The Mindset of The Successful Currency Trader

Let me begin by saying that if you want to get into forex or currency trading online, DO NOT begin by buying a guide or a training course.

Too many low-life's out there pander to the uninformed by selling them overpriced guides and manuals, sometimes for a few thousand dollars each.

A forex mentoring course can be a good option once you know the basics of forex and want to hone your skills, but there is just so much good information available on the internet for free that you could literally become an all-star trader without paying anything for education.

Today we are going to talk about the way you need to think if you want to be a profitable forex trader.

I consider myself to be pretty profitable when it comes to forex trading, and my first banking internship on the Foreign Exchange floor was when I was 16! (I was the youngest intern they ever had!) I got hooked on trading, and have been doing it ever since.

One thing that is really necessary to your success is to READ. Alot! The more you know about forex trading, the easier (and more profitable) it will be.

You want to know the mechanics of the forex markets from the inside-out. I'm not going to spend time discussing the practical aspects of the forex market, as you can and should discover this though your own reading.

When you begin to get comfortable with your knowledge of what this market is, how it works, and how to place successful trades, you are in a position where you can feel confident in your trading abilities.

The most important thing that the successful currency trader possess is the ability to separate his emotions from his trading. Confidence in your trading abilities is one important aspect to being emotionally detached from your trades, and the other aspect has to do with the way you fund your live trading account.

Make sure that when you put money into your live forex account, it is extra money that you do not need to survive and could afford to lose. If you are trading with the money that you need to pay your car insurance, your trading will be highly emotional and likely to fail.

In a way, this is kind of ironic, because I'm sure you've heard the saying that 9 out of 10 of new traders fail. Well, traders that CARE and are highly emotional about growing their forex account are the ones that lose their shirts, when the traders that DON'T CARE and have no emotional attachment to their trading make most of the profit.

That's the irony: The less you care about making money in the forex market, the more money you tend to make!

But also realize that you are not 'not caring' out of negligence (pardon the double negative), but rather because you are so confident in your trading abilities that you KNOW that in the long run you will always win.

To the successful currency trader, trading is not so much about making money as it is about collecting pips in their trading account!

Profitable forex trader's also tend to develop and follow their own trading systems. Finding or creating a certain system and trading within it is also important to successful trading.

My personal trading strategy that I have developed is something that I call Forex Surfing, and you can read more about it on my site, http://TheForexSurfer.com

There is also a large collection of free forex ebooks and trading resources at my site as well, just click 'free reports' or 'free resources' at the top!

Forex Trading - Why It's NOT Easy To Win - Do You Have What It Takes?

I am an experienced forex trader and have been trading for 25 years and it amazes me the amount of copy I see that tells me it's easy! Its not and you wouldn't expect it to be with the rewards that are on offer. Do you have what it takes to be a successful forex trader? Read on.

The first point to make is:

You Are Responsible!

Yes you! Not the guy who sells you a forex trading system, e-book, or your broker -You are in charge of your own destiny and anyone who wins and makes money in anything accepts this.

If you are the type of person who can't accept responsibility, save your money and do something else forex trading is not for you.

Learning the Right Education

You don't have to work hard to win - you have to work smart and ignore a lot of so called wisdom you will see on the spouted by gurus and self proclaimed experts.

Here are some common forex myths, believe ANY of them and you will lose.

- Day trading makes money.

- A hypothetical simulated track record from a vendor is a good indication of profit potential.

- Markets move to a scientific theory.

- Predicting in advance is good way to make money.

- A complicated trading system has more chance of winning than a simple one.

- The More I trade the greater my chances of success.

- My risk to reward is my profit target - my stop.

- I trade news stories to generate trades.

If you believe ANY of the above statements you will lose.

If you want to win you need to learn the right forex education and that means not just taking charge of your destiny - but developing a simple robust forex trading system you can apply with discipline. This is one you understand the logic of and have the confidence, to apply with discipline.

95% of forex traders lose what makes you think you will win?

This is your trading edge and a trading edge is vital to succeed - you must know what it is and have confidence in it, to take you through inevitable losing periods to long term currency trading success.

