Tag Archives | currencies

Good Time to Trade Currency

Currency market open 24 hours, 5 days a week. It starts 17.00 EST on Sunday to 17.00 EST on Friday. Traders can simultaneously trade during those time range. However, it is not wise to trade continuously, as the market does not always show good movement or setup all the time. In general, there are 4 major sessions in currency market (see below)

time

1. Sydney opens 17.00 EST (starts Sunday afternoon EST)

2. Tokyo opens 19.00 EST

3. London opens 03.00 EST

4. New York opens 08.00 EST (closes Friday 17.00 EST)

When the major currency center opens, there are a lot of volume and liquidity. During this active market hours, the market price can move up and down, give traders a chance to trade and make nice profit. During slow time (when currency center closes), the volume and liquidity drop, and the price movement usually goes sideways.
The most favorable time to trade is during London opens. There are at least 6 top bank traders actively trading with 51.78% of market share. The second largest market share happens during New York sessions (27.2%). The Sydney and Tokyo sessions usually do not give high volatility, because the market volume is not as high as London’s.
Other trading opportunity that need to be considered is news events. News events can be schedule (Non Farm, GDP, Unemployment Rate, Interest Rate Decision, etc) and non schedule (natural disaster, war, etc). News events can boost market price to certain direction and it provides traders a great opportunity to make profit too.
In generals, best times to trade is during London hours, New York hours, overlap between London and New York hours, and during news events. Apiary Fund can help you to determine the time zone by using this link :

http://apiaryfund.com/extras/sessions-clock

Source:

http://en.wikipedia.org/wiki/Foreign_exchange_market

http://en.wikipedia.org/wiki/Forex

Comments { 0 }

Bee characteristics and the Apiary Fund.

worker beeThe Apiary Fund model is based on the characteristics of an apiary which is beehive where not just one bee but a whole community of bees work together to manage the hive. Just like a beehive, the Apiary Fund (the beehive) grows their capital (the honey) with the help from their traders (the bees).

The Apiary Fund offers an online trader development program with the objective of helping people learn how to effectively manage investment money. The challenge for most people is that in order to master the art and skill of money management, you have to manage real money in real-life markets and most people either don’t have the knowledge or capital to endure the learning curve. The Apiary Fund solves this problem by providing their students with real money from the company and gives them the opportunity to share in the trading profits as the learn. In the same way a hive supports the bee, the Apiary Fund supports its traders by giving them the knowledge and capital they need to work through the learning process.

In the same way the Apiary Fund shares characteristics with the beehive, our associates share certain characteristics with the bee. Here are few of the characteristics our successful traders share:

Work Ethic
Bee’s are busy. Bee’s buzz around all day long sometimes travelling up to three miles to find a single drop of nectar to bring back to the hive. Successful traders must have a solid work ethic in order to learn how to make money in the market. The good news, if you’ve ever enjoyed the sweet taste of honey, you’ll know the work has great rewards in the end. And a good money manager would agree!

Adaptability
Honey bees are very adaptable. This is an important skill that every fund manager must have. The financial markets are always changing. There is no one “magic” strategy to profit from the market. A fund manager needs to be able to adjust his / her trading strategies, in order to survive in the market.

Responsiveness
In winter, there is much less work to be done and the bees slow down. Similar to the bees, the financial markets also have seasonal cycles. During holiday seasons, like Christmas or New Year, the trading volume is very low. It is not advisable to trade during these seasons, as a trader may be caught in the market and could not exit with profit.

Conservative
As known, food source of bees is nectar, which is not possible to be found during winter. For this reason, they combine the nectar collected in summer time, produce honey, and store it for winter. This shows why money management is vital in trading. The Apiary Fund teaches money management at the beginning of its program. One of the Apiary Fund’s policies is to stop trading at 2% daily loss. The purposes are to protect capital and keep traders psychology intact. The first important thing for fund managers to do is to protect their capital before they make profit.

Remember “keep your ‘honey’ to live longer through the hard time” the coming winter months.

Source :http://en.wikipedia.org/wiki/Bee

Comments { 0 }

What is the Forex Market, and How Does It Work?

A market is simply a channel for exchange. You’ve probably heard of the Chicago Mercantile Exchange, or the New York and London Stock Exchanges. These are three of the many major centers of exchange. They actually serve as physical centers of exchange to facilitate trading. Stocks, bonds, options, derivatives, and futures are all traded freely on the floors of these trading centers.

The currencies market, however, is different. There is no central exchange playing host to hordes of traders. There is no money exchanging hands amidst endless shouting. Believe it or not, the currencies market, also called the foreign exchange or forex market, is the largest liquid market in the world. To better comprehend just how big the forex market is, let’s take a look at the numbers. The New York Stock Exchange, the largest exchange in the world, sees about $15o billion move through it every day. The forex market moves about $4 trillion each day– making it around 26 times as large!

