Monday, September 22, 2008

Benefits of Trading The Forex Market

Here are some benefit to forex trader. Historically, the FX market was available most to major banks, multinational corporations and other participants who traded in large transaction sizes and volumes. Small-scale traders including individuals like you and I, had little access to this market for such a long time. Now with the advent of the Internet and technology, FX trading is becoming an increasingly popular investment alternative for the general public.

The benefits of trading the currency market:
It is open 24-hours and it closes only on the weekends;
It is very liquid and efficient;
It is very volatile;
It has very low transaction costs;
You can use a high level of leverage (borrowed money) with ease; and
You can profit from a bull or a bear market.
Continuous, 24-Hour Trading

The value of currencies on the other hand is affected by so many factors and so many participants that the likelihood of any one individual or group of individuals drastically affecting the value of a currency is minute. Because of its sheer size, the currency market is hard to manipulate. The ability for people to engage in ‘insider trading’ is virtually eliminated. As an average trader, you are less disadvantaged. You are likely to be playing on relatively equal ground along with all the other traders and investors whom you are competing against.

Tuesday, September 16, 2008

Make Easy Pips With Economic Calendar

Using forex economic calendar and its forecast, we will enter a market order 30 mins before news release and close it 2 or 3 hours later. Set SL and TP to the "Price Range" shown. Stick with only the ones that set off high and medium volatility on price, i.e. employment situation, interest rate announcement, ISM PMI, Chigago PMI, etc. Look for the ones with red icon. You should improvise the market order with like stop/limit order to gain some more pips.

Here's an example, in the attached calendar image, the calendar forecasted that on January 05 2007 13:30 GMT, the EURUSD would be moving down 80 pips. So at 13:00 GMT, you would short selling EUR-USD with SL = 80 pips and TP = 80 pips. See the chart, you can made at least 80 pips with this one event alone!

Here's past results trading USA Employment Situtation:

2007/04/06 13:00: Long EURUSD at 1.3419. P/L: -50 pips.
Mar 2007: No data. No trade.
Feb 2007 13:00: Short EUR-USD, Profit: +63 pips
Jan 2007 13:00: Short EUR-USD at 1.3089, Profit: +80 pips
Dec 2006 13:00: Long EUR-USD at 1.3275, Profit: +80 pips
2006/11/03 13:00: Short EUR-USD at 1.2760, Profit: +80 pips.
2006/10/06 13:00: Short EUR-USD at 1.2662, Profit: +80 pips.
2006/09/01 13:00: Short EUR-USD at 1.2815, Profit: +10 pips.
2006/08/04 13:00: Long EUR-USD at 1.2793, Profit: +80 pips.
2006/07/07 13:00: Long EUR-USD at 1.2774, Profit: +80 pips.
2006/06/02 13:00: Long EUR-USD at 1.2814, Profit: +80 pips.
2006/05/05 13:00: Long EUR-USD at 1.2691, Profit: +52 pips.
2006/04/07 13:00: Short EUR-USD at 1.2176, Profit: +80 pips.
And the profit goes on...

16 Factor to Get easy Forex Pips

There are some factor to get easy forex pips on your daily trading activity. Here are some of the tips. Discover your own way start earning on your forex investment. Ok, here we go.....
1. Consistent results testified by TradeStation reports
2. Signals are for the 4 main currency pairs: EUR, GBP, CHF, JPY
3. Set and forget trading system
4. Just few minutes per day for placing orders
5. Trade full or mini contracts according to your trading capabilities and risk aversion
6. Just a few minutes a day for placing orders
7. System trades are placed when market has low volatility
8. Not need to be in front of your pc
9. Specific entry, stops and targets levels for every trade
10. Signals are based on price and market action
11. 100% Mechanical
12. No needs for trending markets
13. Full customer support
14. We focus on small drawdowns
15. Trading rules honor’s system name being EASY.
16. High and consistent income stream

Wednesday, September 10, 2008

Currency and Forex Trading - Tips and Help

In this section we would discuss and explain the interesting world of forex trading. We have a comprehensive understanding of the business and some of our top financial advisors had written this content over a number of years. The result is an interesting yet easy to understand currency trading book for investors involved in the Forex Trading market.

