by Monica Hendrix
If you want catch the big profits then you need to follow the big trends and this means following the trends that last for weeks or months. These are the trends that reflect the underlying health of the currencies economy. Want to catch them? Read on.
If you want to catch the big trends you need to do the following
Establish the Main Trend
You don't do this from the daily chart you do it from the weekly chart - this will help you separate the wood from the trees and see the big picture. The its onto the daily chart to look for entry points.
Support and resistance
Simple trend lines that can help you establish trend lines are all you need to look for entry points for your forex trading signal. Look for areas which have been tested several times and are considered valid by the market i.e if they give way a new trend is likely to develop.
Buy New Highs Sell New Lows
If you want to make money at forex trend following then you need to do this.
Most new trends develop from market highs and lows - so if you were thinking buy low and selling high was the way to make money, think again.
You need - to buy high and sell higher.
Confirm Confirm Confirm
You are not going to just buy a break you will use momentum oscillators to time your entry - if you don't know what they are then you need to make them an essential part of your forex education.
We don't have time to discuss them in detail here simply check our other articles but two good ones to start with are the stochastic and the RSI. These are simple visual indicators that will tell you if price momentum supports the move or not.
By using momentum oscillators, you are effectively getting the odds in your favour that the break is more likely to be valid and continue.
Place Your Stop and Hold it
Placing stops with breakouts is easy behind the breakout point - you then need to be patient and hold it here.
Run the profit
Many traders never catch big long term trends because they try so hard to avoid risk that they actually create it. If you move your stop to quickly normal reactions in the trend will simply stop you out. Volatility moves prices takes your stop out and then the trend continues piling up huge profits and your not in!
If you believe the break is valid then hold your stop back and trail it very slowly.
When the trend changes you will miss a good chunk of the move but consider the fact that if you only got 50 - 60% of the major trends you would be very rich and you can see how this strategy will pay off.
So there you have it a simple way to trend follow in forex.
In essence its very simple will take you less than 30 minutes a day and can learned in about a week. All you need to do is use support and resistance and few confirming indicators and your all set.
It takes discipline and patience to follow long term trends but it can be very financially rewarding. Try it and you will soon be enjoying currency trading success
About the Author
NEW! PROFESSIONAL FOREX COURSE AND FREE TRADING PDF's
For free trading guides and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html
Tuesday, December 4, 2007
Saturday, December 1, 2007
Forex Trading - A Simple Method To Target 100% Gains
by kelly Price
Here we will look at a simple method anyone can understand and use and a potential opportunity shaping up right now that could yield big gains with low risk for any forex trader. Let's discuss this forex trading method and give you an example, shaping up right now.
The method is really common sense and easy to understand and is based on this equation.
Fundamentals + Investor Perception = Price.
It's a fact that currency markets move in line with the fundamentals but it's not as simple as just looking at the news - in fact if you try and do this you will lose.
The reason for this is the markets are a discounting mechanism.
News is discounted in a split second in today's world of instant communications furthermore; humans have to decide what the facts mean and their not logical or sensible!
They are influenced by greed and fear and a host of other inputs.
Prices Have Gone to Far a Turn Coming
The fact is throughout history humans spike prices away from fair value when greed and fear take hold and then prices return back to fair value.
If you look at news and its influence on price and then use forex charts to spot prices being pushed to far from fair value, you can get some great contrary trades - now let's look at a specific example.
If you have read my previous articles you will have seen how bullish I have been of the commodity currencies and with the Aussie and Canadian dollar making new multi decade highs we have cleared 1,000 pips - that's right, a 1,000 so, not a minor profit! You can see the reasons we used in our other articles.
The above was not doing anything complicated just following the long term trend but now if you look at the news - the bullish news has pushed prices too far - here's why.
Yesterday we had FOMC and they cut rates by 0.25% - this was expected and discounted but there was some bullish news the market ignored.
First, the Fed tempered the view that they would cut rates further but the most interesting bit of news was.. The economy expanded by 3.9%, versus calls for 3.0% GDP growth and up slightly from the previous quarter at 3.8%. This is the strongest growth since Q1 2006.
The short Term Bearish Scenario Is Peaking.
Of course, this doesn't mean that the dollar is "out of the woods" long term - but short term the market bearish news has peaked. Many investors were looking at 3.0% in terms of GDP and 0.5% in rates so we could see a turn.
Non farm payroll on Friday could be it at expected levels or better and the dollar could rally.
The market has pushed to far from fair value and the fundamentals and a short covering rally could be on the cards. There are a huge number of speculators long, making money and the market will flush them - it's just a question of when.
Watch The Following:
Let's take the Canadian dollar as an example.
Were long but we can see the warning signs that it could turn and there is also another factor with this currency - Crude oil.
Crude has made a huge rise and many are talking of $100 a barrel maybe we will get one but only as a spike. Fact is there is no shortage of oil, this spike is pure emotional trading and a retreat to the $80.00 level could come any day and longer term $60 - 70, looks fair value.
With the Canadian dollar were looking closely at oil for a top which should add weight to the fall as Canada is a major exporter.
What are the charts saying?
Pull up a daily chart of the Canadian Dollar and you see new highs and no warning signs of a top - but pull up a monthly or weekly chart and you will see the "wood from the trees", a spike that needs to correct.
When will it come? No one knows but the odds are the daily chart will show signs in the next few days on the Canada and a low risk high reward correction will occur.
There' an old saying...
"If you can hold your head when others are losing theirs you probably haven't hear the news"
In this instance it is simply you have heard the news - but you are stepping back from the majority view, getting your forex charts out and seeing the reality - a profit opportunity.
Watch action after non farm payroll and see what happens - don't jump to soon, prices will tell you what to do.
Good luck and good trading!
About the Author
NEW! PROFESSIONAL FOREX COURSE AND FREE TRADING PDF's
For free trading guides and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html
Here we will look at a simple method anyone can understand and use and a potential opportunity shaping up right now that could yield big gains with low risk for any forex trader. Let's discuss this forex trading method and give you an example, shaping up right now.
The method is really common sense and easy to understand and is based on this equation.
Fundamentals + Investor Perception = Price.
It's a fact that currency markets move in line with the fundamentals but it's not as simple as just looking at the news - in fact if you try and do this you will lose.
The reason for this is the markets are a discounting mechanism.
News is discounted in a split second in today's world of instant communications furthermore; humans have to decide what the facts mean and their not logical or sensible!
They are influenced by greed and fear and a host of other inputs.
Prices Have Gone to Far a Turn Coming
The fact is throughout history humans spike prices away from fair value when greed and fear take hold and then prices return back to fair value.
If you look at news and its influence on price and then use forex charts to spot prices being pushed to far from fair value, you can get some great contrary trades - now let's look at a specific example.
If you have read my previous articles you will have seen how bullish I have been of the commodity currencies and with the Aussie and Canadian dollar making new multi decade highs we have cleared 1,000 pips - that's right, a 1,000 so, not a minor profit! You can see the reasons we used in our other articles.
The above was not doing anything complicated just following the long term trend but now if you look at the news - the bullish news has pushed prices too far - here's why.
Yesterday we had FOMC and they cut rates by 0.25% - this was expected and discounted but there was some bullish news the market ignored.
First, the Fed tempered the view that they would cut rates further but the most interesting bit of news was.. The economy expanded by 3.9%, versus calls for 3.0% GDP growth and up slightly from the previous quarter at 3.8%. This is the strongest growth since Q1 2006.
The short Term Bearish Scenario Is Peaking.
Of course, this doesn't mean that the dollar is "out of the woods" long term - but short term the market bearish news has peaked. Many investors were looking at 3.0% in terms of GDP and 0.5% in rates so we could see a turn.
Non farm payroll on Friday could be it at expected levels or better and the dollar could rally.
The market has pushed to far from fair value and the fundamentals and a short covering rally could be on the cards. There are a huge number of speculators long, making money and the market will flush them - it's just a question of when.
Watch The Following:
Let's take the Canadian dollar as an example.
Were long but we can see the warning signs that it could turn and there is also another factor with this currency - Crude oil.
Crude has made a huge rise and many are talking of $100 a barrel maybe we will get one but only as a spike. Fact is there is no shortage of oil, this spike is pure emotional trading and a retreat to the $80.00 level could come any day and longer term $60 - 70, looks fair value.
With the Canadian dollar were looking closely at oil for a top which should add weight to the fall as Canada is a major exporter.
What are the charts saying?
Pull up a daily chart of the Canadian Dollar and you see new highs and no warning signs of a top - but pull up a monthly or weekly chart and you will see the "wood from the trees", a spike that needs to correct.
When will it come? No one knows but the odds are the daily chart will show signs in the next few days on the Canada and a low risk high reward correction will occur.
There' an old saying...
"If you can hold your head when others are losing theirs you probably haven't hear the news"
In this instance it is simply you have heard the news - but you are stepping back from the majority view, getting your forex charts out and seeing the reality - a profit opportunity.
Watch action after non farm payroll and see what happens - don't jump to soon, prices will tell you what to do.
Good luck and good trading!
About the Author
NEW! PROFESSIONAL FOREX COURSE AND FREE TRADING PDF's
For free trading guides and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html
How Physics Can Make You A Lot Of Money In Forex Trading
by Olumuyiwa Ojo
Physics. That haunt of the nerd and the may be occasional weirdo? Well, have I got news for you! If you are a trader, physics could make you a lot of money and you do not have to study black holes and string theory to reach your goal.
Just think Time and Gravity. Let these be your friend. Study these two and you are home free. What does time and gravity have to do with trading you say? Have you ever heard of "the trend is your friend until it ends"? To use physics, you have to then apply one of Newton's Law of Motion - the one that says, an object remains in motion until it is stopped by a greater opposing force.
Then if the trend is up, you have to keep buying until you can no longer buy. And if the trend is down, you have to keep on selling until you can no longer sell. To be successful at trading forex, you have to then know the trend and trade accordingly. When you trade with the trend, Time then becomes your ally. You can enter at a crappy price and time will probably bail you out and make you profitable if you understood how it works.