Because it effectively dwarfs other markets, the forex market has some benefits to offer its traders. For example, because of its size, combined with the lack of a centralized location, currencies are virtually free of external control. Even the largest banks can’t throw enough weight around to manipulate the market–the amounts required would be too extreme. This means an even playing field for us individual traders and small trading operations!

There’s a lot to be said about the forex market, so if you’d like to know more about trading, feel free to visit us at www.apiaryfund.com or give us a call at 1-801-701-1650.

Comments { 0 }

Tips for Managing Position Size

Large position sizeAt the heart of money management is the decision of increasing or decreasing your investment. To illustrate this, imagine you own a store that sells athletic equipment. Because no sport lasts all year, you’d find yourself changing your floor inventory based on which sports are approaching, which are in full swing, and which are ending soon.

When it comes to changing position size, the rule is to increase your position size during favorable market conditions for your product. In your store, you’d have more football equipment on the sales floor during the fall when you know conditions are favorable for that sport. The other side of this rule is to decrease position size during unfavorable conditions. As football season winds down and basketball season begins, the products in your store would decrease inventory to reflect the new season.

Small position sizeFortunately, in the market there are two seasons: highly predictive and less predictive. You’ll want to increase your position size in highly predictive conditions and decrease your position size in less predictive conditions. Controlling your investment size is key to keeping your losses to a minimum. This, in combination with other elements of money management as emphasized by the Apiary Investment Fund, will ultimately lead to profitable trading!

Comments { 0 }

The All-New Sessions Clock from the Apiary Fund

Sometimes its hard to keep track of which markets may be open when you jump online to trade.  Well, the Apiary Fund has a solution for you! It’s called the Sessions Clock, and if you like to trade at all hours of the day, then youll be fast friends.

 

Sessions clock

It’s a simple visual tool that lays the four markets around a 24-hour clock to help illustrate market opens, closes, and overlaps.

 

 

 

 

 

 

 

 

sessions clock liquidity

Below the Sessions Clock, just for quick reference, is a graphic illustrating average liquidity throughout the day.

 

 

 

 

 

We want all of our traders to be successful, and in order to do this we’re trying to give you some great tools to use! So if you’re traveling and want to trade on your laptop, don’t hesitate to check the Sessions Clock with your new timezone!

In case you missed the link above, the Sessions Clock can be found here.

Comments { 3 }

Apiary Fund CEO Shawn Lucas Interviewed on Mountain Money

This past Monday I had the pleasure of spending the morning with Doug Wells and Larry Warren from Mountain Money on KPCW in Park City. We had a great discussion on the Apiary Fund, the Investor Profile, and how to invest right for your personality type.  I’ve listed some of the discussion points that I thought might be of interest for Apiary Fund traders and potential traders to hear:

Do you run a training component with Apiary Fund?
Yes, you can kind of think of it like a sports development camp. You’ve got a lot of athletes that come in and they try to learn the game through different drills, talking with professional athletes, and getting a feel for how it works. That’s the same thing we do here: create an environment where people can come in, learn how to manage money at a professional level, interact with professional traders, go through trading classes and simulations, and learn how to manage money by experiencing it.

How does trading differ from long term investing?
The primary difference is how long you are holding your assets. We teach an active management process at Apiary Fund instead of long-term investments where you are looking for value investments. With the Apiary Fund, we are actively looking to move money around and catch short-term movements in the market.

How are you able to trust people to trade Apiary Fund’s capital?
We make sure that we provide sufficient training mechanisms so that people can come in and go through different classes. We work with them and they have the opportunity to participate in over 25 hours worth of classroom discussion and trainings with our professional traders. Then we are able to put them into a simulation environment where they learn and develop a track record. As they progress through that simulation we put them in front of real money and let them start to trade.

Where do people have to go to learn the trading techniques you teach?
Actually they don’t have to go anywhere, they log in from their homes. We have traders from all over the world, even Japan, China, and Malawi. They are able to log in to training webinars from the convenience of their own home.

How do you split the profits and losses with the traders?
Any profits that are generated through a trader’s activity, 60-80% of the profits go to that trader. On the risk side, there is no risk to the trader, we assume 100% of the risk.

How long do Apiary Fund traders spend trading each day?
Traders typically spend no more than a couple of hours per day. We focus a lot on people that want to learn to manage money in retirement and have the kind of time to learn foreign currency trading techniques.