Easy Forex Trading Platform – Example Real-Time Charts for Major Currencies
Easy Forex Trading Platform – Example Real-Time Charts for Major Currencies

Introduction: How to Use the Currency Trading Centre
This book has been developed to help the Forex beginner, though experienced and professional currency traders may find it a handy reference.
Beginners and novice Forex traders are likely to benefit from reading the entire text, starting with the first Chapter, which provides a basic overview of what currency trading is, and how to get started.
The chapters are set out in a logical flow, but do not need to be read in order to make sense, as each works as a discrete unit unto itself. You may prefer to focus first on those chapters that you feel will complement your particular knowledge base best. Read our forex glossary is a glossary of terms (listed alphabetically) used in the Forex business, that will prove helpful, and may serve as a valuable reference as you become an experienced currency trader.
With the help of this guide, you will soon be ready to start trading Forex – in fact, with the assistance of the online Easy-Forex™ team, you can start today. We wish you success in your trading, and hope you find this book interesting, helpful and enjoyable.

Before you start, please remember:
* Currency trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. Before deciding to undertake such transactions, a user should carefully evaluate whether his/her financial situation is appropriate for such transactions. Read more in the "RISK WARNING" section on the Easy-Forex™ Trading Platform website.
* Always ask your Forex dealer (the FX TRADING PLATFORM you wish to trade with) the questions we prepared for you in this book (chapter 9). Selecting the appropriate Forex TRADING PLATFORM is essential for success in handling your trading and monitoring your activity, as well as maximizing profits, while minimizing losses and costs.

To get the complete currency trading book FREE Download it NOW

Choosing the Right Day and Hidden Technique of Forex Trading

Choosing the right time to trade can make a differences between successful and hopeless forex trading. It’s proved and highly recommended not to trade on Weekday, Mondays, when the Forex market has recently opened and is making first steps to form a new trend and on Friday’s afternoon, during the big volume of closing trades. The best days to trade are Tuesday’s, Wednesday’s and Thursday’s, So Basically trade between Weekdays.

Forex is a big market to participate in and surprisingly only the top 5% are making money. That means the remaining 95% of traders are either breaking even or losing money. The small minority at the top in this business have their own hidden techniques and strategies that they use to profit. I hope to give you a glimpse into what they do. The expert trader also knows when it is appropriate to drop the training wheels, which happen to be the demo platforms. I’m not saying demos are bad because they are excellent tools for people relatively new, but there is a point where they can no longer help you and can be detrimental to your success. You have to learn to recognize this point and stop using it.

Sunday, September 7, 2008

7 Useful Tips for Forex Traders

Tip 1. Gamblers go to casino. All unproved, spontaneous actions in Forex trading — are a part of pure gambling.
Any attempt to trade without analysis and studying the market is equal to a game. Game is fun except when you are losing real money...

Tip 2. Never invest money into a real Forex account until you practice on a Forex Demo account!
Allow at least 2 month for demo trading. Consider this: 90% of beginners fail to succeed in the real money market only because of lack of knowledge, practice and discipline. Those remaining 10% of successful traders had been sharpening and shaping their skills on demo accounts for years before entering the real market. A good demo account to start practicing with could be.

Tip 3. Go with the trend!
Trend is your friend. Trade with the trend to maximize your chances to succeed. Trading against the trend won't "kill" a trader, but will definitely require more attention, nerves and sharp skills to rich trading goals.

Tip 4. Always take a look at the time frame bigger than the one you've chosen to trade in.

It gives the bigger picture of market price movements and so helps to clearly define the trend. For example, when trading in 15 minute time frame, take a look at 1 hour chart; trading hourly would require obtaining a picture of daily, weekly price movements. If a trend is hard to spot — choose a bigger time frame. Up and down market patterns are always present. Always make sure you know the dominant trend, unless you are a scalper. Scalpers have no need to spend their time studying big trends, what's happening in the market here and now (during 5-10 minute time frame) should be of only importance to a Forex scalper.

Tip 5. Never risk more than 2-3% of the total trading account.
One important difference between a successful and an unsuccessful trader is that the first is able to survive under unfavorable conditions on the market, while an unsuccessful trader will blow up his account after 5-10 unprofitable trades in the row. Even with the same trading system 2 traders can get opposite results in the long run. The difference will be again in money management approach. To introduce you to money management, let's get one fact: losing 50% of total account requires making 100% return from the rest of money just to restore the original balance.

Tip 6. Put emotions down. Trade calm.
Don't try to revenge after losing the trade. Don't be greedy by adding lots of positions when winning.
Overreaction blocks clear thinking and as a result will cost you money. Overtrading can shake your money management and dramatically increase trading risks.