First of all, many traders jump in the market regardless of the conditions. They enter a dead market with no volatility and enter a volatile market against the trend; big mistake!
A bigger mistake is that they often set tight stops that are sure to be taken out!
This is the lesson to take out of this article. Be slow to take profits when you trade with the trend and be fast to take profits when you trade against the trend.
The reason? Time.
The passage of time is favorable to the trend trader and a killer to the counter-trend trader. Take the following steps: 1. Plot a Simple Moving average 49 on your chart 2. When price crosses it to the upside, trend is up and to the downside, down 3. Buy when the trend is up. No sells 4. Sell when the trend is down. No buys 5. Attempt counter-trend trades only after price has made a considerable run away from the 49 MA. In the GBP/USD I wait for about 100-120 pips before attempting a counter-trend trade.
The 49 MA is a special MA with a peculiar behavior that you can learn to exploit. To learn more about my techniques, please visit http://learnforexoption.com/
About the Author
Olumuyiwa is a full-time trader. He researches and trades the spot forex and forex options markets to gain trading advantage for himself and other traders. He coaches and shares his experience with both new and experienced traders
Physics. That haunt of the nerd and the may be occasional weirdo? Well, have I got news for you! If you are a trader, physics could make you a lot of money and you do not have to study black holes and string theory to reach your goal.
Just think Time and Gravity. Let these be your friend. Study these two and you are home free. What does time and gravity have to do with trading you say? Have you ever heard of "the trend is your friend until it ends"? To use physics, you have to then apply one of Newton's Law of Motion - the one that says, an object remains in motion until it is stopped by a greater opposing force.
Then if the trend is up, you have to keep buying until you can no longer buy. And if the trend is down, you have to keep on selling until you can no longer sell. To be successful at trading forex, you have to then know the trend and trade accordingly. When you trade with the trend, Time then becomes your ally. You can enter at a crappy price and time will probably bail you out and make you profitable if you understood how it works.
First of all, many traders jump in the market regardless of the conditions. They enter a dead market with no volatility and enter a volatile market against the trend; big mistake!
A bigger mistake is that they often set tight stops that are sure to be taken out!
This is the lesson to take out of this article. Be slow to take profits when you trade with the trend and be fast to take profits when you trade against the trend.
The reason? Time.
The passage of time is favorable to the trend trader and a killer to the counter-trend trader. Take the following steps: 1. Plot a Simple Moving average 49 on your chart 2. When price crosses it to the upside, trend is up and to the downside, down 3. Buy when the trend is up. No sells 4. Sell when the trend is down. No buys 5. Attempt counter-trend trades only after price has made a considerable run away from the 49 MA. In the GBP/USD I wait for about 100-120 pips before attempting a counter-trend trade.
The 49 MA is a special MA with a peculiar behavior that you can learn to exploit. To learn more about my techniques, please visit http://learnforexoption.com/
About the Author
Olumuyiwa is a full-time trader. He researches and trades the spot forex and forex options markets to gain trading advantage for himself and other traders. He coaches and shares his experience with both new and experienced traders
Forex scalping Success - 5 Key Facts You Need to Know
by kelly price
Forex scalping and day trading is more popular than ever and is the choice of most new forex traders but is it the right one and how do you enjoy forex scalping success - lets find out.
1. Short Term Volatility is Random
Millions of forex traders trade trillions of dollars in currency each day and to say that you can measure what this diverse number of traders will do in a few hours, or a day is laughable you cant.
2. Support and Resistance Levels are Meaningless
To trade any market you need to have valid levels of support or resistance to key off however with all volatility being random in short term trading, prices can and do go anywhere and support and resistance cannot be used - as the data simply isn't valid.
3. No Trading system Will Work
It doesn't matter how good or well thought out the trading system is - if volatility is random and support and resistance not valid it wont work!
In any financial market to win you need to trade the odds and if you cant, you are going to lose longer term. It's a bit like being in a casino - if you can count the cards in a game such as blackjack you win but in a game of pure chance like roulette, play long enough with the odds against you and your going to lose and it's the same in forex scalping.
You cant get the odds on your side and you cant win - PERIOD
4. Forex Scalping Systems Don't have Track Records
Yes they do many traders will say - I have seen them. Sure they have and written all over the track record will be "hypothetical" or "simulated" This means it wasn't traded in the market but done on paper knowing the closing prices!
How hard is that?
You could do it and so can I and even my 10 year old daughter could - but the markets don't work backwards its harder - You have to trade going forwards!
5. Why is it So Popular?
Because it makes a good story and vendors know this.
Most of them have never traded in their lives - but the story of small regular profits and low risk is an easy one to sell, to naive or greedy investors who are looking for an easy way to get rich in forex.
Of course there is no easy way to get rich in forex and you wouldn't expect there to be, with the rewards on offer.
THE GOOD NEWS!
The good news is you can make money in forex trading if you avoid forex scalping and concentrate on trading the odds. This means valid data where you can get the odds in your favour with your forex trading system and trade them for profit.
You can swing trade, looking for trends of a few days to a few weeks, or trend follow looking for trends that last weeks, months or even years. In both forex methods you can trade the odds - the key to a successful forex trading strategy.
Forex scalping is not the only myth in currency trading - but it's a popular one and you need to ignore it and concentrate on getting the right forex education to win.
So leave forex scalping and day trading to the dreamers and greedy traders, who think forex trading is simply a walk in the park and concentrate on building your own forex trading strategy based around trading the odds.
Learn the odds, learn how to trade them and there is nothing to stop you enjoying currency trading success.
About the Author
NEW! PROFESSIONAL FOREX COURSE AND FREE TRADING PDF's
For free trading guides and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html
Forex scalping and day trading is more popular than ever and is the choice of most new forex traders but is it the right one and how do you enjoy forex scalping success - lets find out.
1. Short Term Volatility is Random
Millions of forex traders trade trillions of dollars in currency each day and to say that you can measure what this diverse number of traders will do in a few hours, or a day is laughable you cant.
2. Support and Resistance Levels are Meaningless
To trade any market you need to have valid levels of support or resistance to key off however with all volatility being random in short term trading, prices can and do go anywhere and support and resistance cannot be used - as the data simply isn't valid.
3. No Trading system Will Work
It doesn't matter how good or well thought out the trading system is - if volatility is random and support and resistance not valid it wont work!
In any financial market to win you need to trade the odds and if you cant, you are going to lose longer term. It's a bit like being in a casino - if you can count the cards in a game such as blackjack you win but in a game of pure chance like roulette, play long enough with the odds against you and your going to lose and it's the same in forex scalping.
You cant get the odds on your side and you cant win - PERIOD
4. Forex Scalping Systems Don't have Track Records
Yes they do many traders will say - I have seen them. Sure they have and written all over the track record will be "hypothetical" or "simulated" This means it wasn't traded in the market but done on paper knowing the closing prices!
How hard is that?
You could do it and so can I and even my 10 year old daughter could - but the markets don't work backwards its harder - You have to trade going forwards!
5. Why is it So Popular?
Because it makes a good story and vendors know this.
Most of them have never traded in their lives - but the story of small regular profits and low risk is an easy one to sell, to naive or greedy investors who are looking for an easy way to get rich in forex.
Of course there is no easy way to get rich in forex and you wouldn't expect there to be, with the rewards on offer.
THE GOOD NEWS!
The good news is you can make money in forex trading if you avoid forex scalping and concentrate on trading the odds. This means valid data where you can get the odds in your favour with your forex trading system and trade them for profit.
You can swing trade, looking for trends of a few days to a few weeks, or trend follow looking for trends that last weeks, months or even years. In both forex methods you can trade the odds - the key to a successful forex trading strategy.
Forex scalping is not the only myth in currency trading - but it's a popular one and you need to ignore it and concentrate on getting the right forex education to win.
So leave forex scalping and day trading to the dreamers and greedy traders, who think forex trading is simply a walk in the park and concentrate on building your own forex trading strategy based around trading the odds.
Learn the odds, learn how to trade them and there is nothing to stop you enjoying currency trading success.
About the Author
NEW! PROFESSIONAL FOREX COURSE AND FREE TRADING PDF's
For free trading guides and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html
Tuesday, November 27, 2007
Forex Fundamentals: Knowledge You Can Profit From
by Gerald Mason
An in-depth knowledge of macroeconomics or international trade isn't necessary to trade the Forex. But knowing how these forces affect currency pairs can only make you a more savvy trader. Here are a few highlights.
When a country raises its interest rates, often their stock market will go down as investors move their funds to greener financial pastures. This tends to weaken the internal economy of the country, but strengthens it in relation to other countries. Which effect will have the most impact on that nation's currency pairs is often discussed well in advance by the "talking heads," and each Forex trader has to decide for herself who to believe!
Crude oil
Canada is an oil-producing nation. Exporting crude oil raises their GNP and improves the balance of trade, strengthening their economy.
As the price of crude oil goes up, the USD/CAD goes down. (That's because the Canadian dollar, the cross currency, has appreciated against the base currency, the U.S. dollar.) At this point, the Canadian dollar is almost at parity with the U.S. dollar, a situation not seen since the 1950s.
As an interesting exercise, try laying the chart of the USD/CAD over the chart of crude oil prices for the same time period. The two charts are almost a flipped image of each other.
Japan, on the other hand, is an oil-consuming nation, strongly industrial but with no real energy reserves of their own. Importing crude oil at increasingly higher rates to power their economy raises the cost of production and slows or reverses their economic growth.
The change in the USD/JPY has not been as dramatic as that in the USD/CAD, and the correlation between the charts not as impressive, but that's because the cost of crude oil has affected the USD half of the equation as well as the JPY side.
Precious metals
During troubled political or economic times, investors tend to move their capital from speculative investments to something more conservative and solid. Precious metals, particularly gold, tend to go up in value at these times. When the situation returns to normal, gold tends to decline as investors seek higher returns from their money.
The Swiss franc, like gold, is considered a safe harbor for capital. As the U.S. dollar has depreciated (mainly due to the government deficit, a large trade deficit, and low interest rates when much of the rest of the world is raising theirs), investors have moved much of their capital to these harbors. Therefore, as the price of gold rises, so does the franc in relation to the dollar.
