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Archive for January, 2010
Forex Trading Software :: Interactive Course
Jan 30th
Learn-to-Trade-Forex.net Forex Trading Software Interactive Online Course
Forex Trading Education – The London Open Checklist
Jan 28th
A thorough Forex trading education must include an understanding of the effect market timings can have on trading and liquidity.
One of the most active periods of the day is from the time the London market opens. Often around that time good trading opportunities will appear.
As part of your Forex trading education, learn to analyze market conditions around London open and begin to recognize good setups.
The following questionnaire and checklist will help.
London Open Preparation
About 15 to 30 minutes before London open check the answers to these questions:
Are the MACD indicators on the 4 hour and 1 hour charts in agreement? If they are not going in the same direction be very careful!Is there MACD divergence on the 4 hour, 1 hour, or 15 minute chart? Look for other clues to confirm that price may go in the direction of MACD divergence.On the 4 hour chart what is the overall trend?Do a Fibonacci calculation on the last swing high and low and see if price is pulling back to an optimum retracement level or whether it is reaching a key extension level.Note price in relation to the 200 EMA (Exponential Moving Average) on the 4 hour, 1 hour and 15 minute charts. Is price bucking the trend? In other words, is price above the 200 EMA on the 4 hour and 1 hour chart but below it on the 15 minute? Then be prepared for price to go long at some stage. (Draw the opposite conclusion if price is below the 200 EMA on the 4 hour and 1 hour chart but above it on the 15 minute chart.)Are any Economic Reports imminent?As the candle closes on the 15 minute chart at London open, do you see any distinctive candle patterns such as tweezers, or doji’s or hammers indicating price exhaustion?If I entered a trade right now in a particular direction, what would be the risk and where would I place my stop?
Within a few minutes of London open, if you see a number of factors converging from the analysis above, make a decision one way or the other:
trade wait for clearer signals or a better entry point
Carrying out an analysis in this way each day at London open will do much to increase your Forex trading education.
It will make you aware of what is happening on the charts and in the marketplace and help you to arrive at conclusions.
There is no magic formula involved with Forex trading education. Put simply, successful Forex trading is the result of years of hard work, study, practice, and experience often gained through painful trading scenarios.
Eventually the newer trader learns mental discipline, and how to control the emotions – probably the biggest part of a Forex trading education.
Practice a procedure like the one above day after day and begin to see some progress as you get nearer the time you make profits consistently from currency trading.
By: Michael A Jones
One of the most active periods of the day is from the time the London market opens. Often around that time good trading opportunities will appear.
As part of your Forex trading education, learn to analyze market conditions around London open and begin to recognize good setups.
The following questionnaire and checklist will help.
London Open Preparation
About 15 to 30 minutes before London open check the answers to these questions:
Are the MACD indicators on the 4 hour and 1 hour charts in agreement? If they are not going in the same direction be very careful!Is there MACD divergence on the 4 hour, 1 hour, or 15 minute chart? Look for other clues to confirm that price may go in the direction of MACD divergence.On the 4 hour chart what is the overall trend?Do a Fibonacci calculation on the last swing high and low and see if price is pulling back to an optimum retracement level or whether it is reaching a key extension level.Note price in relation to the 200 EMA (Exponential Moving Average) on the 4 hour, 1 hour and 15 minute charts. Is price bucking the trend? In other words, is price above the 200 EMA on the 4 hour and 1 hour chart but below it on the 15 minute? Then be prepared for price to go long at some stage. (Draw the opposite conclusion if price is below the 200 EMA on the 4 hour and 1 hour chart but above it on the 15 minute chart.)Are any Economic Reports imminent?As the candle closes on the 15 minute chart at London open, do you see any distinctive candle patterns such as tweezers, or doji’s or hammers indicating price exhaustion?If I entered a trade right now in a particular direction, what would be the risk and where would I place my stop?
Within a few minutes of London open, if you see a number of factors converging from the analysis above, make a decision one way or the other:
trade wait for clearer signals or a better entry point
Carrying out an analysis in this way each day at London open will do much to increase your Forex trading education.
It will make you aware of what is happening on the charts and in the marketplace and help you to arrive at conclusions.
There is no magic formula involved with Forex trading education. Put simply, successful Forex trading is the result of years of hard work, study, practice, and experience often gained through painful trading scenarios.
Eventually the newer trader learns mental discipline, and how to control the emotions – probably the biggest part of a Forex trading education.
Practice a procedure like the one above day after day and begin to see some progress as you get nearer the time you make profits consistently from currency trading.
