Wednesday, June 27, 2007

A Different Type of Moving Average Cross by Mark Mc Rae

Virtually every trader has dabbled with or experimented with some sort of moving average. What I want to introduce you to in this lesson is a different sort of moving average cross method, which I have found to be very good at identifying short term trend changes.

As we know a moving average is normally plotted using the close of a bar e.g. if you were plotting a 3 period moving average, then you would add the last three closes and divide the total by three to get a simple moving average.

This is where I want you to think a little differently. I have always been an advocate of taking traditional thinking and changing it around. What if you used the open instead of the close? What if you used the close of one period of a moving average and the open of another?

First, most charting packages will allow you to use the open, high, low or close to plot a moving average.

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By rsydnos

In the example below of the daily Forex, I have used a 5 period exponential moving average of the close and a 6 period exponential moving average of the open. As you can see it catches the short term trend changes really nicely.

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By rsydnos

In the next example of the 1 hour EUR/USD, you can see that the close/open combination worked really well. Of course you will go through periods of consolidation with any market and any moving average method you use will be whipsawed. To get around this you need some sort of filter or approach that helps you keep out of the low probability trades.

You could use ADX, Stochastic or MACD to help filter the noise but I also like to add a time frame.

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By rsydnos

In the next example of the 4 hour GBP/USD you can see that on the 24th September 04 at 4:00 there was a cross of the 5 period exponential moving average of the close above the 6 period exponential moving average of the open. This signal has remained in place until today as I write on the 27th September.

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By rsydnos

Although there was a signal on the 4 hour, to help identify even better entry points you can drop down a few time frames to the 30 minute chart. As you can see from the 30 minute chart there have been quite a few crosses of the 5 period exponential moving of the close above or below the 6 period exponential moving average of the open.

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By rsydnos

There are lots of ways to trade this but a neat little trick is to wait for the signal on a higher time frame and then drop down a few time frames and wait for a pullback. The first signal after the pullback on the lower time frame is normally a pretty good entry point e.g. If there were a cross up on the large time frame then drop down to a lower time frame and wait for the market to retrace and then give another buy signal (cross up). The opposite is true for short signals.

Once you get the signal on the shorter time frame depending on where support is you can usually place your first stop loss under the nearest support area (valley). If the market begins to make progress you can move your stop so that it trails the market by moving your stop to just under the most recent support area.

In this lesson I have use an exponential moving average but experiment with different types of average such as weighted, smoothed or simple. You can also experiment with different lengths of moving average.

Good Trading
The truth about Buy and sell signals.

Wrong! The perennial questions are, "Should I buy? Should I sell?" All too many traders focus their efforts on identifying buy and sell signals. In fact, that's what most trading books consist of-some way to find buy and sell signals. Trading systems are usually all about "where to get in."

The research and analysis traders do is geared towards reaching the goal of getting that magic "base line" directive to guide their actions. How ignorant can you be?

Any successful, experienced trader will tell you that although properly identifying buy/sell signals is important, it's not the key to being successful. Instead, the way you manage each trade is what will determine your success.

Traders who take the baseline approach tend to believe that the success of their trading activity is dependent on following the right buy/sell signals at the right time. Clearly, it's important that a trader be able to understand the process of generating signals and to use the methods involved. Realistically though, almost any trader can find a way to generate signals (whether using technical methods already out there, coming up with their own system, or using their platform's automated signal generation tools).

Any successful, experienced trader will tell you that your trade doesn't begin and end with a buy or sell. There's a trade management process involved. For each trade you make, you're making a group of decisions. The way you manage and time those decisions is what will determine the success of your trade.

Let' say two traders get the same signal at the same time and act on it. One's trade may result in profits while the other's results in losses. How is this possible? It can occur because each trader made a different combination of decisions throughout the course of the trade. The decisions might include scaling in and/or out of the trade, using or not using trailing stop losses, setting or not setting profit objectives prior to entry, patience or lack thereof, etc. The trader who made the most effective overall combination of decisions will have the better trade results in the end. Of course, there are times when pure chance, gives the better result to the worst trader.

It's very important to regard trading as a process, and to understand that as a trader your efforts need to be focused on the activity of trading itself, as opposed to getting a quick base line answer. Because there are many things to take into consideration in making your trades successful, it's essential that you educate and train yourself in all the different areas. Learn how to develop better trading plans and analysis methods, and then learn how to apply what you've developed to the process of a making a trade-from the original impulse to enter or stay out of a trade to the control of your thought processes and emotions in managing that trade.

by Joe Ross

Tuesday, June 26, 2007

Scalping, when used in reference to trading in securities and commodities, may refer either to a fraudulent form of market manipulation or to a legitimate method of arbitrage of small price gaps created by the bid-ask spread.

Market Manipulation

Scalping in this sense is the practice of purchasing a security for one's own account shortly before recommending that security for long-term investment and then immediately selling the security at a profit upon the rise in the market price following the recommendation. The Supreme Court of the United States has ruled that scalping by an investment adviser operates as a fraud or deceit upon any client or prospective client and is a violation of the Investment Advisers Act of 1940.[1] The prohibition on scalping has been applied against persons who are not registered investment advisers, and it has been ruled that scalping is also a violation of Rule 10b-5 under the Securities Exchange Act of 1934 if the scalper has a relationship of trust and confidence with the persons to whom the recommendation is made.[2] The Securities and Exchange Commission has stated that it is committed to stamping out scalping schemes.

