One of the best ways to learn how to trade forex is to either buy a book on the subject or go online and purchase a forex course. There are lots of these courses available so today I want to talk about what you should be looking for when choosing one of these forex courses.
A lot depends on how much knowledge of forex trading you have already. If you know next to nothing about this exciting industry then you will obviously want to choose a course that will start right at the beginning and teach you the basics of forex trading.
If, however, you have been trading for a while but want to further your education, then you will probably want to choose a course that will teach you about some of the more advanced subjects such as how to use technical analysis and how you can use technical indicators to improve your trading.
Alternatively you may already know about all of these things but your only problem is that you are not yet making any profits. In which case you will want to choose a course that teaches you a specific trading strategy that is actually profitable in the long run. Now unfortunately these are few and far between but there are a few decent courses being sold online which provide you with a decent trading strategy.
One of these is Forex Nitty Gritty. This course has only been out for a few months but it's one that I can strongly recommend because it covers all three of these areas. It teaches you the basics of forex trading, discusses technical analysis in great detail, and best of all it teaches you a profitable strategy you can use to trade the currency markets.
Showing posts with label learn forex. Show all posts
Showing posts with label learn forex. Show all posts
Thursday, 30 July 2009
Tuesday, 29 July 2008
Becoming A Top Forex Trader - 3 Shortcuts To Success
Forex trading is extremely popular nowadays with many people being attracted by the huge sums of money that can be made, but most successful forex traders are only profitable because they've gone through a long and steep learning curve. There are, however, ways in which you can become a successful forex trader a lot quicker.
The first way is by subscribing to some kind of forex signals service. It should be noted that the vast majority of these subscription services are a big waste of time where you will nearly always lose money in the long run. However, there are a few good signal providers out there. The best ones are run by professional traders who actually trade their own signals.
So how does joining one of these top forex signals companies help you become a better trader?
Well apart from blindly following the service provider's signals, you can often learn an awful lot about successful trading by just watching and interacting with the pro trader who is creating the signals. Many of these premium signal providers will have live chat rooms where you can not only interact with the pro trader and ask them any questions, but also chat and exchange ideas with the other traders in the chat room.
The other way you can become a successful forex trader a lot quicker is by following an already successful forex trading system. So in other words rather than spending hours on end poring over charts looking to devise your own profitable system, why not use a system that's already out there and producing profits?
You can find a lot of successful trading systems just by visiting some of the top forex forums. Many top traders are prepared to share their successful systems because not only does it boost their ego, but it makes no difference to their bottom line how many other traders are trading their system as well.
Finally if you really want to become successful, then my best advice would be to find a mentor, ie an experienced trader, who has been profitable for several years, who can teach you how to trade successfully. Of course not everyone is lucky enough to know a successful trader in real-life but you can always search around online, even if it's just on forex forums, for successful traders. Then you can approach them for advice and offer to pay them for some one-on-one coaching if necessary.
So to sum up, if you want to become a consistently profitable forex trader, you can either go it alone and try and find your own profitable system, or you can use other traders to help you to become successful. So, for instance, you can use an existing forex trading system that's currently being used by other traders or you can gain advice either from a top forex signal provider who trades their own signals or an experienced trader who can mentor you and teach you how to trade.
Click here to read a review of Zulu Trade, the revolutionary forex signals service, and to discover why Zulu Trade is arguably the best forex signals service.
The first way is by subscribing to some kind of forex signals service. It should be noted that the vast majority of these subscription services are a big waste of time where you will nearly always lose money in the long run. However, there are a few good signal providers out there. The best ones are run by professional traders who actually trade their own signals.
So how does joining one of these top forex signals companies help you become a better trader?
Well apart from blindly following the service provider's signals, you can often learn an awful lot about successful trading by just watching and interacting with the pro trader who is creating the signals. Many of these premium signal providers will have live chat rooms where you can not only interact with the pro trader and ask them any questions, but also chat and exchange ideas with the other traders in the chat room.
The other way you can become a successful forex trader a lot quicker is by following an already successful forex trading system. So in other words rather than spending hours on end poring over charts looking to devise your own profitable system, why not use a system that's already out there and producing profits?
You can find a lot of successful trading systems just by visiting some of the top forex forums. Many top traders are prepared to share their successful systems because not only does it boost their ego, but it makes no difference to their bottom line how many other traders are trading their system as well.
Finally if you really want to become successful, then my best advice would be to find a mentor, ie an experienced trader, who has been profitable for several years, who can teach you how to trade successfully. Of course not everyone is lucky enough to know a successful trader in real-life but you can always search around online, even if it's just on forex forums, for successful traders. Then you can approach them for advice and offer to pay them for some one-on-one coaching if necessary.
So to sum up, if you want to become a consistently profitable forex trader, you can either go it alone and try and find your own profitable system, or you can use other traders to help you to become successful. So, for instance, you can use an existing forex trading system that's currently being used by other traders or you can gain advice either from a top forex signal provider who trades their own signals or an experienced trader who can mentor you and teach you how to trade.
Click here to read a review of Zulu Trade, the revolutionary forex signals service, and to discover why Zulu Trade is arguably the best forex signals service.
Wednesday, 30 April 2008
Can Part-Time Forex Trading Be Profitable?
Forex trading can be difficult at the best of times. Even if you're doing it full-time and sitting at a computer screen all day closely monitoring your positions, it can be really tough going. So can you really make money from forex trading on a part-time basis?
Well I am a profitable forex trader overall and although I do sit at my screen for most of the day, most of this time is spent working on my various websites. The actual time spent staring at charts is minimal in comparison.
My relaxed attitude to forex trading is down to the fact that my main trading method is based on the 4 hour charts of the major currency pairs. As well as using a number of technical indicators for guidance, one of my most tried and trusted methods is to wait for crossovers in short-term EMAs (Exponential Moving Averages). This generally only requires me to glance at my charts every so often to see if a crossover is imminent.
Admittedly, however, this isn't really a true definition of part-time trading. I still have to be at my monitor for most of the day either looking for new positions or keeping an eye on any open positions.
Part-time trading really means only trading forex for a portion of the day, for example only during certain hours, or taking a hands off approach and setting entry and exit orders (including stop losses and limit orders) that will be triggered automatically if a certain price is achieved some time in the future when you are away from your computer.
This sounds even more difficult but it is actually quite possible to make profits this way. For example if you are only going to trade for a portion of the day and take a shorter-term approach, you could do a lot worse than only trading during the opening hour or two of the London session, ie 8.00-9.00 UK time. I often trade the 5 minute charts during this time and make decent profits because prices of the major currencies, particularly the GBP/USD and the EUR/USD trend strongly during this busy opening hour.
Another method of trading is to only trade the daily charts. For example, if you are working full-time your best bet would probably be to devise a strategy that monitors daily support and resistance levels and looks for possible breakouts the following day. This way you could set your orders the night before and they will be triggered if a certain price is met.
So to sum up, it is most definitely possible to trade the markets on a part-time basis. In fact you will often find that traders who only trade during certain busy periods of the day do just as well, if not better, than traders who trade all day long.
James Woolley runs a forex blog which includes trading tips and strategies, a review of FXcast and a Forex Club review.
Well I am a profitable forex trader overall and although I do sit at my screen for most of the day, most of this time is spent working on my various websites. The actual time spent staring at charts is minimal in comparison.
My relaxed attitude to forex trading is down to the fact that my main trading method is based on the 4 hour charts of the major currency pairs. As well as using a number of technical indicators for guidance, one of my most tried and trusted methods is to wait for crossovers in short-term EMAs (Exponential Moving Averages). This generally only requires me to glance at my charts every so often to see if a crossover is imminent.
Admittedly, however, this isn't really a true definition of part-time trading. I still have to be at my monitor for most of the day either looking for new positions or keeping an eye on any open positions.
Part-time trading really means only trading forex for a portion of the day, for example only during certain hours, or taking a hands off approach and setting entry and exit orders (including stop losses and limit orders) that will be triggered automatically if a certain price is achieved some time in the future when you are away from your computer.
This sounds even more difficult but it is actually quite possible to make profits this way. For example if you are only going to trade for a portion of the day and take a shorter-term approach, you could do a lot worse than only trading during the opening hour or two of the London session, ie 8.00-9.00 UK time. I often trade the 5 minute charts during this time and make decent profits because prices of the major currencies, particularly the GBP/USD and the EUR/USD trend strongly during this busy opening hour.
Another method of trading is to only trade the daily charts. For example, if you are working full-time your best bet would probably be to devise a strategy that monitors daily support and resistance levels and looks for possible breakouts the following day. This way you could set your orders the night before and they will be triggered if a certain price is met.
So to sum up, it is most definitely possible to trade the markets on a part-time basis. In fact you will often find that traders who only trade during certain busy periods of the day do just as well, if not better, than traders who trade all day long.
James Woolley runs a forex blog which includes trading tips and strategies, a review of FXcast and a Forex Club review.
Wednesday, 23 April 2008
The Major Pitfalls Of Backtesting Technical Indicators
Backtesting technical indicators and viewing historical charts of currencies or stocks, for example, can provide useful information about whether a technical indicator or combination of indicators can be relied upon to help make profitable trading decisions.
However in my years of experience as a forex trader and having spent hours on end poring over historical charts to see how effective a particular indicator or system is, there is one thing I've learnt and that's that historical data can very often be misleading.