By: Michael A Jones
Why Money Management is Important in Trading
Jan 27th
Stocks, Forex, Futures, Options, Commodities or whatever you trade. A Successful trading consists of three factors as follows:
Psychology for 50% Money Management for 30% Market Analysis and Trading Systems for 20%
For many traders, they spend most of their time looking for good trades and only focus on the last factor, Market Analysis and Trading Systems, which is the least influence on successful trading.
Once traders enter a trade, they rely on their emotions to make their decisions and miss the essential element of winning, the management of their emotions. Their lacking of managing themselves leads to poor managing of money of their trading portfolios.
That’s why most traders are failure.
Without a method of managing your money, even the best trading system or strategy is absolutely worthless. The 100%-win system does not exist, therefore the strict rules to manage money will provide a safety net for traders.
That’s why the money management is so important in trading.
The major goals of money management rule are:
Ensuring survival in markets – No one never fails, so traders have to stay in markets long enough to win Earning steady rate of return from the trades – the volatility of earning rate from each trade should be low Earning high return from the trades – traders are able to get high returns with no risks or lower risks if they manage their money well
Lastly, A most importance rule of managing your trading money is Do not change money management rule while the opened position is not yet closed.
By: Hideyoshi Taro
Psychology for 50% Money Management for 30% Market Analysis and Trading Systems for 20%
For many traders, they spend most of their time looking for good trades and only focus on the last factor, Market Analysis and Trading Systems, which is the least influence on successful trading.
Once traders enter a trade, they rely on their emotions to make their decisions and miss the essential element of winning, the management of their emotions. Their lacking of managing themselves leads to poor managing of money of their trading portfolios.
That’s why most traders are failure.
Without a method of managing your money, even the best trading system or strategy is absolutely worthless. The 100%-win system does not exist, therefore the strict rules to manage money will provide a safety net for traders.
That’s why the money management is so important in trading.
The major goals of money management rule are:
Ensuring survival in markets – No one never fails, so traders have to stay in markets long enough to win Earning steady rate of return from the trades – the volatility of earning rate from each trade should be low Earning high return from the trades – traders are able to get high returns with no risks or lower risks if they manage their money well
Lastly, A most importance rule of managing your trading money is Do not change money management rule while the opened position is not yet closed.
By: Hideyoshi Taro
Testing a Forex Trading System Before Risking Money
Jan 24th
forextradingseminar.com Another of the “Forex Trading Secrets” that should be obvious to everyone. Find out yet another tactic that differentiates the successful traders from those who lose.
Learn Forex Trading Online; Top Dog Trading Review
Jan 23rd
www.dihusky.com Learn to trade Forex for profit not loss, learning Forex trading and learning Forex technical analyses is the basis to successful Forex trading. www.dihusky.com
Money Management – A Forex Trader Must Have!
Jan 23rd
Money Management – what’s that? If this is your response to the title of this article, then either STOP trading forex until you have learnt about it or, if you are new, do not start yet! The chances are, if you trade without any Money Management rules, you will lose your capital investment faster than the time it takes to read this article!
Forex is a leveraged product, and if you over-leverage yourself, the truth is you could be staring at a ‘blown account’ in no time at all….
Therefore, it should go without saying that disciplined Money Management is an important key to not just succeeding, but surviving in Forex trading. Sadly, the temptation of riches can wreak havoc with even the most disciplined people out there! In fact, the determination to succeed and be wealthy may just be the one thing that causes a person to relax their own Money Management rules… ‘Speed up the path to the intended destination’ will be the justification in their mind!
I know it, because I personally fell foul of just that! So certain that the trade I was going to put on could go in only one direction, I calculated that if I increased my trade size for this particular trade, I could then go on and move up legitimately to a larger trade size for all future trades (by legitimately, I mean according to my Money Management rules)……. Brilliant! I’m sure this is the type of risk these successful guys take every now and again… After all, you have to take bigger risks sometimes if you want to ‘make it’! Well, I’m pretty sure I don’t have to tell you what happened next…!!
So,… here I was, now in a position where I now had to decrease the size of my future trades, to account for the huge hit I had just taken on that one trade. And not only that, to make matters worse, I exited the trade early because I did not want to take the ‘full hit’ of it reaching my pre-determined Stop Loss!