How scalping works

Playing the spread


Scalping is simply playing the spread. Scalpers attempt to act like traditional market makers or specialists. To make the spread means to simply buy at the Bid price and sell at the Ask price, to gain the bid/ask difference. This procedure allows for profit even when the bid and ask don't move at all, as long as there are traders who are willing to take market prices. It normally involves establishing and liquidating a position quickly, usually within minutes to even seconds.

Role

The role of a scalper is actually the role of market makers or specialists who are to maintain the liquidity and order flow of a product of a market.

A market maker is basically a specialized scalper. The volume it trades are many times more than the average individual scalpers. It has sophisticated trading system to monitor its trading activity. However it is bound by strict exchange rules while the individual trader is not. For instance, NASDAQ requires each market maker to post at least one bid and one ask at some price level, so as to maintain a two-sided market for each stock it represents.

Due to role overlapping, a scalper is always competing with the market maker for profits. Unfortunately, the low-end scalper is almost always at a disadvantage due to the following market maker's advantages:

1. superior execution speed as an insider
2. a greater knowledge of trading and the actual market situation due to its information gathering capacity
3. huge amount of capital to backup and support market makers
4. the ability to provide false impression to the market by placing a larger/smaller bid or ask to bluff the trader

Principles

Spreads are bonuses as well as costs


Most worldwide markets operate on a Bid and ask based system. The numerical difference between the bid and ask prices is referred to as the spread between them.

The ask prices are immediate execution (market) prices for quick buyers (ask takers); bid prices for quick sellers (bid takers). If a trade is executed at market prices, closing that trade immediately without queuing would not get you back the amount paid because of the bid/ask difference.

Spread is 2 sides of the same coin. The spread can be viewed as trading bonuses or costs according to different parties and different strategies. On one hand, traders who do NOT wish to queue their order, instead paying the market price, pay the spreads (costs). On the other hand, traders who wish to queue and wait for execution receive the spreads (bonuses). Some day trading strategies attempt to capture the spread as additional, or even the only, profits for successful trades.

Lower exposure, lower risks

Scalpers are only exposed in a relatively short period. They do not hold overnights. As the period one holds decreases, the chances of running into extreme adverse movements, causing huge losses, decreases.

Smaller moves, easier to obtain

A change in price results from imbalance of buying and selling powers. Most of the time within a day, prices stay stable, moving within a small range. This means neither buying nor selling power control the situation. There are only a few times which price moves towards one direction, ie. either buying or selling power controls the situation. It requires bigger imbalances for bigger price changes.

It is what scalpers look for - capturing smaller moves which happen most of the time, as opposed to larger ones.

Large volume, adding profits up

Since the profit obtained per share or contract is very small due to its target of spread, they need to trade large in order to add up the profits. Scalping is not suitable for small-capital traders.

Different Parties and Spreads

Who pays the spreads (costs)

The following traders pay the spreads:


* Momentum traders on technicals - They look for fast movements hinted from quotes, prices and volumes, charts. When a real breakout occurs, price becomes volatile. A sudden rise or fall may occur within any second. They need to get in quick before the price moves out of the base.
* Momentum traders on news - When news break out, the price becomes very volatile as many people watching the news will react at more or less the same time. One needs to take the market prices immediately or the golden opportunities which may vanish after a second or so.
* Cut losses on market prices - The spread becomes a cost if the price moves against the expected direction and the trader wishes to cut losses immediately on market price.

Who receives the spreads (bonuses)

The following traders receive the spreads:


* Individual scalpers - obviously they trade for spreads and can benefit from larger spreads.
* Market makers and specialists - people who provide liquidity place their orders on their market books. Over the course of a single day, a market maker may fill orders for hundreds of thousands or millions of shares.
* Spot Forex (exchanges of foreign currencies) brokers - they do not charge any commissions because they make profits from the bid/ask spread quotes. On July 10 2006, the exchange rate between Euro and United States dollar is 1.2733 at 15:45. The internal (inter-bank dealers) bid/ask price is 1.2732-5/1.2733-5. However the forex brokers or middlemen will not offer the same competitive prices to their clients. Instead they provide their own version of bid and ask quotes, say 1.2728/1.2740, of which their commissions are already "hidden" in it.

Factors affecting Scalping

Liquidity

Liquidity of a market affects the performance of scalping. Each product within the market receives different spread, due to popularity differentials. The more liquid the markets and the products are, the tighter the spreads are. Scalpers like to trade in a more liquid market since they can make thousands of trades a day to add up their small profits offered on each trade.

If they are to trade in less liquid markets, they will try to cover their risks by widening their bid and ask prices.

Volatility

Unlike momentum traders, scalpers like stable or silent products. Imagine if its price does not move all day, scalpers can profit all day simply by placing their orders on the same bid and ask, making hundreds or thousands of trades. They do not need to worry about sudden price changes which kill them unprepared.

Time Frame

Scalpers operate on a very short time frame, looking to profit from market waves that are sometimes too small to be seen even on the one minute chart. This maximizes the number of moves during the day that the scalper can use to make a profit.

Risk Management

Rather than looking for one big trade, the way a swing trader might, the scalper looks for hundreds of small profits throughout the day. In this process the scalper might also take hundreds of small losses during the same time period. For this reason a scalper must have very strict risk management never allowing a loss to accumulate against him.

Saturday, June 23, 2007

Pivot Point Trading

by Mark Mc Rae
Surefire Trading

You are going to love this lesson. Using pivot points as a trading strategy has been around for a long time and was originally used by floor traders. This was a nice simple way for floor traders to have some idea of where the market was heading during the course of the day with only a few simple calculations.