Trading is based on not just a sound method but the ability to keep applying it even when you're losing and that's tough.

You will read a lot about how easy forex trading is and if you buy this or that system, you will enjoy success but life's not that simple.

Most of the vendors and trading systems sold are junk and have never been traded and the vendor is not a trader but a marketing person.

They only ever have simulated in hindsight track records, but in the real world you don't have the benefit of hindsight!

Naive and lazy traders think they will make huge profits with them. They don't of course; they simply learn a painful lesson in the reality of life and forex trading.

The Good News!

If you like a challenge, have the desire to succeed and learn forex trading the right way, you can win - anyone can, as everything about forex trading can be specifically learned.

The rewards can be life changing - all you need to do work smart not hard and have an understanding of the markets, your systems logic and the confidence to apply it all with discipline.

If you are up for the challenge, the forex markets will give it to you. Approach them in the right way and you could soon be enjoying currency trading success that could change your life forever.

PROFESSIONAL FOREX TRADING COURSE AND FREE ESSENTIAL INFO

For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Forex Trading Course visit our website at: http://www.learncurrencytradingonline.com/index.html

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

How to Trade With Accurate Forex Forecast Signals

Serious forex traders around the world need accurate forex signals beside technical and fundamental analysis for a disciplined and rewarding trading. With accurate forex signals based on research and market study, forex traders should be ready to apply their analysis, and experience for maximizing the return on investment.

Accurate forex trading signals are indicators of trends in the forex market. Indicators like breakouts, support and resistance levels, envelope patterns, currency pairs near moving averages, oscillators, Fibonacci levels, help the forex traders to decide on a profitable entry into the market.

Accurate forex signals are selling and buying recommendations, which you can receive from independent service providers for a small subscription. Your forex broker can offer the signals for free as an add on service.

Accurate forex signals comprise of signals, tips, and trends and in most of the cases offered daily. Accurate forex signals are entirely based on fundamental and technical analysis of the market and not on speculations or rumors.

Accurate forex signals are free from the traders' emotion. Signals follow certain patterns following the market trends and various forces of demand and supply of currencies and therefore mechanical in nature.

They are best for traders who cannot watch the market round the clock. As the accurate forex signal services monitor and analyze the market and send their findings directly to you, either by email or sms, you can take action the moment you receive a signal.

Using a variety of technical studies the accurate forex signals are generated. For example, SMA or Simple Moving Average and MACD or Moving Average Convergence Divergence studies indicate buy signals when currency prices rise over the average line.

Accordingly, sell signals occur when the price falls below the moving average line. Some accurate forex signal services offer volume indicators that can determine market interest. For example, Bollinger Bands indicate sharp price changes in the market.

The best and accurate forex signal service will be the one that uses more than one indicator to form the signal. Many such indicators together will form a reliable source of information. But it must be remembered, the signals can never be 100% accurate.

They work as very good advice guiding the trader on currencies to trade, but can never guarantee the return it predicted. You must always ask for the track record to show the past performances of a forex signal service.

Accurate forex trade signals software application sends alerts in real time. It generates entry and exit points for major currency pairs on the basis of market parameters. This works as a perfect tool and ideal solution for traders to strengthen their. These signals are easy to understand and use.

To start trading automatically check out Accurate Forex Signals

Using Percent R Indicator to Trade - Get Precise System

In his original work, Williams' method focused on 10 trading days to determine a market's trading range. Once the 10-day trading range was determined, he calculated where the current day's closing price fell within that range.

The %R study is similar to the Stochastic indicator, except that the Stochastic has internal smoothing and that the %R is plotted on an upside-down scale, with 0 at the top and 100 at the bottom. The %R oscillates between 0 and 100%. A value of 0% shows that the closing price is the same as the period high. Conversely, a value of 100% shows that the closing price is identical to the period low. The Williams indicator is designed to show the difference between the period high and today's closing price with the trading range of the specified period. The indicator therefore shows the relative situation of the closing price within the observation period.