Like the Canadian dollar discussed above, the USD/CHF (Swissie) has declined because of the pressure of the cross currency against the base. Again, lay a chart of the USD/CHF over one for gold with the same time interval, and see how one reflects the other like trees in a lake.
Australia is a major gold and copper producer. Copper is not only a precious metal, it's also a substantial element in the housing market (copper plumbing, wiring, etc.). As demand for copper rises on both fronts, the Australian dollar climbs against the U.S. dollar. This is also a reflection of high Australian interest rates versus the low ones in the United States.
About the Author
Download Free Forex Software Free Forex Software For You To Use: Download Free Forex Software
An in-depth knowledge of macroeconomics or international trade isn't necessary to trade the Forex. But knowing how these forces affect currency pairs can only make you a more savvy trader. Here are a few highlights.
When a country raises its interest rates, often their stock market will go down as investors move their funds to greener financial pastures. This tends to weaken the internal economy of the country, but strengthens it in relation to other countries. Which effect will have the most impact on that nation's currency pairs is often discussed well in advance by the "talking heads," and each Forex trader has to decide for herself who to believe!
Crude oil
Canada is an oil-producing nation. Exporting crude oil raises their GNP and improves the balance of trade, strengthening their economy.
As the price of crude oil goes up, the USD/CAD goes down. (That's because the Canadian dollar, the cross currency, has appreciated against the base currency, the U.S. dollar.) At this point, the Canadian dollar is almost at parity with the U.S. dollar, a situation not seen since the 1950s.
As an interesting exercise, try laying the chart of the USD/CAD over the chart of crude oil prices for the same time period. The two charts are almost a flipped image of each other.
Japan, on the other hand, is an oil-consuming nation, strongly industrial but with no real energy reserves of their own. Importing crude oil at increasingly higher rates to power their economy raises the cost of production and slows or reverses their economic growth.
The change in the USD/JPY has not been as dramatic as that in the USD/CAD, and the correlation between the charts not as impressive, but that's because the cost of crude oil has affected the USD half of the equation as well as the JPY side.
Precious metals
During troubled political or economic times, investors tend to move their capital from speculative investments to something more conservative and solid. Precious metals, particularly gold, tend to go up in value at these times. When the situation returns to normal, gold tends to decline as investors seek higher returns from their money.
The Swiss franc, like gold, is considered a safe harbor for capital. As the U.S. dollar has depreciated (mainly due to the government deficit, a large trade deficit, and low interest rates when much of the rest of the world is raising theirs), investors have moved much of their capital to these harbors. Therefore, as the price of gold rises, so does the franc in relation to the dollar.
Like the Canadian dollar discussed above, the USD/CHF (Swissie) has declined because of the pressure of the cross currency against the base. Again, lay a chart of the USD/CHF over one for gold with the same time interval, and see how one reflects the other like trees in a lake.
Australia is a major gold and copper producer. Copper is not only a precious metal, it's also a substantial element in the housing market (copper plumbing, wiring, etc.). As demand for copper rises on both fronts, the Australian dollar climbs against the U.S. dollar. This is also a reflection of high Australian interest rates versus the low ones in the United States.
About the Author
Download Free Forex Software Free Forex Software For You To Use: Download Free Forex Software
Tuesday, November 20, 2007
Fibonacci Numbers - How to Use Them for Huge Trading Profits!
By Stephen Todd
The Fibonacci numbers sequence and the golden ratio have fascinated mathematicians for hundreds of years.
While Fibonacci numbers have many applications, they have received considerable interest from traders due to their uncanny accuracy in spotting market turning points in advance.
You can use Fibonacci numbers as a predictive tool and when used correctly they can enhance a your analysis of the market, helping you to increase profits and decrease risk.
The History of Fibonacci Numbers
The Fibonacci number sequence first appeared as the solution to a problem in the Liber Abaci, a book written by Leonardo Fibonacci in 1202 to introduce the Hindu-Arabic numerals used today to a Europe still using Roman numerals.
The original problem in the Liber Abaci posed the question: How many pairs of rabbits can be generated from a single pair, if each month each mature pair brings forth a new pair, which, from the second month, becomes productive.
The Fibonacci number Sequence
The resulting Fibonacci numbers 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, are the result of the following equation.
If Fn is the nth Fibonacci number, then successive terms are formed by addition of the previous two terms, as Fn+1 = Fn + Fn-1, F1 = 1, F2 =
The ratio of any number to the next larger number is 62%, which is a popular Fibonacci retracement number. The inverse of 62% is 38%, and this 38% is likewise a Fibonacci retracement number.
Fibonacci Numbers and the Golden Ratio
Fibonacci numbers are found to have many relationships to the Golden Ratio F = (1 + /5)/2, a constant of nature which was of constant interest to the ancient Greeks, appearing in both Greek art and architecture.
Fibonacci Numbers and Market Analysis
Changes in stock prices are not simply a tug of war between supply and demand but also reflect human opinions, valuations, and expectations.
A study carried out by mathematical psychologist Vladimir Lefebvre demonstrated that humans exhibit positive and negative evaluations of the opinions they hold in a ratio that approaches phi, with 61.8% positive and 38.2% negative and that Fibonacci numbers are rooted in a trader’s psychology.
Predicting Market Movements with Fibonacci Numbers
Research shows markets as being perfectly patterned, explaining that humans, being part of nature, create perfect geometric relationships in their behaviours, even if they don’t realize it themselves.
The Golden Mean is the number 0.618. In Both Greek and Egyptian cultures, this number was highly significant. They believed that the number had important implications in many areas of science and art. This dimension was utilised in the construction of many buildings - including the pyramids.
The Golden Mean appears frequently enough in the timing of highs and lows and price resistance points that adding this tool to technical analysis of the markets can help to identify key turning points.
W. D.Gann and Fibonacci Numbers
Gann was a stock and commodity trader who reputedly made over $50 million trading the markets.
Gann made his fortune using methods which he developed for trading instruments based on relationships between price movement and time and his work was heavily influenced by Fibonacci numbers.
Gann divided price action into eighths and thirds. This yields numbers such as 1/3, 3/8, 1/2, 5/8, and 2/3. In percentage terms, these fractions are 33.3%, 37.5%, 50%, 62.5%, and 66.7%. These five ratios are commonly used retracement values. Gann placed strong significance on 50% retracements.
To learn more about using Gann trading methods please visit our web site: http://www.gann.co.uk/
Article Source: http://EzineArticles.com/?expert=Stephen_Todd
Monday, November 19, 2007
Forex Trading - Blackjack and Poker Players Make Great Forex Traders Why?
By Kelly Price
There are numerous poker and blackjack players who have made the transition from professional card playing to forex trading and made millions. Why are they so successful? Because the skills needed are very similar.
There is an old gamblers saying:
"There's a time to hold them a time to fold them and there's a time to get out of town fast"
If you think about this saying, it's the perfect introduction to succeeding in card playing and forex trading.
Forget the gurus and the mentors (most who have never traded in their lives) who tell you that you can predict forex prices in advance or that they move to a scientific theory - they don't.
Just like card playing forex is a game of odds not certainties - but just like the professional card player, you can play the odds and win.
"A time to hold them"
By studying the cards that come out of the deck the successful card player knows the odds of the cards coming next, he's not certain but by counting the cards he knows the probability and this is true with forex.
In card playing you hold and play in forex trading when the odds are in your favour you execute you're trading signal.
"A time to fold them"
If a card player has junk hands, he folds and passes the hand by.
Compare this to forex traders - many of them want to trade low odds scenario's because they think they will miss a move if their not in the market, while others trade when the odds are never in their favour i.e. day traders and they lose.
The card player knows his winnings are not based upon how many hands he plays - but how good the hands are and how he bets only then and it's the same in forex trading.
In forex trading you get paid for being right not how often you trade.
When you feel you have a high odds hand - bet and bet big.
You will see poker players back high odds hands with a cool head and large amounts of cash and you must do the same.
Forget about the myth of betting small 2% per trade which is a common accepted figure - this is ridiculous!
On 2% on a $10,000 account that's risking just $200.00!
You won't win much doing that- bet 10 - 20% if you have the odds on your side and have the courage of your conviction.
"A time to get out of town fast"
This applied to the old west and when your life was in danger - get out quickly!
In forex trading to preserve your equity you need to cut and run.
I heard a trader once say that if you want to win:
"You need to bet but you can't, if you're not at the table"
To stay at the table or trading, you have to preserve your equity.
That means rigid stops preferably placed before you enter the trade - no hoping a trade will turn around - if you life or position are in danger get out!
DISCIPLINE
All card players have this and you must to, as a forex trader.
Even the greatest card players have to lose hands to win longer term.
However if they can stay at the table and keep betting and play the odds, they can bet big on the high odds hands and win.
Of course you can do this to as a forex trader.
If you want to read an excellent interview with blackjack player come multi millionaire trader Blair Hull which expands on the above points get the excellent book "Market Wizards" By Jack Schwager which interviews Blair and a whole host of top traders - its essential reading for all forex traders.
Finally! Remember:
Play the odds with discipline in forex trading and you can enjoy currency trading success.
PROFESSIONAL FOREX TRADING COURSE AND FREE ESSENTIAL INFO
For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price
There are numerous poker and blackjack players who have made the transition from professional card playing to forex trading and made millions. Why are they so successful? Because the skills needed are very similar.
There is an old gamblers saying:
"There's a time to hold them a time to fold them and there's a time to get out of town fast"
If you think about this saying, it's the perfect introduction to succeeding in card playing and forex trading.
Forget the gurus and the mentors (most who have never traded in their lives) who tell you that you can predict forex prices in advance or that they move to a scientific theory - they don't.
Just like card playing forex is a game of odds not certainties - but just like the professional card player, you can play the odds and win.
"A time to hold them"
By studying the cards that come out of the deck the successful card player knows the odds of the cards coming next, he's not certain but by counting the cards he knows the probability and this is true with forex.