The pivot point is the level at which the market direction changes for the day. Using some simple arithmetic and the previous days high, low and close, a series of points are derived. These points can be critical support and resistance levels. The pivot level, support and resistance levels calculated from that are collectively known as pivot levels.

Every day the market you are following has an open, high, low and a close for the day (some markets like forex are 24 hours but generally use 5pm EST as the open and close). This information basically contains all the data you need to use pivot points.

The reason pivot points are so popular is that they are predictive as opposed to lagging. You use the information of the previous day to calculate potential turning points for the day you are about to trade (present day).

Because so many traders follow pivot points you will often find that the market reacts at these levels. This gives you an opportunity to trade.

If you would rather work the pivot points out by yourself, the formula I use is below:

Resistance 3 = High + 2*(Pivot - Low)
Resistance 2 = Pivot + (R1 - S1)
Resistance 1 = 2 * Pivot - Low
Pivot Point = ( High + Close + Low )/3
Support 1 = 2 * Pivot - High
Support 2 = Pivot - (R1 - S1)
Support 3 = Low - 2*(High - Pivot) As you can see from the above formula, just by having the previous days high, low and close you eventually finish up with 7 points, 3 resistance levels, 3 support levels and the actual pivot point.

If the market opens above the pivot point then the bias for the day is long trades. If the market opens below the pivot point then the bias for the day is for short trades.

The three most important pivot points are R1, S1 and the actual pivot point.

The general idea behind trading pivot points are to look for a reversal or break of R1 or S1. By the time the market reaches R2,R3 or S2,S3 the market will already be overbought or oversold and these levels should be used for exits rather than entries.

A perfect set would be for the market to open above the pivot level and then stall slightly at R1 then go on to R2. You would enter on a break of R1 with a target of R2 and if the market was really strong close half at R2 and target R3 with the remainder of your position.

Unfortunately life is not that simple and we have to deal with each trading day the best way we can. I have picked a day at random from last week and what follows are some ideas on how you could have traded that day using pivot points.

On the 12th August 04 the Euro/Dollar (EUR/USD) had the following:
High - 1.2297
Low - 1.2213
Close - 1.2249

This gave us:

Resistance 3 = 1.2377
Resistance 2 = 1.2337
Resistance 1 = 1.2293
Pivot Point = 1.2253
Support 1 = 1.2209
Support 2 = 1.2169
Support 3 = 1.2125

Have a look at the 5 minute chart below

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By rsydnos at 1969-12-31

The green line is the pivot point. The blue lines are resistance levels R1,R2 and R3. The red lines are support levels S1,S2 and S3.

There are loads of ways to trade this day using pivot points but I shall walk you through a few of them and discuss why some are good in certain situations and why some are bad.

The Breakout Trade

At the beginning of the day we were below the pivot point, so our bias is for short trades. A channel formed so you would be looking for a break out of the channel, preferably to the downside. In this type of trade you would have your sell entry order just below the lower channel line with a stop order just above the upper channel line and a target of S1. The problem on this day was that, S1 was very close to the breakout level and there was just not enough meat in the trade (13 pips). This is a good entry technique for you. Just because it was not suitable this day, does not mean it will not be suitable the next day.

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By rsydnos at 1969-12-31

The Pullback Trade

This is one of my favorite set ups. The market passes through S1 and then pulls back. An entry order is placed below support, which in this case was the most recent low before the pullback. A stop is then placed above the pullback (the most recent high - peak) and a target set for S2. The problem again, on this day was that the target of S2 was to close, and the market never took out the previous support, which tells us that, the market sentiment is beginning to change.

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By rsydnos at 1969-12-31

Breakout of Resistance

As the day progressed, the market started heading back up to S1 and formed a channel (congestion area). This is another good set up for a trade. An entry order is placed just above the upper channel line, with a stop just below the lower channel line and the first target would be the pivot line. If you where trading more than one position, then you would close out half your position as the market approaches the pivot line, tighten your stop and then watch market action at that level. As it happened, the market never stopped and your second target then became R1. This was also easily achieved and I would have closed out the rest of the position at that level.

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By rsydnos at 1969-12-31

Advanced

As I mentioned earlier, there are lots of ways to trade with pivot points. A more advanced method is to use the cross of two moving averages as a confirmation of a breakout. You can even use combinations of indicators to help you make a decision. It might be the cross of two averages and also MACD must be in buy mode. Mess around with a few of your favorite indicators but remember the signal is a break of a level and the indicators are just confirmation.

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By rsydnos at 1969-12-31

We haven't even got into patterns around pivot levels or failures but that is not the point of this lesson. I just want to introduce another possible way for you to trade.

Good Trading

Best Regards
Mark McRae
Surefire Trading

Friday, June 22, 2007

10% Of Traders Go Bankrupt

I was thinking about an article I read some time ago that 90% of traders who ever trade lose their account and that 10% actually go bankrupt. If the first number doesn't scare you then the second definitely should.

Why is it then that there is such a large number of traders failing? It is not because they are stupid; in fact most traders have an above average IQ and are above average in most categories such as education and income. So why do they fail?

Lack of trading education!

By education I don't just mean learning how RSI works or drawing lines on a chart. I mean thoroughly educating yourself in all aspects of your chosen profession. Educating yourself on the correct psychological approach to the market! Educating yourself in the correct risk management techniques relative to your account size. Educating yourself in the correct entry and exit
methods for the trading style that suits you.

