Get to know your market and use a charting program to study price movements. Metastock is a well-known charting package, but there are others.

4*Don't borrow unless you can cover lost money.

Please don't be foolish. If you play with borrowed money you should have a similar amount in cash sitting in your bank account. Playing with profits is good and easy, but when it's not your money you become an emotional player and you will LOSE BIG TIME!

5*Following on from that point - get a grip on yourself. You must act mechanically - not emotionally. You make decisions because your system tells you to BUY or SELL, not because rent is due.

Trading for a living is possible when you have no problems paying your living expenses. I'm talking from experience. I've had to take on a job just to help me get through my losses. It wasn't an easy time for me, but I did learn a lot from my experience and I make that available to anyone who is interested - check link below in author's bio.

If you choose to live by trading week to week you may find trading won't work for you. There are a few things to sort out first and one of them is peace of mind - then you can make good decisions.

6*Know when to quit a trade - before you enter and apply "stop loss" during trade. Quit losing trade. Protect your profit by getting out while in profit.

7*Decide type of trader you wish to be, but don't try daytrading till you are successful with your method. You can trade different time intervals:

minutes, days, weeks, months or years.

The shorter time interval more you have to be on ball. You need to get to know your market very well. Your market could be: stocks, options or futures. If you choose a currency to trade then gewt to know chart of that currency very well.

Well now you know how I made money very quickly by compounding my profits. Of course same works in reverse - you can also lose your money very fast!

I want to thank you for reading this article and would like to give you a gift. It's a fascinating report called, "How to Double Your Way to a Million", written by legendary multi-millionaire success guru Stuart Goldsmith.

To obtain your copy, simply go to: http://www.tutorhelp.com.au/millionaire.html

Regards, Joseph Sgro

Joseph Sgro writes the "THE 10 Simple Rules Ezine" which aims to present the best trading resources.

Read his trading experiences: http://www.tutorhelp.com.au/sharemarket.html

Subscribe to past ezine editons: http://www.tutorhelp.com.au/ezine.html

During 2004, economic recovery picked up some steam and lead to an unexpectedly large increase in federal government receipts. A federal government budget deficit expected to approach $500 billion in 2004 has been revised downward to $375 billion. At same time goods continue to pour in from Asian nations, especially China. The U.S. current account deficit set a record at $166 billion during second quarter. Should current account numbers seen during second quarter be projected out for a full fiscal year, there is a $225 billion surplus of demand going into purchases of U.S. government securities. This demand is creating downward pressure on long term interest rates.

The last time a significant gap emerged between U.S. federal funding needs and international trade deficits was in 2000 at height of dot com boom. The circumstances are slightly different this time around, but some similarities certainly should emerge over coming months. In 2000 economic growth was peaking as Federal Reserve aggressively increased short term rates to rein in economy. Interest rate spreads at time were very narrow as a result of investors recognizing inflation was not an ongoing concern despite a robust economy. It would not be unsurprising to see interest rate spreads further narrow as Federal Reserve continues to push short term rates up. Higher short term rates should continue to be offset with a continuing demand for U.S. securities from foreign banks to keep long term lending rates near levels they currently are. Though, investors should be complacent about holding U.S. treasury securities should persistently high oil prices push inflation levels beyond comfortable levels.

Forecasting future interest rate moves can always be a tricky guess and long term implications are much tougher to predict. It is expected that U.S. government’s finances will improve over coming decade as economic expansion gains further strength. The Federal Reserve will undoubtedly continue to gradually push short term rates upward over course of next year baring a prolonged weak spot or an unwelcome bout of inflation. The foreign appetite for U.S. dollars to fill international trade gaps should continue to provide stimulus to bond prices.

With foreigners currently holding about 75% of U.S. government debt, over long term foreign banks will be forced to take more aggressive risks in order to hold down their monetary units or allow their currencies to gain in value against dollar. There are growing signs of concern for U.S. large economic unbalances by some Asian governments. U.S. treasury officials, who have been pushing China to revalue yuan higher, may be pleased if China increases yuan’s peg against dollar by 5-10% prior to end of this year as is being speculated by some. Should Chinese revaluate their currency, it would not be surprising if other Asian nations follow a similar path.