Important Points to Consider Before Starting a Home Based Business

It is unusual that many people perceive that starting a home based business is something effortless and undemanding.

Contrary to that belief, you’ll need to put in a lot of effort to make it work for you so that you can earn well with your business. Before you get started, you will need to check on few important points which will in turn make the journey towards your goals a lot easier.

Prepare Your Business Chart:

Preparing a business chart is very basic and the important factor for starting any business. It will give you a direction which you need to take in order to reach your targets. However, you will need to maintain the confidentiality of your core business ideas. You will not like it when somebody else implements your ideas and takes all the credits and profits.

Ascertain The Way You Want To Run Your Business:

You need to decide on how exactly you want your business to run. You might also want to understand beforehand if you would like to run it on your own or partner with someone else. I would recommend you to go alone because you will have the freedom to make your own decisions without any encumbrance. However, there might be financial situations which might force you to partner with someone else which could sometimes also come as a blessing in disguise.

Be Compliant With Laws of Your State:

Starting a home based business is not really a big deal. However, you’ll need to ensure that your business does not face many hurdles or roadblocks in the future. It is very important for you to thoroughly understand all the state business laws and abide by it. You might want to take professional help from an auditor in order to understand the business norms of your state.

Insure Your Losses:

It is always wise to get your business opportunity insured with reliable insurance companies so that your losses would not really stop you from moving on with your business. This boosts your confidence to move ahead and it also avoids deviations from your targets.

Keep Your Office Systematized:

Keeping your office organized will enhance your success rate. Starting a home based business in a systematic way trashes the impending blockages. Work from home wouldn’t actually mean working from your bed with your pajamas. You will need to designate a specific place in your home where you can work in peace without many distractions.

While starting a home based business, you will need to remember one specific fact. It is not a refuge from the outer world. As a matter of fact, it is just another means to reach the outer world from where you can get your fair share of profits.

Candlestick Charting – The Number One Forex Trading Tool

Forex trading has been hugely impacted by the accessibility of the internet. Not only have financial institutions been able to get more accurate and up-to-date information, but the amateur forex trader has been able to access the same information with a few mouse clicks. It is therefore vital to use the best tools for the job and candlestick charting undoubtedly are one of the best tools available.

Candlestick charting was introduced initially by the Japanese within the rice industry, however, over the last couple of decades they have lit the imagination of forex traders all over the world and have almost become a universal standard. As someone once said “You can’t do today’s job with yesterday’s methods and be in business tomorrow.” Candlestick charting is definitely the most powerful tool available today.

Structure of a Candlestick

It is true that candlestick charts hold the same information that bar charts do i.e. a high price, a low price and the opening and closing prices. The actual body of the candlestick shows the opening and closing prices. In the early days of candlestick charting, if the body was black then opening was higher than the closing. If it was empty then the opening price was lower than the closing. Nowadays candle bodies are coloured, green for upward movement and red for downward. The use of colours makes the charts much easier to read.

Candlesticks show high and low prices for a given time period by using vertical lines which appear above or below the candlestick body. These lines are also known as shadows

So what are the main features of candlestick charting that separate them from other charting methods? Listed below are the two main features.

Visual appeal

This is one of the most important features. At a glance, the trader can quickly understand what is going on within a particular forex market. No matter what the time scale being used, the trader will be able to see the market movement and whether it is the sellers of the buyers who have dominated a given session.

Readability

Any trader who has mastered the basics of candlestick charting will quickly be able to identify the opening and closing price for a given currency pair. Candlestick chart show the same information as a bar chart, but in a prettier, graphic format. It is very important to be able to use the support and resistance levels together with the opening and closing prices.

Other advantages of candlestick charting include the following:

  • Trading patterns change over time. That is why no system will always work. But candlestick patterns are not a system hence candlestick patterns always work.
  • Candlesticks get you into price action much earlier than the majority of indicators. This means that the traders using candlestick patterns can enter trades earlier than those traders relying on indicators.
  • Candlesticks are the fastest form of price prediction there is.
  • Candlestick trading is very reliable. Providing that the patterns are properly picked, and
  • the poor ones weeded out, the probability of success is extremely high.

Anyone who seriously investigates the use of candles will learn that there are many patterns and candlestick formations that provide very useful information for traders.

The forex market is extremely volatile so it is important to remember the words of Warren Buffet said “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”

Mastering candlestick charting is undoubtedly one of the most important skills that a forex traders needs to possess. This single tool will do more than any other to improve success for those who put in the effort to learn how they work and implement them into your

“Special FX” Charts – What Are the Best FX Charting Software Packages?

For almost every trader, charting software is a key component to doing business. Forex traders are no exception. Without a good chart, it is impossible for most of us to get our arms around the market’s big picture when determining our next move. So for the forex trader, what is the best charting software?

As with so many pieces of the trading puzzle, there isn’t a single clear answer. Each of us will have different criteria by which we determine the charting software that best serves our FX trading business. However, without a clear idea of what those criteria are we stand a good chance of choosing a product poorly. The following is a strong set of questions I have found it useful to ask when determining which charts to use in my trading:

  1. Which forex broker do you trade with? This might be the single biggest component when determining your charting software. Every brokerage offers charting software (at least, I’ve yet to run into a broker which doesn’t), and some of the software is really quite good. If the broker you are trading with offers a charting package you find unacceptable, you have two primary paths of recourse. You can change brokers (not a big deal, but it is a bit of a hassle), or you can use 3rd party software to chart and continue trading through your current broker.
  2. Do you want to ‘trade on the chart’? Personally, I’ve never found this compelling. Sure, it is convenient to simply click a spot on the chart and enter an order to trigger there, but for precision order entry (which my own trading plan requires) is more of a hassle for me than just typing in an entry through my broker’s standard trading window. But if you are comfortable with a simple point/click/trade functionality and an order entry that is ‘close enough’ really is close enough, this could be a useful feature. Particularly if you trade in an environment which demands lightning quick action, this ability could be a deciding factor.
  3. Price. Obviously, paying a monthly fee for your charting software represents an additional cost of doing business. Some of these premium (meaning ‘not free’) programs are quite good, but usually the only improvement over a free charting package you’ll see is the addition of a few additional technical indicators. Unless your trading system absolutely depends on such a special indicator (or the capacity to program your own indicators, as with Tradestation or eSignal), this additional expense is probably unnecessary.
  4. Trade automation. Prior to the advent of Metatrader and it’s Expert Advisors there were only a small handful of charting software which provided trade automation. One of my favorites (and still is) is VT Trader. The charting software is very good, and activating a simple trading system is not complicated. If you are comfortable (and that is a big ‘if’) walking away from your computer while it trades your money behind your back, either VT Trader or Metatrader can provide good options. (But please, PLEASE let any system you implement paper trade for a while prior to using it real time).

So we can see that one size does not necessarily fit all FX traders when it comes to charting. But here are three packages that I use regularly:

  1. PowerCharts – you can find this software at http://www.dailyFX.com (click their ‘charts’ tab, to find multiple FX charting packages, both free and premium).
  2. FXCM – this is one of my brokers, and the charting package is fine. I have the option to trade on the chart, though I rarely exercise that option.
  3. VT Trader – this is the beefiest of the forex charting packages I regularly use. It has a nice set of indicators (unavailable in the other two I use), as well as the ability to program very simple trading systems.

Don’t take any of these as particular endorsements. There are quite a few FX charting packages out there; you owe it to your own trading business to see what will work best for you, but when you keep these criteria in mind you will certainly find the one which is right for you.

Stay timid!

Timothy