Yep! You’ve probably got the next bit too! The trade didn’t make it to my intended Stop Loss, and actually would have been a successful trade if I had followed the rules of my strategy! I had just gone down the ladder several rungs in a ‘calculated’ attempt to move myself up a few rungs. It would now take several weeks of SUCCESSFUL trading to get back to the trade size I had been taking that day…
So, the first thing I did that day to cause such a hole in my account was throw away my Money Management rules. However, that wasn’t all that followed! Through just that one act, I lost all sense of discipline, and also didn’t follow my trade strategy. By exiting early, I hadn’t given the trade a chance to succeed according to my entry and exit rules for that trade. Now, had I adhered to my money management rules, and applied my normal trade size, I would not have been concerned by the trade potentially hitting my Stop Loss, and therefore would have remained in the trade, and been in a position to record a successful outcome, and not a rather large losing one!
I tell this story not for entertainment value, but to share a lesson on how disciplined you have to be at all times in Forex Trading. My discipline here had succumbed to the emotions of greed and fear, and I paid dearly for it. What I’m telling you here is,… if you allow just one area of your trading to ‘relax’ against your predetermined Trading Rules, no matter how valid you think your reasons are, there is a very high probability you will pay the price. You will likely ‘need’ to break other rules too.
I would ask you to think about this….Your Trading Plan will have been created while in an environment of calm and rational thinking, based on information, knowledge and facts. When you are trading Forex, the environment is neither calm nor rational, and the only thing that can keep you trading calmly and rationally, is to be disciplined enough to follow the rules of your Trading Plan – and in that, Money Management will be clearly defined.
Your adherence to your Money Management rules, and the power of compounding will help move the odds of reaching your trading goals in your favour …
Remember that..
By: Martin Hayne
Forex is a leveraged product, and if you over-leverage yourself, the truth is you could be staring at a ‘blown account’ in no time at all….
Therefore, it should go without saying that disciplined Money Management is an important key to not just succeeding, but surviving in Forex trading. Sadly, the temptation of riches can wreak havoc with even the most disciplined people out there! In fact, the determination to succeed and be wealthy may just be the one thing that causes a person to relax their own Money Management rules… ‘Speed up the path to the intended destination’ will be the justification in their mind!
I know it, because I personally fell foul of just that! So certain that the trade I was going to put on could go in only one direction, I calculated that if I increased my trade size for this particular trade, I could then go on and move up legitimately to a larger trade size for all future trades (by legitimately, I mean according to my Money Management rules)……. Brilliant! I’m sure this is the type of risk these successful guys take every now and again… After all, you have to take bigger risks sometimes if you want to ‘make it’! Well, I’m pretty sure I don’t have to tell you what happened next…!!
So,… here I was, now in a position where I now had to decrease the size of my future trades, to account for the huge hit I had just taken on that one trade. And not only that, to make matters worse, I exited the trade early because I did not want to take the ‘full hit’ of it reaching my pre-determined Stop Loss!
Yep! You’ve probably got the next bit too! The trade didn’t make it to my intended Stop Loss, and actually would have been a successful trade if I had followed the rules of my strategy! I had just gone down the ladder several rungs in a ‘calculated’ attempt to move myself up a few rungs. It would now take several weeks of SUCCESSFUL trading to get back to the trade size I had been taking that day…
So, the first thing I did that day to cause such a hole in my account was throw away my Money Management rules. However, that wasn’t all that followed! Through just that one act, I lost all sense of discipline, and also didn’t follow my trade strategy. By exiting early, I hadn’t given the trade a chance to succeed according to my entry and exit rules for that trade. Now, had I adhered to my money management rules, and applied my normal trade size, I would not have been concerned by the trade potentially hitting my Stop Loss, and therefore would have remained in the trade, and been in a position to record a successful outcome, and not a rather large losing one!
I tell this story not for entertainment value, but to share a lesson on how disciplined you have to be at all times in Forex Trading. My discipline here had succumbed to the emotions of greed and fear, and I paid dearly for it. What I’m telling you here is,… if you allow just one area of your trading to ‘relax’ against your predetermined Trading Rules, no matter how valid you think your reasons are, there is a very high probability you will pay the price. You will likely ‘need’ to break other rules too.
I would ask you to think about this….Your Trading Plan will have been created while in an environment of calm and rational thinking, based on information, knowledge and facts. When you are trading Forex, the environment is neither calm nor rational, and the only thing that can keep you trading calmly and rationally, is to be disciplined enough to follow the rules of your Trading Plan – and in that, Money Management will be clearly defined.
Your adherence to your Money Management rules, and the power of compounding will help move the odds of reaching your trading goals in your favour …
Remember that..