This, my friend, is where I hope to be of some help. I don't have all the answers nor do I profess to be some kind of guru but I will do my best to point you in the right direction.

Common Misconceptions Of New Traders

They think they can trade consistently with an 80% accuracy.
They think they can turn $1000 into $100,000 in six months.
They think they can predict turning points in their given
markets to within minutes.
They think they can buy a system that is 100% accurate.
They think they will quit their jobs and make a living full
time after a few months of trading.
What's the reason that so many new traders believe that trading is an easy way to make big profits? Propaganda!

We are continually bombarded in magazines, emails and the general media with claims of making astronomical amounts, just by applying the vendor's latest method or system.

Don't get me wrong, there is good stuff out there but the vast majority is not worth the price you pay. At www.surefire-trading.com I also recommend products but I have at least read the ebooks or courses and think they have some value to my subscribers and they all have a refund guarantee.

Fundamentals Of Trading

Trading is not an exact science. You can't do X and get Y every time. It is as much an art as it is anything else. There is no magic formula. Trading is all about probability. It is the art of correctly applying a set of carefully thought out rules and allocating the probability of that event to result in success.

Each trade is an independent event. The market does not remember if you lost or made dollars the last time you traded.

The way you approach the market psychologically has as much to do with your success as any trading plan.

Risk management is crucial if you want to have any hope of becoming a successful trader.

Matching a method of trading with your personality is the only way you will ever feel comfortable in the markets.

An adequately funded account is necessary - not only to be able to take the trades you want, but also so you don't feel every trade is a live or die situation.

The journey to the road of successful trading will make you confront your deepest fears. Your armor on this journey will be confidence, knowledge and belief in yourself that you can achieve your dreams.

Never, equate your success or failure in the markets with who you are as a person!

The Flaw In Our Emotions

As humans we have a natural tendency to try and influence our surroundings and events we take part in. This is one reason we, as a species, have succeeded but it is also one of the fundamental flaws we all have when trying to achieve success as a traders.

As traders we have to realize we have no control over the market and if we accept that then we have to accept that we can not influence the direction of the market.

The problem of course is we have a tendency to try and succeed and when inevitable losses come, it is easy to let those losses effect us emotionally. Becoming euphoric when you hit a winning streak is almost as detrimental as becoming depressed when you have a string of losses.

We as traders have to try and achieve the state of impartiality. We have to accept that we will have losses as readily as we will have wins. Reaching the stage where you can comfortably accept loss in the knowledge that your method of trading will produce profits in the longer term is the state we have to aspire to.

Risk Management

Whenever I think of risk management I always think of an article I read on 925 CTA programs between 1974-1995. It essentially confirmed what I have long held to be true. To summarize the report, of all the CTA's who managed funds, the most consistently profitable were the ones with the best risk management systems.


To trade successfully you have to take a long look at yourself. Ask and answer the following questions.

How much equity do I need to start? How much should I risk on any one trade? Am I undercapitalized?

During the course of these lessons I will do my best to help answer these and other questions.

Entry And Exit

As a trader you will probably fall into two main categories, traders who like to trade the breakout and traders who like to join the trend once established. We could also add congestion traders, reversal type traders and mechanical signal traders but for the vast majority of traders you are going to fall into one of the two categories.

If you are a trend trader, you like to define a trend and then find a way in. This may be with the aid of fibonacci retracement levels, moving averages, Gann or one of the other many indicators available today. Your goal is to enter the trend as early as possible with the least amount of risk.

Breakout traders like to enter the market on the breakout of a previously identified range. This may be support/resistance areas, rectangles, triangles or one of the many other chart patterns. The secret to this type of trading is to determine a valid break.

In future lessons we shall begin to look at the more technical side of trading and how you can apply technical analysis to the markets to increase your probability of success.

Conclusion

During this lesson I have tried to give you a glimpse into the world of trading. I have also taken a slightly negative stance, as I don't want you to get unrealistic expectations of what to expect.

On the more positive side, trading is a fascinating world, which will allow you to really exercise your brain. There is no other arena where you get to play with some of the best minds in the world on a level playing field.

Once mastered, if you can ever use that term then the possibilities are endless. Hopefully I can help you achieve your goals

Monday, June 18, 2007




Lion of the Desert (Umar al Mukhtar)

Lion of the Desert (Umar al Mukhtar)


Lion of the Desert is the dramatic action epic of the struggle of Omar Mukhtar, leader of the Muslim resistance in North Africa in the 1920's and 30's, against the imperialism of Mussolini and the Italian army. Despite the challenge of overcoming the fascist Italian war machine with only faith and wisdom, the Muslims led by Mukhtar maintained their resistance and refused to be conquered.


Watch Online:
http://video.google.com/videoplay?do...98238&hl=en-GB



We go back in history to 1862 where a young boy of a poor household was born in a town controlled by the Uthmany Khilafa. This young man was brought under the care and tutelage of one of the Shuyookh in his home town when he was at the ripe age of 16 after the death of his father.

He eventually developed a lifestyle of not sleeping more than 3 hours every night in order to get up to pray to Allah at the last third of the night and recite Qur'an until fajr. He memorized the Qur'an (as all knowledgeable people begin their lives) eventually, and was known to have finished his revisions in its entirety every seven days, regardless of the sufferings he encountered in his life.