In card playing you hold and play in forex trading when the odds are in your favour you execute you're trading signal.
"A time to fold them"
If a card player has junk hands, he folds and passes the hand by.
Compare this to forex traders - many of them want to trade low odds scenario's because they think they will miss a move if their not in the market, while others trade when the odds are never in their favour i.e. day traders and they lose.
The card player knows his winnings are not based upon how many hands he plays - but how good the hands are and how he bets only then and it's the same in forex trading.
In forex trading you get paid for being right not how often you trade.
When you feel you have a high odds hand - bet and bet big.
You will see poker players back high odds hands with a cool head and large amounts of cash and you must do the same.
Forget about the myth of betting small 2% per trade which is a common accepted figure - this is ridiculous!
On 2% on a $10,000 account that's risking just $200.00!
You won't win much doing that- bet 10 - 20% if you have the odds on your side and have the courage of your conviction.
"A time to get out of town fast"
This applied to the old west and when your life was in danger - get out quickly!
In forex trading to preserve your equity you need to cut and run.
I heard a trader once say that if you want to win:
"You need to bet but you can't, if you're not at the table"
To stay at the table or trading, you have to preserve your equity.
That means rigid stops preferably placed before you enter the trade - no hoping a trade will turn around - if you life or position are in danger get out!
DISCIPLINE
All card players have this and you must to, as a forex trader.
Even the greatest card players have to lose hands to win longer term.
However if they can stay at the table and keep betting and play the odds, they can bet big on the high odds hands and win.
Of course you can do this to as a forex trader.
If you want to read an excellent interview with blackjack player come multi millionaire trader Blair Hull which expands on the above points get the excellent book "Market Wizards" By Jack Schwager which interviews Blair and a whole host of top traders - its essential reading for all forex traders.
Finally! Remember:
Play the odds with discipline in forex trading and you can enjoy currency trading success.
PROFESSIONAL FOREX TRADING COURSE AND FREE ESSENTIAL INFO
For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price
Friday, November 16, 2007
Forex2u Forex Strategy On Successful Forex Trading
By Alvin Han
The essence of the FX2u Forex strategy is that it does not have any Forex trading system but could forecast the market trend accurately.
Every set of Forex trading system available has its disadvantages. The market trend could not be forecasted. If the market could be forecasted, by depending on the RSI, PAR, MOM analysis techniques and some other theories, Forex traders could easily make a fortune.
Many Forex traders could not obtain the anticipated outcome by using these analysis tools, and suffer huge losses. The main reason is relying on some imperfect tools to forecast the unpredictable market trend is just a waste of effort. Therefore the FX2u Forex strategy spirit is to abolish the entire subjective analysis tool.
To survive in the market is to follow the market trend, following the market trend is the essence of the FX2u Forex strategy. By using the opposite theory to enter the market, will only lead to lost. The reason is that if the market rises, it may continue to rise. If the market drops, it may continue to drop. No one is able to forecast when the market trend will stop.
By following the market trend, the market risk could be reduce to the lowest, the FX2u Forex strategy will advance the following the ten principles:
fully understand the how market function and the market trend, else don’t trade
After entering the market, the Forex trader MUST immediately put a market stop.
If the stop order has been hit it MUST be executed immediately, NEVER make changes by lowering the stop order price.
If the forecast is wrong, Forex traders should leave the market immediately, then analyze again.
If the forecast is wrong, Forex traders should stop loss and should not increase trading.
Forex traders should admit mistakes, do not continuously make mistakes.
All analysis tools are imperfect, mistakes could always occur.
If the market rises Forex traders should buy, if the market drops Forex traders should sell, always follow the market trend.
Forex traders should not forecast the market price because such forecast will not be as easy as forecasting the market trend.
If the forecast is wrong, once the loss reach 10%, Forex traders must stop loss immediately, do not let it surpasses 10%, otherwise it would be difficult to recoup the capital again.
Alvin Han is the editor of http://www.forex2u.com/; http://www.forex2u.com/fx2u-forex-strategy.html
Article Source: http://EzineArticles.com/?expert=Alvin_Han
The essence of the FX2u Forex strategy is that it does not have any Forex trading system but could forecast the market trend accurately.
Every set of Forex trading system available has its disadvantages. The market trend could not be forecasted. If the market could be forecasted, by depending on the RSI, PAR, MOM analysis techniques and some other theories, Forex traders could easily make a fortune.
Many Forex traders could not obtain the anticipated outcome by using these analysis tools, and suffer huge losses. The main reason is relying on some imperfect tools to forecast the unpredictable market trend is just a waste of effort. Therefore the FX2u Forex strategy spirit is to abolish the entire subjective analysis tool.
To survive in the market is to follow the market trend, following the market trend is the essence of the FX2u Forex strategy. By using the opposite theory to enter the market, will only lead to lost. The reason is that if the market rises, it may continue to rise. If the market drops, it may continue to drop. No one is able to forecast when the market trend will stop.
By following the market trend, the market risk could be reduce to the lowest, the FX2u Forex strategy will advance the following the ten principles:
fully understand the how market function and the market trend, else don’t trade
After entering the market, the Forex trader MUST immediately put a market stop.
If the stop order has been hit it MUST be executed immediately, NEVER make changes by lowering the stop order price.
If the forecast is wrong, Forex traders should leave the market immediately, then analyze again.
If the forecast is wrong, Forex traders should stop loss and should not increase trading.
Forex traders should admit mistakes, do not continuously make mistakes.
All analysis tools are imperfect, mistakes could always occur.
If the market rises Forex traders should buy, if the market drops Forex traders should sell, always follow the market trend.
Forex traders should not forecast the market price because such forecast will not be as easy as forecasting the market trend.
If the forecast is wrong, once the loss reach 10%, Forex traders must stop loss immediately, do not let it surpasses 10%, otherwise it would be difficult to recoup the capital again.
Alvin Han is the editor of http://www.forex2u.com/; http://www.forex2u.com/fx2u-forex-strategy.html
Article Source: http://EzineArticles.com/?expert=Alvin_Han
Do Not Believe The Hype - There Is No Best Forex Trading System!
By Dean Saunders
There isn't one best Forex trading system that works for everyone. Finding the best forex trading system is no easy task, many people have spent years and thousands of dollars looking for a good forex trading system. Forex trading is a great profession and like any new business venture, it takes time to learn and do it right. This is a business like any other and it takes time to build up to a point where you will be making a decent income.
The aim in creating this article is to save you time, money, and effort, in your search for the best forex trading system. Some consider it the quest for the grail. Whether you're interested in learning a system or already developed a forex trading system, you should remember that the absolute most important part of the system is you. If you do not get your head right then no trading system can make you successful. In fact, before you go looking for your best forex trading system you should examine first what is applicable and ideal for you. Make the system fit your needs, do you wan tot trade all day or once a day? Do you have a day job? Do you like low risk or high risk? Questions like this will help you determine exactly what kind of system you need.
Money management and psychology, is the key to success in any trading system, and particularly so in the Forex market. While no system can produce 100 percent accuracy all that is needed is a greater percentage of wins than losses in order for you to achieve success in the long run.
It's interesting to find that many of the successful traders have the same basic opinion that some type of mechanical element in a forex trading system puts a majority of traders in the best position to succeed.
Just take your time and remember to find the best Forex trading system that works for you and stick with it. It is very important not to start jumping form system to system as soon as you get a couple of losses. A trader needs to understand that there shall be bad days for even the best forex trading system.
Good luck in your search!
Do You Want To Make Consistent Money Trading Forex? Dean Saunders has created the *Ultimate* FREE forex trading system that has helped 100's of Forex Traders become profitable.
Click Here and grab your FREE copy of Dean's amazing trading system!
Article Source: http://EzineArticles.com/?expert=Dean_Saunders
There isn't one best Forex trading system that works for everyone. Finding the best forex trading system is no easy task, many people have spent years and thousands of dollars looking for a good forex trading system. Forex trading is a great profession and like any new business venture, it takes time to learn and do it right. This is a business like any other and it takes time to build up to a point where you will be making a decent income.
The aim in creating this article is to save you time, money, and effort, in your search for the best forex trading system. Some consider it the quest for the grail. Whether you're interested in learning a system or already developed a forex trading system, you should remember that the absolute most important part of the system is you. If you do not get your head right then no trading system can make you successful. In fact, before you go looking for your best forex trading system you should examine first what is applicable and ideal for you. Make the system fit your needs, do you wan tot trade all day or once a day? Do you have a day job? Do you like low risk or high risk? Questions like this will help you determine exactly what kind of system you need.
Money management and psychology, is the key to success in any trading system, and particularly so in the Forex market. While no system can produce 100 percent accuracy all that is needed is a greater percentage of wins than losses in order for you to achieve success in the long run.
It's interesting to find that many of the successful traders have the same basic opinion that some type of mechanical element in a forex trading system puts a majority of traders in the best position to succeed.
Just take your time and remember to find the best Forex trading system that works for you and stick with it. It is very important not to start jumping form system to system as soon as you get a couple of losses. A trader needs to understand that there shall be bad days for even the best forex trading system.
Good luck in your search!
Do You Want To Make Consistent Money Trading Forex? Dean Saunders has created the *Ultimate* FREE forex trading system that has helped 100's of Forex Traders become profitable.
Click Here and grab your FREE copy of Dean's amazing trading system!