Often you will find that the latest technical indicator that you're testing out has proven to be extremely effective at predicting forthcoming price moves based on historical charts, but when you come to trade this indicator in real time the results are not as profitable as it would seem from your past analysis.
This is because there are certain indicators that repaint data in real time that doesn't necessarily show up in historical charts. They may change or give a clear signal during a particular candle period, but after the candle or bar is closed, there is no evidence that such a signal ever took place.
This is why real time trading is so much harder than it would seem from analysing price charts from the past.
An example of such an indicator is any of the moving averages. Let's take the EMA (Exponential Moving Average) as an example.
Often you will see a shorter term EMA cross a longer term EMA in real time, which is very often a strong signal, but if the price suddenly reverses then the shorter term EMA will also reverse and so a crossover may not happen at all.
Therefore when the current candle closes it will appear as if a crossover never actually happened even though in real time it did briefly and you could have made a trading decision based on this crossover. So this is an example of how historical data can be misleading and doesn't always tell the whole story.
Similarly there are are a number of other repainting indicators which can also change or reverse in real time, but which don't necessarily indicate this when viewed later on on a historical chart after the candle is closed.
So overall you have to be very careful when viewing past data because often the chart will tell a different story after the candle or bar has closed than what actually happened when you were trading live. If historical patterns and trends played out exactly in real time as they appeared to do in the past, with no misleading or false signals, then we would all be extremely wealthy.
Click here to read James Woolley's FXcast review, his Forex Trading Machine review and all the latest tips and strategies related to forex currency trading.
However in my years of experience as a forex trader and having spent hours on end poring over historical charts to see how effective a particular indicator or system is, there is one thing I've learnt and that's that historical data can very often be misleading.
Often you will find that the latest technical indicator that you're testing out has proven to be extremely effective at predicting forthcoming price moves based on historical charts, but when you come to trade this indicator in real time the results are not as profitable as it would seem from your past analysis.
This is because there are certain indicators that repaint data in real time that doesn't necessarily show up in historical charts. They may change or give a clear signal during a particular candle period, but after the candle or bar is closed, there is no evidence that such a signal ever took place.
This is why real time trading is so much harder than it would seem from analysing price charts from the past.
An example of such an indicator is any of the moving averages. Let's take the EMA (Exponential Moving Average) as an example.
Often you will see a shorter term EMA cross a longer term EMA in real time, which is very often a strong signal, but if the price suddenly reverses then the shorter term EMA will also reverse and so a crossover may not happen at all.
Therefore when the current candle closes it will appear as if a crossover never actually happened even though in real time it did briefly and you could have made a trading decision based on this crossover. So this is an example of how historical data can be misleading and doesn't always tell the whole story.
Similarly there are are a number of other repainting indicators which can also change or reverse in real time, but which don't necessarily indicate this when viewed later on on a historical chart after the candle is closed.
So overall you have to be very careful when viewing past data because often the chart will tell a different story after the candle or bar has closed than what actually happened when you were trading live. If historical patterns and trends played out exactly in real time as they appeared to do in the past, with no misleading or false signals, then we would all be extremely wealthy.
Click here to read James Woolley's FXcast review, his Forex Trading Machine review and all the latest tips and strategies related to forex currency trading.
Monday, 14 April 2008
Forex Day Trading 101 - Important Facts for Novice Traders
This article is for novice traders and we are going to look at 3 facts which are all you need to know to decide whether day trading is right for you. So let's continue and review our forex trading 101 continues below...
Fact 1
All Short Term Volatility is Random
There is no order to short term volatility and prices can and do go anywhere in short time periods - Why?
Quite simply there are huge numbers of traders all with different levels of skills, systems and motivations for trading and you can tell what this mass diverse group of people will do in short periods of time - it's laughable that traders think you can measure human psychology of millions in just a few hours but they do and they lose for believing it.
Fact 2
Random Volatility = No Odds on Your Side
Forget the far out investment crowd who believe there scientific order and you can predict forex prices you can't ( if you could there would be no market as we would all know the answer in advance!), so those systems who tell you can make a regular income guaranteed are totally wrong. Forex trading is an odds game and to win you must be able to get the odds on your side. If volatility is random, you can't get the odds on your side and will lose - period.
Fact 3
Day Trading Breaks a Fundamental Rule of Trading
This is of course run your profits to cover your inevitable losses.
In forex day trading stops are close and losses are small and because you can get the odds on your side, you have a lot of them. Of course sometimes the forex day trader ends up with a profit when he's lucky - what does the trader do? Run it? Not a chance he cuts it!
It's pretty obvious that you would have to have luck constantly on your side to win and of course luck doesn't last forever. Eventually you have small losses and lots of them and the occasional small profit which leads to a decline and final wipe out of equity.
What about all the track records that claim to make money you may ask?
Well they all have the disclaimer / warning repeated below or a similar one and they mean nothing, as there just saying the track record has been made up and simulated on paper in hypothetical trading, read it carefully:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
You will NEVER see a day trading system sold online with a long term audited track record of gains - Why? If you have read this article you will already know the answer it doesn't work.
If you want to win you need to trade the odds and that means trading longer term.
So instead of day trading make longer term trading part of your forex education and you could enjoy currency trading success.
NEW! 2 X FREE ESSENTIAL TRADER PDFS
For free 2 x trading Pdf's with 90 of pages of essential info on Currency Trading Basics visit our website at: http://www.learncurrencytradingonline.com
Fact 1
All Short Term Volatility is Random
There is no order to short term volatility and prices can and do go anywhere in short time periods - Why?
Quite simply there are huge numbers of traders all with different levels of skills, systems and motivations for trading and you can tell what this mass diverse group of people will do in short periods of time - it's laughable that traders think you can measure human psychology of millions in just a few hours but they do and they lose for believing it.
Fact 2
Random Volatility = No Odds on Your Side
Forget the far out investment crowd who believe there scientific order and you can predict forex prices you can't ( if you could there would be no market as we would all know the answer in advance!), so those systems who tell you can make a regular income guaranteed are totally wrong. Forex trading is an odds game and to win you must be able to get the odds on your side. If volatility is random, you can't get the odds on your side and will lose - period.
Fact 3
Day Trading Breaks a Fundamental Rule of Trading
This is of course run your profits to cover your inevitable losses.
In forex day trading stops are close and losses are small and because you can get the odds on your side, you have a lot of them. Of course sometimes the forex day trader ends up with a profit when he's lucky - what does the trader do? Run it? Not a chance he cuts it!
It's pretty obvious that you would have to have luck constantly on your side to win and of course luck doesn't last forever. Eventually you have small losses and lots of them and the occasional small profit which leads to a decline and final wipe out of equity.
What about all the track records that claim to make money you may ask?
Well they all have the disclaimer / warning repeated below or a similar one and they mean nothing, as there just saying the track record has been made up and simulated on paper in hypothetical trading, read it carefully:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
You will NEVER see a day trading system sold online with a long term audited track record of gains - Why? If you have read this article you will already know the answer it doesn't work.
If you want to win you need to trade the odds and that means trading longer term.
So instead of day trading make longer term trading part of your forex education and you could enjoy currency trading success.
NEW! 2 X FREE ESSENTIAL TRADER PDFS
For free 2 x trading Pdf's with 90 of pages of essential info on Currency Trading Basics visit our website at: http://www.learncurrencytradingonline.com
Friday, 11 April 2008
Forex Trading - Advantage of Forex Trading Over Stock and Commodity Markets
The Foreign Exchange Market is better known as Forex trading. The question often arises of whether there is an advantage of Forex trading over stock and commodity markets. There are indeed advantages of investment in financial trading on the Forex market over the stock and commodity markets, and I will address those advantages in this commentary.
The Forex market offers so many advantages over stock and commodity markets that it is not hard to understand its popularity. The Forex market has centers located around the world so financial trading can be completed 24 hours a day. The Forex market is a truly worldwide market, and so when the doors close in one trading center another financial trading center is opening.
The second advantage of Forex trading involves the mind-set of the investors. While the Forex market indeed fluctuates with trends and cycles; it does not have the Bull and Bear market mentality of the stock and commodity markets.
The third advantage of Forex trading is that the Forex market involves financial trading of money. If the value of one currency falls on hard times, it gives potential for a profit in another currency. The Forex market is not negatively affected by rising interest rates. When a nation raises its interest rates the currency is generally strengthened, but raising interest rates has a tendency to depress the stock market.
The fourth advantage of Forex trading relates to the number of possible trades as related to the stock and commodity markets. The NYSE and NASDAQ markets have a combined total of about 8000 different stocks. It is very time consuming to stay on top of even a small portion of them. On the other hand, the Forex market has only four major currencies and just about 34 secondary currencies to consider.
The fifth advantage of Forex trading is associated with brokerage firms, because you do not have to pay commission fees when you participate in financial trading. Additionally, Forex market analysts tend to actually examine the currency market rather than dictate or manage the rise and fall of it, as the case often is in the and commodity market.
When the Forex market and the stock and commodity market are put toe-to-toe, the Forex market appears to be a better investment choice.
Here's something that is interesting; over $123 TRILLION was spent Online during 2007 and it is growing by OVER 20% a year. Get in on the Action. You can make 5 or 10 Grand EVERY month with NO phone calls, NO selling, NO start-up costs and very little work.
Click here and join my team I'm J.Michael Brown and you could make money and improve your health while doing it. Find out how to get a F*R*E*E Health & Wellness product and 2 Websites set-up F*R*E*E.
