exploit these features of a forex mini account to your advantage in Part #2 of this article so that it is easier to earn a consistent income trading on low capital and lower risk.
Free Forex Buy And Sell Indicator - Online Forex Tools
A free Forex Buy and Sell Indicator is a good option if you are someone who trades actively in foreign currencies. This could be a very useful tool for you if you want to keep track of the daily price rises and falls in the forex market. The application can give you precious information regarding currency trading as and when you need this. This will ensure you have the facts with you when you need to make a decision in a fluctuating market.
A free forex buy and sell indicator takes the guesswork out of forex trading. It makes sure you are trading based on solid facts and not just on a whim. It will also ensure you are backed with historical data on trends regarding the currencies you are trading in.
There are many sites where you can check out free forex buy and sell indicators. These sites offer customers software which can help predict whether it is wise to sell or to hold on to the currencies you are trading in. Some sites which offer buy and sell indicators are business4profitsystems and swingcurrency. You might want to try out a few sites and find out which one is best suited to your requirements.
Apart from the free indicators, there are a host of other sites which allow you to download such applications for a fee. Such paid sites might give you superior quality and better features, which a free one cannot offer. Applications like Forex AutoPilot - also called FAPS - are fast gaining popularity among users. This is an automated software which trades at anytime provided you leave your computer on. the software requires you to feed in the basic ranges in which you would like to trade and rest assured the software will take care of the rest. This might sound a little dicey to those of you who would like to be in total control of your forex trading. The Forex Autopilot has an in -built free forex buy and sell indicator. But this comes only in its demo version.
Another well received software for forex buy and sell indication is Doubling stocks. This software also helps you make cardinal decisions in the forex market regarding when to buy, sell or exit a trade. This is not an automated software, so you will need to do the trading yourself on the basis of what the software tells you. This would be reassuring for those of you who need to have complete control over what you are trading. This software application also comes with a free demo package. The demo software is definitely very rich and detailed. It would be a boon for those who are entering the forex trading business and provide valuable support for those who have experience in the forex markets.
Apart from these two there are many other sites which sell forex buy and sell indicators for a price. What you need to keep in mind when you purchase this software is the sensitivity of the software to daily fluctuations in the market. Automated robots like FAPS offer a demo version which allows you to do mock trading without spending a cent. You might want to try this option before you actually buy the software. This way you can be completely sure about the accuracy and the appropriateness of the advice offered.
A free forex buy and sell indicator takes the guesswork out of forex trading. It makes sure you are trading based on solid facts and not just on a whim. It will also ensure you are backed with historical data on trends regarding the currencies you are trading in.
There are many sites where you can check out free forex buy and sell indicators. These sites offer customers software which can help predict whether it is wise to sell or to hold on to the currencies you are trading in. Some sites which offer buy and sell indicators are business4profitsystems and swingcurrency. You might want to try out a few sites and find out which one is best suited to your requirements.
Apart from the free indicators, there are a host of other sites which allow you to download such applications for a fee. Such paid sites might give you superior quality and better features, which a free one cannot offer. Applications like Forex AutoPilot - also called FAPS - are fast gaining popularity among users. This is an automated software which trades at anytime provided you leave your computer on. the software requires you to feed in the basic ranges in which you would like to trade and rest assured the software will take care of the rest. This might sound a little dicey to those of you who would like to be in total control of your forex trading. The Forex Autopilot has an in -built free forex buy and sell indicator. But this comes only in its demo version.
Another well received software for forex buy and sell indication is Doubling stocks. This software also helps you make cardinal decisions in the forex market regarding when to buy, sell or exit a trade. This is not an automated software, so you will need to do the trading yourself on the basis of what the software tells you. This would be reassuring for those of you who need to have complete control over what you are trading. This software application also comes with a free demo package. The demo software is definitely very rich and detailed. It would be a boon for those who are entering the forex trading business and provide valuable support for those who have experience in the forex markets.
Apart from these two there are many other sites which sell forex buy and sell indicators for a price. What you need to keep in mind when you purchase this software is the sensitivity of the software to daily fluctuations in the market. Automated robots like FAPS offer a demo version which allows you to do mock trading without spending a cent. You might want to try this option before you actually buy the software. This way you can be completely sure about the accuracy and the appropriateness of the advice offered.
) Forex Training: Deadly Forex Mistakes That Assure Failure
Before venturing into your trading journey there are some things you need to be aware of, otherwise you could succeed on your trading adventure, and we don't want that to happen, do we? This Forex training guide will help you track the most costly mistakes Forex traders do.
First of all, make sure you don't have a trading system. Having a trading system might increase the odds of your success. If you have a system, you will have an objective way to get in and out the market. When traders create their trading systems they think objectively since there is no position to be taken at the moment. If there is no position to be taken, there is also no money at risk, if there is no money at risk, we do think objectively and are open to every possibility, thus we are able to find low risk trading opportunities. So make sure you don't have a system and trade based on a randomly approach.
If you have already created your system, then don't follow it, be undisciplined. If you follow your system, there is a possibility that you can profit from the Forex market based on the trading opportunities you have found. If you want to fail on your trading, be sure to be undisciplined.
Don't get educated. Most successful traders are very well educated in the market they trade (stocks, Forex, futures, etc.) If you get educated, you might acquire the knowledge and experience you require to master the Forex market. Don't read about the Forex market, don't enroll into Forex training programs and don't even look at historical charts.
Don't use any money management technique. The purpose of money management is to avoid the risk of ruin, but at the same time it helps you boost your profits, allowing them to grow geometrically. For instance, by using no money management techniques, there is a possibility that in loosing 10 trades in a row you could empty your trading account. On the other hand, by applying simple money management techniques you can avoid it. So make sure, if you want to fail, don't even consider money management.
Forget about psychological issues. You need to get every trade to win. Successful traders know that they don't need to win every trade in order to profit from the market. This is one characteristic that is hard to understand and really apply. Why? Because we are taught, since kids, that any number below 70% is a bad number. In the Forex trading environment, this is not true.