By: Martin Hayne
Daytrading the ABCD Fibonacci Pattern (Forex Trading)
Jan 21st
Examples of applying the ABCD pattern on the 5min chart of the GBP/JPY pair throughout the trading day (non-news).
Trading With Forex Trading Pips
Jan 21st
If you have had it with the stock market and are still licking your wounds from the 2008,2009 losses, there is another investment opportunity to try. If you loved the thrill of investing in stocks, but can’t afford the risk now, you may want to try getting into the forex currency trading market. Forex means: foreign exchange market. The forex currency trading market generates approximately $3.2 trillion dollars worth of transactions each day which makes it a giant compared to all the other capital markets world wide. When trading on the forex market you are dealing with 8 major currencies rather than thousands of stocks, so in a way it is simpler. To start you can trade in forex trading pips and then expand.
Forex trading pips are the smallest unit of price that a currency can be traded in. It is kind of like the minimum stock investment you are allowed to make in the stock market. If you invest the minimum necessary for several currency pairs, you keep your investment limited and can try more currencies. When you are more sure of your choices, you can liquidate the lesser performing ones and buy more in the better performing ones. You always deal with currency pairs which are 2 currencies involved in a foreign exchange rate like EUR/USD. The first or base currency here is the Euro, the second is the United States dollar
The eight currencies most traded are: US Dollar, Euro, Swiss Frank, Japanese Yen, Australian Dollar, British Pound, Canadian Dollar and the New Zealand Dollar. All currencies have interest rates attached to them by the central bank of their country. You are really buying one currency while selling another. You earn money by the difference in interest rates for the pair and the hoped for increase in value of the currency you buy. In this transaction yield drives return. Forex trading pips, or small investments, earn you money when the interest you pay on what you sold is less than the interest you are earning on what you buy.
Some of your trades will win and some will lose you money. To increase your win ratio you need to become familiar with all the 8 countries involved in the currency trading market. You need to familiarize your self with the financial and social health of each country. It is important to understand the economics of the currency countries to be able to know the interest rates and their trends. Healthy countries have rising interest rates, while counties in trouble tend to lower interest rates. Figuring out what currency will have higher interest rates is what makes you money.
By: Brad Grayson
Forex trading pips are the smallest unit of price that a currency can be traded in. It is kind of like the minimum stock investment you are allowed to make in the stock market. If you invest the minimum necessary for several currency pairs, you keep your investment limited and can try more currencies. When you are more sure of your choices, you can liquidate the lesser performing ones and buy more in the better performing ones. You always deal with currency pairs which are 2 currencies involved in a foreign exchange rate like EUR/USD. The first or base currency here is the Euro, the second is the United States dollar
The eight currencies most traded are: US Dollar, Euro, Swiss Frank, Japanese Yen, Australian Dollar, British Pound, Canadian Dollar and the New Zealand Dollar. All currencies have interest rates attached to them by the central bank of their country. You are really buying one currency while selling another. You earn money by the difference in interest rates for the pair and the hoped for increase in value of the currency you buy. In this transaction yield drives return. Forex trading pips, or small investments, earn you money when the interest you pay on what you sold is less than the interest you are earning on what you buy.
Some of your trades will win and some will lose you money. To increase your win ratio you need to become familiar with all the 8 countries involved in the currency trading market. You need to familiarize your self with the financial and social health of each country. It is important to understand the economics of the currency countries to be able to know the interest rates and their trends. Healthy countries have rising interest rates, while counties in trouble tend to lower interest rates. Figuring out what currency will have higher interest rates is what makes you money.
By: Brad Grayson
Money Management Tool
Jan 20th
Awesome tool to help with position sizing … Forex Money Management tool
Forex Trading Reviews & The 8 Essential Steps to Consider When Buying Forex Trading Systems
Jan 20th
When reviewing currency trading techniques and courses or currency exchange bots and signal services, the goal is to be certain they meet an express set of factors and to measure each product against those standards before passing judgment.
The rationale for this isn’t all foreign exchange products are born equal. Actually, tons of the courses and automatic systems out there are engineered to earn revenue for the creator of the product, not to make some money for the currency exchange trader.
With the explosion of forex trading products that have hit the market in the past year, it is more important than ever that forex traders do their homework before spending their money on that program that guarantees to turn $1,000 into $100,000 in just a short period of time.
