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

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