The trading rules are simple. You sell when %R reaches 20% or lower (the market is overbought) and buy when it reaches 80% or higher (the market is oversold). However, as with all overbought/oversold indicators, it is wise to wait for the indicator price to change direction before initiating any trade.

Larry Williams defines the following trading rules for his %R: Buy when this percent reaches 100%, and five trading days have passed since 100% was last reached, and after which it again falls below 85/95%. Sell when %R reaches 0%, and five trading days have passed since 0% was last reached, and after which the Williams %R again rises to about 15/5%.

Visit his site at http://www.profitguideforex.com

Forex - Holiday Trading Good or Bad Idea?

As the widely observed holidays approach, you, as a trader, may wonder whether it would be a good idea to trade in the foreign exchange (FOREX) market on these special days. Because the FOREX is 24-hour, worldwide market, you would think that this would be the greatest of times to trade, especially since money is flowing everywhere in commerce. But what is it really like to trade on the holidays?

Market Open

You will generally find the markets open even on the major holidays like Christmas Eve and Christmas Day, New Year's Eve and New Year's Day, as well as on the U.S. Thanksgiving. The vast FOREX is true to its insomniac nature during the festive season and follows it regular schedule. Throughout the trading year, the U.S. or New York Session is one of the largest in the FOREX. However, you must also remember that U.S. banks are very liberal with taking holidays off. Therefore, just because the FOREX market itself is considered open, that does not mean that the banks are all open and rendering full service.

Brokers' Platforms Open

Many FOREX Brokers, especially of the online variety, have facilities available for trading on these major holidays. But the reality is that the volume becomes very thin. Let's face it-even traders like to take time off to spend with their families and friends and spend money at the mall. The effect of the decreased volume in the FOREX is decreased liquidity. When a market does not have liquidity, it is difficult, at best, to get in and out of positions profitably. On the other hand, when there are lots of traders participating, fun can be had and money made. The U.S. Thanksgiving is not going to be as quiet as Christmas in the FOREX market, since it will perhaps affect only the U.S. Dollar-based currency pairs for the most part. Apparently, other countries and their traders are not as excited about our national holidays as we are. Surprise, surprise.

Downside Risks

One of the consequences of a market that is not so liquid is the increase in the spread charged by the broker. You will notice a similar effect during any given weekend of the year, by virtue of the same reason of lack of liquidity. Naturally, as a trader, you prefer the smaller spreads, since you get to keep more of the profits in your pockets as a result.

Conclusion

So then should you or should you not engage in FOREX trading on these holidays? If you like boring and expensive trades, then go for it. Otherwise, look your loved ones in the eye and tell them that you are so thrilled to spend some quality, uninterrupted time with them. Then prove it by spending some of that quality cash you earned during the previous months. Happy spending!

Sandy Robinson, J.D., Copyright 2007

If you are ready to change your future by stepping into the exciting world of trading FOREX, go to http://www.winningtradersassociation.com for more information. Author Sandy Robinson, J.D. is part of the Winning Traders Association, an educational organization founded by John Beiler, President. The organization consists of a network of committed trainers and motivated traders willing to provide support to those interested in trading foreign exchange. Many of the members work from home.

How to Scalp Effectively in Forex Market

Scalping for small profits is one of the most popular strategies in Forex trading. Scalpers rely on trading regularly and taking consistent small profits. They usually liquidate their trades on the same day. However, the problem with this strategy is that it has the tendency to turn you into a compulsive gambler (especially for beginners). Why did I say that? There are various reasons for leading a new scalper into a compulsive gambler. When a trader turns into a compulsive gambler, he/she will be doom for failure. In this article we will take a quick look at the 2 common reasons for that and discuss on tips to scalp efficiently;

1. Addiction to Random Profits

Most newbie thought that they can make some quick profits by taking small profits in the Forex arena everyday. They enjoy the random rewards from the market, which may turn into an addiction. It is just like teaching your dog to perform a task and randomly rewarding it every time a task is done. In this way, there is no way your dog can know when it will be rewarded. As a result, there is no reason for your dog to quit doing the task, even without being rewarded for doing it.