Tip 7. Choose the time frame that is right for you.
Choosing wise means that you are comfortable and have time enough to analyze the market, place and close orders etc. Some people can't wait for hours for the price to make a move, they like action and therefore prefer smaller time frames. On the contrary, for others 10-15 minutes is a hustle to be able to make the right decision.

Source : Forex tips and advice

Thursday, September 4, 2008

Simple but Accurate Forex System

You need a simple system, because its very robust complicated
ones fail because they have too many elements to break.

Here is the logic of my system:

1. Look for Valid Support and Resistance
Yes good old trend lines then, check for a valid level - lots of
tests, in lots of time frames. Next I wait for the level to
break and new high or low to be made.

All the big trends come from breakouts and these are the moves
to go for.

Most traders like to wait for the pullback but they never get
in. By waiting for a better price they miss the move. Losers
don't go with breakouts winners do.

2. Confirm the Trading Signal
You then need to see if the odds are on your side with the
breakout so you check price momentum. There are lots of momentum
indicators to help you time your move and get the velocity of
price on your side. The ones you choose are a matter of personal
preference but I like the ADX, RSI and stochastic. If my
momentum calculation adds up I go with the break.

3. Stops
Stop below the breakout point and then trail the stop up behind
random volatility not to get clipped out I like the 40 day MA.
That's it! Simple yes of course but it works for me. The real
trick is being patient I only trade 1 - 2 times a month with
this method and to take short term draw down trailing the stop.

Adapted to Swing Trading
If the market is not trending, I adopt the strategy to look for
shorter term moves and swing trade i.e using momentum to trade
the moves between support and resistance. When doing this there
is no trailing stop, just a target.
This method was simply one I picked up from a commodity trader
in the late seventies and after trying all sorts of methods,
it's the one I settled on in the mid eighties and have used ever
since. It works on commodities currencies and stock indexes.

Is it perfect? No, does it make money longer term - Yes and good
money for the effort of 30 minutes or less a day.
I always get amused by people saying you have to keep updating
your forex trading strategy and keep a journal of losses and why
they occurred etc. To complicated for me! If I lost that's fine
you have to have losses to make gains and if the system isn't
broke don't fix it.
I have the confidence to follow it, as know its logic and
therefore have the discipline to follow it.

You can do it!
The above currency trading basic plan for profit will work for
you, if you want it to.
You just have to learn the logic, settle on your indicators and
you're all set to lock into the exciting world of global
currency trading.

If there is one area of life where you can keep it simple its
currency trading and the real key is to have the confidence and
discipline to follow your plan.

Source :

Forex Divergance Strategy

Currency: EUR/USD (preferred) or any other.
Time frame: 30 min.
Indicators: MACD (5, 26, 1) – draw 0 line,
Full Stochastic (14, 3, 3)
SMA 13
Trading rules: watch for divergence between the price on the chart and MACD or between price on the chart and Stochastic.
Once divergence spotted, wait for EMA 3 and SMA 13 to cross and enter the trade in the direction of EMA 3.
Set stop loss at 26 pips.
Take half of the profit at 20 pips; let the rest to run further with trailing stop in place.

Divergence on Stochastic can be found the same way as on MACD. The reason for using both MACD and Stochastic is that one of the indicators can show divergence while the other will not at given period of time.

Source : Edward Revy – Fx Strtgy Rvl

Tuesday, August 26, 2008

4 Key reason You will probably lose - Forex Robots

  1. Forex robots look like a way to riches if you read the copy but really common sense tell you are unlikely to win here's why. Most are sold on the basis invest 100 or so dollars and you get an income for life - obviously there is something amiss here and you will see why in the next point.
  2. No Track Record All the robots you see rely on back testing. To clarify, this is not real money made just paper profits simulated. Trading forward and trying to make money is somewhat more difficult. These forex trading systems are not proven in the cut and thrust of real trading and here lies the problem. Would you trust someone to teach you to drive who hadn't passed their test? No. Would you trust someone to make money who shows no evidence of having done it themselves - exactly.
  3. Minimum Investment Is normally a hundred or few hundred dollars well first drawdown period will wipe you out on even a good system, let alone one that has not been proven. Leverage will destroy the account when a drawdown period is hit and there will be one as there is on every system.
  4. You don't need to know anything About Forex Well if you don't how would you have the confidence to give you the discipline to stick through losing periods? You need discipline and that comes from understanding what you're doing and if you do get the right forex trading education, you will realise a forex robot with a simulated track record is unlikely to make you any money. You Can Make Money But Be realistic and be sensible and don't get taken in by hyped advertising copy. Get the right forex education and learn currency trading the right way and you can build your own forex trading system and seek long term currency trading success. You will understand what you are doing and why it will lead you to success and have the discipline to stay on course to ride out losing periods and hit home runs and make profits.
You don't get anything for no effort in this world and forex trading is no different so get the ride education, work smart and get on the road to forex trading success.