Don't even consider using a Risk-reward (RR) ratio greater than 1-1. If you use a RR ratio of 1-2 (willing to make twice the amount risked in one trade) then you only need a system that is right around 50% to make money. If you use a RR ratio of 1-3 (willing to make three times the amount risked in one trade) then you will need a system that is right around 40% of the time to make money. So make sure to use a RR ratio below 1-1.
By applying every point outlined in this Forex training guide, you will almost assure your failure in your Forex trading journey. Do the opposite, and you will have the possibility to achieve what every trader is looking for: consistent profitable results.
First of all, make sure you don't have a trading system. Having a trading system might increase the odds of your success. If you have a system, you will have an objective way to get in and out the market. When traders create their trading systems they think objectively since there is no position to be taken at the moment. If there is no position to be taken, there is also no money at risk, if there is no money at risk, we do think objectively and are open to every possibility, thus we are able to find low risk trading opportunities. So make sure you don't have a system and trade based on a randomly approach.
If you have already created your system, then don't follow it, be undisciplined. If you follow your system, there is a possibility that you can profit from the Forex market based on the trading opportunities you have found. If you want to fail on your trading, be sure to be undisciplined.
Don't get educated. Most successful traders are very well educated in the market they trade (stocks, Forex, futures, etc.) If you get educated, you might acquire the knowledge and experience you require to master the Forex market. Don't read about the Forex market, don't enroll into Forex training programs and don't even look at historical charts.
Don't use any money management technique. The purpose of money management is to avoid the risk of ruin, but at the same time it helps you boost your profits, allowing them to grow geometrically. For instance, by using no money management techniques, there is a possibility that in loosing 10 trades in a row you could empty your trading account. On the other hand, by applying simple money management techniques you can avoid it. So make sure, if you want to fail, don't even consider money management.
Forget about psychological issues. You need to get every trade to win. Successful traders know that they don't need to win every trade in order to profit from the market. This is one characteristic that is hard to understand and really apply. Why? Because we are taught, since kids, that any number below 70% is a bad number. In the Forex trading environment, this is not true.
Don't even consider using a Risk-reward (RR) ratio greater than 1-1. If you use a RR ratio of 1-2 (willing to make twice the amount risked in one trade) then you only need a system that is right around 50% to make money. If you use a RR ratio of 1-3 (willing to make three times the amount risked in one trade) then you will need a system that is right around 40% of the time to make money. So make sure to use a RR ratio below 1-1.
By applying every point outlined in this Forex training guide, you will almost assure your failure in your Forex trading journey. Do the opposite, and you will have the possibility to achieve what every trader is looking for: consistent profitable results.
Understanding Forex Technical Analysis For Successful Forex Trading
We are going to look at some of the different varieties of charts used in Forex technical analysis and provide some useful guidelines for readings such charts.
Price Charts contain information regarding FOREX prices at specific time intervals. Intervals range anywhere from one minute to several years. Prices are usually displayed in the form of line graphs, and occasionally the change over each given time period is depicted in the form of a bar graph or candlestick graph.
Line graphs are useful for providing a broad overview of price fluctuations over time. They display the closing price at the end of the given time period. Line graphs possess several advantages when compared to other types of graphs: they are are quite easy to understand and they are useful for finding patterns over a long period of time. However, a key disadvantage is that they lack the degree of detail possessed by bar and candlestick graphs.
In contrast, bar graphs provide a greater amount of information than line graphs. The length of each bar demonstrates the price difference for the specific time interval – a longer bar indicates a bigger separation between high prices and low ones. Furthermore, each bar contains two tabs. The left tab on a given bar displays the price at the beginning of an interval, while the right tab demonstrates the price at the end of an interval. Using this system, it is easy to see price fluctuations over a given time interval, and to understand specifics of the variation in price. At times, it can be difficult to read bar graphs which have been condensed and printed on paper, but most computerized graphs usually possess a zoom feature, which makes it easy to see the specifics.
Candlestick graphs originated in Japan, where they were frequently used in order to analyze rice sales. These resemble bar charts in that they indicate prices at the beginning and end of a certain time interval, as well as the peak and low prices over that interval. Furthermore, these charts are color coded, which assists in the ease of understanding. Green candlesticks are associated with increasing prices, while red candlesticks demonstrate decreasing prices.
Candlestick shapes - these shapes, when viewed in comparison with neighboring candlesticks, provide information regarding market fluctuation. This information is helpful in analyzing graphs. Different shapes of candlesticks come as a result of several values: price diffusion, and the disparity between prices at the beginning and end of a given interval. Candlestick patterns have been dubbed names which correlate with their physical shapes; names including 'morning star' and 'dark cloud cover'. When an individual learns these shapes, he or she is easily able to find them on a graph, and utilize this information in identifying tendencies in the current market.
Price graphs are frequently supplemented with various technical indicators. Many of these technical indicators fall into various differing categories. Some of these categories include trend indicators, strength indicators, volatility indicators, and cycle indicators. Each of these indicators is a tool which can be used to predict fluctuations in the market.
Common technical indicators frequently used in FOREX are as follows:
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Price Charts contain information regarding FOREX prices at specific time intervals. Intervals range anywhere from one minute to several years. Prices are usually displayed in the form of line graphs, and occasionally the change over each given time period is depicted in the form of a bar graph or candlestick graph.
Line graphs are useful for providing a broad overview of price fluctuations over time. They display the closing price at the end of the given time period. Line graphs possess several advantages when compared to other types of graphs: they are are quite easy to understand and they are useful for finding patterns over a long period of time. However, a key disadvantage is that they lack the degree of detail possessed by bar and candlestick graphs.