2. Trading for Revenge

There is a common saying among scalpers; "Trade for today, not yesterday". Many newbie try to recoup their money back after their losses a few hours ago. They cannot swallow a loss or losses and became mesmerized with their fond memories of their past winnings. They keep thinking on how to win back their money, which tends to cloud their judgment on the market. They begin to fantasize opportunities in the market to enter a trade. This will eventually lead to their emotional attempt at revenge that is doomed to failure.

Tips to Scalp Efficiently

1. Determine the direction of the day by first looking at the daily chart.

2. Using candlestick studies, trendline or pivot points to enter a trade in the hourly chart.

3. For the above it must be use together with support and resistance.

4. Trading on continuous trend has a higher probability of success.

5. For contrarian trading, always enter at a better filled price or average your lot size to enter the trade

6. Scrape your trade if you do not feel comfortable after the point of entry or it takes too long for the trade to go in your direction.

7. Stop trading for the day if you have 3 losses in a row

Sebastian Sim

I'm a 31 year old Singaporean. Who started my trading journey since 2004. Now, I focus mainly in Stock Options, Forex and Unit Trusts(Mutual Funds) Investments. I've started a site The Trading Zone - a site about trading pyschology, Forex trading, investments and other topics that interests me from time to time.

http://sebastian-sim.blogspot.com

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

Forex Day Trading - Beware Of Curve Fitting Or Lose

Forex day trading simply doesn't work and traders get wiped out yet, it is very popular and this popularity has nothing to do with profits and everything to do with curve fitting so lets look at.

Curve fitting is the bending of parameters of a system in hindsight to fit the data.

This is done by some traders who don't know what their doing and by forex day trading vendors who know exactly what their doing.

A trader I know compared curve fitting to - shooting blindly as a barn door, then afterwards drawing a chalk circle around everyone, to make it look like a bulls-eye!

Many traders test their day trading system over a period of data and they cant get a profit with the parameters or inputs they are using so they simply bend the system to fit - by optimizing the system rules. Of course, no period of data replicates itself exactly in the future and the optimized system collapses.

A curve fitted system normally has a lot of rules or parameters and unique rules and parameters for different market conditions or currencies and if it does - it will break in real time trading.

Forex traders don't just do this in day trading they do it in all areas - but its very common in day trading.

Vendors on the other hand, know that forex day trading is a good story and they therefore want to make an attractive track record to sell their system - so they optimize it to show big profits and low risk. If you look at some of the track records produced you know they can't be real - or not for a few hundred bucks!

All they do is present the track record and then put a disclaimer on them, to cover themselves and this the disclaimer you will see:

"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 show".

So you can make up whatever you wish as you know the closing prices. Of course, in reality these track records never make gains in real time, as the vendor does not have the advantage of the closing prices and being able to manipulate the track record.

Investors who buy these forex day trading systems from vendors, don't stop to think that these track records are not worth the paper their written on, trade them and lose.

Vendors make a lot of money from day trading by selling systems NOT trading the markets.

The buyer takes the loss and the vendor makes a profit from the sale.

You will never find a real time track record of profits (or if you do let me know) because day trading simply doesn't work. Here's why:

In daily time frames, all volatility is random and prices can and do go anywhere in a day. Support and resistance levels are meaningless and cannot be traded, you can't get the odds in your favour and you will lose.

Don't believe me?

Then try and find a real time track record and you wont get one.

Sure, those day trading track records look attractive - but keep in mind their almost certainly curve fitted, done in hindsight and will not repeat their profits in the real world.

NEW! FREE 2 x CRITICAL TRADER PDFS - NEWSLETTERS - TRADING ALERTS + MORE

On all aspects of becoming a profitable trader including: Free critical trader PDFS, and more FREE Forex Education visit our website at: http://www.learncurrencytradingonline.com/index.html

What Are The Best Currencies To Trade?

When you're first starting out it can be fairly difficult to decide which currencies are the best ones to trade. Do you watch all of them or only concentrate on one or two?