Article Source: http://EzineArticles.com/?expert=Dean_Saunders
Wednesday, November 14, 2007
Forex Strategy Builder - free forex strategy tester, generator, optimizer...
by Forex Software
Dear Sir or Madam, Our company, Forex Software, would like to announce the release of Forex Strategy Builder. We hope you will consider reviewing our freeware product for your edition. For immediate release Contact: Miroslav Popov Title: Author E-mail: info@forexsb.com Forex Strategy Builder Build Your Profitable Forex Trading System Within Minutes The Forex software team is very pleased to announce the latest release of Forex Strategy Builder - a complete solution for building and testing on-line foreign exchange market trading strategies. It is free for use and distribution. With Forex Strategy Builder's user friendly interface you can create and back test a profitable trading system with just a few clicks. Thanks to the program's automatic system generator a successful market strategy can be quickly produced without detailed technical analysis or programming skills. Using market rates, dating back to the 1980s, Forex Strategy Builder immediately calculates statistics and creates charts for the whole trade. You can easily create and test highly complicated trading systems using a wide variety of indicators and logic allowing for almost infinite combinations. The program also includes unique interpolation methods yielding reliable test result within each data bar. Forex Strategy Builder looks inside the current time frame using all shorter data periods to produce a realistic market back test, calculates the most profitable combination of parameters for the selected indicators, shows the average result balance between all possible market scenarios (while protecting from curve-fitting), shows you the price fluctuation inside each bar, and recognizes all the ambiguous bars in the back test. In short, Forex Strategy Builder provides you all you need to quickly accomplish an in-depth technical analysis. Once done you can publish your trading system in our users' strategies forum to get feedback from other experienced investors. Find additional information, help articles and tutorials on the web site: http://forexsb.com/ Read the source code of more than 70 indicators: http://forexsb.com/library/sourceindex.html Learn more about the safety principles of back testing: http://forexsb.com/library/safetyfirst.html Use ideas and systems from the forum members: http://forum.forexsb.com/ Forex Strategy Builder Pricing and Availability The Forex Strategy Builder is compatible with Microsoft Windows 98/Me/2000/XP/Vista. Net Framework v2.0 or latter is required to run the program. Free to download, use and distribute - no registration is needed. Auto update is included and it is also free. Technical support is available through the forum. About Forex Software Team We are a group of professionals in the fields of Forex trading, software development, engineering, marketing and insurance. We create tools based on our investing experience to make the Forex trade more accessible and profitable. Product page: http://forexsb.com/ Direct download link: http://forexsb.com/downloads/ForexStrategyBuilder.exe E-mail: info@forexsb.com Screen shot: http://forexsb.com/img/screen.jpg
About the Author
Contact information: [Responsible person] Miroslav Popov [Phone] +359 888 212 253 [Fax] [Email] forexsb@softinform.com [Web-site] http://forexsb.com/
Dear Sir or Madam, Our company, Forex Software, would like to announce the release of Forex Strategy Builder. We hope you will consider reviewing our freeware product for your edition. For immediate release Contact: Miroslav Popov Title: Author E-mail: info@forexsb.com Forex Strategy Builder Build Your Profitable Forex Trading System Within Minutes The Forex software team is very pleased to announce the latest release of Forex Strategy Builder - a complete solution for building and testing on-line foreign exchange market trading strategies. It is free for use and distribution. With Forex Strategy Builder's user friendly interface you can create and back test a profitable trading system with just a few clicks. Thanks to the program's automatic system generator a successful market strategy can be quickly produced without detailed technical analysis or programming skills. Using market rates, dating back to the 1980s, Forex Strategy Builder immediately calculates statistics and creates charts for the whole trade. You can easily create and test highly complicated trading systems using a wide variety of indicators and logic allowing for almost infinite combinations. The program also includes unique interpolation methods yielding reliable test result within each data bar. Forex Strategy Builder looks inside the current time frame using all shorter data periods to produce a realistic market back test, calculates the most profitable combination of parameters for the selected indicators, shows the average result balance between all possible market scenarios (while protecting from curve-fitting), shows you the price fluctuation inside each bar, and recognizes all the ambiguous bars in the back test. In short, Forex Strategy Builder provides you all you need to quickly accomplish an in-depth technical analysis. Once done you can publish your trading system in our users' strategies forum to get feedback from other experienced investors. Find additional information, help articles and tutorials on the web site: http://forexsb.com/ Read the source code of more than 70 indicators: http://forexsb.com/library/sourceindex.html Learn more about the safety principles of back testing: http://forexsb.com/library/safetyfirst.html Use ideas and systems from the forum members: http://forum.forexsb.com/ Forex Strategy Builder Pricing and Availability The Forex Strategy Builder is compatible with Microsoft Windows 98/Me/2000/XP/Vista. Net Framework v2.0 or latter is required to run the program. Free to download, use and distribute - no registration is needed. Auto update is included and it is also free. Technical support is available through the forum. About Forex Software Team We are a group of professionals in the fields of Forex trading, software development, engineering, marketing and insurance. We create tools based on our investing experience to make the Forex trade more accessible and profitable. Product page: http://forexsb.com/ Direct download link: http://forexsb.com/downloads/ForexStrategyBuilder.exe E-mail: info@forexsb.com Screen shot: http://forexsb.com/img/screen.jpg
About the Author
Contact information: [Responsible person] Miroslav Popov [Phone] +359 888 212 253 [Fax] [Email] forexsb@softinform.com [Web-site] http://forexsb.com/
Forex. A Simple Strategy for Trading the World's Largest Financial Market
by Brian Sater
The forex, or foreign currency exchange market, is the world's largest financial market trading more than two trillion dollars per day. Banks and institutions make millions for their individual companies trading this market.
As companies charge hundreds of dollars for their forex trading systems and thousands of dollars for their seminars, it begs the questions, "Is there a simple strategy for trading forex?" and." Is there an inexpensive method?"
After spending thousands of dollars and hours not learning to trade the forex market, Wealth System Solutions and Forex Money Online were created to test inexpensive systems to see if there were easy and inexpensive systems that you could use to actually profit in this lucrative market.
One of the most interesting developments is that the companies found several products that cost only two hundred or one hundred dollars that taught about the forex. This is compared to typical programs and seminars that cost hundreds and thousands of dollars and don't teach you to profit from the forex.
One new program is a simple, easily downloadable software program which tells you exactly which currency pairs and at what time of each day Monday through Thursday that a person should trade them. Even though the forex interbank market is open Sunday through Friday, with this simple software, trading need only happen a couple of times per day Monday through Thursday.
Many systems trade the London market which in North America is in the middle of the night and difficult for the average person to trade. Not so with this software. It can be traded during the day, you can receive even receive signals remotely, and the software even tells you if there is a trade or not.
For the week of August 8th, 2007, the results looked like this: Here is a recap of how we did with the forex trading for the week. Monday USD/CAD -12 PIPS GBP/AUD +55 PIPS
Tuesday I was out of town so I didn't trade. Wednesday No trades occurred. Thursday EUR/CHF +15 PIPS AUD/USD +32 PIPS GBP/USD +12 PIPS We had a total of 5 trades and won 4 of them. Over 100 pips total profit.
Each trade is done in currency pairs. The software tells you whether to buy or sell. For example, on Monday the USDCAD pair or US Dollar/Canadian Dollar pair was traded for a loss of 12 pips or price interest points. In a mini account, basically that's a loss of 12 U.S dollars at one lot. At two lots it would double, etc. In a standard account, the loss would be one hundred tweny dollars at one lot.
Let's not focus on the loss though. Basically, with the software, you would have traded two days and made 100 pips profit! I say two days because as you notice, Tuesday wasn't traded and Wednesday, the software indicated no trades were available. If you know nothing about the forex, let me tell you, this is unheard of! People spend hours on their computers trading and don't get these results.
Wealth System Solutions has indeed found a solution to the expensive systems and seminars, a simple strategy for trading, not to mention the time it takes to actually make an excellent profit in the world's largest financial market, the forex.
About the Author
Brian Sater is a forex consultant and owner of www.wealthsolutions.com and www.forexmoneyonline.com Brian specializes in assisting people to find low-cost ways to enter the forex market and tests forex systems to prove they work before he recommends them in his newsletter Forex Money Online.
The forex, or foreign currency exchange market, is the world's largest financial market trading more than two trillion dollars per day. Banks and institutions make millions for their individual companies trading this market.
As companies charge hundreds of dollars for their forex trading systems and thousands of dollars for their seminars, it begs the questions, "Is there a simple strategy for trading forex?" and." Is there an inexpensive method?"
After spending thousands of dollars and hours not learning to trade the forex market, Wealth System Solutions and Forex Money Online were created to test inexpensive systems to see if there were easy and inexpensive systems that you could use to actually profit in this lucrative market.
One of the most interesting developments is that the companies found several products that cost only two hundred or one hundred dollars that taught about the forex. This is compared to typical programs and seminars that cost hundreds and thousands of dollars and don't teach you to profit from the forex.
One new program is a simple, easily downloadable software program which tells you exactly which currency pairs and at what time of each day Monday through Thursday that a person should trade them. Even though the forex interbank market is open Sunday through Friday, with this simple software, trading need only happen a couple of times per day Monday through Thursday.
Many systems trade the London market which in North America is in the middle of the night and difficult for the average person to trade. Not so with this software. It can be traded during the day, you can receive even receive signals remotely, and the software even tells you if there is a trade or not.
For the week of August 8th, 2007, the results looked like this: Here is a recap of how we did with the forex trading for the week. Monday USD/CAD -12 PIPS GBP/AUD +55 PIPS
Tuesday I was out of town so I didn't trade. Wednesday No trades occurred. Thursday EUR/CHF +15 PIPS AUD/USD +32 PIPS GBP/USD +12 PIPS We had a total of 5 trades and won 4 of them. Over 100 pips total profit.
Each trade is done in currency pairs. The software tells you whether to buy or sell. For example, on Monday the USDCAD pair or US Dollar/Canadian Dollar pair was traded for a loss of 12 pips or price interest points. In a mini account, basically that's a loss of 12 U.S dollars at one lot. At two lots it would double, etc. In a standard account, the loss would be one hundred tweny dollars at one lot.
Let's not focus on the loss though. Basically, with the software, you would have traded two days and made 100 pips profit! I say two days because as you notice, Tuesday wasn't traded and Wednesday, the software indicated no trades were available. If you know nothing about the forex, let me tell you, this is unheard of! People spend hours on their computers trading and don't get these results.
Wealth System Solutions has indeed found a solution to the expensive systems and seminars, a simple strategy for trading, not to mention the time it takes to actually make an excellent profit in the world's largest financial market, the forex.