His courage and wisdom was pronounced, and was an example for people to follow. This was evident on one of his caravan trails to Sudan as a young man. A lion had deterred the people from entering a particular path. Caravans were veered else where for fear of this lion. To distract this lion, people would resort giving it one of their camels, a most prized possession, so they could pass safely. He learned of this lion during the journey, where upon he consequently took it upon himself to face this crisis head on. Unlike other men in the caravan who were dumbstruck by the situation, he carried his shot gun, rode his horse and went after the lion. He came back with the lion's head much to everyone's surprise and due gratitude. This earned him the name "Lion of Cyrenaica."


An upbringing of courage and upright religiosity had a massive effect on him. His character would not only change the course of his tribe, country and people, but also the world of Muslims in the Post Colonial Era.


In his twenties he was known for his maturity beyond his years as well as his wisdom, for he continued to solve tribal disputes. His people listened to him and took his counsel regardless of village or region he found himself in. His manners were known to be great, for he was eloquent, balanced in his speech, and appealing to those who listened. This uniqueness helped him unite the tribes, and later on gather armies to fend off the colonizers.


His thirties was marked by the dawn of the Colonial Era as it began to spread its cancer to the rest of the world. At the time when the world was being ravaged by European nations, this man stood firm for Islam and faced colonizers with his valor. He fought fiercely against the French with a group called Banu Sanus, who would later be known as the Sanusies. For a brief moment, they also fought the British, who were marked by greed and attempted to conquer their land.


As part of a global feast on the so-called less civilized nations, Italy joined the European nations in causing havoc in the southern part of the hemisphere by colonizing North Africa. It was during this time, this man, in his fifties, gathered his forces in the face of an invasion attack against Libya, his homeland.


To pacify his resistance army, the Italians offered him high ranking positions and wealth. In return, they demanded that he surrender and follow their Colonial decree. He responded in a famous quote saying, "I'm not a sweet bite of a meal anyone can swallow. No matter how long they try to change my belief and opinion, Allah is going to let them down."

They then offered him to leave his town to live closer to the ruling party complete with a monthly salary, but he again refused by saying, "No, I will not leave my country until I meet my lord. Death is closer to me than anything, I'm waiting for it by the minute."


This man, whose seventy more years of age had not prevented him from fighting, was the soul of his people's resistance against hopeless odds. He gave his people hope against an army thousands more than his own, equipped with more modern weapons, airplanes and armoury while he and his men starved in the mountains with nothing on their backs but their rifles and horses. After his firm position, as the Ummah is always in need of such legends to lead the people, people gathered around him. He successfully began to strike the Italians where it hurt. He hit firmly, swiftly, and harshly those who thought occupying Muslim lands, oppressing, imprisoning, and torturing Muslims, was going be effortless.


Another man in his nineties named Abu Karayyim, from the Jalu oasis, had fought with him in the deep south. Hunger and disease eventually decimated his people. The Italians soon stepped up operations by burning and pillaging villages. Women, children and the elderly were not spared. During their weakest point, people were gathered and placed in concentration camps.


The Sanusi, Muhammad az-Zaway, who once fought with him against the French, attempted to persuade him to retreat to Egypt with the rest of those who fought against the French. But, this man refused to turn his back on the enemy knowing well that his chances are dim against a force that was swelling by the minute.


When asked why he continued the fight, he stated that he fought for his religion, and he sought no other than to get the occupiers of his lands. As to fighting, he said that was a fard , regardless of the outcome as victory comes from Allah. He used to refuse any peace talks with the colonizers saying we have nothing but to fight the occupying enemies of Allah.


After countless battles, he was wounded and captured alive. He and his men defended themselves until he and one of his companions were left. At last his horse was shot dead under him, causing him to fall to the ground. He was shackled and brought to a city called Suluq, where the Italian military post was established.


This man believed Jihad was ordained upon every able Muslim while his homeland was occupied by the colonizers. With his faith, heroism and courage he earned the respect of even his enemies.

They then offered him to leave his town to live closer to the ruling party complete with a monthly salary, but he again refused by saying, "No, I will not leave my country until I meet my lord. Death is closer to me than anything, I'm waiting for it by the minute."


This man, whose seventy more years of age had not prevented him from fighting, was the soul of his people's resistance against hopeless odds. He gave his people hope against an army thousands more than his own, equipped with more modern weapons, airplanes and armoury while he and his men starved in the mountains with nothing on their backs but their rifles and horses. After his firm position, as the Ummah is always in need of such legends to lead the people, people gathered around him. He successfully began to strike the Italians where it hurt. He hit firmly, swiftly, and harshly those who thought occupying Muslim lands, oppressing, imprisoning, and torturing Muslims, was going be effortless.


Another man in his nineties named Abu Karayyim, from the Jalu oasis, had fought with him in the deep south. Hunger and disease eventually decimated his people. The Italians soon stepped up operations by burning and pillaging villages. Women, children and the elderly were not spared. During their weakest point, people were gathered and placed in concentration camps.


The Sanusi, Muhammad az-Zaway, who once fought with him against the French, attempted to persuade him to retreat to Egypt with the rest of those who fought against the French. But, this man refused to turn his back on the enemy knowing well that his chances are dim against a force that was swelling by the minute.


When asked why he continued the fight, he stated that he fought for his religion, and he sought no other than to get the occupiers of his lands. As to fighting, he said that was a fard , regardless of the outcome as victory comes from Allah. He used to refuse any peace talks with the colonizers saying we have nothing but to fight the occupying enemies of Allah.


After countless battles, he was wounded and captured alive. He and his men defended themselves until he and one of his companions were left. At last his horse was shot dead under him, causing him to fall to the ground. He was shackled and brought to a city called Suluq, where the Italian military post was established.