Source : Leslie Berkovits article

Monday, August 25, 2008

How to avoid typical pitfalls and start making money in your forex trading ?

There are some other ways to avoid typical pitfalls and start making money in your forex trading. These six step are few of them, start your change today and be a better forex trader.

  1. Trade pairs, not currencies - Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.
  2. Umambitious trading - Many new traders will place very tight orders in order to take very small profits. this is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have recover the difference between the bid and ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.
  3. No strategy - The aim of making money is not trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. without a strategy, you may become one of the 90% of new traders that lose their money.
  4. Trade on the news - Most of the really big market moves occur around news time. trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices change resulting in a serious currency flow.
  5. Don't act smart - The most successful traders keep their trading simple. They don't analyze all day or research historical trends and track web logs and their result are excellent.
  6. Emotional Trading - Without that all-important strategy, you're trades essentially are thoughts only and thoughts are emotions and a very poor foundation for trading. When most of us are upset and emotional, we don't tend to make the wisest decisions. Don't let your emotions sway you.

Sunday, August 24, 2008

The Secret Tips on how to Success in Trading

I think I had better start off by clarifying that there really are no “secrets” to trading in the forex market, but there are certain things that successful traders do that unsuccessful traders do not do – and vice versa.It seems to be a well established fact that 95% of all the people that trade the forex lose some or all of their investment while a small percentage of traders make a very handsome return. Why is this?

If we were able to make a detailed study of every successful trader, we would find that there is a common thread that runs through these people. The details that we could take from this thread could be considered to be the five secrets of successful forex trading.So here is the first “secret”. Successful Forex Traders love to trade. They love everything about trading. They love the studying, the planning, the scheming, the waiting, the anticipation, the execution, the result, the atmosphere and of course they love making lots of money.

These traders talk, eat, sleep and dream trading. It is not a job. It is a way of life. They DO NOT do it just for the money!In my forex trading business, one very common question that I am asked is “how do you overcome the boredom of being stuck in front of your PC all day?”.The answer is of course that I do not find it boring. I love trading and if I didn’t, I would find a different way to make a living.

The next “secret” is emotional control. Successful traders have learned the ability to trade without emotion. This does not mean that they do not care about the outcome of their trade, quite the opposite. Successful traders always trade to win, but they do not let their emotions play a part in the process. They just look at the cold hard facts and then either trade or wait. Successful traders also accept that there will be both winning and losing trades and they treat both with the same lack of emotion.The next “secret” is to have a system. Now it really does not matter what system you use so long as it produces more and bigger winning trades than losing ones. This is referred to in trading circles as “an edge”. If you do not have an edge, then I highly recommend that you consider the trading system that I co-developed called The Amazing Stealth Forex Trading System. It is available from the website:

The penultimate “secret” is to be disciplined. This means having the self discipline to STICK TO THE PLAN. There is a great maxim in trading. Plan the trade and trade the plan. If you have a winning system, make sure that you have the discipline to stick to the rules exactly.

The final “secret” is to have enough money to trade safely. In many ways this should be RULE NUMBER ONE. More people fail to make money when trading on the forex through insufficient trading capital than for any other single reason.

When trading it is vital to adhere to strict money management and capital conservation techniques. Money management must be an integral part of any good trading system, and of course you should never trade with money that if lost would cause you or your family financial difficulty.If you can take onboard and learn these not so secret “secrets”, there is no reason why you should not be able to join the ranks of successful forex traders.

Source : Forex World

Saturday, August 23, 2008

How Can Automated Trading System Help You make more money

How can an Automated forex trading system help you make more money? There are 3 ways which are directly related to what these software do:
  1. Help you make wiser trading decisions. We all know that the forex market is a difficult one. It's difficult to make the right trading decisions with any consistaency. And each mistake can cost you dearly. Automated forex trading systems can help you to make better decisions. That way you will minimize your losses and maximize your profits.
  2. Automatic forex trading system can help you make faster decisions and more transactions. We are only human and we cannot do twenty different places at the same time. But on the forex market, opportunity knocks at twenty different places around the world at the same time. You can't be on top of all that, but an automatic forex system can do it better.
  3. The final way in which an automatic forex trading system can help you make your money is to do some of the trading for you. Of course, not every software does this, and it's best that you know how to operate your software completely, but just imagine how our software can make transactions for you while you sleep, or during your work hours. This isn't magic, you will need to know how to use your system, but there are some excellent software out there.
In this day and age, it's impossible to make real money on the market without some kind of automated system. Get one for yourself and start making more money.