In contrast, bar graphs provide a greater amount of information than line graphs. The length of each bar demonstrates the price difference for the specific time interval – a longer bar indicates a bigger separation between high prices and low ones. Furthermore, each bar contains two tabs. The left tab on a given bar displays the price at the beginning of an interval, while the right tab demonstrates the price at the end of an interval. Using this system, it is easy to see price fluctuations over a given time interval, and to understand specifics of the variation in price. At times, it can be difficult to read bar graphs which have been condensed and printed on paper, but most computerized graphs usually possess a zoom feature, which makes it easy to see the specifics.
Candlestick graphs originated in Japan, where they were frequently used in order to analyze rice sales. These resemble bar charts in that they indicate prices at the beginning and end of a certain time interval, as well as the peak and low prices over that interval. Furthermore, these charts are color coded, which assists in the ease of understanding. Green candlesticks are associated with increasing prices, while red candlesticks demonstrate decreasing prices.
Candlestick shapes - these shapes, when viewed in comparison with neighboring candlesticks, provide information regarding market fluctuation. This information is helpful in analyzing graphs. Different shapes of candlesticks come as a result of several values: price diffusion, and the disparity between prices at the beginning and end of a given interval. Candlestick patterns have been dubbed names which correlate with their physical shapes; names including 'morning star' and 'dark cloud cover'. When an individual learns these shapes, he or she is easily able to find them on a graph, and utilize this information in identifying tendencies in the current market.
Price graphs are frequently supplemented with various technical indicators. Many of these technical indicators fall into various differing categories. Some of these categories include trend indicators, strength indicators, volatility indicators, and cycle indicators. Each of these indicators is a tool which can be used to predict fluctuations in the market.
Common technical indicators frequently used in FOREX are as follows:
Average Directional Movement Index or ADX for short – this is utilized in to demonstrate if a market is entering an upward or downward trend, and to indicate the strength of the give trend. For the scale usually used by this index, results above 25 indicate a trend with a greater strength than usual.
Moving Average Convergence/Divergence or MACD for short – this demonstrates the current momentum of the market, as well as displaying the relationship between two fluid averages. A strong market is usually demonstrated when the MACD crosses over the signal line.
Stochastic Oscillator – this demonstrates the strength or weakness of a given market by way of comparing a given ending price to a price range over a specific time interval. A stochastic value under 20 demonstrates a currency that is oversold, while a stochastic value over 80 demonstrates a currency that is overbought.
Relative Strength Indicator or RSI for short – this is a scale from 1-100 which indicates the peak and low prices over a specific time interval. A price which falls below 30 is indicative of an oversold commodity, while a price above 70 is indicative of an overbought commodity.
Moving Average – this refers to the average price over a specific time period when that price is compared with other average prices during the same interval. For instance, ending prices over a 6 day interval would have a moving average of the total of the 6 ending prices divided by 6.
Bollinger Bands – these are bands which contain the great majority of a currency's current value. These bands consist of three horizontal lines. The top and bottom lines display fluctuations in price, while the middle line demonstrates the mean price. During time periods when the price is very volatile, the disparity between upper and lower bands increases. Overbought or oversold times are indicated when a bar or candlestick comes into contact with a Bollinger band.
Free Forex Signals - Learn the Secrets to Forex Trading
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Free forex signals served greater purpose of providing traders with the accurate signals that allows them to trail on repeated patterns and through this generate a prediction of how will the currency move. This is of the essence since as you begin to do your trade chances of acquiring a wrong move is inevitable and you will be left with nothing but to go back to square one and try your luck on your next trade. However, with free forex signals, you no longer have to endure anxiousness when trading as accurate signals are transmitted on your database.
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Free forex signals served greater purpose of providing traders with the accurate signals that allows them to trail on repeated patterns and through this generate a prediction of how will the currency move. This is of the essence since as you begin to do your trade chances of acquiring a wrong move is inevitable and you will be left with nothing but to go back to square one and try your luck on your next trade. However, with free forex signals, you no longer have to endure anxiousness when trading as accurate signals are transmitted on your database.
Serious forex traders have greatly rely on free forex signals apart from its greater outcome, one of the most gleaned factor is its ability to reward traders with profits that they never imagine they can get. You can also try on investing forex signals and make this your partner for lifetime. As people would prefer to have subscription rather than the free ones it is never difficult to find one for your trade.
Accurate signals have become the indicators of the market's flow and behavior. These signals serve as your eye in the entire course of your foreign exchange dealings. Some of the factors that are provided by the forex signals are forex patterns, currency pairs, breakouts and Fibonacci levels. These are some of the things to look at when you are in a trade. This is precisely the reason why a trader without sufficient knowledge of the market will do no good in his dealings. These signals also provide traders of the idyllic timing when it comes to buying and selling currencies. The forex signal provides you with various information and recommendation if it would be favorable to buy or sell your currency. This type of recommendation is given by your provider or if you employ a broker then you most likely receive signals through an agent.
Forex signals are generally given on a daily updated basis and all are contingent on factual market analysis and behavioral flow and not on mere hearsays and other speculations.
Looking at the practical side, it would be a best option to go by free forex signals however, if you have the financial means to fund a subscription then you may acquire for one. But regardless of it being free or not, the underlying principle relies on the fact that forex signals are your way towards unleashing the secrets of forex trading.
Monday, August 31, 2009
The system is adaptable to core banking solution. Union Bank of India, according to Srivastava, has already integrated it with its CBS. Kalia says: "T
How is storage of data done and how is its integrity ensured throughout the loan lifecycle?
Srivastava says the system has strong access controls. Data inputting is based on maker/checker concept while documents are stored in PDF format. "Access control ensures that the integrity of data is maintained all throughout the loan life cycle," he adds.
Arivazhagan too says in the HDFC system there is a very tight hierarchy-based access controls. The system is also protected through the usual firewalls and anti-virus systems. The customers are given user IDs and passwords to access the system.
"The data is basically in PDF files. However, I must say that compared to banks or mutual funds, our transactions are not huge. It could be just IS transactions at the maximum per account. Hence storage is not a major issue for us," he says.