Learn about an Easy Way to Wealth and how you can get Inner Peace. It's all in a book, which has a step-by-step guide regarding a formula that I use every day. It explains how you can get everything you really want in life simply by doing three quick & easy things during the day. It is all in a well-documented book on my Website.
I hope you enjoyed this article. Go to http://www.eMoney101.com and read more of my commentaries that are about: Leadership, Losing Weight, Stopping Bad Habits, Love, Marriage and a lot more.
The Forex market offers so many advantages over stock and commodity markets that it is not hard to understand its popularity. The Forex market has centers located around the world so financial trading can be completed 24 hours a day. The Forex market is a truly worldwide market, and so when the doors close in one trading center another financial trading center is opening.
The second advantage of Forex trading involves the mind-set of the investors. While the Forex market indeed fluctuates with trends and cycles; it does not have the Bull and Bear market mentality of the stock and commodity markets.
The third advantage of Forex trading is that the Forex market involves financial trading of money. If the value of one currency falls on hard times, it gives potential for a profit in another currency. The Forex market is not negatively affected by rising interest rates. When a nation raises its interest rates the currency is generally strengthened, but raising interest rates has a tendency to depress the stock market.
The fourth advantage of Forex trading relates to the number of possible trades as related to the stock and commodity markets. The NYSE and NASDAQ markets have a combined total of about 8000 different stocks. It is very time consuming to stay on top of even a small portion of them. On the other hand, the Forex market has only four major currencies and just about 34 secondary currencies to consider.
The fifth advantage of Forex trading is associated with brokerage firms, because you do not have to pay commission fees when you participate in financial trading. Additionally, Forex market analysts tend to actually examine the currency market rather than dictate or manage the rise and fall of it, as the case often is in the and commodity market.
When the Forex market and the stock and commodity market are put toe-to-toe, the Forex market appears to be a better investment choice.
Here's something that is interesting; over $123 TRILLION was spent Online during 2007 and it is growing by OVER 20% a year. Get in on the Action. You can make 5 or 10 Grand EVERY month with NO phone calls, NO selling, NO start-up costs and very little work.
Click here and join my team I'm J.Michael Brown and you could make money and improve your health while doing it. Find out how to get a F*R*E*E Health & Wellness product and 2 Websites set-up F*R*E*E.
Learn about an Easy Way to Wealth and how you can get Inner Peace. It's all in a book, which has a step-by-step guide regarding a formula that I use every day. It explains how you can get everything you really want in life simply by doing three quick & easy things during the day. It is all in a well-documented book on my Website.
I hope you enjoyed this article. Go to http://www.eMoney101.com and read more of my commentaries that are about: Leadership, Losing Weight, Stopping Bad Habits, Love, Marriage and a lot more.
Thursday, 10 April 2008
Trader Tricks So You Won't Lose in the Forex Market
The forex market or the foreign exchange market has become a central and important business center. $2 trillion trades a day are made in this enormous market that is becoming more and more popular. You can make a lot of money but you can also lose a lot of money if your not careful here are some tips for success.
You begin with making yourself a trading plan one that can fit into your life. Make yourself a proper schedule at what times will you be doing your forex trading. Then check out what money you can put into the Market and build a proper budget so you can see the inflows and outflows. Take time and study the forex market you will have your ups and downs but you must stick to your plans so you will see profits on the long run. Then you must make sure that you have money that you can lose. It's a fact that in the forex market you need money to lose. There is no way to make money without losing some so make sure before you begin you have a sum that can be used for this purpose.
At least until you know what your doing go with the flow. Begin by trading the most popular currencies that are: United States dollar, USD, the Japanese yen, JPY, the European Euro, EUR, the United Kingdom pound, GBP, the Australian dollar, AUD, the Swiss franc, CHF, and the Canadian dollar, CAD. The majority usually chooses these pairs: GBP/USD, EUR/USD, AUD/USD, USD/JPY, USD/CHF, and USD/CAD. To make sure that your money will be well used is by keeping to your plan. Don't change your plan because you have a feeling. Make decisions cold minded and teach yourself to exit when the signs show you should.
The trends in the forex market are quite safe. The currencies can shift a bit in different directions but they usually stay quite steadily in a certain direction. So to follow the trends is usually a good idea. If you want success in the forex market be patient it pays off. Expect to have small losses without them you won't win either. The small losses are part of your plan to make big sums of money don't let them bother you. even great traders lose some to gain some.
You should be very careful of forex scams - companies that offer you services that can only pull you down. You must get away from them as quickly as possible. Build your own strategy with forex experts and trade by yourself or by licensed brokers. Make sure that you are using forex strategies that you understand and that all the information you have comes from forex guides, tutorials or professional forex signals providers. Be sure that you now what you are doing. Teach yourself to exit before you are in too deep. Keep inside your money limits and don't allow yourself to go over board. Leave when it's time, don't wait for the fall!
Mauro Sciaccaluga
You begin with making yourself a trading plan one that can fit into your life. Make yourself a proper schedule at what times will you be doing your forex trading. Then check out what money you can put into the Market and build a proper budget so you can see the inflows and outflows. Take time and study the forex market you will have your ups and downs but you must stick to your plans so you will see profits on the long run. Then you must make sure that you have money that you can lose. It's a fact that in the forex market you need money to lose. There is no way to make money without losing some so make sure before you begin you have a sum that can be used for this purpose.
At least until you know what your doing go with the flow. Begin by trading the most popular currencies that are: United States dollar, USD, the Japanese yen, JPY, the European Euro, EUR, the United Kingdom pound, GBP, the Australian dollar, AUD, the Swiss franc, CHF, and the Canadian dollar, CAD. The majority usually chooses these pairs: GBP/USD, EUR/USD, AUD/USD, USD/JPY, USD/CHF, and USD/CAD. To make sure that your money will be well used is by keeping to your plan. Don't change your plan because you have a feeling. Make decisions cold minded and teach yourself to exit when the signs show you should.
The trends in the forex market are quite safe. The currencies can shift a bit in different directions but they usually stay quite steadily in a certain direction. So to follow the trends is usually a good idea. If you want success in the forex market be patient it pays off. Expect to have small losses without them you won't win either. The small losses are part of your plan to make big sums of money don't let them bother you. even great traders lose some to gain some.
You should be very careful of forex scams - companies that offer you services that can only pull you down. You must get away from them as quickly as possible. Build your own strategy with forex experts and trade by yourself or by licensed brokers. Make sure that you are using forex strategies that you understand and that all the information you have comes from forex guides, tutorials or professional forex signals providers. Be sure that you now what you are doing. Teach yourself to exit before you are in too deep. Keep inside your money limits and don't allow yourself to go over board. Leave when it's time, don't wait for the fall!
Mauro Sciaccaluga
Wednesday, 9 April 2008
Beginner Forex Trading - What Every Beginner Should Know About Currency Trading
Forex trading is a very appealing way to make money online. Trillions of dollars exchange hands every day, and entire fortunes are made and lost literally overnight.
Part of the attractiveness of the Forex market is the ability for retail traders to trade on margin. Margin trading essentially involves the ability to trade a large sum of currency using only a fraction of your own money.
For example, when trading on a margin of 1:100, you can control $10,000 worth of currency using only $100 of your own money. This is what lures many amateur traders to take part in this multi-trillion dollar market - the potential to make a lot of money, by risking only a little of your own.
Understanding The Risks Of Margin Trading
Although margin trading is indeed a great way to make big bucks, beginner traders would do well do remember that it's actually a double-edged sword - it's just as easy to lose money as it is to win. So even though one can make potentially $300 in an hour, it's also equally likely for that person to lose the same amount within an hour (or even in a shorter time period!).
There Is No Central Governing Authority
The next thing beginner traders should know is that there is no official governing authority in the Forex trading industry. What this means is that unlike other financial trading exchanges where there is centralized control (such as the SEC for the stock market), the currency exchange market is not regulated by any organization at all.
This poses an extra risk for retail traders as it leaves the potential for scam ‘brokers' to set up shop, take your money and basically run away with it.
That's why retail traders will have to be extra careful when choosing a broker to work with. Where possible, do try to find reputable brokers such as big banks or other well-established trading houses.
You definitely wouldn't want to risk having your money cheated by scammers who are looking to make a quick buck at your expense.
Harold Hsu is currently giving away a free 26-page report on how to trade Forex profitably, and you can get it now at http://www.ForexSystemProfits.com. Harold is the owner of http://www.ForexSystemProfits.com where he provides premium Forex trading information and resources.
Part of the attractiveness of the Forex market is the ability for retail traders to trade on margin. Margin trading essentially involves the ability to trade a large sum of currency using only a fraction of your own money.
For example, when trading on a margin of 1:100, you can control $10,000 worth of currency using only $100 of your own money. This is what lures many amateur traders to take part in this multi-trillion dollar market - the potential to make a lot of money, by risking only a little of your own.
Understanding The Risks Of Margin Trading
Although margin trading is indeed a great way to make big bucks, beginner traders would do well do remember that it's actually a double-edged sword - it's just as easy to lose money as it is to win. So even though one can make potentially $300 in an hour, it's also equally likely for that person to lose the same amount within an hour (or even in a shorter time period!).
There Is No Central Governing Authority
The next thing beginner traders should know is that there is no official governing authority in the Forex trading industry. What this means is that unlike other financial trading exchanges where there is centralized control (such as the SEC for the stock market), the currency exchange market is not regulated by any organization at all.