Source : Forex Blueprint

Friday, August 22, 2008

Two kind of Success Factor in Forex Trading

Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it? This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading.

  1. Trade pairs, not currencies - Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.
  2. Knowledge is Power - When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments.
The main forex influencer is global news and events. For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.

The second and final part of this report clearly and simply details more essential tips on how to avoid the pitfalls and start making more money in your forex trading. Watch out for the concluding part of Forex trading tips soon.

Source : Naija Sense's Blog

Thursday, August 21, 2008

Forex Tips and Strategy - Fear and emotion - How you control them

Have you ever been in the situation where you have evaluated the market, saw your strategy set-up perfectly and then just couldn’t pull the trigger? You become paralyzed, unable to move even though you know your high probability set-up has just triggered.
This fear is very real for many traders and very detrimental to your account. Fear is a powerful emotion, distorting fact from fiction and often creating an emotional response. Many experts tell you to trade without emotion, but is that really practical? We are indeed human. Remember the basis for the reaction is real, but the fear usually is not.
Fear blocks your ability to execute high probability trades and we must find strategies to manage our fear. With time comes experience and for traders it is the ultimate super hero for fear.

In the meantime, if you are struggling with fear-based execution challenges here are some simple tips to get you over the hump.

  • Embrace the Emotion, Acknowledge your emotions. If you find yourself analyzing a trade to the point of paralysis don’t try to ignore the emotions. Separate yourself from this river of negativity. Visualize yourself on the river bank as these torrents of emotions are flowing by. You will gain great awareness to the triggers and learn a lot about who you are as a trader.
  • Separate Fear from Fact, If you fear pulling the trigger because of loss (what if I am wrong), that will stop you from enjoying the profits the market may make available to you at any given time. Don’t avoid the action that might cause the loss, but re-frame the problem as fear itself. You have evaluated the market, figured out your reward –to-risk ration and accepted your potential for loss through your stop-loss and money management plan. At this point loss is not the obstacle – fear is. There is no such thing as failure, only feedback and that will guide you to consistent and profitable trading.
  • Re-Think the Consequences, If your mind is off to the races with all sorts of possibilities what’s the worst that can happen if Murphy’s Law gets enacted during your trade? You have already addressed this in your trading plan. Plan your trade and trade your plan. Again fear is trumped and the only way it can be realized is if you didn’t follow your plan. Sticking to your plan is the clearest way to distinguish between a losing trade, which is just a part of business, and a bad trade which is a career killer!
  • Act in Spite of Fear, Feel the fear and do it anyway. Return to your mission statement or your “why?” statement. The reasons you trading should be big enough to overcome any possible obstacle your fear emotion can conjure up. Acknowledge the fear and do it anyway. You may not have a winning trade, but you will have executed your plan and over time probability will pay you back.
  • What is all comes down to is the intangibles of trading. Why do I and so many others drive home discipline-based Forex Education and Training approaches. You will never get rid of fear, but with practice you can turn it into a manageable obstacle and deploy it to your advantage.

Forex Tips and Strategy - Forex Simple Breakouts system

The idea behind this Forex trading system was to capture an early move of the price when it start to establish its new direction or trend for the day.

We know that the Frankfurt market opens at 2:00 am EST (which is 7:00 am GMT), then an hour later the other giant - London market opens at 3:00 am EST (which is 8:00 am GMT). The European session is the first major session for each coming day.

So... what do we do ???
We start with 1 hour time frame, preferred pair - GBP/USD and no indicators. The price range we are going to focus on is from 1 : 00 am EST to 2 : 00 am EST. We look for the highest high and the lowest low of the price in that range and simply draw parallel horizontal lines through those extremes that will create a tunnel.

Now we are ready to move to a smaller time frame (5 minute chart) and watch for the whole 5 min candle to close outside the tunnel which will provide a signal for us to enter with the open of the next candle.

We use a 20 pip stop OR the other side of the tunnel - whichever is less.

We are aiming at least 20 pips profit.
After that we have several options:
  • Lock the profit in,
  • Start "chasing" the price with a trailing stop by placing the stop just below the lowest low of the previous 5 min candle,
  • Or simply exit within the three consecutive hourly candles from the moment the trading order was filled.

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