Kalia says the system the bank has opted for uses SQL data base and security features of SQL database are used to ensure data integrity.
Union Bank of India is using a scoring system based on credit scores evolved by credit information agencies. "We also give
~>----LOS offers interface with USDA system
Associated Software Consultants (ASC) PowerLender loan origination software (LOS) has been updated to offer lenders the ability to upload loan files to the US department of agriculture's (USDA) Guaranteed Underwriting System (GUS). PowerLender successfully completed a series of compatibility tests for submitting files to the USDA's GUS using both the MISMO AUS 2.3.1 .xml format, as well as the Fannie Mae DU/ DU3.2 format. The USDA Rural Development Program, which offers loans that do not require a down payment or private mortgage insurance, traditionally offered loans for low- and very-low-income homeowners.
inputs to these agencies as well as the RBI as per mandatory requirements. The reports are generated by the system and there is no manual intervention at any point of time. As I told you earlier, we subscribe to Crisil's rating services and the rating of a customer is carried out in the system using the Crisil figures."
Arivazhagan goes a step further and says HDFC's system has a provision to predict possible payment defaults by borrowers. "We generate reports to credit information agencies based on the behavior of the customers."
CHALLENGES IN MIGRATION
What have been the challenges for these institutions in migrating from a legacy system to the new system?
Arivazhagan avers that HDFC, even when it came to be established, had been a forward-looking organization. "There had been fairly large scale automation in the organization - like in accounts. As such, automation of the loan system was not a major challenge. Even employees were pretty ready and they undertook the migration in an effortless manner. We had made provisions for continuous training for them at various levels. At no point of time, we had any parallel system running. Again the roll over was done in phases, location by location and this also helped in creating an awareness and in training the staff appropriately."
In the case of Union Bank of India, while data capturing in the manual system has been a difficult proposition, the bank had CBS in place and there had been no major legacy issues. "The database was available centrally," says Srivastava, "and so it was a question of implementing the system and training the people to make use of it. We had a team of 113 people and we implemented the system in a phased manner with meticulous planning. We adopted 'training the trainer' method and this proved to be beneficial. In a matter of eight to nine months, we could train some 3,700 people across all our branches before the system was rolled out in December 2008. This has been a sort of record."
Says Saraswati Shankar: "I do not foresee any major challenges in migrating to this system as the bank is very tech savvy and there is a CBS in place. Even training the people is not going to be any major challenge. LAPS will only strengthen our operations and business. All our branches will be covered by the system once implemented."
For Vijaya Bank, though the existing loan processing mechanism is predominantly manual, Kalia expects the migration to be a smooth affair. The bank will undertake to give adequate hands-on training to the field functionaries.
Shamugam says even when haVing a manual system, Mahindra Finance had operated on a centralized model - data available centrally. "This proved to be beneficial for us when we shifted from a legacy system to a robust ERP system. This has enabled us from 2000 till today to have a full fledged system to seamlessly capture data from various locations in a centralized server and to make the data and information available at various required levels. This actually helped us to automate our loan system in a smoother and effortless manner."
Srivastava says the system has strong access controls. Data inputting is based on maker/checker concept while documents are stored in PDF format. "Access control ensures that the integrity of data is maintained all throughout the loan life cycle," he adds.
Arivazhagan too says in the HDFC system there is a very tight hierarchy-based access controls. The system is also protected through the usual firewalls and anti-virus systems. The customers are given user IDs and passwords to access the system.
"The data is basically in PDF files. However, I must say that compared to banks or mutual funds, our transactions are not huge. It could be just IS transactions at the maximum per account. Hence storage is not a major issue for us," he says.
Kalia says the system the bank has opted for uses SQL data base and security features of SQL database are used to ensure data integrity.
Union Bank of India is using a scoring system based on credit scores evolved by credit information agencies. "We also give
~>----LOS offers interface with USDA system
Associated Software Consultants (ASC) PowerLender loan origination software (LOS) has been updated to offer lenders the ability to upload loan files to the US department of agriculture's (USDA) Guaranteed Underwriting System (GUS). PowerLender successfully completed a series of compatibility tests for submitting files to the USDA's GUS using both the MISMO AUS 2.3.1 .xml format, as well as the Fannie Mae DU/ DU3.2 format. The USDA Rural Development Program, which offers loans that do not require a down payment or private mortgage insurance, traditionally offered loans for low- and very-low-income homeowners.
inputs to these agencies as well as the RBI as per mandatory requirements. The reports are generated by the system and there is no manual intervention at any point of time. As I told you earlier, we subscribe to Crisil's rating services and the rating of a customer is carried out in the system using the Crisil figures."
Arivazhagan goes a step further and says HDFC's system has a provision to predict possible payment defaults by borrowers. "We generate reports to credit information agencies based on the behavior of the customers."
CHALLENGES IN MIGRATION
What have been the challenges for these institutions in migrating from a legacy system to the new system?
Arivazhagan avers that HDFC, even when it came to be established, had been a forward-looking organization. "There had been fairly large scale automation in the organization - like in accounts. As such, automation of the loan system was not a major challenge. Even employees were pretty ready and they undertook the migration in an effortless manner. We had made provisions for continuous training for them at various levels. At no point of time, we had any parallel system running. Again the roll over was done in phases, location by location and this also helped in creating an awareness and in training the staff appropriately."
In the case of Union Bank of India, while data capturing in the manual system has been a difficult proposition, the bank had CBS in place and there had been no major legacy issues. "The database was available centrally," says Srivastava, "and so it was a question of implementing the system and training the people to make use of it. We had a team of 113 people and we implemented the system in a phased manner with meticulous planning. We adopted 'training the trainer' method and this proved to be beneficial. In a matter of eight to nine months, we could train some 3,700 people across all our branches before the system was rolled out in December 2008. This has been a sort of record."
Says Saraswati Shankar: "I do not foresee any major challenges in migrating to this system as the bank is very tech savvy and there is a CBS in place. Even training the people is not going to be any major challenge. LAPS will only strengthen our operations and business. All our branches will be covered by the system once implemented."