This poses an extra risk for retail traders as it leaves the potential for scam ‘brokers' to set up shop, take your money and basically run away with it.
That's why retail traders will have to be extra careful when choosing a broker to work with. Where possible, do try to find reputable brokers such as big banks or other well-established trading houses.
You definitely wouldn't want to risk having your money cheated by scammers who are looking to make a quick buck at your expense.
Harold Hsu is currently giving away a free 26-page report on how to trade Forex profitably, and you can get it now at http://www.ForexSystemProfits.com. Harold is the owner of http://www.ForexSystemProfits.com where he provides premium Forex trading information and resources.
Wednesday, 31 October 2007
Economic Data Releases - Can You Successfully Trade Them?
Economic data releases occur almost every day and can have a dramatic effect on the forex markets, and indeed all major markets. They can cause wild swings and increased volatility which is great for traders, but can you successfully profit from them as a forex trader?
Before I address that question, let me start off by talking about data releases in more detail. As a trader the first thing you should do every day is consult an economic calendar to see what releases are scheduled for the forthcoming day. This will allow you to determine when you should be out of a trade if you don't want to trade through them, or when to turn your computer on and be ready to trade if you do wish to trade them.
The best economic calendar in my opinion is at Forex Factory as this tells you not only what releases are scheduled for the day, but also the predicted and actual figures for each release, plus the importance of each one and the effect that they may have on specific currency pairs.
Different data releases affect currencies in different ways. For example, interest rate decisions and non-farm payrolls have a major impact on dollar currencies whereas other less significant data releases will hardly have an effect at all and will remain little changed.
So it's best to arm yourself with all this information and be fully prepared for any scheduled releases, but can you profit from them?
Well in my opinion I don't think you can consistently make profits trading the news as soon as it's released simply because it's extremely difficult to predict how the market will react to any given news.
For example, sometimes you will get seemingly bullish figures and expect the currency to go up, but it will do the complete opposite. Other times it will go up initially and then reverse as analysts and traders digest the news.
It really is an extremely difficult way to trade the markets, particularly for the individual trader working alone. Trying to second guess the market is a very dangerous game.
In my opinion there are far easier ways to trade the forex markets using solid technical analysis methods. You don't need to trade during those times when market-moving figures are announced because all they will do is distort any technical analysis and make it very difficult to enter a trade with confidence.
Furthermore I always believe it's best to exit trades in advance of economic data releases simply because prices can move very fast and your stop losses may not get filled at the price you requested.
I'm sure there are people who can make profits from news releases, but in my experience it's extremely difficult and akin to gambling in some instances.
James Woolley has been trading currencies for around five years and also runs a forex trading blog dedicated to offering free forex tips and strategies. Click on the following link for more information:
http://theforexarticles.com
Before I address that question, let me start off by talking about data releases in more detail. As a trader the first thing you should do every day is consult an economic calendar to see what releases are scheduled for the forthcoming day. This will allow you to determine when you should be out of a trade if you don't want to trade through them, or when to turn your computer on and be ready to trade if you do wish to trade them.
The best economic calendar in my opinion is at Forex Factory as this tells you not only what releases are scheduled for the day, but also the predicted and actual figures for each release, plus the importance of each one and the effect that they may have on specific currency pairs.
Different data releases affect currencies in different ways. For example, interest rate decisions and non-farm payrolls have a major impact on dollar currencies whereas other less significant data releases will hardly have an effect at all and will remain little changed.
So it's best to arm yourself with all this information and be fully prepared for any scheduled releases, but can you profit from them?
Well in my opinion I don't think you can consistently make profits trading the news as soon as it's released simply because it's extremely difficult to predict how the market will react to any given news.
For example, sometimes you will get seemingly bullish figures and expect the currency to go up, but it will do the complete opposite. Other times it will go up initially and then reverse as analysts and traders digest the news.
It really is an extremely difficult way to trade the markets, particularly for the individual trader working alone. Trying to second guess the market is a very dangerous game.
In my opinion there are far easier ways to trade the forex markets using solid technical analysis methods. You don't need to trade during those times when market-moving figures are announced because all they will do is distort any technical analysis and make it very difficult to enter a trade with confidence.
Furthermore I always believe it's best to exit trades in advance of economic data releases simply because prices can move very fast and your stop losses may not get filled at the price you requested.
I'm sure there are people who can make profits from news releases, but in my experience it's extremely difficult and akin to gambling in some instances.
James Woolley has been trading currencies for around five years and also runs a forex trading blog dedicated to offering free forex tips and strategies. Click on the following link for more information:
http://theforexarticles.com
Wednesday, 24 October 2007
The First Lesson I Learned As A Forex Trader
I started trading forex a few years ago now after having previously traded the FTSE 100 index and specific shares. Just as in these other markets there is one big lesson to be learned from trading forex and that is as follows.
If you want to become a successful forex trader you have to learn to cut your losses early and let your winning trades run for as long as possible.
When I first started out I used to make a lot of mistakes, but it was all part of the learning experience and I've come out of it a consistently profitable trader.
The biggest mistake I made initially was not having any stop losses at all, so any relatively small losses I incurred used to mount up and become big losses.
It's very easy to believe that you will ultimately be proved right and stick with a trade, which is what I did quite a lot initially, but this can be very expensive and to be honest I quickly learned that's it's best just to accept you were wrong, take a small loss, and move on to the next trade.
On the opposite side, when it comes to winners you should either have a set target price and profit you are looking to achieve and stick to it, or ideally you should let your profits run as long as possible.
Any target profit should be higher than the stop loss you are setting. For example, if your stop loss is 10 points away from the entry price, then your limit price should be more than 10 otherwise you will need a fairly high win ratio of 50% just to break even.
Make sure you stick to this target as it is very easy to see a profit and grab it before the price has reached your target price.
Another approach is to close part of your trade at the same number of points away from the entry price as the stop loss so you guarantee yourself a profit, and let the remaining portion run as long as possible to squeeze out as much profit as you can. You can move your stop loss to break even so this remaining portion left open doesn't turn into a loss, and the worst that can happen is you break even.
Alternatively you could just let your profits run as long as possible and use technical indicators to decide when a trade has run it's course. For example, if a trade goes into profit, you could move the stop loss to break even straight away and let it run.
All of these methods are used to some extent by all profitable traders, but the key lesson is to make full use of stop losses. You want to make your trading pot grow over time, and the best way of doing this is by cutting your losses early and letting your winners run. This way you don't need a high percentage of your trades to be winning ones, you just need a small percentage of winning trades which are allowed to accumulate.
James Woolley has been trading currencies for around five years and also runs a blog dedicated to offering free forex tips and strategies. Click on the following link for more information:
http://theforexarticles.com
If you want to become a successful forex trader you have to learn to cut your losses early and let your winning trades run for as long as possible.
When I first started out I used to make a lot of mistakes, but it was all part of the learning experience and I've come out of it a consistently profitable trader.
The biggest mistake I made initially was not having any stop losses at all, so any relatively small losses I incurred used to mount up and become big losses.
It's very easy to believe that you will ultimately be proved right and stick with a trade, which is what I did quite a lot initially, but this can be very expensive and to be honest I quickly learned that's it's best just to accept you were wrong, take a small loss, and move on to the next trade.
On the opposite side, when it comes to winners you should either have a set target price and profit you are looking to achieve and stick to it, or ideally you should let your profits run as long as possible.
Any target profit should be higher than the stop loss you are setting. For example, if your stop loss is 10 points away from the entry price, then your limit price should be more than 10 otherwise you will need a fairly high win ratio of 50% just to break even.
Make sure you stick to this target as it is very easy to see a profit and grab it before the price has reached your target price.
Another approach is to close part of your trade at the same number of points away from the entry price as the stop loss so you guarantee yourself a profit, and let the remaining portion run as long as possible to squeeze out as much profit as you can. You can move your stop loss to break even so this remaining portion left open doesn't turn into a loss, and the worst that can happen is you break even.
Alternatively you could just let your profits run as long as possible and use technical indicators to decide when a trade has run it's course. For example, if a trade goes into profit, you could move the stop loss to break even straight away and let it run.
All of these methods are used to some extent by all profitable traders, but the key lesson is to make full use of stop losses. You want to make your trading pot grow over time, and the best way of doing this is by cutting your losses early and letting your winners run. This way you don't need a high percentage of your trades to be winning ones, you just need a small percentage of winning trades which are allowed to accumulate.
James Woolley has been trading currencies for around five years and also runs a blog dedicated to offering free forex tips and strategies. Click on the following link for more information:
http://theforexarticles.com
Tuesday, 16 October 2007
Forex Trading For Novices - Learn This System In Under an Hour and Target 100%!
Forex trading for novices can seem confusing so here I am going to give you a system you can learn in under an hour and immediately target 100% gains or more – its simple and it’s effective so, let’s reveal it.
The first point to make is, although I write articles, I am a trader and have been for 25 years.
I am not a self proclaimed expert, so here what I say, as I walk the walk, rather than just talk the talk.
I have tried lots of ways of trading and this is the simplest method I use and probably one of the most effective.
I am going to call it Fundo-Tech trading and that’s exactly what it is.
If you read much of the information on the net, you will hear lots of stories how you can predict currency prices with scientific accuracy, all for a few hundred bucks! Well, call me a sceptic (or a realist) but they don’t work and never will and if they did, people wouldn’t sell them to you; they would be to busy making money.
So what is Fundo-Tech trading?