This man believed Jihad was ordained upon every able Muslim while his homeland was occupied by the colonizers. With his faith, heroism and courage he earned the respect of even his enemies.

When the Italian general made him a final offer to make him their puppet and be allowed to live like the other leaders of his people, he answered, "I shall not cease to fight against thee and thy people until either you leave my country or I leave my life. And I swear by Him who knows whaht is in men's hearts that if my ands were not bound this very moment, I would fight you with my bare hands, old and broken as I am.."


It was then that the Italian general laughed and ordered him to be hung after a frontal saving face act of a mock trial. Even before the court was in session a rope outside the court house hung waiting him.


His hanging took place before hundreds of tribes in 1931. With the intent to scare the Muslims, the Italians did not succeed in doing this. The opposite had taken place. His hanging shook the entire Muslim world, and numerous resistances took place specifically in North Africa.


May Allah raise his position in paradise. Ameen.



The Italians took pictures of him in shackles, surrounded by smiling Italian generals, and those who expressed happiness for his hanging. They did not realize that it is those very same shackles and rope hanging around his neck in the hands of his enemies fighting for the sake of Allah that would become the envy of every true Muslim.


The man, whose mug shot spoke his legacy, is none other than Omar AlMukhtar. His legacy will live until the day of judgement, inshallah. With his blood, he drew the stories of victory, he became a legend of the legends, and a guide for those who wanted to live in honor at a time of humiliation.

The surrendered modernists and disbelieving scholars of his time were not imprisoned nor hung. They died a normal death, possibly even in luxury and wealth, under the protection of the occupying Italians. However, they died and their names died with them. Jahannam is the abode of those who ally themselves with the kuffar colonizers over the Muslims. Omar AlMukhtar lived, and fought hard in the days of his life. He was shackled, imprisoned, then hung. But his legacy lives on and paradise, inshallah, is the resort of the martyrs.

Omar AlMukhtar was attached to Allah, depending on Him, and accepting that which Allah had written for him. He asked Allah to become a martyr and this what he has attained, inshAllah.
Ahmad Jibril


Written in the one third end of the night of Oct. 12, 2004
Abu Hurairah, radiyallahu 'anhu, reported that the Messenger of Allah, sallallahu 'alayhi wasallam, said:

"Allah the Almighty has said: 'Whosoever acts with enmity towards a closer servant of Mine (wali), I will indeed declare war against him. Nothing endears My servant to Me than doing of what I have made obligatory upon him to do. And My servant continues to draw nearer to Me with supererogatory (nawafil) prayers so that I shall love him. When I love him, I shall be his hearing with which he shall hear, his sight with which he shall see, his hands with which he shall hold, and his feet with which he shall walk. And if he asks (something) of Me, I shall surely give it to him, and if he takes refuge in Me, I shall certainly grant him it.'"


[Al-Bukhari]

background

The translation of the term wali that is mentioned in the hadith is a closer servant (awliya') of Allah or a believer rather than a closer friend. There are many verses in the Qur'an that talk about the concept of wilayah. These verses talk about the qualities or attributes of awliya' and their status in the sight of Allah. In this hadith Allah mentions the status of the wali even before He talks about His attributes. This status is mentioned in the beginning (i.e. Allah will declare war against whoever acts with enmity towards one of His closer servants) and in the end (i.e. Allah will answer their du'a and will give them refuge). This shows the status of awliya' in the sight of Allah. In the middle of the hadith, Allah tells us the qualities of His closer servants.

The hadith also tells us that Allah loves those who are the closer servants to Allah. This is a natural result of what they do. Allah tells us about their actions upon which they deserved to be loved by Allah. We will see that there are two levels of servants of Allah: The first level is those who fulfill the obligations and avoid the prohibitions (muharramat). The second level is those who not only do this but also perform the preferable acts (nawafil).



The concept of wilayah (awliya' Allah) is based on the verses of the Qur'an and this hadith. In the Qur'an there are three verses in Surah Yunus - Ayah 62, 63 and 64.

No doubt verily the awliya' of Allah (the closer servants of Allah) no fear shall come upon them nor shall they grieve. Those who believed and used to fear Allah much, for them are the glad tidings in this life and the Hereafter.


Based on these three verses and this Hadith Qudsi, we can say that the concept of wilayah comprises of the following:

The love of Allah
Fearing of Allah
Belief or faith in Allah and his Messengers
Devotion, honesty, and sincerity
Obedience to Allah and following His instructions - this include performing good deeds. This motif of this obedience is based on fear of Allah, repenting to Allah and submission to His will.


The origin of wilayah is closeness to Allah and the enmity is being far away from the path of Allah. Based on this, the awliya' of Allah are those who are obedient and perform the good deeds which make them closer to Allah. The enemies of Allah, on the other hand, are those who are evil doers. Their ill deeds distance themselves away from Allah and this will make them far from Allah's blessing, support, and love.

lessons

In the first portion of the hadith ("Nothing endears My servant to Me than doing of what I have made obligatory upon him to do. And My servant continues to draw nearer to Me with supererogatory (nawafil) prayers so that I shall love him."), Allah classifies His servants into two categories:

The first category are those who get closer to Allah by fulfilling the obligations and avoiding the prohibitions. This is a moderate level that has been described in the Qur'an as ashab alyameen. This is the minimum level of wilayah. In other words, wilayah is achieved just by fulfilling the obligations and avoiding the prohibitions. This level of wilayah is expected from all believers.