About the Author
Brian Sater is a forex consultant and owner of www.wealthsolutions.com and www.forexmoneyonline.com Brian specializes in assisting people to find low-cost ways to enter the forex market and tests forex systems to prove they work before he recommends them in his newsletter Forex Money Online.
5 EMAs Forex Trading System Review
by Virak
I have been trading full-time for over 5 years and I have seen/used countless trading systems in those years. I never came across such an easy to setup, easy to apply and effective working system which combines clear trading signals with good follow-up of the trade and solid money management. I really like the '5EMAs' system because it's very concise, easy to apply and, so far, I found it quite effective during the past 3 months I have been testing it. I've already banked over $2,500.
The Forex market is THE most volatile market in the world, often creating huge price swings. You will learn how to ride these trades for maximum profit. Not only that, amongst all the potential trade opportunities presented by these price swings, the 5EMAs Forex System identifies those with the highest probability of success.
The 5EMAs Forex System reveals a secret method of predicting market movements, thanks to which you will understand how to potentially turn $1,000 into $1,000,000 in 24 months (or $10,000 into $1,000,000 in just 12 months).
This step by step guide teach you how to identify amazingly accurate trades that with unique Money Management techniques, developed especially for this system, will allow to you to earn huge returns from the Forex market. Even if you are completely new to Forex trading, the 160+ page course will guide you from A-Z on how to trade Forex like a professional.
The 5EMAs Forex System uses an incredibly accurate formula traded by a professional Forex trader and fund manager and it is Perfect for people who do not have time to monitor the markets constantly, the 5EMAs Forex System can be set to provide long-term signals - that way, a trader can enjoy the profits that the Forex market can provide without having to give up his day job.
Especiallly, you will Never again buy a "black box" Forex trading system or subscribe to a Forex signal provider. All the rules of this system are revealed and explained in full detail - you will have complete control over your trading.
Also, the support is great. Every time I have a question and send an e-mail, they respond right away with what I need; it's so much better than some other vendors who seem to just disappear after you pay them.
Find out more detail here: 5 EMAs Forex Trading System!
http://download-popular-products.blogspot.com/2007/11/5-emas-forex-trading-system-review.html
About the Author
I love 5 EMAs Forex Trading System!
I have been trading full-time for over 5 years and I have seen/used countless trading systems in those years. I never came across such an easy to setup, easy to apply and effective working system which combines clear trading signals with good follow-up of the trade and solid money management. I really like the '5EMAs' system because it's very concise, easy to apply and, so far, I found it quite effective during the past 3 months I have been testing it. I've already banked over $2,500.
The Forex market is THE most volatile market in the world, often creating huge price swings. You will learn how to ride these trades for maximum profit. Not only that, amongst all the potential trade opportunities presented by these price swings, the 5EMAs Forex System identifies those with the highest probability of success.
The 5EMAs Forex System reveals a secret method of predicting market movements, thanks to which you will understand how to potentially turn $1,000 into $1,000,000 in 24 months (or $10,000 into $1,000,000 in just 12 months).
This step by step guide teach you how to identify amazingly accurate trades that with unique Money Management techniques, developed especially for this system, will allow to you to earn huge returns from the Forex market. Even if you are completely new to Forex trading, the 160+ page course will guide you from A-Z on how to trade Forex like a professional.
The 5EMAs Forex System uses an incredibly accurate formula traded by a professional Forex trader and fund manager and it is Perfect for people who do not have time to monitor the markets constantly, the 5EMAs Forex System can be set to provide long-term signals - that way, a trader can enjoy the profits that the Forex market can provide without having to give up his day job.
Especiallly, you will Never again buy a "black box" Forex trading system or subscribe to a Forex signal provider. All the rules of this system are revealed and explained in full detail - you will have complete control over your trading.
Also, the support is great. Every time I have a question and send an e-mail, they respond right away with what I need; it's so much better than some other vendors who seem to just disappear after you pay them.
Find out more detail here: 5 EMAs Forex Trading System!
http://download-popular-products.blogspot.com/2007/11/5-emas-forex-trading-system-review.html
About the Author
I love 5 EMAs Forex Trading System!
HOW TO GAIN MORE THAN US$2,000 IN FOREX TRADING EASILY, WITHOUT RISKING YOUR MONEY........
by Lemy Yusento / I-Key Benney
Forex Trading : Investment Secrets Of The Rich And Powerful
(Article by. Ikey Benney) If you search on the internet you'll find millions of investment programs such as real estate, stock trading, bond trading, mutual funds, auction programs and various internet programs.
I have not done many internet income opportunities or programs or affiliate programs because I had been lucky to discover a very easy way to make money through forex trading (Foreign Currency Trading) safely on the internet.
Perhaps you know about only stock trading or bond trading which are common, but not forex trading.
Forex trading is the most profitable and attractive internet income opportunity because you can do it from home or office and from any country in the world.
In forex trading, you don't need to do any marketing or selling or internet promotion to succeed. In forex trading, you don't need to spend thousands of dollars to do any internet promotion. In forex trading, you don't need any stocks or warehousing. In forex trading , all that you've to do is open an account with one of the brokers with as little as $300 or $2000.
When the price of the currency is low, you buy. In a few seconds or minutes, the price will go up, and you sell it and make a profit. More Detail Info on Forex Trading Signal (Click this just after You've finished Your reading).
By so doing , in a day, you can easily make $500-$1000 by just buying, selling and trading these foreign currencies for about 3 or 4 hrs!
And get this:
You don't even have to be stuck sitting behind your computer buying and selling these foreign currencies.
You can enter all your buy trades and specify the sell prices you desire and then log off.
Whenever the values of these foreign currencies rise and your selling prices reach, the currencies will be automatically sold for you and you make money!
You can do forex trading and at the same time keep your day job, because in forex trading, there is no work to do.
In the future when you have made hundreds of thousands of dollars, you may then quit your job and just keep doing currency forex trading forever and go on permanent vacation! (All You need is The Signal to make You unstucked in front of Computer)
To understand the beauty of forex trading Picture this:
In the morning, you get up from sleep at 6 am. You go to your bathroom and have your shower. At 7am, you hurry and eat your breakfast. At 7.20 am, you login into your forex trading account and use your Signal on the internet and spend 10 minutes to buy about 3 or 4 different currencies, [for example British Pound, Euro, CHF (Swiss Currency) or Yen (Japanese currency).] You can specify the price at which you wish to buy or sell each currency. Then you can log off.
By 9 am, you're at work in your office or business place. You do your job as usual and by 5 pm, you're finished and heading home. When you get back home around 6.30 pm, you login into your forex trading account to see how much money you've made. Holy Molly, there in your account it says you have made $750! "Is this for real?", you wonder... Yes, it is. (Your eyes are not deceiving you...) $750 in a day for just clicking your mouse twice and doing no work? (Whereas at your job, you work 8 hrs, but make only probably $150..)
This is how easy it is to make money from forex trading.
But before you use real money to open a live forex trading account, you have to open a free trial (demo) forex trading account and practice first, to understand how it works and to acquire the right skills.
This free demo (trial) forex trading account (forex simulation trading) will help you to reduce a lot of risks that can lead to loss.
In forex trading, you can choose how much money to invest, how much money to make and when to make it.
You can make money daily, 365 days all year from forex trading.
In forex trading, you can choose what type of risk you can manage, when to invest and when not to invest. In forex trading, you're the Boss. You may do as you please.
When forex trading is compared to other investment programs such as stock trading, bond trading, mutual funds, real estate and regular business, it is evident that forex trading is the fastest and greatest way to make money in the world.
Forex trading is a 2.5 trillion dollars daily business and it is larger than all the stock trading in the world combined.
These are some of the reasons why I believe that forex trading is the fastest and best way to create fantastic wealth.
Perhaps from reading this article you'll now come to know why forex trading is the secret behind the greatest wealth on earth and why it has been kept hidden from the average people of the world and therefore little known to the masses.
May these forex trading insights open your eyes to the possibility of infinite wealth and success that can be yours from forex trading.
Please feel free to print or publish this article anywhere and read and also send to your friends and well wishers.
That's it..... A Great Article I Can Find just for You As revealed, If You are a Newbie, or even An Intermediate Trader in Forex Market, You should start really start now........... You can get a lot of Knowledge and Trading Signals here, that's very useful for You, to be Smarter and More Relax in Your Trading Activity Daily.......
BONUS : By The Way, You can also look at FREE Stuffs & An Ultimate Simple Tip I Get for You, and feel Free to Use it Wisely. Click Here for More Info.
Finally! Discover The Secrets of Successful Trading, Simple Tips, and Trusted Resources....... In Less Than 5 Minutes And Without Massive Efforts - for FREE - http://easyprofitforextrading.tripod.com/
To Your Success.
Lemy Yusento
About the Author
Just an Ordinary Man, trying to make differences to the world... :)
Forex Trading : Investment Secrets Of The Rich And Powerful
(Article by. Ikey Benney) If you search on the internet you'll find millions of investment programs such as real estate, stock trading, bond trading, mutual funds, auction programs and various internet programs.
I have not done many internet income opportunities or programs or affiliate programs because I had been lucky to discover a very easy way to make money through forex trading (Foreign Currency Trading) safely on the internet.
Perhaps you know about only stock trading or bond trading which are common, but not forex trading.
Forex trading is the most profitable and attractive internet income opportunity because you can do it from home or office and from any country in the world.
In forex trading, you don't need to do any marketing or selling or internet promotion to succeed. In forex trading, you don't need to spend thousands of dollars to do any internet promotion. In forex trading, you don't need any stocks or warehousing. In forex trading , all that you've to do is open an account with one of the brokers with as little as $300 or $2000.
When the price of the currency is low, you buy. In a few seconds or minutes, the price will go up, and you sell it and make a profit. More Detail Info on Forex Trading Signal (Click this just after You've finished Your reading).
By so doing , in a day, you can easily make $500-$1000 by just buying, selling and trading these foreign currencies for about 3 or 4 hrs!
And get this:
You don't even have to be stuck sitting behind your computer buying and selling these foreign currencies.
You can enter all your buy trades and specify the sell prices you desire and then log off.