For Vijaya Bank, though the existing loan processing mechanism is predominantly manual, Kalia expects the migration to be a smooth affair. The bank will undertake to give adequate hands-on training to the field functionaries.
Shamugam says even when haVing a manual system, Mahindra Finance had operated on a centralized model - data available centrally. "This proved to be beneficial for us when we shifted from a legacy system to a robust ERP system. This has enabled us from 2000 till today to have a full fledged system to seamlessly capture data from various locations in a centralized server and to make the data and information available at various required levels. This actually helped us to automate our loan system in a smoother and effortless manner."
Bnking Frontiers organized a roundtable at Hotel Le Meridien in Bangalore on 22 May 2009 on the topic 'Collaborative Customer Engagement' with IBM as
Manoj: A customer could check out his bank's website and see if they have a tie up with the car vendor and could possible register for a test drive there. This could be the beginning of a collaboration for the bank and the car vendor. What would be your take on providing such a one stop solution?
Asha: While we yet have to look into the possibility of offering a test drive, but it is possible. People can register through the website or the call centre. The requests are routed through the retail asset hub of Bangalore city. Since we have a tie up with the dealers, I can forward your mail to him and he will then attend to the needful. The customer also has a choice of filling in his location details, so that the nearest dealer can approach the prospective customer. Since there are different dealers for different brands, so depending upon the customers requirements, we will put him in touch with the concerned dealer. In all this, it is important that the customer is serious.
Venkatramaiah: In the car segment, even dealers are approaching the branches with
leads. There are cases where at the branch level they have brought the cars and we have given the sanction letters. After the casual inquiry at the call centre, by the time it translates into business, the entire process could take about 2-3 months, Even if about 10% of the leads translate into business, it is a good track.
PK Nair: Most often when a customer calls for a test drive, the bank or the agency is focussed on providing that service that the customer has called for. Using that interaction, how many times does the bank try to understand the customer's detailed profile? What we see is a point-in-time interaction, but we fail to capture information that can help the customer become our life-long customer. Some new generation banks treat the internet as an SBU. Actually, what customers are doing is visiting various sites and checking up reviews written by customers. Rajesh: I have seen one branch where they displayed a notice board, exclusively for customers. The board allows customers to
Asha: While we yet have to look into the possibility of offering a test drive, but it is possible. People can register through the website or the call centre. The requests are routed through the retail asset hub of Bangalore city. Since we have a tie up with the dealers, I can forward your mail to him and he will then attend to the needful. The customer also has a choice of filling in his location details, so that the nearest dealer can approach the prospective customer. Since there are different dealers for different brands, so depending upon the customers requirements, we will put him in touch with the concerned dealer. In all this, it is important that the customer is serious.
Venkatramaiah: In the car segment, even dealers are approaching the branches with
leads. There are cases where at the branch level they have brought the cars and we have given the sanction letters. After the casual inquiry at the call centre, by the time it translates into business, the entire process could take about 2-3 months, Even if about 10% of the leads translate into business, it is a good track.
PK Nair: Most often when a customer calls for a test drive, the bank or the agency is focussed on providing that service that the customer has called for. Using that interaction, how many times does the bank try to understand the customer's detailed profile? What we see is a point-in-time interaction, but we fail to capture information that can help the customer become our life-long customer. Some new generation banks treat the internet as an SBU. Actually, what customers are doing is visiting various sites and checking up reviews written by customers. Rajesh: I have seen one branch where they displayed a notice board, exclusively for customers. The board allows customers to
Bank of Baroda has a significant presence in Rajasthan, faciltiating better banking for the people of the state. Mehul Dani provides an overview of th
ank of Baroda has enjoyed a premier position in the state of Rajasthan and has a major role to play in its development. Bank of Baroda has presence in all 33 districts of the state through a vast network of 348 branches.
B.B. Garg, zonal manager, Bank of Baroda, Rajasthan, says: "BoB started its operations in the state in August 1958. Since then, it has been expanding through out the state by setting up its branches in urban, semi urban and rural area. Administrative control of the branches is ensured through 4 regional offices located atjaipur (105 branches), Ajmer (85 branches), jodhpur(62 branches) and Udaipur (96 branches). Out of 348 branches, 80% branches are located in rural and semi urban areas catering to the credit needs of farmers, artisans, small borrowers and MSEs. The bank has 71 metro/urban branches located in major cities contributing to development of industries particularly under MSME sector. The bank has 12 forex branches which cater to the need of exporters and importers. The bank has 2 Retail Loan Factories - at jaipur and jodhpur. There are 3 SME Loan Factories - at jaipur, jodhpur and Bhilwara.
BOB AS SLBC CONVENOR
Garg says: "BoB is entrusted with lead bank responsibility in 12 out of 33 districts of the state by the RBI. Besides, the bank is also assigned the responsibility of SLBC convenor. Recently the 101st SLBC meeting has been convened by the bank on 29th June 2009 to review the performance of the banking sector in Rajasthan under Annual Credit Plan and progress under various government sponsored schemes like SGSY, SjSRY and PMEGP. Based upon the Potential Linked Credit Plans as prepared by ABARD and District Credit Plans approved in the District Level Consultative Committees, annual credit plan for 2009-10 for aggregate amount of Rs 23,982 cr has been approved by the SLBC."
BUSINESS AND SOCIAL INITIATIVES
BoB has recently launched a 3 year long Total Integrated Rural Development Project called 'Project Dungarpur' with a total financial outlay of Rs 54 crores to be expended over 3 years. The project incorporates a wide range of activities ranging from financial inclusion, integrated rural development through agriculture, allied activities and promoting rural/cottage industries in the district. It aims at developing human resources through training to unskilled/semi-skilled personals.