The second category of people are those who are closer to Allah by being competent (al-sabiqeen) in their worship and effort and strive to be close to Allah. This category of people are not satisfied only of performing the obligations and avoiding the prohibitions but they go further by performing the preferable acts. They also avoid the non-preferable acts. Consequently, they will reach the degree of wara' and wilayah that will make Allah love them. Allah mentions this explicitly and that His love will be granted for these competent people.


Some of the early people (salaf) used to say that it is not a big matter whether you love; the biggest matter is to be loved by Allah. If you are loved by Allah, then you are granted with His mercy and blessings. You are going to be granted with His support and guidance.

The Prophet, sallallahu 'alayhi wasallam, used to say the following in his du'a: "O Allah I ask You that You love me and the love of those who love You and to enable me also to love every act and deed that may bring me closer to You". That is the reason why some of the early scholars say that the actions and the worship that are based on the love of Allah will continue and never be depressed or frustrated. Some others say that the one who loves Allah will not get fed up or bored of getting closer to Allah. He never feels that he is bored of doing good deeds and acts that will get him closer to Allah. Other scholars say that for the one who loves Allah, his heart is purified and he always remembers Allah. He always seeks and strives to do good deeds and acts that will get him closer to Allah. He does all of this with pleasure.

The early scholars also say that the one who loves Allah should obey Him, otherwise he is only claiming to love Allah. Scholars say that among the preferable acts (nawafil) that make a person become closer to Allah, is the nawafil al-salawat (the preferable prayers that the Prophet, sallallahu 'alayhi wasallam, used to pray every day). Another thing is the recitation of the Qur'an and listening to it with full attention and understanding. Also part of the preferable acts is the remembrance of Allah where what the tongue says matches with what the heart believes, and the love of other good Muslims who are closer to Allah.



The second portion of this hadith ("When I love him, I shall be his hearing with which he shall hear, his sight with which he shall see, his hands with which he shall hold, and his feet with which he shall walk.") implies that, as Ibn Rajab says, whoever strives, struggles and makes the effort to get closer to Allah by doing the obligations and performing the preferable acts, Allah will get him closer to him, support him, and take him from one level into another until this servant of Allah reaches the degree of Ihsan where this believer will be able to practice muraqabeh. That is he worships Allah as if he sees Him, and his heart will be full with love of Allah.

Not only will Allah grant him love of Allah but he will also be helped to glorify Allah and granted with satisfaction. This will be strengthened by performing the preferable acts until the heart is full of these acts where nothing else will enslave or capture the heart. The heart is fully devoted to Allah. When that status is reached by the believer, the limbs of that servant will act only in accordance to what Allah loves. Then he will be seeing, hearing, and doing what Allah sees, hears and does. He will be walking towards what Allah wants and likes. The early salaf say that he cannot even commit a sin. Ibn Rajab quotes Ali who said that they used to believe that Omar's Satan was so frustrated to do any sin or disobedience. This is one of the secrets or the real fruits of tawhid. This is because "La ilaha illa Allah" means that we should only worship, glorify, obey, and love Allah and fear Him the most. When this realisation of tawhid is achieved, then he says the heart will have no place for anything that may displease Allah. What will be in the heart is only what Allah loves. In this case, that person will never commit a sin or any kind of disobedience. Committing sins takes place only if the person loves what Allah hates or that person hates what Allah loves. It also takes place when self interest is given a priority and dominance over the love of Allah. The result will be that the obligations of the tawhid will not be complete. The person will be led to delay obligations or to commit sins.



The third portion of this hadith ("And if he asks (something) of Me, I shall surely give it to him, and if he takes refuge in Me, I shall certainly grant him it.") Implies that the closer servant of Allah has a special status in the sight of Allah. This special status will lead to that whatever he asks of Allah, Allah will give him and his du'a will be attended to. If he seeks refuge from anything, he will be given that.

In Sunan Al-Imam Al-Nisa'ei, there is one chapter on iste'azeh. There are many hadiths in this chapter that tell us the sayings that the Prophet, sallallahu 'alayhi wasallam, used to say to seek refuge of Allah to be saved from things such as poverty, ignorance, the turmoil of the grave, sadness and depression of this life, and various diseases. The closer servant of Allah is granted to be saved from the above mentioned things and many others. As Muslims we have to realise the importance of this portion of the hadith especially for those who are hearing the hadith for the first time. It is better that we learn from the Prophet, sallallahu 'alayhi wasallam, what to seek refuge of Allah from. We should try to memorise some hadiths which are in the form of du'a. In that way we will be granted the love of Allah and we will be given the status of awliya'. Consequently, we will be granted with the bounty that whatever we ask for, Allah will give us. Moreover, we will be saved from the harms that are mentioned above.



The last thing that we need to point out is the misconception of wilayah. After the early centuries of Islam, this concept has been misunderstood to the extent that there came a time when the attributes of the wali is not what is mentioned in the Qur'an and hadith. It is actually by claims. We look at the person and his attitude and worship of Allah and we are shocked to see a big difference. We are surprised to see that the actions do not match with the Islamic teachings. How, then, can this person be a wali? He is not a closer servant of Allah. The real closer servant of Allah will not abuse wilayah and use it for promotion because it is not what he claims but it is in the heart and love of Allah. This should be corrected because until today some Muslims are still confused about wilayah. Imam Shatibi sets a number of criteria for wilayah or karamah because they are granted only if the person is close to Allah. Awliya'u Allah are shy to claim that they are closer to Allah because this contradicts with the idea of ikhlas (sincerity).


conclusion

We notice that Imam Nawawi brings this hadith which states the main fundamental concepts or principles of Islam in a clear way. By studying this hadith, one comes to know what the concept of wilayah or closeness to Allah means and what he should do. We also know the status of awliya'.