Exactly what it sounds like, a blend of fundamentals and technical inputs. The first for defining strong currencies, the second for timing entry.
Currencies move to the long term fundamentals, we all know that but their hard to trade, as humans see the facts, they’re there for all to see but you, me and millions of others, draw our own conclusions from what we see.
In simple terms we have this equation:
Fundamentals + Human Perception = Price direction.
That’s not too difficult to understand is it?
Now let’s take economies with strong currencies – this is the fundamental bit.
Currencies that rise tend to have good interest rate earnings, strong economies, and budget surpluses and export more than they import.
Let’s take the US dollar first – The American economy is swimming in debt (and so is the population) and the budget deficit is huge and finally, it has to import raw materials that are rising in price.
Now let’s take a strong currency - the Canadian dollar.
Canada has huge amounts of commodities including oil it sells, has a huge budget surplus and has good interest rate earnings.
The Canadian dollar therefore should rise against the US Dollar and it has.
In fact if you check out my other articles I stated this months ago and I made some great gains.
Now you may be saying - that sounds simple!
Well yes and no.
Picking the direction is easy, entering the trade with good risk reward is a different matter however this is not to complicated either, lets look at how to enter correctly and another great currency trading opportunity.
Resistance forms and simply means supply and demand are in equilibrium below the resistance and when prices break to a new high supply and demand are out of synch.
Notice here, we are looking to buy new highs NOT lows – this is called breakout trading and it’s a fact that most of the biggest moves come from new highs not lows, so forget all the buy low sell high is a great way to trade - its not. If you always want to buy low and sell high you will miss the biggest and best trends waiting for pullbacks that never come - when prices break they accelerate away from the breakout point quickly.
A few weeks ago when we saw the Canadian dollar break important resistance - we bought it and enjoyed the ride!
Now let’s look at another opportunity shaping up right now and it involves buying the dollar and our victim is the Japanese Yen.
Why?
Because the yen has interest rates at just 0.5%, a sluggish economy and is a bigger importer of commodities than America.
Last week we saw the dollar consolidate above significant resistance at 117.00 and were targeting 119.00 and maybe as high as 130.00.
We will now just sit back and wait as we did with the Canadian dollar.
We have lined up the technical with the long term fundamentals and timed our entry as the dollar has broken up outside of a trading range. If were wrong, our stop is tight under the recently broken resistance which is now support.
Does this method sound simple?
Yes it is, but that doesnt mean it doesnt make money - it worked in the Canadian dollar and you follow the yen for yourself.
Currency trading is simpler than many people believe.
Currencies do reflect the fundamentals, you just have to careful of your timing but that’s easy enough -use support, resistance and a few momentum indicators to time your entry and you’re all set.
You don’t need to trade often either, these trades tend to last for weeks or months, we did well in the Canadian Dollar now lets see how this one goes.
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.html
The first point to make is, although I write articles, I am a trader and have been for 25 years.
I am not a self proclaimed expert, so here what I say, as I walk the walk, rather than just talk the talk.
I have tried lots of ways of trading and this is the simplest method I use and probably one of the most effective.
I am going to call it Fundo-Tech trading and that’s exactly what it is.
If you read much of the information on the net, you will hear lots of stories how you can predict currency prices with scientific accuracy, all for a few hundred bucks! Well, call me a sceptic (or a realist) but they don’t work and never will and if they did, people wouldn’t sell them to you; they would be to busy making money.
So what is Fundo-Tech trading?
Exactly what it sounds like, a blend of fundamentals and technical inputs. The first for defining strong currencies, the second for timing entry.
Currencies move to the long term fundamentals, we all know that but their hard to trade, as humans see the facts, they’re there for all to see but you, me and millions of others, draw our own conclusions from what we see.
In simple terms we have this equation:
Fundamentals + Human Perception = Price direction.
That’s not too difficult to understand is it?
Now let’s take economies with strong currencies – this is the fundamental bit.
Currencies that rise tend to have good interest rate earnings, strong economies, and budget surpluses and export more than they import.
Let’s take the US dollar first – The American economy is swimming in debt (and so is the population) and the budget deficit is huge and finally, it has to import raw materials that are rising in price.
Now let’s take a strong currency - the Canadian dollar.
Canada has huge amounts of commodities including oil it sells, has a huge budget surplus and has good interest rate earnings.
The Canadian dollar therefore should rise against the US Dollar and it has.
In fact if you check out my other articles I stated this months ago and I made some great gains.
Now you may be saying - that sounds simple!
Well yes and no.
Picking the direction is easy, entering the trade with good risk reward is a different matter however this is not to complicated either, lets look at how to enter correctly and another great currency trading opportunity.
Resistance forms and simply means supply and demand are in equilibrium below the resistance and when prices break to a new high supply and demand are out of synch.
Notice here, we are looking to buy new highs NOT lows – this is called breakout trading and it’s a fact that most of the biggest moves come from new highs not lows, so forget all the buy low sell high is a great way to trade - its not. If you always want to buy low and sell high you will miss the biggest and best trends waiting for pullbacks that never come - when prices break they accelerate away from the breakout point quickly.
A few weeks ago when we saw the Canadian dollar break important resistance - we bought it and enjoyed the ride!
Now let’s look at another opportunity shaping up right now and it involves buying the dollar and our victim is the Japanese Yen.
Why?
Because the yen has interest rates at just 0.5%, a sluggish economy and is a bigger importer of commodities than America.
Last week we saw the dollar consolidate above significant resistance at 117.00 and were targeting 119.00 and maybe as high as 130.00.
We will now just sit back and wait as we did with the Canadian dollar.
We have lined up the technical with the long term fundamentals and timed our entry as the dollar has broken up outside of a trading range. If were wrong, our stop is tight under the recently broken resistance which is now support.
Does this method sound simple?
Yes it is, but that doesnt mean it doesnt make money - it worked in the Canadian dollar and you follow the yen for yourself.
Currency trading is simpler than many people believe.
Currencies do reflect the fundamentals, you just have to careful of your timing but that’s easy enough -use support, resistance and a few momentum indicators to time your entry and you’re all set.
You don’t need to trade often either, these trades tend to last for weeks or months, we did well in the Canadian Dollar now lets see how this one goes.
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.html
Thursday, 11 October 2007
The 1 Pip Forex Trading System
With so many people on the look out for a good forex trading system I decided to write a simple forex system I have used in the past with good results.
The system is called the 1 pip forex trading system. You will need a 15 minute candlestick chart of your favourite currency pair. Green candles for bullish candles and red candles for bearish candles.
This trading system requires monitoring the screen while you are trading but it rewards you greatly once you get the hang of this simple method.
Here are the simple rules to follow for the system.
Look for a candle to close with the open and close of the candle to be within 1 pip of each other. These candles happen more often than you may think on a 15 minute chart and are usually a strong sign of indecision in the market. Usually after a swing move up or down hitting a support/resistance level.
If the 1 pip candle closes green and the previous candle is at least 4 pips from open to close then you buy at the close of the 1 pip candle.
If the 1 pip candle closes red and the previous candle is at least 4 pips from open to close then you sell at the close of the 1 pip candle.
Stops are always placed just above/below the previous swing high/low plus a couple of pips. Try and keep you targets small, don't get too greedy with this system.
This system is great to grab 10-15 pips at a time without too mush trouble.
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!
The system is called the 1 pip forex trading system. You will need a 15 minute candlestick chart of your favourite currency pair. Green candles for bullish candles and red candles for bearish candles.
This trading system requires monitoring the screen while you are trading but it rewards you greatly once you get the hang of this simple method.
Here are the simple rules to follow for the system.
Look for a candle to close with the open and close of the candle to be within 1 pip of each other. These candles happen more often than you may think on a 15 minute chart and are usually a strong sign of indecision in the market. Usually after a swing move up or down hitting a support/resistance level.
If the 1 pip candle closes green and the previous candle is at least 4 pips from open to close then you buy at the close of the 1 pip candle.
If the 1 pip candle closes red and the previous candle is at least 4 pips from open to close then you sell at the close of the 1 pip candle.
Stops are always placed just above/below the previous swing high/low plus a couple of pips. Try and keep you targets small, don't get too greedy with this system.
This system is great to grab 10-15 pips at a time without too mush trouble.
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!
Tuesday, 9 October 2007
Learn The No BS Method To Successfully Trading Forex - Part 2
In Part 1 of 'Learn The No B.S Method To Successfully Trading Forex' we discussed money management and how small daily targets will inevitably make you very wealthy.
Just to recap on this I am talking about 3-5 pips a day, I personally go for 3 pips and I'm done. Now you may laugh but I have little risk in the market and a $10,000 account would grow to $571,474 in 24 month with only 3 pips a day!
Getting consistent with extracting 3 pips a day take some practice, by consistent I mean you should not have a loss more than once a month. Trust me this is possible when your targets are so small.
I recommend trading the London open and it is crucial that you have a broker that allows scalping (any legitimate broker does) and has spreads of 1 pip or less, I pay 0.9 on the EURUSD at the moment.
Wait for the London open to get under way with a small trend forming on the 5 minute charts. Always keep an eye on the 1 hour charts for strong support/resistance areas. We do not want to be buying into resistance.
Once you have an high volume candle that has closed with the trend initiate the trade in that direction with a 20 pip stop. Keep a close eye on your profit/loss and never let the trade go against you by more than 6-8 pips. The 20 pip stop is a safety net only in case of emergency and you could not close the trade manually.