Apart from this, the bank also thrives for its social responsibility and is running 7 R-SETls functioning as 'Baroda Swarojgar Vikas Sansthan' at jaipur, Ajmer, Banswara, Chittorgarh, Dungarpur, Karauli and Churu. Out of these, the R-SETI at Ajmer is exclusively imparting training to women entrepreneurs and has residential facilities with lodging and boarding arrangement at the institution itself. The bank has planned to establish 6 more R-SETls during current financial year in the districts of Tonk, Sawai Madhopur, Bundi, jhunjhunu, Bhilwara and Pratapgarh. Help desks for MSME entrepreneurs are set up and functioning at all the four regional offices.
TARGETS AND EXPANSION PLANS
According to Garg, BoB has fixed an ambitious target of business development in Rajasthan during the year 2009-10 of Rs 12,250 crore of deposits and Rs 9,000 crore of advances, charting a growth rate of 27% and 22% respectively. The bank has planned to register a growth rate of 24% in agriculture, 20% in industries, 38% in SME, and 28% in total business. The bank has planned to open 16 new branches in the state. Recently, the bank has focused to strengthen and streamlined its marketing force by taking out all back office work from branches. A specific outfit - Regional Back Office - has been set up with a state-ofthe-art technology at Vidyadharnager in jaipur.
SSI MF deploys speech recognition system
561 Funds Management has deployed a new IVR solution based on Nuance Recognizer to deliver speech-based selfservice interactions for its customers. The IVR will enable its customers to use their voice, instead of traditional touchtone environment, for interactions with the IVR for selfservice. The IVR speech recognition solution will use Nuance Recognizer to provide information to customers on latest Net Asset Values of MF schemes, and at a later date, more features will be added. The next generation IVR will be able to prOVide all the services that are currently being done by agents manually. The customers need not have to wait for the agents to be available and the process is now automated.
As banks become more tech savvy, they are increasingly looking at loan automation technology. To find out the benefits and the challenges, executive e
anks and lending institutions need to be competitive in today's lending environment in order to be in business.
While they may endeavor to stay ahead with niche products, sustained marketing, effective customer care and efficient collection system, they can no longer depend on manual processes in their lending business. Geographical reach and brand loyalty can to some extent help them, but these are no longer the determining factors. It calls for efficiency in taking decisions, in servicing, in monitoring and in collecting.
Borrowers have the ability to borrow from their choicest sources and whenever they want. The institutions are realizing that the customers demand convenience apart from acceptable levels of interest. If a manager is not capable of processing a loan application within the least possible time, the customer has the choice to look toward others who can very well do so.
So, Indian banks and financial institutions are today following the footsteps of their global counterparts in automating their lending processes often using fully integrated solutions that cover the entire Joan life cycle - from loan origination through loan application process, risk assessment, decision-making, monitoring and management control of approved loans. And what's more, there are packages available in the markets which are customizable, scalable and implementable with the least interference to the existing automated environment.
Predominantly, these packages have: (i) risk management tools that help underwriters to automatically evaluate loan packages and give alerts on doubtful applications and evaluate the applicants in terms of liqUidity, collateral and credit history; (ii) document scanning facility that enables digital storage and transmission of documents and that ensures integrity of the document throughout the loan life cycle; (iii) communication facility for managers processing the loan applications by exchange of notes through the system and even through dedicated email systems; (iv) workflow automation which facilitates flow of loan applications through various stages seamlessly and within timeframes; (v) monitoring system that takes care of repayment schedules and managing PAs; and (vi) EMI reminders and default notices that are generated to customers from the system without the managers haVing to
IN-HOUSE DEVELOPMENT
Housing Development and
Finance Corporation (HDFC), the prime lender in the country to home seekers, has a loan automation system in place and all the lending activities of the company
are carried out through this system. "Our loan automation system is
an end-to-end solution, starting
with lead management to lead maturation, underwriting, disbursement, loan servicing
and closure of the loan. It covers
the entire loan life cycle - an
average loan life of 10 years to
a maximum of 30 years," says R. Arivazhagan, senior general manager, Information Technology, at HDFC.
"It is a fully integrated system, and what is significant is that it is
a home grown system and not a package we bought from vendors. We began work on it in 1990s as we found the need to automate loan processing in order to keep pace with the other automation processes that were happening
in the organization. We consciously opted out of going
for a package as such packages
would require extensive customization in order to meet
local requirements - basically legal.
We worked on a next generation system and it evolved over a period of time as we went on adding modules and functionalities as we grew. For example, in older days, there used to
be just one type of loans, that is, fixed rate loan. ow we have several, like variable rates, flexible rates, monthly rests, quarterly rests, etc. Similarly, earlier, there was no provision
for generating credit reports to credit information agencies. These agencies have started functioning we need to offer reports
The solution had been customized over a period time with the required controls evolved and put in place to support the internal users to get accurate
about the creditworthiness of our customers and the system was modified to generate such reports. It is also enabled to have images."
The system is configured to work both as a centralized system as well as a decentralized system. This is mainly because some of the company's processings are carried out at branch levels. The system works on Oracle database which is run on an IBM AIX machine. The front-end of course uses Windows but developed using Oracle forms technology. NetApp is used as storage technology.
Union Bank of India is perhaps the only public sector bank to have fully implemented a loan automation system. The system takes care of, in the true sense of the term, the entire process of loans to customers - loan origination, processing, risk analysis, appraisal, servicing and post disbursal control. It enables personal and commercial lending. The bank's officers function in a truly automated environment. The system is fully integrated with the core banking system and covers the entire loan life cycle.