There is a significant rise in these types of claims – and currency exchange traders would do well to remember that many if not all, of these claims are simply not right. Here’s an example : Maybe you have seen a title like this:
“My brand new You-Beaut Currency Exchange Trading Robot Turns $100 into $10,000 in just 1 week.Get It Now For Just $69.95…”
Consider this for a second– that means, in the second week, you would turn $10,000 into $2.5 MILLION — and in the third week, you would turn that $2.5 Million into $400 Million. And in just one MONTH your $100 would become $ 50,250,000,000 ( that is $ 50 Bln ). You’d be the wealthiest person in the world. All that for just $69.95. Pretty amazing hey.
Do you honestly think that is possible? Now we’d all like to confess we would like to believe it…but everyone knows better. That’s why when reviewing and testing currency exchange products a certain set of standards are used to compare and rate them.
An example of standards used to create whether a trading technique should be considered :
* In depth instructions
* Identifying trade opportunities
* How to enter and exit trades
* Trading to a plan and sticking to a system
* Managing your risk and money management
* Support, initial and ongoing.
* After sales products, forums, websites, updates etc
* A guarantee
If a currency exchange trading technique currency exchange robot or other foreign exchange course or program doesn’t meet these factors, it is tricky for them to be suggested as a candidate for your hard-won money.
Remember nobody can assure you profits trading foreign-exchange ( or any other market ).
If you’re reading optimistic claims, you want to steer clear of the product because there’s simply no way they can be true. It is occurring all too often that traders are defrauded by those saying Great, windfall profits.
The reality is this : foreign exchange trading is very scary if not approached with a trading plan and you are better off fitted out with education and a method where you are in charge of your trading activities. Automated programs, black box systems, mechanical or robot systems assume control AWAY from you. This should be bad idea and can only lead to great losses for you over a period.
One such method that ticks all of the boxes above is the new Forex Time Machine trading course from Bill Poulos. It has extensive tutorials on the methods, exact trading rules, excellent ongoing support and best of all, it works.
If approached in a professional manner and sticking to your rules, it is very hard not to be successful trading with this method.
By: Glen I Wilson
The rationale for this isn’t all foreign exchange products are born equal. Actually, tons of the courses and automatic systems out there are engineered to earn revenue for the creator of the product, not to make some money for the currency exchange trader.
With the explosion of forex trading products that have hit the market in the past year, it is more important than ever that forex traders do their homework before spending their money on that program that guarantees to turn $1,000 into $100,000 in just a short period of time.
There is a significant rise in these types of claims – and currency exchange traders would do well to remember that many if not all, of these claims are simply not right. Here’s an example : Maybe you have seen a title like this:
“My brand new You-Beaut Currency Exchange Trading Robot Turns $100 into $10,000 in just 1 week.Get It Now For Just $69.95…”
Consider this for a second– that means, in the second week, you would turn $10,000 into $2.5 MILLION — and in the third week, you would turn that $2.5 Million into $400 Million. And in just one MONTH your $100 would become $ 50,250,000,000 ( that is $ 50 Bln ). You’d be the wealthiest person in the world. All that for just $69.95. Pretty amazing hey.
Do you honestly think that is possible? Now we’d all like to confess we would like to believe it…but everyone knows better. That’s why when reviewing and testing currency exchange products a certain set of standards are used to compare and rate them.
An example of standards used to create whether a trading technique should be considered :
* In depth instructions
* Identifying trade opportunities
* How to enter and exit trades
* Trading to a plan and sticking to a system
* Managing your risk and money management
* Support, initial and ongoing.
* After sales products, forums, websites, updates etc
* A guarantee
If a currency exchange trading technique currency exchange robot or other foreign exchange course or program doesn’t meet these factors, it is tricky for them to be suggested as a candidate for your hard-won money.
Remember nobody can assure you profits trading foreign-exchange ( or any other market ).
If you’re reading optimistic claims, you want to steer clear of the product because there’s simply no way they can be true. It is occurring all too often that traders are defrauded by those saying Great, windfall profits.
The reality is this : foreign exchange trading is very scary if not approached with a trading plan and you are better off fitted out with education and a method where you are in charge of your trading activities. Automated programs, black box systems, mechanical or robot systems assume control AWAY from you. This should be bad idea and can only lead to great losses for you over a period.
One such method that ticks all of the boxes above is the new Forex Time Machine trading course from Bill Poulos. It has extensive tutorials on the methods, exact trading rules, excellent ongoing support and best of all, it works.
If approached in a professional manner and sticking to your rules, it is very hard not to be successful trading with this method.
By: Glen I Wilson