Whenever the values of these foreign currencies rise and your selling prices reach, the currencies will be automatically sold for you and you make money!
You can do forex trading and at the same time keep your day job, because in forex trading, there is no work to do.
In the future when you have made hundreds of thousands of dollars, you may then quit your job and just keep doing currency forex trading forever and go on permanent vacation! (All You need is The Signal to make You unstucked in front of Computer)
To understand the beauty of forex trading Picture this:
In the morning, you get up from sleep at 6 am. You go to your bathroom and have your shower. At 7am, you hurry and eat your breakfast. At 7.20 am, you login into your forex trading account and use your Signal on the internet and spend 10 minutes to buy about 3 or 4 different currencies, [for example British Pound, Euro, CHF (Swiss Currency) or Yen (Japanese currency).] You can specify the price at which you wish to buy or sell each currency. Then you can log off.
By 9 am, you're at work in your office or business place. You do your job as usual and by 5 pm, you're finished and heading home. When you get back home around 6.30 pm, you login into your forex trading account to see how much money you've made. Holy Molly, there in your account it says you have made $750! "Is this for real?", you wonder... Yes, it is. (Your eyes are not deceiving you...) $750 in a day for just clicking your mouse twice and doing no work? (Whereas at your job, you work 8 hrs, but make only probably $150..)
This is how easy it is to make money from forex trading.
But before you use real money to open a live forex trading account, you have to open a free trial (demo) forex trading account and practice first, to understand how it works and to acquire the right skills.
This free demo (trial) forex trading account (forex simulation trading) will help you to reduce a lot of risks that can lead to loss.
In forex trading, you can choose how much money to invest, how much money to make and when to make it.
You can make money daily, 365 days all year from forex trading.
In forex trading, you can choose what type of risk you can manage, when to invest and when not to invest. In forex trading, you're the Boss. You may do as you please.
When forex trading is compared to other investment programs such as stock trading, bond trading, mutual funds, real estate and regular business, it is evident that forex trading is the fastest and greatest way to make money in the world.
Forex trading is a 2.5 trillion dollars daily business and it is larger than all the stock trading in the world combined.
These are some of the reasons why I believe that forex trading is the fastest and best way to create fantastic wealth.
Perhaps from reading this article you'll now come to know why forex trading is the secret behind the greatest wealth on earth and why it has been kept hidden from the average people of the world and therefore little known to the masses.
May these forex trading insights open your eyes to the possibility of infinite wealth and success that can be yours from forex trading.
Please feel free to print or publish this article anywhere and read and also send to your friends and well wishers.
That's it..... A Great Article I Can Find just for You As revealed, If You are a Newbie, or even An Intermediate Trader in Forex Market, You should start really start now........... You can get a lot of Knowledge and Trading Signals here, that's very useful for You, to be Smarter and More Relax in Your Trading Activity Daily.......
BONUS : By The Way, You can also look at FREE Stuffs & An Ultimate Simple Tip I Get for You, and feel Free to Use it Wisely. Click Here for More Info.
Finally! Discover The Secrets of Successful Trading, Simple Tips, and Trusted Resources....... In Less Than 5 Minutes And Without Massive Efforts - for FREE - http://easyprofitforextrading.tripod.com/
To Your Success.
Lemy Yusento
About the Author
Just an Ordinary Man, trying to make differences to the world... :)
Tuesday, November 13, 2007
The Best Forex Trading System
By: Andrew Daigle
Let me first say there isn't one best Forex trading system that works for everyone. There are lots of great Forex trading strategies and Forex trading systems but to say there's only one, would not be a true statement.
Forex trading systems can be as individual as the person using the system. One Forex trader will find a trading system that works perfectly for them and another currency exchange trader will say it's not worth the paper it's printed on. If you know anything about trading in the foreign exchange market, you know there are certain times of the day to trade specific Forex currency pairs to increase your odds of making a winning trade. Trading off hours, using the best Forex trading system could be a losing strategy. Try to stay out of the market during the slow times.
Every experienced Forex trader knows the best times to trade in the Forex market. The most active times are between the hours of 2:00am and 11:00am EST. At 2:00am EST the European markets are starting to open and at 3:00am EST the London session starts to kick in. At 7:00am to 8:00am EST the New Your sessions start to come alive. At 8:30am EST there are many news releases (mostly USD) that can cause market volatility. This is when the market moves and can move big. These are the times most Forex trader love and this is where the money is made, and lost. The London session starts to close around 11:00am EST and the Forex market tends to slow down until the Asian market start up again around 7:00pm EST. And everything starts all over again for the next trading day. That's why a Forex trading system is so important to every Forex trader.
To make the most out of any Forex trading system, you need to have one Forex trading strategy for trading at news times and another one to trade during the rest of the day. A good strategy for trading the news in the Forex market is to do your homework up front. Know what key news releases are coming out and find out what the consensus numbers are for each report. There are many different Forex news sites, so I recommend looking at no less than 3 news sites to make sure the consensus numbers are the same or very close to each other. Sometimes Forex news sites get the numbers wrong, so doing your homework up front, you will quickly know if the forecast numbers are on the mark or not. At news release time, what you're looking for are numbers with a shock value associated with them. Numbers that do not meet the consensus but exceed or fall far shot of expectations. These are the news events you want to trade. You need to know beforehand what these shock value numbers are, and take action when they're released.
When news is out of the way or it's a very slow news day, that's when you need a Technical Forex trading system. Forex technical trading is when you use charts and price action. Tools such as Forex chart patterns, trendlines (trendline analysis), Fibonacci (Fibonacci numbers/Fibonacci studies) and a host of other Forex trading tools can be used. The best advice I can give here is to keep it simple. Do not go overboard with the tools you decide to use. I suggest picking two or three at the most and work with them at all times. Give each one at least a months time to decide if it's working for you before you decide to move on to another. Some folks may find they don't like using Fibonacci retracements for example, while other traders like myself, couldn't imagine not using them. Forex traders are all different so you need to find the tools and Forex trading system that's right for you.
There are lots of great online Forex training websites available today and most are free. Read all you can about Forex trading before jumping in. Forex trading is a great profession and like any new business venture, it takes time to learn and do it right. Just take your time and remember to find the best Forex trading system that works best for you and stick with it.
Article Directory: http://www.articlecube.com
Andrew Daigle is the owner, creator and author of many successful websites including ForexBoost, a Free Forex Training site and resource for Forex Trading Systems.
Let me first say there isn't one best Forex trading system that works for everyone. There are lots of great Forex trading strategies and Forex trading systems but to say there's only one, would not be a true statement.
Forex trading systems can be as individual as the person using the system. One Forex trader will find a trading system that works perfectly for them and another currency exchange trader will say it's not worth the paper it's printed on. If you know anything about trading in the foreign exchange market, you know there are certain times of the day to trade specific Forex currency pairs to increase your odds of making a winning trade. Trading off hours, using the best Forex trading system could be a losing strategy. Try to stay out of the market during the slow times.
Every experienced Forex trader knows the best times to trade in the Forex market. The most active times are between the hours of 2:00am and 11:00am EST. At 2:00am EST the European markets are starting to open and at 3:00am EST the London session starts to kick in. At 7:00am to 8:00am EST the New Your sessions start to come alive. At 8:30am EST there are many news releases (mostly USD) that can cause market volatility. This is when the market moves and can move big. These are the times most Forex trader love and this is where the money is made, and lost. The London session starts to close around 11:00am EST and the Forex market tends to slow down until the Asian market start up again around 7:00pm EST. And everything starts all over again for the next trading day. That's why a Forex trading system is so important to every Forex trader.
To make the most out of any Forex trading system, you need to have one Forex trading strategy for trading at news times and another one to trade during the rest of the day. A good strategy for trading the news in the Forex market is to do your homework up front. Know what key news releases are coming out and find out what the consensus numbers are for each report. There are many different Forex news sites, so I recommend looking at no less than 3 news sites to make sure the consensus numbers are the same or very close to each other. Sometimes Forex news sites get the numbers wrong, so doing your homework up front, you will quickly know if the forecast numbers are on the mark or not. At news release time, what you're looking for are numbers with a shock value associated with them. Numbers that do not meet the consensus but exceed or fall far shot of expectations. These are the news events you want to trade. You need to know beforehand what these shock value numbers are, and take action when they're released.
When news is out of the way or it's a very slow news day, that's when you need a Technical Forex trading system. Forex technical trading is when you use charts and price action. Tools such as Forex chart patterns, trendlines (trendline analysis), Fibonacci (Fibonacci numbers/Fibonacci studies) and a host of other Forex trading tools can be used. The best advice I can give here is to keep it simple. Do not go overboard with the tools you decide to use. I suggest picking two or three at the most and work with them at all times. Give each one at least a months time to decide if it's working for you before you decide to move on to another. Some folks may find they don't like using Fibonacci retracements for example, while other traders like myself, couldn't imagine not using them. Forex traders are all different so you need to find the tools and Forex trading system that's right for you.
There are lots of great online Forex training websites available today and most are free. Read all you can about Forex trading before jumping in. Forex trading is a great profession and like any new business venture, it takes time to learn and do it right. Just take your time and remember to find the best Forex trading system that works best for you and stick with it.
Article Directory: http://www.articlecube.com
Andrew Daigle is the owner, creator and author of many successful websites including ForexBoost, a Free Forex Training site and resource for Forex Trading Systems.
Forex Tips - 5 Simple Ones to Increase Your Profits
By kelly Price
The forex tips below are all easy to do and all will help you achieve one aim increasing your overall profitability. So here are 5 forex tips for greater profits.
1. Use the Weekly Chart I am amazed that most traders never bother looking at weekly charts but if you want to separate out “the wood from the trees” the weekly chart gives you a much clearer perspective. The big trends are clearly visible on the weekly chart and if you are long term trend follower, start with this chart first and you will have a clearer view of support and resistance levels and entry points.