This is not the only way to trade the forex market and capture 3 pips a day, you may have your own strategy to achieve this however what is important to understand is you do not need a huge amount of pips to become wealthy, its all about consistency.
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!
Just to recap on this I am talking about 3-5 pips a day, I personally go for 3 pips and I'm done. Now you may laugh but I have little risk in the market and a $10,000 account would grow to $571,474 in 24 month with only 3 pips a day!
Getting consistent with extracting 3 pips a day take some practice, by consistent I mean you should not have a loss more than once a month. Trust me this is possible when your targets are so small.
I recommend trading the London open and it is crucial that you have a broker that allows scalping (any legitimate broker does) and has spreads of 1 pip or less, I pay 0.9 on the EURUSD at the moment.
Wait for the London open to get under way with a small trend forming on the 5 minute charts. Always keep an eye on the 1 hour charts for strong support/resistance areas. We do not want to be buying into resistance.
Once you have an high volume candle that has closed with the trend initiate the trade in that direction with a 20 pip stop. Keep a close eye on your profit/loss and never let the trade go against you by more than 6-8 pips. The 20 pip stop is a safety net only in case of emergency and you could not close the trade manually.
This is not the only way to trade the forex market and capture 3 pips a day, you may have your own strategy to achieve this however what is important to understand is you do not need a huge amount of pips to become wealthy, its all about consistency.
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!
Thursday, 4 October 2007
Learn The No B.S Method To Successfully Trading Forex Part 1
There is no secret to trading forex, well I say no secret, whatever you don't know is a secret. All you really need to succeed in forex is some hard work and everything contained in each part of this article.
Lets start by creating a business plan. Forex is like any other business It requires a lot of planning and preparation. You must know your daily/weekly/monthly and yearly goals.
Your business plan can be altered to fit your situation however I know many people using the one I am about to explain.
My goal in forex is to make a comfortable living (not a fortune) I do this by setting small goal that are easily reached daily with minimal risk in the market.
My daily goal is 5 pips, now I know for a fact that there will be many people reading this who have been focusing on 100's of pips a week but you simply do not need to be in the market for so long in order to make a lot of money.
This business plan starts with an account of $5000. The risk per trade is never more than 5% and the stop is always 20 pips. I would like to quickly point out that the stop is for emergencies only it should never get hit as I manually close trades before they ever get into double digit pips.
What you need to understand is compounding is very powerful and you best friend when it comes to making money in the forex market.
Using my small target of 5 pips a day risking 5% on a 20 pip stop a $5000 account would grow into almost $100,000 in 12 months!
This is the easiest way to make money in the forex market, minimal exposure and the pips are normally bagged before breakfast.
In Part 2 of "Learn The No B.S Method To Successfully Trading Forex" we will be looking at trading systems to grab your 5 pips a day.
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!
Lets start by creating a business plan. Forex is like any other business It requires a lot of planning and preparation. You must know your daily/weekly/monthly and yearly goals.
Your business plan can be altered to fit your situation however I know many people using the one I am about to explain.
My goal in forex is to make a comfortable living (not a fortune) I do this by setting small goal that are easily reached daily with minimal risk in the market.
My daily goal is 5 pips, now I know for a fact that there will be many people reading this who have been focusing on 100's of pips a week but you simply do not need to be in the market for so long in order to make a lot of money.
This business plan starts with an account of $5000. The risk per trade is never more than 5% and the stop is always 20 pips. I would like to quickly point out that the stop is for emergencies only it should never get hit as I manually close trades before they ever get into double digit pips.
What you need to understand is compounding is very powerful and you best friend when it comes to making money in the forex market.
Using my small target of 5 pips a day risking 5% on a 20 pip stop a $5000 account would grow into almost $100,000 in 12 months!
This is the easiest way to make money in the forex market, minimal exposure and the pips are normally bagged before breakfast.
In Part 2 of "Learn The No B.S Method To Successfully Trading Forex" we will be looking at trading systems to grab your 5 pips a day.
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!
Wednesday, 22 August 2007
Forex Beginner Systems - A Step-By-Step Guide to Trading Profit
(by Joe Ward)
This forex beginner systems article is a comprehensive guide to the steps needed in devising a forex trading system as a beginner. Knowing which way to jump with all the information floating around can be a daunting proposition; so having a step-by-step guide by a successful experienced (and humble: lol) trader is obviously a great start. There aren't any in depth explanations here as the purpose is to highlight the areas which require further investigation, and in what order of importance. I have articles specific to each category on my website which I will link to at the bottom of the page. Anyhow, follow through with each of these steps and you will be well on the way to forex trading profit.
The main steps are:
1.) Get background information on what forex trading entails.
2.) Learn how to manage risk and size positions correctly.
3.) Find a strategy you are comfortable with.
4.) Test your strategy.
5.) Interpret the numbers.
6.) Find a broker.
7.) Rake in the cash!
Basics:
First of all, with forex beginner systems, it is important to know just what you are getting into. Forex trading is just like any other business. You wouldn't go off and try to build houses without reading a book or getting some lessons now would you? Constructing systems is much the same. Without any knowledge of the market you are essentially building a "house of cards". You don't need a Phd in macro-economics, but a solid knowledge base will only aid in your trading decisions and help ease your mind throughout the entire process.
Risk Management:
The next thing to learn is how to manage risk and size positions. These factors should be the cornerstones of any system. In essence: you need to know how much to risk losing on each trade. People often make the mistake of ignoring this factor; that's why over 90% of traders fail. Think of it in terms of being a gambler or being a casino; we know who always wins right? Do your due diligence on risk management and position sizing and you will be well on the way to becoming one of the 10% of successful traders.
Strategies:
Once you understand the numbers a little better you can look at specific strategies to trade. Forex beginner systems should be quite simple. As with many other things; simple can also be very effective. I have found that trend trading and swing trading in particular can be very simple and also very effective. The main thing though, is that you feel comfortable trading a strategy. Psychology plays a large part in forex trading too, so having a simple yet effective strategy is often the best. It's a case of K.I.S.S. (keep it simple stupid!).
Testing:
The next aspect of creating forex beginner systems is testing. Testing your system is all important in knowing if you will turn a profit or not. Don't "go off half cocked"; you may wind up with a "blown up" trading account. It's a step closer to being a "casino" and another step away from being a "gambler". To add further perspective; just imagine if boeing didn't test their planes before they used them..... Would you be getting on one? I didn't think so! It's much the same with trading; test your hypotheses and make sure they work.
Analysis:
Analyzing the results of these tests is the next thing to do. Anyone can see if a system will be relatively profitable from the results of testing. The hard part comes with understanding how to interpret the results and how they will effect your trading in real time. Analyzing the results and making necessary changes to your forex beginner systems will also likely make you substantially more profitable. There is no end to what can be done with statistics. Again let's look at our jet-plane analogy. From flying the plane we know it doesn't crash. But how much fuel per mile did it use? How much will we need to fly from our place to a nice island in the Maldives? How can we get their faster or without using as much fuel. You get it? Knowing how to get there is one thing; but getting there the cheapest and fastest way possible is harder.
Brokers:
Now it's time to find a broker to trade your forex beginner systems with. Brokers offer free trial accounts with play money to check out their wares. By all means take advantage of these offers. Also, you should be aware of some of the different types of brokers and the features they offer. This is important as well. Think of it as choosing to fly "Econo-miser" or "Champagne" airways.
Conclusion:
Now you should be all geared up with some shiny new forex beginner systems if you have investigated all these things thoroughly. If you're still not sure, there is loads more information on my site and others. There are loads of people researching new ways to make money in the currency markets, so please, check the web regularly and see what else they have found. Some offer their information free (like me) and others charge for their info. Do not be too tight with the purse strings though; as one profitable trade can often see an item paid for many times over. Now off you go and rake in some of that cash!
The original article with links to all relevant articles can be viewed here
Joseph Ward is an experienced, successful currency trader. He teaches his simple, practical and profitable forex trading methods, for free, via his website www.forex-trading-profit.org Take a look at some articles, tutorials or reviews and start your journey to forex trading profit today for free!
This forex beginner systems article is a comprehensive guide to the steps needed in devising a forex trading system as a beginner. Knowing which way to jump with all the information floating around can be a daunting proposition; so having a step-by-step guide by a successful experienced (and humble: lol) trader is obviously a great start. There aren't any in depth explanations here as the purpose is to highlight the areas which require further investigation, and in what order of importance. I have articles specific to each category on my website which I will link to at the bottom of the page. Anyhow, follow through with each of these steps and you will be well on the way to forex trading profit.
The main steps are:
1.) Get background information on what forex trading entails.
2.) Learn how to manage risk and size positions correctly.
3.) Find a strategy you are comfortable with.
4.) Test your strategy.
5.) Interpret the numbers.
6.) Find a broker.
7.) Rake in the cash!
Basics:
First of all, with forex beginner systems, it is important to know just what you are getting into. Forex trading is just like any other business. You wouldn't go off and try to build houses without reading a book or getting some lessons now would you? Constructing systems is much the same. Without any knowledge of the market you are essentially building a "house of cards". You don't need a Phd in macro-economics, but a solid knowledge base will only aid in your trading decisions and help ease your mind throughout the entire process.
Risk Management:
The next thing to learn is how to manage risk and size positions. These factors should be the cornerstones of any system. In essence: you need to know how much to risk losing on each trade. People often make the mistake of ignoring this factor; that's why over 90% of traders fail. Think of it in terms of being a gambler or being a casino; we know who always wins right? Do your due diligence on risk management and position sizing and you will be well on the way to becoming one of the 10% of successful traders.