LAPS
Says T.K. Srivastava, DGM - IT, of the bank: "We bought LAPS (Lending Automation Processing System) from a firm in Chennai, SysArc Infomatix. We then carried out the required customization. In addition, we have also subscribed to Crisil's rating service in order for us to be able to evaluate the corporate customers. Wipro had been the system integrator. As far as I know, Union Bank of India is the only public sector bank in the country to have an end-to-end loan automation system. Every perceivable type of loan that is sanctioned by the bank is through the system now. We began work on automating the loan system sometime in 2007 and by 2008 December, we were online. Today, the entire process of loans - documentation to execution to monitoring to NPA management - is done through the system and all types of loans - corporate, SME, retail, personal, vehicle, agricultural, etc - are processed and serviced through the system. The system also helps in the recovery proceedings and generates EMI alerts, default notices and even legal notices. What is more, it has facility to have a list of approved lawyers and the bank branches have to mandatorily send the legal notices to defaulters through these approved lawyers. The system is available at all our braches and some 5,000 users can log on to it at any given point of time."
Mahindra & Mahindra Financial Services, a non-banking finance company with a focus on the rural and semi-urban sector and which finances utility vehicles, tractors and cars, is using loan automation system in order to serve its predominantly rural clientele in a more efficient manner. "The system enables us to have swifter deployment of the existing business and new business," says Suresh Shanmugam, national head - Business Information Technology Solutions of the company. "It also helps us to collect customer information in the rural areas and make it available across the enterprise so that we can be competent, we can extend our relationships with the rural customers and
serve them more effectively and almost in real time," he adds.
It is a centralized system, says Shamugam. The information is captured through a distributed network of branches. There is a defined workflow which facilitates easier and quicker decision making. The solution had been customized over a period time with the required controls evolved and put in place to support the internal users to get accurate information.
The company opted for an off-the-shelf system but made extensive customization. It is an end-to-end system and is capable of proViding MIS to top management on NPAs, liqUidity, etc. It is also capable of monitoring the repayment schedule through web-based intranet and internet solutions.
REPORTS GENERATION
Bank of India is now in the process of automating its loan system.
The bank too has just acquired LAPS from SysArc Infomatix and is about to commission it. When fully implemented, it will be an end-to-end and totally integrated system for loan management in the bank, says Saraswati Shankar, DGM - IT, of the bank. "We will also implement a rating system alongside," she adds.
One of the significant advantages, according to Saraswati Shankar, is the facility in the system to proVide reports of various nature to the Reserve Bank of India. "In the existing dispensation, we need to prepare these reports manually, which is a cumbersome process involving manpower and time. When the system goes online, the reports will be generated from the system, which can also be seamlessly transferred to the RBI without any manual intervention. In addition, we will be providing data on individual loans to agencies like CIBIL and we in turn, will be using the credit information proVided by these agenCies."
She said the bank will be basically using the system for loan application processing, sanctioning, disbursement and monitoring.
Similarly, Vijaya Bank too has procured an automated system and is in the process of implementing it. The bank is customizing the package to suit its needs, both in the spheres of corporate and retail loan processing areas.
"The system is designed to capture details required for processing the loan proposal and it does support the tasks till sanction," says Subhash Chander Kalia, executive director of the bank. "Once the loan is sanctioned, it has built in interface to create customer 10, open the loan account in the CBS system."
Kalia explains that the bank offers loans for various purposes agriculture, SME, exports, retail, housingetc - with variations built in as per the purpose and nature ofloans applied for. "Applications in the system are designed to capture comprehensive details of the customer based on which a master is created. Ground rules are built into the system for online support at the appraisal stage and the system then gives triggers as to the eligibility of the customer. It has got high efficiency, largely due to its single point processing capabilities. However, delinquency is not captured in the system as it is basically for processing and sanctioning
of loans. The application does not cater to the full life cycle of the loan as it takes care of origination, fulfillment and opening of loan accounts,
Thrissur, Kerala-based
private bank the South Indian Bank has recently completed a 'Credit Automation Project', which the bank feels will improve its efficiency in credit processing and sanctioning of corporate loans. The bank claims that this is a 'paperless flow' of the loan sanctioning and is a unique process. Managing director and chief executive officer of the bank, V.A. Joseph said at the launch of the project that the bank will be able to expedite scrutiny of the loan application, appraisal and assessment of the limits with the help of 'Loanflo', the corporate loan solution software offered by LaserSoft Infosystems. "This will change the way the bank as a lender has been doing business," he said, adding it will allow automation of the entire loan processing, sanctioning and tracking system for corporate loans.
The system of HDFC has a very efficient CRM functionality.
Says Arivazhagan: "Our customers can log on to the system and trace the status of their loans. The system also generates year-end reports, certificates and statements of loans, which are mailed or couriered to the customers without their asking for it, to facilitate their tax planning."
Arivazhagan says the system is basically a decision-aiding system rather than a decision making system. The data in the system helps a staff member in taking a decision. However, it is capable of assuming a decision-making system as well.
"In a business like ours, the most important aspect is to keep information in the desired structured format and make it available to the users in the right way at the right time. Automation is very relevant for such a requirement," he adds, Srivastava of Union Bank of India says being a centralized, webbased system, it has helped the bank to make loan processing, sanctioning and monitoring fully system driven. Says he: "Each and every loan application will now have to go through the system irrespective of the nature of the loan. And across the bank, the terms and conditions are uniform, the rates of interest are uniform, the sanctioning modalities are uniform, securities sought are the same. It is totally transparent. Secondly, policy enforcement is very effective. Besides, the bank can revise policies and incorporate these into the system, which will then become effective across the bank. Thirdly, it has given a lot of confidence to the branch managers because it is ensured that the loan is sanctioned after fully meeting all the required formalities and fully following the set rules and regulations. Fourthly, the entire monitoring and recovery process is made very easy and efficient with the alerts given by the system for EMI payments, for defaults, etc. Even the managers are spared of the efforts of drafting letters to customers about EMI payments, about defaults, etc, and of sending legal notices as these letters and notices are generated by the system at the appropriate
time. This drastically reduces the turnaround time. Fifthly, we can add any new products at any point of time and in pretty quick time and make it available across the bank. Finally, since the database is centralized, updating is done in real time."
Srivastava says the system is capable of countering delinquency in an effective manner because of the automated monitoring that is possible.