2. Cut Your Trading Frequency This Forex tip addresses a major problem that most novice traders have – they trade too much. They think they have to be in the market all the time and chase profits but the fact is, if you cut your trading frequency, you stand a better chance of success. Keep in mind; you only get paid for being right in forex trading - NOT for your effort and how often you trade! By cutting your trading back, you can concentrate only on the high reward, high odds trades which give the best potential profits.I know traders who only trade a few times a year yet - they make between 120 – 430%! Annually. Their simply trading the cream of the trades and ignoring the low odds, high risk ones and there are plenty of those. If you cut your trading, you will probably see your profits soar.
3. Risk More Per TradeThis is directly related to the above point. If you have a high odds trade take this tip and risk more. You will read a lot of nonsense on the net about risking 2% per trade and no more. Well, that’s fine if you are trading 100k but if you’re a small potato trader, trading 10k or less, that’s a maximum of $200! If you have a small account you need to load up and risk 10 -20% on the high odds trades. Keep in mind if you don’t risk much you won’t make much! To make meaningful gains you have to take risks – if you don’t like taking risks don’t trade forex.
4. Don’t Diversify If you are trading a small account don’t diversify! You need to load up as we have said above and concentrate on one trade only. Diversification is simply another word for diluting profit potential and is something a small trader should not engage in.
5. Use an Account Profit Target What s a realistic target to make per annum in forex trading? You may have your own ideas - but if you made 100% that puts you up there with the best fund managers in the world. You will often see people look at risk per trade but looking at your account overall and using a profit target is highly effective. You will often see trades that give you big profits in short periods of time and if they are a substantial – i.e. more than 25% of your 100% bank them. Have a break and start again. If you hit your profit target for the year early - decide whether you should trade again at all or at the very least give yourself a deserved break.
The tips above are really saying: Focus only on the best trades with the best odds, load them up and have a target -if you do the above, chances are you will make bigger profits.
About the author:NEW! FREE Trader PDF'S - Forex Newsletters and Alerts On all aspects of becoming a profitable trader including: Free, weekly and daily newsletters, and some essential FREE FOREX Trading PDF's visit our website at: http://www.learncurrencytradingonline.com/index.htmlArticle Source: http://www.free-articles-zone.com/author/10788
The forex tips below are all easy to do and all will help you achieve one aim increasing your overall profitability. So here are 5 forex tips for greater profits.
1. Use the Weekly Chart I am amazed that most traders never bother looking at weekly charts but if you want to separate out “the wood from the trees” the weekly chart gives you a much clearer perspective. The big trends are clearly visible on the weekly chart and if you are long term trend follower, start with this chart first and you will have a clearer view of support and resistance levels and entry points.
2. Cut Your Trading Frequency This Forex tip addresses a major problem that most novice traders have – they trade too much. They think they have to be in the market all the time and chase profits but the fact is, if you cut your trading frequency, you stand a better chance of success. Keep in mind; you only get paid for being right in forex trading - NOT for your effort and how often you trade! By cutting your trading back, you can concentrate only on the high reward, high odds trades which give the best potential profits.I know traders who only trade a few times a year yet - they make between 120 – 430%! Annually. Their simply trading the cream of the trades and ignoring the low odds, high risk ones and there are plenty of those. If you cut your trading, you will probably see your profits soar.
3. Risk More Per TradeThis is directly related to the above point. If you have a high odds trade take this tip and risk more. You will read a lot of nonsense on the net about risking 2% per trade and no more. Well, that’s fine if you are trading 100k but if you’re a small potato trader, trading 10k or less, that’s a maximum of $200! If you have a small account you need to load up and risk 10 -20% on the high odds trades. Keep in mind if you don’t risk much you won’t make much! To make meaningful gains you have to take risks – if you don’t like taking risks don’t trade forex.
4. Don’t Diversify If you are trading a small account don’t diversify! You need to load up as we have said above and concentrate on one trade only. Diversification is simply another word for diluting profit potential and is something a small trader should not engage in.
5. Use an Account Profit Target What s a realistic target to make per annum in forex trading? You may have your own ideas - but if you made 100% that puts you up there with the best fund managers in the world. You will often see people look at risk per trade but looking at your account overall and using a profit target is highly effective. You will often see trades that give you big profits in short periods of time and if they are a substantial – i.e. more than 25% of your 100% bank them. Have a break and start again. If you hit your profit target for the year early - decide whether you should trade again at all or at the very least give yourself a deserved break.
The tips above are really saying: Focus only on the best trades with the best odds, load them up and have a target -if you do the above, chances are you will make bigger profits.
About the author:NEW! FREE Trader PDF'S - Forex Newsletters and Alerts On all aspects of becoming a profitable trader including: Free, weekly and daily newsletters, and some essential FREE FOREX Trading PDF's visit our website at: http://www.learncurrencytradingonline.com/index.htmlArticle Source: http://www.free-articles-zone.com/author/10788
Forex Chart Mistakes 6 Common Ones That Will See You Lose!
By kelly Price
Forex charts are an excellent way to make money yet most traders have no idea on how to use them correctly and 90% of traders lose. Here we will outline 6 common mistakes traders make with forex technical analysis and if you make ANY of them you will lose to.
1. Using Science Many novice traders make the mistake of thinking that forex prices move to scientific law - stand up the devotees of Gann, Elliot and Fibonacci - but of course they don't. If they did then we would all know the price in advance and there would be no market - period. These traders are naive or lazy - what they need to understand is trading is a game of odds not certainties. Leave the scientific theories to the far out investment crowd and dreamers and concentrate on the reality of making money - and that means trading the odds.
2. Trying to Predict Even traders who don't use scientific forex trading strategies try and predict. For example, they see prices dip toward support and buy - but this is hoping and guessing and they are going to get a lesson. If you want to win you wait for the test of support and pfirs to move away from the level supported by momentum. If you don't know what momentum oscillators are now is the time to learn and make them an essential part of your forex education - if you don't trade with price momentum, you are simply guaranteed to lose. Look up our other articles for further details - you must trade with momentum indicators to get the odds in your favour.
3. Using invalid data Day traders! All volatility is random in daily time frames and prices can and do go anywhere so you can't get the odds in your favour and you will lose. More novice forex traders use forex day trading systems than any other method and it's the best way to lose money - Don't try it.
4. Using Indicators The Wrong Way How many times have I seen people buy dips to a moving average? Loads of times and it's a guaranteed way to lose money - it's a lagging indicator!Another great one is - traders using outer Bollinger bands to set stops - that's not what it should be used for, it's a gauge of volatility. These are just two examples - but there are many more - always use indicators for what they are supposed to be used for.
5. Being To Complicated Many traders think the more the better and try and use loads of indicators and complicated equations in their currency trading system. Their wrong! Simple systems using support, resistance and a few momentum indicators are all you need to succeed.Why? Because - simple systems are more robust and less likely to break in the brutal world of trading. You don't get paid for being clever in forex trading; you get paid for being right - so keep it simple.
6. Being too Subjective The more objective you're trading, the more likely you are to stay disciplined and keep your emotions out of trading. Avoid using indicators that are subjective such as, cycles etc and stick with objective rules. Finally ...Using forex charts is easy and quick and you can soon be enjoying currency trading success, so long as you use them the right way. When you use forex charts you are a bit like a ships captain - you can use them to navigate correctly but if you don't ,then just like the captain at sea who makes errors the market will drown you and your equity.
About the author:BECOME A PROFESSIONAL FOREX TRADER FROM HOME GRAB: 2 X CRITICAL PDFS AND MORE For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.htmlArticle Source: http://www.free-articles-zone.com/author/10788
Forex charts are an excellent way to make money yet most traders have no idea on how to use them correctly and 90% of traders lose. Here we will outline 6 common mistakes traders make with forex technical analysis and if you make ANY of them you will lose to.
1. Using Science Many novice traders make the mistake of thinking that forex prices move to scientific law - stand up the devotees of Gann, Elliot and Fibonacci - but of course they don't. If they did then we would all know the price in advance and there would be no market - period. These traders are naive or lazy - what they need to understand is trading is a game of odds not certainties. Leave the scientific theories to the far out investment crowd and dreamers and concentrate on the reality of making money - and that means trading the odds.
2. Trying to Predict Even traders who don't use scientific forex trading strategies try and predict. For example, they see prices dip toward support and buy - but this is hoping and guessing and they are going to get a lesson. If you want to win you wait for the test of support and pfirs to move away from the level supported by momentum. If you don't know what momentum oscillators are now is the time to learn and make them an essential part of your forex education - if you don't trade with price momentum, you are simply guaranteed to lose. Look up our other articles for further details - you must trade with momentum indicators to get the odds in your favour.
3. Using invalid data Day traders! All volatility is random in daily time frames and prices can and do go anywhere so you can't get the odds in your favour and you will lose. More novice forex traders use forex day trading systems than any other method and it's the best way to lose money - Don't try it.
4. Using Indicators The Wrong Way How many times have I seen people buy dips to a moving average? Loads of times and it's a guaranteed way to lose money - it's a lagging indicator!Another great one is - traders using outer Bollinger bands to set stops - that's not what it should be used for, it's a gauge of volatility. These are just two examples - but there are many more - always use indicators for what they are supposed to be used for.
5. Being To Complicated Many traders think the more the better and try and use loads of indicators and complicated equations in their currency trading system. Their wrong! Simple systems using support, resistance and a few momentum indicators are all you need to succeed.Why? Because - simple systems are more robust and less likely to break in the brutal world of trading. You don't get paid for being clever in forex trading; you get paid for being right - so keep it simple.
6. Being too Subjective The more objective you're trading, the more likely you are to stay disciplined and keep your emotions out of trading. Avoid using indicators that are subjective such as, cycles etc and stick with objective rules. Finally ...Using forex charts is easy and quick and you can soon be enjoying currency trading success, so long as you use them the right way. When you use forex charts you are a bit like a ships captain - you can use them to navigate correctly but if you don't ,then just like the captain at sea who makes errors the market will drown you and your equity.
About the author:BECOME A PROFESSIONAL FOREX TRADER FROM HOME GRAB: 2 X CRITICAL PDFS AND MORE For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.htmlArticle Source: http://www.free-articles-zone.com/author/10788
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