Strategies:
Once you understand the numbers a little better you can look at specific strategies to trade. Forex beginner systems should be quite simple. As with many other things; simple can also be very effective. I have found that trend trading and swing trading in particular can be very simple and also very effective. The main thing though, is that you feel comfortable trading a strategy. Psychology plays a large part in forex trading too, so having a simple yet effective strategy is often the best. It's a case of K.I.S.S. (keep it simple stupid!).
Testing:
The next aspect of creating forex beginner systems is testing. Testing your system is all important in knowing if you will turn a profit or not. Don't "go off half cocked"; you may wind up with a "blown up" trading account. It's a step closer to being a "casino" and another step away from being a "gambler". To add further perspective; just imagine if boeing didn't test their planes before they used them..... Would you be getting on one? I didn't think so! It's much the same with trading; test your hypotheses and make sure they work.
Analysis:
Analyzing the results of these tests is the next thing to do. Anyone can see if a system will be relatively profitable from the results of testing. The hard part comes with understanding how to interpret the results and how they will effect your trading in real time. Analyzing the results and making necessary changes to your forex beginner systems will also likely make you substantially more profitable. There is no end to what can be done with statistics. Again let's look at our jet-plane analogy. From flying the plane we know it doesn't crash. But how much fuel per mile did it use? How much will we need to fly from our place to a nice island in the Maldives? How can we get their faster or without using as much fuel. You get it? Knowing how to get there is one thing; but getting there the cheapest and fastest way possible is harder.
Brokers:
Now it's time to find a broker to trade your forex beginner systems with. Brokers offer free trial accounts with play money to check out their wares. By all means take advantage of these offers. Also, you should be aware of some of the different types of brokers and the features they offer. This is important as well. Think of it as choosing to fly "Econo-miser" or "Champagne" airways.
Conclusion:
Now you should be all geared up with some shiny new forex beginner systems if you have investigated all these things thoroughly. If you're still not sure, there is loads more information on my site and others. There are loads of people researching new ways to make money in the currency markets, so please, check the web regularly and see what else they have found. Some offer their information free (like me) and others charge for their info. Do not be too tight with the purse strings though; as one profitable trade can often see an item paid for many times over. Now off you go and rake in some of that cash!
The original article with links to all relevant articles can be viewed here
Joseph Ward is an experienced, successful currency trader. He teaches his simple, practical and profitable forex trading methods, for free, via his website www.forex-trading-profit.org Take a look at some articles, tutorials or reviews and start your journey to forex trading profit today for free!
Monday, 20 August 2007
A Simple Swing Trading Strategy You Can Put To Use Right Now
(by Dean Saunders)
I started to develop a swing trading strategy after 2 years of trying to day trade the EURUSD. I found trading the longer time frames were not only far more profitable but also less stressful and freed up allot of time to do things I enjoy.
A good swing trading strategy must trade with the longer term trend, all we are looking to do is cut our losses short and let our profits run. It must be simple, anything complicated is only making our trading decisions more difficult.
Lets go through what rules I follow and how I identify a good trade. I trade the 4 hour charts with this swing trading strategy, it works well on this time frame and I suggest you do the same.
First we need to find the trend direction on the daily charts, if price starts in the bottom left and finishes in the top right of your screen then we are in a up trend. If price starts in the top left and finishes in the bottom right then we are in a down trend. If you have trouble show the chart to a child they will get it right every time!
Next we have to go back to the 4 hour chart to find an entry point that gives us good odds of price going in our favour. Look for retraces to the 50% fib level that coincides with good support/resistance levels, I also like to target 00 areas as this is what the larger institutions will be targeting for there orders. Remember only take trades with the trend on the daily chart!
Once you have found a suitable entry point set your order with a 50pip trailing stop loss. Please note that if you trade a currency pair with higher volatility then you will have to increase your stop to suit, 50 pip stop is for the EURUSD which is the main pair I trade.
Once your order is triggered just sit back and watch, do not interfere with the trade, you have a trailing stop to do the work for you. As soon as your position is in profit the trailing stop will move up keeping your stop exactly 50 pips behind and locking in any profit along the way.
Although many new comers looking for a swing trading strategy will laugh at this simple system I can assure you that it works. The more you get a feel for the market the more you will profit with this strategy. Trading forex does not need to be difficult, it is the human physiology that makes it hard for people to see profits disappear. Unfortunately this is part of the business and you must focus on the month to month gains not the day to day gains.
Do You Want To Make Consistent Money In The Forex Market? Dean Saunders has created the *Ultimate* FREE trading system that has helped 100's of forex traders make consistent money. Click Here and grab your FREE copy of Dean's amazing trading system!
I started to develop a swing trading strategy after 2 years of trying to day trade the EURUSD. I found trading the longer time frames were not only far more profitable but also less stressful and freed up allot of time to do things I enjoy.
A good swing trading strategy must trade with the longer term trend, all we are looking to do is cut our losses short and let our profits run. It must be simple, anything complicated is only making our trading decisions more difficult.
Lets go through what rules I follow and how I identify a good trade. I trade the 4 hour charts with this swing trading strategy, it works well on this time frame and I suggest you do the same.
First we need to find the trend direction on the daily charts, if price starts in the bottom left and finishes in the top right of your screen then we are in a up trend. If price starts in the top left and finishes in the bottom right then we are in a down trend. If you have trouble show the chart to a child they will get it right every time!
Next we have to go back to the 4 hour chart to find an entry point that gives us good odds of price going in our favour. Look for retraces to the 50% fib level that coincides with good support/resistance levels, I also like to target 00 areas as this is what the larger institutions will be targeting for there orders. Remember only take trades with the trend on the daily chart!
Once you have found a suitable entry point set your order with a 50pip trailing stop loss. Please note that if you trade a currency pair with higher volatility then you will have to increase your stop to suit, 50 pip stop is for the EURUSD which is the main pair I trade.
Once your order is triggered just sit back and watch, do not interfere with the trade, you have a trailing stop to do the work for you. As soon as your position is in profit the trailing stop will move up keeping your stop exactly 50 pips behind and locking in any profit along the way.
Although many new comers looking for a swing trading strategy will laugh at this simple system I can assure you that it works. The more you get a feel for the market the more you will profit with this strategy. Trading forex does not need to be difficult, it is the human physiology that makes it hard for people to see profits disappear. Unfortunately this is part of the business and you must focus on the month to month gains not the day to day gains.
Do You Want To Make Consistent Money In The Forex Market? Dean Saunders has created the *Ultimate* FREE trading system that has helped 100's of forex traders make consistent money. Click Here and grab your FREE copy of Dean's amazing trading system!
Wednesday, 15 August 2007
Forex Trading? Take Forex Courses First!
(by F.Robey)
Forex trading (also called foreign exchange trading) is very popular as a way to invest from the comfort and privacy of your own home. This particular method of investment has been growing in popularity since 2005.
Forex online trading is just like any other investment vehicle—full of risks that can cost you dearly if you don’t know what you’re doing or fail to act responsibly.
Some people, looking for quick cash with minimum effort, make the serious mistake of investing their money in Forex before they have any idea of what they're doing. Unless they get extremely lucky, they lose their money.
While Forex is relatively easy to understand, it is not a trading platform an amateur should try without first obtaining the proper training and information.
If you are interested in Forex, then you should look into courses that teach the basics of Forex as well as how to minimize your risks.
There are plenty of Forex course that give instruction at a classroom or online. Many people choose to learn the basics of Forex from the privacy of their own home and on their own schedule.
There are many Forex classes available and some of them are very affordable at less than $200. You can find them easily on the net, usually just by doing a search for “learn Forex.” There are some online Forex classes that actually let you sit in on a real trades in session so you can see the process of trading Forex as it happens.
While there are many fine free resources for learning about the Forex, a professional course is preferred if you want to get serious.
So if you would like to get into Forex trading, look into Forex courses.
For more free Forex tips and strategies on how to succeed in the exciting and profitable world of Forex Trading, visit http://www.ForexTipsAndTechniques.com
Forex trading (also called foreign exchange trading) is very popular as a way to invest from the comfort and privacy of your own home. This particular method of investment has been growing in popularity since 2005.
Forex online trading is just like any other investment vehicle—full of risks that can cost you dearly if you don’t know what you’re doing or fail to act responsibly.
Some people, looking for quick cash with minimum effort, make the serious mistake of investing their money in Forex before they have any idea of what they're doing. Unless they get extremely lucky, they lose their money.
While Forex is relatively easy to understand, it is not a trading platform an amateur should try without first obtaining the proper training and information.
If you are interested in Forex, then you should look into courses that teach the basics of Forex as well as how to minimize your risks.
There are plenty of Forex course that give instruction at a classroom or online. Many people choose to learn the basics of Forex from the privacy of their own home and on their own schedule.
There are many Forex classes available and some of them are very affordable at less than $200. You can find them easily on the net, usually just by doing a search for “learn Forex.” There are some online Forex classes that actually let you sit in on a real trades in session so you can see the process of trading Forex as it happens.
While there are many fine free resources for learning about the Forex, a professional course is preferred if you want to get serious.
So if you would like to get into Forex trading, look into Forex courses.