You can listen to the interview in its entirety at: http://kpcw.org/2013/02/mountain-money-feb-4th-2013/

 

Comments { 1 }

Eight Expectations to Becoming a Successful Trader

As head trader of the Apiary Fund, I get a lot of emails from people describing the various challenges they’re having as they learn to trade. There are a lot of obstacles people face, but it’s generally been my experience that the biggest challenge is learning to properly frame the definition of success.

It’s a sad fact that most people go about learning to trade with flawed with self-destructive expectations. If you don’t approach learning with the right expectations, then success will always remain beyond your reach – irrespective of your desire, how hard you work, or what other resources you bring to the table.

If you want to become a successful trader and realize the wealth and freedom you desire and deserve, then you are going to have to adjust your expectations! Trading is a profession – plain and simple – and just like any other profession the road to mastery is marked by incremental achievements based on realistic expectations.

Here are eight expectations that are self-building and will empower you with a framework for success in the Apiary Fund.

1. Expect to learn from yourself.
No two traders are alike. Each has a unique personality, experience, and background that will influence their decisions and strategy. The great thing about learning to trade with the Apiary Fund is that you can learn from others, which is why our community and professional traders are so important to the success of the program. However, the false expectation some of our traders have is that others will teach you everything you need to know. You must learn to extract the lessons others give you and learn how to apply it to your own personality, knowledge and experience. The Investor Profile is a great tool to help you in this process since it helps you learn which of your personality traits support and hinder your progress.

2. Expect to study strategy.
There are thousands of profitable trading strategies out there. With over 1000 hours of strategy-focused trainings, the challenge in the Apiary Fund isn’t a lack of information but finding one that works for you. The false expectation is that you have to make decisions that fit the strategy when the real objective is finding the strategy that fits you.

When you go to the shoe store, you spend a lot of time trying on different shoes to find one that fits your goals, shape, and personality. Choosing a strategy is similar – you have to try out several strategies to find the one that fits! If you fail to find the strategy that fits, then you’ll never have the discipline to follow the rules of the strategy.

3. Expect to study time.
Time is important to traders. Not only because you need to dedicate time to learning and practice, but it’s also a critical component in performance and strategy.

Performance is time based. Sometimes it doesn’t matter how right you are in forecasting direction if you’re wrong in your timing.

Strategy is also time based. Swing trading strategies require more time than scalping strategies. The underlying patterns might be the same, but the time needed to mature is different.

The Apiary Fund operates in a global timescale. We have traders working every time frame in every timezone holding positions for any time cycle. Time is important so make sure you spend some it learning how it works in the market.

4. Expect to focus on money management.
In the same way you have to be right on direction and timing, you have to be right in how you manage your money. Traders learn quickly through the structure of the Apiary Funds risk management system that money management is critical to success.

The risk management system enforces good money management in the same way a concrete barrier keeps cars on the right side of freeway – it doesn’t prevent an accident but it helps minimizes the impact. The correct expectation for money management is to monitor yourself and don’t rely on the median to keep you safe.

5. Expect to practice and test your strategy.
There is a reason why the Apiary Fund suggests 3 months of simulated trading. I like to tell new traders, that you should be quick to choose a strategy but prolonged in testing it. There are three objectives when testing out a strategy:

  1. Understand the rules so you can execute the strategy.
  2. Execute the strategy with “natural” ease.
  3. Evaluate your personal profit potential with the strategy.

Please note that profit potential is the last of your objectives. If you cannot understand how to execute with ease, then performance will not be consistent enough to be adequately evaluated.

6. Expect to learn through observation.
There are precious few “laws” that govern the market. It’s important that you practice your chart reading skills to easily identify whether the market is expanding or contracting, whether it’s trending higher or lower, whether it’s volatile or consistent. There are certain lessons that can only be learned through observation and experience.

For example, you can attempt teach someone how to drive through exceptional instruction, but they will not really learn to drive until they start driving. Through observation and experience a person is able to take instruction and gain a greater understanding of driving – or trading!

The traders who succeed at the Apiary Fund are focused on learning through observation. Every mistake is designed to teach a lesson. Every success is designed to do the same. Good traders are constantly learning from the market – and I am no exception to this rule!

7. Expect to transition into real money gradually.
Start small – grow big! That is the philosophy behind the different levels of the Trader Development Program. We are not so naïve as to think you can create a Wall Street income at our first level of funding. You are still learning. It is a transition stage. Trading real money is different than trading in the simulation account. The road to success in the Apiary Fund is marked by several transitions. With each transition comes a responsibility to make sure your performance and strategy execution stays consistent.

You should also remember that if you want to become a trader and make a living trading the Apiary Fund (or any account), then you have to progress to bigger and bigger lot sizes. You need set an expectation to work and push yourself forward through the different funding levels.