Arivazhagan too contends that the system is capable of proViding analysis of customer performance and feedback. This can help the credit department in assessing fresh applications from existing customers, who will ensure that they do not default. It is just not possible to have these analyses in a physical mode.
WORKFLOW
Any typical loan processing involves decisions at different levels. How is information managed in such a situation?
Srivastava says it is a workflow-based system. A loan proposal based on parameters set in the system can be decided by a branch manager, or it can if necessary go to a regional office or to the central office or to the board of directors. The concerned panel of bank officers can rate the application and record their views in the form of minutes and sign the minutes. This document is scanned and uploaded in the system. The application can be accepted and the loan sanctioned, or it can be rejected. The whole process is facilitated through a mailbox system.
"In case a particular loan is sanctioned in exceptional circumstances - we call it a case of deviation - there are provisions in the system to record the deviations to the parameters and have it approved by the concerned authorities," he adds.
Kalia of Vijaya Bank says information flow is automated in the loan automation system, through workflow mechanisms. "Automation does help in expeditious decision making as physical movement of papers is curtailed to a large extent."
Does an automated system bring in efficiency through centralization and speed to the lending process?
Arivazhagan cites the instance of HDFC: "Over the years, we have recorded an annual growth of 25% to 30%, while the growth in our manpower has been insignificant. Secondly, our assets to expenses ratio is one of the lowest in the world, that is 0.4%. This is proven efficiency and this has been possible through automation."
"A loan automation system is ideally an end-to-end integrated system, starting with lead management. In our case, even documentation is stimulated by the system, starting with collection and verification of documents, their safekeeping and their return to the customers upon completion of the loan tenure. The system generates MIS reports as well as compliance and regulatory reports for the regualtor, in our case, the National Housing Board."
Shanmugam of Mahindra Finance says surely the model
private bank the South Indian Bank has recently completed a 'Credit Automation Project', which the bank feels will improve its efficiency in credit processing and sanctioning of corporate loans. The bank claims that this is a 'paperless flow' of the loan sanctioning and is a unique process. Managing director and chief executive officer of the bank, V.A. Joseph said at the launch of the project that the bank will be able to expedite scrutiny of the loan application, appraisal and assessment of the limits with the help of 'Loanflo', the corporate loan solution software offered by LaserSoft Infosystems. "This will change the way the bank as a lender has been doing business," he said, adding it will allow automation of the entire loan processing, sanctioning and tracking system for corporate loans.
The system of HDFC has a very efficient CRM functionality.
Says Arivazhagan: "Our customers can log on to the system and trace the status of their loans. The system also generates year-end reports, certificates and statements of loans, which are mailed or couriered to the customers without their asking for it, to facilitate their tax planning."
Arivazhagan says the system is basically a decision-aiding system rather than a decision making system. The data in the system helps a staff member in taking a decision. However, it is capable of assuming a decision-making system as well.
"In a business like ours, the most important aspect is to keep information in the desired structured format and make it available to the users in the right way at the right time. Automation is very relevant for such a requirement," he adds, Srivastava of Union Bank of India says being a centralized, webbased system, it has helped the bank to make loan processing, sanctioning and monitoring fully system driven. Says he: "Each and every loan application will now have to go through the system irrespective of the nature of the loan. And across the bank, the terms and conditions are uniform, the rates of interest are uniform, the sanctioning modalities are uniform, securities sought are the same. It is totally transparent. Secondly, policy enforcement is very effective. Besides, the bank can revise policies and incorporate these into the system, which will then become effective across the bank. Thirdly, it has given a lot of confidence to the branch managers because it is ensured that the loan is sanctioned after fully meeting all the required formalities and fully following the set rules and regulations. Fourthly, the entire monitoring and recovery process is made very easy and efficient with the alerts given by the system for EMI payments, for defaults, etc. Even the managers are spared of the efforts of drafting letters to customers about EMI payments, about defaults, etc, and of sending legal notices as these letters and notices are generated by the system at the appropriate
time. This drastically reduces the turnaround time. Fifthly, we can add any new products at any point of time and in pretty quick time and make it available across the bank. Finally, since the database is centralized, updating is done in real time."
Srivastava says the system is capable of countering delinquency in an effective manner because of the automated monitoring that is possible.
Arivazhagan too contends that the system is capable of proViding analysis of customer performance and feedback. This can help the credit department in assessing fresh applications from existing customers, who will ensure that they do not default. It is just not possible to have these analyses in a physical mode.
WORKFLOW
Any typical loan processing involves decisions at different levels. How is information managed in such a situation?
Srivastava says it is a workflow-based system. A loan proposal based on parameters set in the system can be decided by a branch manager, or it can if necessary go to a regional office or to the central office or to the board of directors. The concerned panel of bank officers can rate the application and record their views in the form of minutes and sign the minutes. This document is scanned and uploaded in the system. The application can be accepted and the loan sanctioned, or it can be rejected. The whole process is facilitated through a mailbox system.
"In case a particular loan is sanctioned in exceptional circumstances - we call it a case of deviation - there are provisions in the system to record the deviations to the parameters and have it approved by the concerned authorities," he adds.
Kalia of Vijaya Bank says information flow is automated in the loan automation system, through workflow mechanisms. "Automation does help in expeditious decision making as physical movement of papers is curtailed to a large extent."
Does an automated system bring in efficiency through centralization and speed to the lending process?
Arivazhagan cites the instance of HDFC: "Over the years, we have recorded an annual growth of 25% to 30%, while the growth in our manpower has been insignificant. Secondly, our assets to expenses ratio is one of the lowest in the world, that is 0.4%. This is proven efficiency and this has been possible through automation."
"A loan automation system is ideally an end-to-end integrated system, starting with lead management. In our case, even documentation is stimulated by the system, starting with collection and verification of documents, their safekeeping and their return to the customers upon completion of the loan tenure. The system generates MIS reports as well as compliance and regulatory reports for the regualtor, in our case, the National Housing Board."
Shanmugam of Mahindra Finance says surely the model