For more free Forex tips and strategies on how to succeed in the exciting and profitable world of Forex Trading, visit http://www.ForexTipsAndTechniques.com
Monday, 14 May 2007
FOREX Trading System - Building One for Big Profits in 3 Simple Steps
(by Sacha Tarkovsky)
Here we are going to show you how to build your own profitable FOREX trading system in simple steps.
You can build one easily by utilizing free information on the web.
We are going to look at choosing a methodology, structuring the system and implementing it for profit – It will give you big profit potential and won’t cost you a cent.
The methodology below is the basis for all my trading systems and its very simple. I have traded for over 23 years and tried just about ever system out there and the fact is:
When trading FOREX, simple systems beat complicated ones, as they are more robust in the face of ever changing market conditions.
The methodology below works and will continue to work, so let’s take a look at it.
1. Methodology
Look at any FOREX chart and what do you see?
Long term trends that last for weeks or months – These are the trends you need to target.
To target these trends all you need to understand is the concept of support and resistance and price momentum.
Now we need a methodology, let’s take one that has stood the test of time and will continue to work – trading breakouts.
Breakouts from significant support and resistance are one of the most effective ways of catching the big profitable moves.
FACT: Most major currency moves start from new market highs NOT market lows.
You can read all about the above concepts free on the web and in some shape or form most of the worlds top traders use breakouts.
In conclusion, we are going to look for long term trends from support and resistance - now let’s look at how to put this into practice.
2. Structuring a System
Now you need to organize the above and enter some trades – Here is a simple way of trading the above:
• Look at the weekly chart
Look for well established support and resistance that has been tested several times preferably at least 4 times and several weeks apart
• Look at the daily charts
Now look for tests that coincide with the weekly levels that have again been tested several times.
NOTE:
If you start with the weekly chart you will get the big picture and well established support and resistance can be seen - that if broken will give you high odds of the break continuing.
3. Timing the trade
Here we need to look at price momentum and trade with confirmation that the odds are in our favor.
Trading with price strength on a break is an essential element of any successful FOREX trading system and you need indicators that will help you spot it.
Pull up a free chart service such as futuresource.com
Look at the stochastic indicator and Relative Strength Index ( RSI), both these are fantastic confirming indicators.
We don’t have time to write about them in detail here but they are covered in our other articles so look them up.
If a break occurs you can go with the break providing your momentum indicators confirm it.
If you are only trading strong support and resistance that the market recognizes as significant then the odds of the break continuing as stops are unwound and trend followers come in is higher.
Stops should be below the breakout point on daily close basis only (US hours) you can also wait till the end of the session to enter your trades.
This system won't give you many trades each year, but the ones it will give you will have high odds of success and fantastic profit potential.
The FOREX Trading system above can be adapted, but its an excellent base to start from and is perfect for novice FOREX traders.
Take a look at this FOREX trading system because:
Its simple to understand, simple to apply, takes less than 30 minutes a day and can yield triple digit gains
Even better it costs you nothing, but could make you significant long term capital gains.
Don’t spend money on worthless e-books selling systems they have plucked from free information on the net build your own.
GRAB 3 X FREE ESSENTIAL TRADER PDF'S AND MUCH MORE!
On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at http://www.net-planet.org/index.html
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If you're looking for a forex trading platform, I can highly recommend Easy Forex. They offer competitive spreads, guaranteed stop-losses if required, live training and support, and you can start trading with as little as $25.
Saturday, 12 May 2007
Choose One Currency - The Importance Of Focus In Forex Trading
(by Jovan Vucetic)
Many beginner forex traders start out making a common mistake. They will begin trading one currency but within a month and sometimes much less, will have traded almost all the major currencies. If you take a peek at some of the forex chat forums on the Internet, you will see enthusiastic newbie traders making the same mistake. They will ask questions, discuss and trade the yen, the pound, the euro, the Swiss franc and go back and forth between them all.
Why do they do this and why is it foolish?
Let’s see. If you ask them why they do this, they will probably reply that either they saw an opportunity for a profitable trade on their charts that was too good to pass up or that they were just increasing their chances of success by spreading their bets. Fair enough, that seems like a perfectly fine answer.
Imagine this however: You are a pretty strong guy and you think you can handle yourself in a street fight. Then you are thrown into a ring with a guy who’s been training boxing for years. The outcome of this fight? Well, there really is no fight – you will get slaughtered.
Forex trading is the same. To be a success, you must always be looking at ways to swing the odds in your favour. The fundamentals that influence the yen are totally different to that of the Swiss franc or that of the Australian dollar. If you are trading them all, while it may appear the same, its not. Just like the fight against the boxer, you are up against highly paid institutional traders and currency analysts - experts in a particular currency.
When a news announcement breaks, without thinking they know and incorporate its effect on a particular currency and its relationship to other currencies, the interest rates, bonds and gold market. The Australian dollar is a commodity price driven currency; the Swiss franc will do well when global security is a problem; the yen is a currency reflecting a nation with a huge export surplus and so on. All these currencies have different characters, moods and personas. They are influenced by different and conflicting information that you need to be aware of.
To increase your chances of success in trading, it is much better to master one chosen currency. This will help you build focus and trading discipline. Sticking to trading one currency will eliminate the need to have to focus on numerous sets of information. However, the most important thing: with time, as you understand your chosen currency and its character traits inside out, you will gain conscious confidence in your trading – something invaluable in this game.
If you are switching back and forth from trading one currency to another, understand that no one currency is easier or better to trade than another. There are no guarantees that you will make more money trading one particular currency over another. If you were doing poorly trading one currency and decided to switch to another thinking this might improve your chances, think why should it?
It is much smarter to stay focused, learn the particularities of your currency inside out and in the process develop trading discipline. Over the long run, you will have swung the odds of success in your favour.
Jovan Vucetic is the Editor of Margin Strategies, an educational forex website, which reviews forex trading systems. Learn about different types of forex trading strategies including a 100% fully mechanical trading system.
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If you're looking for a forex trading platform, I can highly recommend Easy Forex. They offer competitive spreads, guaranteed stop-losses if required, live training and support, and you can start trading with as little as $25.
Friday, 11 May 2007
Forex Factory- How To Prepare For Your Trading Session
(by Michael A Jones)
The Forex Factory web site is a very popular site among developing Forex traders as shown by an Alexa rating of around 5,400 most visited sites on the web. Any site within the first 100,000 gets serious traffic!
Forex Factory provides 3 main services listed in my personal order of importance:
- Calendar
- News
- Forum
Calendar
The main attraction of the Forex Factory calendar of upcoming economic reports and fundamental announcements is that it is so visual and easy to read.
A color coding system gives an indication at a glance as to how volatile the announcement is expected to be:
Yellow - Low Impact
Orange - Medium Impact
Red - High Impact
Another good feature of this calendar is the ability to customize the time to your own time zone. So instead of having to add or subtract a certain number of hours from GMT to arrive at the time of the economic report in your country, you can set the calendar according to your time zone and see the time accurately displayed.
This feature saves some confusion and prevents a newer trader from leaving a trade in around a volatile news report because of getting the time mixed up!
News
A number of news reports are featured daily from authorities and advisors in the financial markets.
Within a few minutes the trader can come up to speed on the latest economic factors that might impact the market.
Forums
The Forums at Forex Factory have a huge appeal as indicated by the thousands of users online each day.
The forums are divided into various themes including:
General Discussion
Trading Systems
Broker Discussion
Forex Beginner Questions and Answers
How To Get The Best From Forex Factory
For me, the calendar is by far the most useful feature at Forex Factory. I consult it each day in preparation for the next trading session and make sure I am out of the market around volatile news releases (flagged by the red icon) and also many times the medium impact reports (flagged by the orange icon). The News feature is also useful to get a broad overview of market sentiment. At the same time caution is needed if you use technical analysis as your main trading tool as the comments and opinions of others can sometimes blur your own analysis and lead to flawed trade entries.
You may have detected a perfectly good trade setup and the trade is going well. Then as it starts to stall the comments of a news analyst come to mind and you exit prematurely from what could have been a very profitable trade.
So it is good to view the News objectively and coordinate it with your own technical analysis.
Forums - Be A Little Cautious
For newer traders the discussion forums can be helpful in bouncing ideas off other newer traders. One of the main benefits is encouragement and motivation from hearing how others are getting on.
However, as to whether you can get good trading tips and strategies from the forums is in my mind a little doubtful.
After I attended a Forex seminar run by a licensed professional who trades the Forex every day and is a fund manager, I noted his comment that the really successful Forex traders rarely have time to visit online forums and participate in discussions. They are too busy making money on the Forex!
So as long as you approach forum discussions with the realization that most participants are also in the learning stage, you can evaluate their comments and suggestions accordingly.
There is no doubt Forex Factory (forexfactory.com) provides an excellent group of services for newer Forex traders. Definitely use the calendar to the full and depending on your level of expertise, use the News and Forums features to gain a better perspective of daily market activity.
Michael A. Jones is a writer, webmaster and Forex trader.
Do you want to make consistent profits and take your trading to the next level?
http://www.vitalstop.com/Forex/forex-course.html
For a purely mechanical strategy for the EUR/USD pair click here:
http://www.vitalstop.com/Forex/Advisor/forex-trading-machine.htm
For a collection of invaluable free Forex tools:
http://www.vitalstop.com/Forex/tools.html
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If you're looking for a forex trading platform, I can highly recommend Easy Forex. They offer competitive spreads, guaranteed stop-losses if required, live training and support, and you can start trading with as little as $25.
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