Well in truth there's no right and wrong answer. If you have a rigid trading system which produces consistent profits whatever the currency pair, then you may want to open a window for each pair, ideally on a multiple monitor set-up, so you can watch for your entry criteria to be met for any of these pairs.

So for example, let's say your trading criteria is a MACD crossover, a Supertrend change of colour, and RSI in overbought/oversold territory.

In this instance, you would simply create graphs containing this data for every major currency pair, and wait for a suitable entry for any of them.

That's one approach. Another approach, and one favoured by myself, is to only concentrate on the major pairs. This is because they are the most traded, and therefore charting patterns and technical indicators are generally more reliable and tradeable.

Another reason why I take this approach is because these pairs have the tightest spreads. This is extremely important because you really don't want to be trading pairs that have wide spreads simply because it limits your profits more and puts added pressure on you to make correct calls.

Over time these wider spreads can really eat into your profits, so I generally stick to three of the four major currency pairs – GBP/USD, EUR/USD and USD/JPY (USD/CHF is the other but that has a spread of 4 points with the broker I use).

I can easily watch these three pairs at once and watch for any entry points, but if you're just starting out, another approach could be to just concentrate on one pair. You will find that although most pairs follow technical indicators very well, each pair has it's own personality and so by concentrating on just one pair, and learning how it behaves, you may find this is the most profitable approach to take.

Another factor is your location and the time at which you are available to trade. For example, the GBP/USD is most active between around 8.00 GMT and 20.00 GMT, so if you're based in Australia, for example, you would miss most of the action if you wanted to trade in the daytime where you are.

So to conclude, there aren't really any best currencies to trade, each pair is potentially very profitable. However, the major pairs generally have the tightest spreads and are the most actively traded, and generally conform very well to technical analysis, so these are the currencies I would recommend trading.

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

Professional Forex Trader - Live the Dream in 4 Simple Steps

Becoming a professional forex trader is the dream of many and for most it remains just that - but if you follow the simple tips enclosed, you could change your financial future forever and be making big consistent gains, in just an hour or so a day.

FACT:

95% of traders lose all their money, yet everything about forex trading can be learned, it’s just the majority of traders don’t get the right forex education, or have the wrong mindset to apply what they have learned.

Anyone one can become a successful forex trader from home however you need to do the opposite of the majority, it’s not hard to do and do your homework.

1. Adopt the Mindset For Success

Most traders are lazy or naive or both.

They read about how easy it is to make money and think someone else can give them success.

Most of the information sold on the net is junk and wont help you win and even if you do find some good education, you cant follow it blindly, you need to understand it.

If you don’t understand how and why your system works, you wont have confidence to apply it with discipline and you will lose.

Keep in mind if you don’t have the confidence and discipline to follow your system you don’t have one!

If you like to blame others and don’t like responsibility don’t trade forex, it’s as simple as that.

2. Work Smart Not Hard

You don’t need to work hard you need to work smart and this means only learning what is relevant.

Many traders think the more knowledge they have the better but you don’t get rewarded for effort in forex trading, you only get rewarded for being right.

In 1983 legendary trader Richard Dennis proved this point in spectacular fashion. He took a group of people who had never traded before and taught them to trade in 14 days – the result?

They made him a $100 million dollars and went on to become some of the most successful traders of all time.

Working smart means working on a forex trading strategy that will get the odds on your side and that’s what we will look at next.

3. A Forex Trading System for Success

I am amazed at how many traders simply base their systems on logic that doesn’t work, for example:

Most novice traders try day trading yet all short term volatility is random so they can’t win, yet they don’t stop to think how dumb day trading is.

Or

They believe in scientific theories that tell them they can predict the market in advance and don’t stop to think that predicting is impossible.

If it were possible, we would all know the price in advance and their would be no market!

The best you can do is trade with the odds on your side.

Of course, you will lose but your profits should be bigger than your losses and you can pile up big gains over time.

You can build your own forex trading system easily, just educate yourself on.