8. Do NOT expect shortcuts.
It’s not easy to become a trader. It’s hard work, and I’m glad for that. If it were easy, then everyone would be doing it. So think of trading as a profession. It requires hard work, lots of practice, but above all else it requires a proper framework for expectations.

Shortcuts are not allowed.

Comments { 3 }

5 Reasons I Never Take Market Tips

Let’s face it—when it comes to investing, everybody has something to say. But whatever you do, don’t fall prey to bad investing advice! There are lots of reasons to never take market tips from others, but I’ve found the following five to be imperative to my success as a trader:

5. Different goals
Whoever is giving you the tip may have a long term outlook on the market and may be willing to hold the investment for 20 years until they retire. Your objective may be to make a daily income. You shouldn’t take their word for your investment. Rise and fall on your own knowledge of the markets.

4. Uncertainties
There are so many uncertainties that it’s amazing that people ever accept tips from others. When someone gives you market tips, you should ask yourself whether or not you know their knowledge level. They may have a degree hanging on their wall, but did they pay attention in class? Did they pass their tests? Would you trust this person to have done proper due diligence on their recommendation? There are so many unknowns. At the very least, if you do your own research, you’ll have no one to blame but yourself.

3. Different investing methods
A mutual fund invests differently than a hedge fund. A commodity pool invests differently than a retirement account. If you are taking advice from someone, make sure that their objective with trading are very close to the same as what you would do. Most of the time when you dig into it you will find that they are not the same.

2. They don’t care about your money
Believe it or not, the person who cares most about your money is you. You worked hard for the money that you have so before you take a risk you should evaluate the potential outcomes. How many people include a budget when they plan a family vacation? How many of those same people don’t know how much money they are looking to make when they place a trade?

1. Ulterior motives
Just like we saw Al “Mr. Green” Gore recently sell out to the biggest oil company, you don’t know if the person giving you the “tip” has something else that he is trying to do. Remember to always, always, always do your own research!

Comments { 2 }

3 Easy Ways to Find Extra Investing Cash

You have precious little time to make income in life. If you divide life into fourths, you only have a quarter of your life – or 20 years – to really grow your lifetime earnings. Lifetime earnings are the collective income a person receives through a myriad of sources throughout the span of their life. The primary source of lifetime earnings is your job, but experts say that may not be enough. It’s becoming more and more important to use investing cash as a significant source for lifetime earnings.

According to data received by the Census Bureau, the average per capital income in 2011 is a paltry $27,915 with households earning only $52,762. Studies show that the shortfall between lifetime income and lifetime needs is over $50 billion in America and inflation and taxes are making the trend worse. With the gap between lifetime income and needs growing, having some investing cash is important since its one of the only sources of income that is able to extend a person’s lifetime earnings without extending the amount of hours they work.

But let’s face it. Investing cash is hard to find – especially in our economy. With rising taxes and increasing inflation whittling at your wages, finding those extra pennies requires much more than a pinch.  Fortunately, there are ways of finding investing cash beyond your annual income. Here are some suggestions to help you get started:

Sell Some Assets to Make Investing Cash

Most homes have a tidy sum of investment money sitting in closets, out in the garage, or stuffed in a drawer. The expected ROI (return on investment) for a closet full of old clothes is much less than the cash equivalent invested in your favorite mutual fund. So have a yard sale and make a little extra investing cash!

Stop Going to McDonalds and Save Investing Cash

The size of the fast food industry in 2010 was $184 billion. Needless to say, the gap between lifetime earnings and needs could be drastically reduced with fewer trips to McDonalds. Saving $5 on fast food and convenience stores can add up to $25 a week, or up to $100 of investing cash a month.

Investing Groups Offer Free Investing Cash

Another source of investing cash is the financial industry itself. It is common practice in the industry to provide investment money to people who have a successful investing track record. The challenge is becoming successful without having the cash to prove it.  One solution might be Apiary Fund. Apiary Fund is an investor education company that gives people investing cash to manage while they learn from professional investors how to manage money. It’s kind of like on-the-job training. You must complete their training program, which requires a small tuition fee and practice in a simulated account, before they fork over the investing cash, but they pay cash for your share of the profits, so it’s a fantastic way to earn while you learn!

Look no further than a list of the world’s wealthiest people and you’ll discover that producing income from investing cash is an effective way to increase your lifetime earnings and you don’t have to be a huge wage earner to do it. Through small – yet effective – resources, you can pull together a nice sum of investing cash that you can put to work to grow your lifetime earnings.

Author: Shawn Lucas |

Comments { 0 }