PipStop

We’re in an age where technology changes seemingly as quickly as you learn something new. As online traders it’s imperative to be adept with technology, which will make you more efficient in this online environment.

Can you imagine watching your charts, only to realize too late that the trade you were in moved 100 points against you because your Internet connection was somehow disconnected? Or missing important pieces of news in the blogosphere about the broker you trade with and how they are in some kind of regulatory trouble endangering its long-term viability – and therefore your account?

Technology in 2008 is overwhelming. If you haven’t kept track, you have a lot of catching up to do.

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Today I’ll share a little about RSS or Really Simple Syndication as it’s widely known. Wikipedia is a tremendous resource for anything it seems, and it’s no different for RSS.
Off the top, though, I’ll share a clever and creative video recorded by Commom Craft, that simply explains what RSS is.

As the clip overviews, RSS is really comprised of two components that do one thing.

The One Thing that RSS Does

We’re all used to being subscribed to a variety of email lists, where we receive periodic updates from companies we want to hear from. Whether it’s online shopping specials or trading analysis newsletters, our email boxes are stuffed to the gills, and most of us don’t unsubscribe to the 2/3 of emails we never read.

RSS, which it’s estimated 5% of all computer users use, turns the tables, and allow YOU to subscribe to receive news whenever it’s updated on whatever websites you like to visit. So in this scenario you can stop worrying about spam or whether you’ll be unsubscribed from an email list. No one is able to invade you with unwanted news.

Now the question is how does RSS accomplish this? That’s where we get into the two components, which are comprised of RSS Reader and RSS Feeds.

Component #1
You have to find an RSS Reader. This is otherwise known as a newsreader. There are two types you can get, one is web-based, and the other is a installable version on your computer. Now, there are a lot of various types of readers out there, which you can research. For now, I’ll let you know that I use Google Reader, because it’s web-based and I can access it from any computer with an Internet connection.

Component #2
You are then open to adding whatever available RSS Feeds you want to your reader. RSS feeds aren’t available on all websites, but more and more are jumping on board. You will see some of the following icons which you can click on to add to your RSS Reader.

Trading Site of the Week: www.safehaven.com

A varied aggregation of market thoughts and analysis. Safe Haven, whose tagline is Preservation of Capital, seeks to be out of the mainstream, to provide commentary on trends before trends become obvious, where everything isn't measured in  perfect sense. Not everything is relevant, but occasionally you will read insightful, provoking pieces.

In trading preparation is most often correlated with a specific trading plan, and executing that trading plan with a balance of discipline and good money management.

One event for me yesterday, though, gave me pause for thought.

It was at about 6 p.m. - so it was dark outside, and my daughter and I were having dinner when all of a sudden the power went out. My first thought was, geez it's awfully creepy when it's pitch black.

I quickly scampered downstairs and lo and behold my laptop is giving off light! So I take it into the garage so I can pull some flashlights out of our 72 hour kits. I then proceeded to light a few candles and we had light.

It made me think if I was in trades at the time would I have known what I was in? (hence the importance of a trading journal). Do I have contact information to my broker handy? Do I have a phone that works without power? All the "Do I's" came to mind.

Then I got to thinking that I really need to buy battery back-ups for our computers at home. I've been meaning to do it, and I know from personal experience that it just takes one seemingly innocent power outage to destroy a computer.

I don't know about any of you, and I know that computer's are cheaper than ever now, but it's important to save yourself a lot of aggravation with a little thought and preparation now.

FXstreet's Tony Juste has a Word of the Day that he sends out daily. Playing off that, and since I come across so many websites on a regular basis, I thought I'd create a Forex Site of the Week. Daily would be pushing it.

Of course for now, it'll be heavily weighted towards the Forex market.

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Trading Site of the Week: www.tradingsuccess.com
This is a blog run by Ray Barros, who focuses on applying structure for trading success. A great resource and storytelling from a trader who has ridden the roller coaster of success and failure. 

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Ray shares the following YouTube link on his Jan. 23 post, which I have embedded below. Watch it and feel its impact.

It's depressing, but it's reality for many, many who are looking to get into trading. One thing is, if this has happened to you, you probably have a hard time admitting reality.

I personally have suffered losses, but not like this. So the question is, what will he do ensure this doesn't happen again? Recognizing errors is one thing. It's a completely different thing to put a course of action to change the way he thinks and the way he does things.

This is a refreshing and sobering trader admission.

Yesterday, I shared a thought on the average daily volume traded on the Forex market. There are so many numbers floating out there without any sort of reference.

Well thanks to Thomas Chmielowicz of Gain Capital (Forex.com is their retail arm) who shared in his TP Tuesday session today about the new $3.2 trillion number.

I quickly checked on the Bank of International Settlements website and after a little digging I found that indeed, in the three years between Dec. 2004 and Dec. 2007 the average daily turnover in the Forex market has increased 71% to $3.2 trillion.

... are we really supposed to understand what $3.2 trillion really means? 

Don't miss Trading Post Tuesday. It's today, and you'll be glad you dropped by a session or two, or three, or heck the whole thing.

Come on by!

I have problems with some things that are perpetuated about trading Forex. One is the 95% failure rate that I hear way too much - especially since I don't hear of where that number comes from.

And I saw it again today on a blog that is trying to do something. Sheesh. The rule of thumb in zealous promoters of the Forex market seems to be - "that sounds good, but how can I make it sound better?"

There's also the thing about $1.5 trillion of daily trading volume in the Forex market - or was that $2 trilion, or $2.5 trillion? Trading Post uses $1.9 trillion which is the last substantiated number put out by the Bank for International Settlements a few years ago.

Avoid an investment scam. One word comes to mind for me, Transparency. If someone isn't upfront or is elusive in giving you common sense information - like where are you located? - then you have a problem.

I've been corresponding with an independent sales representative of Horizon FX a "Forex" fund with an office here in Vancouver. When I had opportunity to meet with him a few months ago, there just seemed to be too many holes in what the company had to offer.

There was no transparency in WHO traded the funds, WHERE the funds were held - just a seemingly consistent track record that averaged a 1% return a week. So nothing to raise alarm bells. 

At the time, I discussed it with Douglas Sereda, a partner of mine at Trading Post, who's been in the investment business for over 25 years. Doug's response? "Tell him to get every penny out that he and those he referred to the fund out."

I relayed the information, and got a typical don't worry about it response. Well, tonight, I got the following email.

wow, your feelings were right. This issue was a sign that dragged on way too long and I found out some very interesting news from others involved with Horizon. I'll have to dig deeper and get some more

http://www.canadianbusiness.com/markets/market_news/article.jsp?content=D8U6JHP80#adSkip
http://www.portfolio.com/news-markets/national-news/ap/2008/01/15/man-held-in-alleged-68m-forex-scam

they are the traders in NY behind the scenes with Horizon. I can let out an enormous sigh of relief I got out in the green for this one.