- Support and resistance and breakouts
- Time your trades with momentum oscillators
- Keep it simple trend lines and 2 -3 confirming indicators max

If you build a system based upon the above it will be simple to understand, simple to apply and will be robust.

Don’t try and be too clever and cram too much into your system. If you do, it will have too many elements and break in the real world of trading.

If you do the above, you will have a simple robust system that you can apply in an hour a day or less.

One other point, I constantly read writers tell you to educate yourself all the time, study your profits and losses etc– Rubbish! If you have a system you believe in leave it alone.

You will have winners and losers but if it’s soundly based then you simply should just apply it.

4. Building Long Term Gains

What is a realistic amount to aim for?

If you made 100% per annum you will be up there with the top traders in the world and you don’t need to do many trades – keep your trading focused on high odds trades only.

So there you have it, a simple plan to live the dream of becoming a professional forex trader from home.

It’s a challenge but one anyone can take up and anyone can win – if they want to.

Are you up for the challenge?

If so, welcome to the worlds most exciting and lucrative business.

NEW! FREE 2 x CRITICAL TRADER PDFS - NEWSLETTERS - TRADING ALERTS + MORE

On all aspects of becoming a profitable trader including: Free critical trader PDFS, and more FREE Forex Education visit our website at: http://www.learncurrencytradingonline.com/index.html

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.

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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.

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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.

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system that has helped 100's of Forex Traders become profitable.
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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!

Five Steps To Trading For A Living

For the past five years my sole source of income has been profits made from trading on the forex market. Over that time period, many people, perhaps somewhat envious of my ability to earn money from home without having to report to a boss, have asked me what it takes to trade for a living. How can one arrive at a point where one feels confident enough to leave ones regular employment, strike off on ones own with no guarantee of a regular paycheck, and put what might conceivably be ones entire savings up to that point at risk in the markets?

While I unfortunately cant actually give you confidence in your ability to make it on your own, nor the stomach to risk your hard earned savings, I can tell you the practical steps that I took to get where I am today. These steps do not include the obvious ¨learn of the existence of the forex market¨, as presumably you already know something about forex trading, or you wouldnt be reading this article.

Furthermore, while these steps have been applicable to trading the forex market in my case, one could easily apply the same principles to becoming a professional trader in the equities markets, derivative markets, etc.

Step 1) Start saving your money.

To trade professionally you need a bankroll, and one that is large enough to withstand the ups and downs that are a natural part of trading. For me, this was easy. I had been putting money aside ever since I started working. Those like me that have been raised to understand and appreciate the value of saving, will accomplish this quite naturally. However, if you are a habitual spender and are accustomed to living paycheck to paycheck without putting anything extra aside, be prepared to expend some serious effort curbing your habits and learning to save instead of spend. How much money will you need? Unfortunately I cant answer that specifically because it will depend on the trading strategy that you use, the amount of leverage you plan on trading with, and the amount of money that you need to take out in profits. You should count on having a bare minimum though, of a full six months salary saved up before beginning full time trading. One years salary would be still better. Keep in mind that the larger your bankroll, the more money you can earn without risking an unnecessarily large percentage of your bankroll.

Step 2) Get an education.

You cant start trading before you know something about the market you are trading in. This education does not have to be formal (as in University classes), and you do not have to understand economic forces as well as Alan Greenspan prior to getting started. You should, however, have a basic understanding of why the market that you are trading in exists, how buying and selling on that market works, and the strategy that you are going to employ to take your profits out of the market. There are a lot of totally free resources on the internet that are worth your time to read (and there are a lot of opinions and ideas that are NOT worth your time, but reading some of those that are not worthwhile is part of the process of developing discernment about what is and is not a good resource).

There are also some inexpensive trading courses on the internet that are useful. Part of the education process is coming up with a trading strategy that you are comfortable with, as well as a money management strategy to ensure the long term viability of the trading strategy. There are many good trading strategies out there, but regardless of which one you choose, you must understand that the traders that are successful cut their losses early and let their winning trades run. This can be somewhat more difficult than it sounds, but is really the key to making money trading.