This hadith is a warning to those who may harm believers in general or the closer servants of Allah in particular. Allah declares war against the one who acts with enmity towards His awliya' (closer servants). This is a message to all Muslims and people not to harm others or to be enemies with Allah by harming the believers. That is how the situation will be, if not in this life, it will be in the Hereafter. Moreover, Allah knows better what is in our favour and what is not in our favour. That's why sometimes the closer servants of Allah may ask for something and Allah does not attend to their du'a because the things they may ask for may cause them some harm . But still because of their du'a, there will be the blessings and mercy from Allah in similar situations. The blessings of du'a will be also granted in the Hereafter.

source

Friday, June 15, 2007

London, Apr 13 (ANI): Had dinosaurs been alive, it could have been possible that the next time you ordered for a chicken leg, the restaurant would have served you a T. Rex steak.
Don't be surprised, for scientists have now discovered that dinosaur proteins are very similar to chicken proteins.
For their study, the team of US researchers compared organic molecules preserved in a 68 million year old T. Rex fossil and compared them to those of living animals.
The dinosaur fossil included a skull, both thighbones and both tibiae (shin bones) unearthed from rocks in the Hell Creek Formation of eastern Montana, US.
Scientists found the protein sequence pattern to be structurally similar to chicken collagen, and there were also similarities with frog and newt protein. Researchers say the proteins are original organic material from the dinosaur's soft tissue, and not contamination.
Mass sepctrometry, a sensitive technique that identifies chemicals by their atomic mass, also revealed that the protein in the bones were similar to chicken proteins.
The T. Rex material contained sequences of amino acids - protein building blocks - typical of collagen, said co-author Mary Schweitzer, from North Carolina State University in Raleigh, US.
Dr. Schweitzer says the findings are important as they shed new light on the evolutionary link between dinosaurs and birds. The findings are also consistent with the idea that birds trace a direct evolutionary line to dinosaurs, she adds.
This apart, the technique could also help reveal evolutionary relationships between other living and extinct organisms, the researchers write in the journal Science.
According to Dr. Schweitzer, the discovery of protein in dinosaur bones is a big surprise - as organic material was not thought to survive this long.
As per the theories of fossilisation, original organic material is not thought to survive as long as this; and finding them in a fossil this old is a genuine surprise, and these are by far the oldest such molecules extracted from fossils.
"It has always been assumed that preservation of [dinosaur bones] does not extend to the cellular and molecular level. The pathways of cellular decay are well known for modern organisms. And extrapolations predict that all organics are going to be gone completely in 100,000 years, maximum," said Dr. Schweitzer.
"The similarity to chickens was exactly what one would expect given the relationship between modern birds and dinosaurs," she added. (ANI)

Sunday, June 10, 2007

Does Forex Make Money?

With a daily turnover estimated at around $1.8 trillion the answer to the question “Does the Forex make money?” is pretty obvious.

The bigger questions is: “For whom?”

With the opportunity for anybody and everybody with a computer and an internet connection to participate in the Forex to make money in recent years, thousands of individuals have had some exposure to the challenges of Forex trading.

Is The Forex A Fool’s Game?

According to some estimates, the vast majority, perhaps as high as 95%, lose money.

Is it a fool’s game, just an elusive dream to trade the Forex to make money to try and achieve financial security?

In view of the high failure rate, it is prudent for anyone who is contemplating entering Forex trading to do their homework first. While the majority fail to make consistent profits from the Forex, a minority do, and some of them make huge profits from the Forex.

The Realistic Mindset

What is the key? A realistic mindset when approaching the Forex, a commitment to learn and get a proper education, and then, application of the knowledge learned in a disciplined way backed up by perseverance!

For an individual who has already had experience trading stocks, or futures, the learning curve may only involve a few months when switching to the foreign exchange market.

For the complete novice the learning period will probably run into years, anywhere from 1 to 3 years according to some estimates.

During this time the novice will have to first get acquainted with the workings of the Forex, learning the terminology, and working with a demo account on a trading platform supplied by an online broker.

Months will need to be spent sitting in front of a computer screen studying candlestick charts, getting acquainted with specific patterns, learning to recognize high probability setups. There is no shortcut for this part of the educational process if you want the Forex to make money for you.

The Most Critical Factor

Then comes the most critical part of all: developing the mental discipline and emotional control necessary for safe trading.

The Forex can be a minefield for anyone who is not in control of their emotions. For a person who has a gambling instinct, the Forex will suck their account dry in a very short time. The Forex is not a game of chance.

Successful trades are the product of careful market analysis, an understanding of how the market moves acquired from months and years of experience, and a strict control of equity management.

Even with all that input, the successful trader will still regularly lose trades. As long as there are a greater number of trades that are successful, the Forex will make money for you.

Make An Informed Decision

If all this sounds overwhelming and a little foreboding, you are getting the picture of what is involved once you start down the road as a Forex trader.

On the other hand, this is a job that can be done from home, with as many hours committed to it as you wish to allow, and in the long term, once the skills have been acquired, the Forex can provide a substantial form of income.

Will the Forex make money for you? That is an individual question and will depend on all the variables discussed above. Do your homework, check out educational materials, examine your current workload and circumstances, be honest about your personality style, and then make an informed decision.

Friday, June 08, 2007

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