Step 3) Sign up for a demo trading account and start practicing while you are not at your regular job (or, if you have free time and internet access at your job, WHILE you are at your regular job).

We list some good forex brokers at forex-rates, so if you are planning to trade currencies, be sure and sign up for a demo account with one of the listed brokers. In order to get a real feel for the trading strategy that you have chosen, you will have to do a lot of practice, so take your time with this step. Dont start trading with real money until you have an actual history of successful demo trading

Step 4) If you are making money trading on paper and are comfortable with your trading strategy, go ahead and get started trading for real on a part time basis. Don't include all of your savings as part of your trading bankroll yet. Start slowly and gain a comfort level. As your confidence builds, move money from your savings to increase the size of your bankroll.

Step 5) When you can estimate that your average gains from real trading (from step 4) are at a level where, if you were to trade full time using your current bankroll, you would be making profits that slightly exceed your current employment salary, you are ready to quit your job and trade full time. Remember, you want your trading profits to exceed your present salary. This will give you the opportunity to maintain your current financial level, but at the same time continue to increase your trading bankroll, which will enable you to earn more and more money as the size of your available funds grows larger.

It is important to have patience with yourself at each of the steps mentioned. Maintain emotional equanimity and understand that fear and greed are a traders most dangerous nemesis. If you can keep these emotions under control and maintain the discipline established while following these steps, you can look forward to making it as a professional trader.

Samuel Garcia is a full time forex trader based in San Jose, Costa Rica. He considers that being a successful trader is 90% due to proper money management and emotional discipline, rather than the trading strategy employed. Visit www.forex-rates.biz

Learn Currency Trading - 4 Simple Steps to Success

If you want to learn currency trading you need to be aware that 95% of traders lose - not because they don’t put in the effort, its just they get the wrong Forex education. Here, we are going to give you a blueprint to devise a forex trading strategy for success in 5 simple steps.

1. Accept Responsibility

If you want to make money in anything and currency trading is no exception then you need to accept responsibility – no one else is going to give you success you have to take it.

This means no blaming your broker, a mentor, guru or the markets, you are on your own and that’s no bad place to be - ALL the successful traders in currency trading accept this fact.

If you want to make money in currency trading you can - but don’t fall for its easy, its not but with the right forex education you can become a winner, as everything about currency trading can be learned.

2. Accept These Facts

The most important fact to accept is that currency trading is a game of odds not certainties - so forget predicting the market and scientific theories, they won’t give you success.

You’re like a successful card player – playing the odds. You bet big when the odds are in your favour and fold when there not ad if you did this you will make a lot of money.

Accept that you have to have confidence in what you are doing ( which comes from self education) to give you the discipline to follow your currency trading system. If you can’t follow your currency trading system with discipline, you have no system!

Markets can be frustrating but you can win, if you get learn currency trading the right way – now on to your method for success.

3. Building Your Currency Trading System

Building a trading system should be based on the following and if you work smart and get the right knowledge ( and you can find it free on the net ) it should only take you a couple of weeks.

1. Use a long term trend following methodology.

2. Learn support and resistance and the timeless theory of breakouts – if you don’t know what they are read our other articles.

3. Confirm any trading signal you execute with momentum indicators – this is the key to getting the odds on your side.

4. Employ a money management system that ensures you have clearly defined get out area when you enter a trade.

And finally –

Keep your system simple! Simple systems are easy to understand, apply and are more robust than complicated ones. Clutter your trading system with to many indicators and it will break in the brutal world of trading.

You can do well with a system based upon support, resistance and just a few momentum indicators.

5. Putting It All Together

Don’t work hard at trading! Work smart.

This means once you have built your currency trading system, don’t do any more work on it.

Many traders bang on about learning all the time - but if you are happy with your trading system and the logic is sound, what more is there to do but apply it?

When you come to applying it – it should only take you 30 minutes or so a day and that’s it get on with your life.

If you follow the above plan, you will have the education you need to give you confidence and discipline to apply your forex trading strategy for big gains.

Most traders fail not because they lack a method, but because they lack the mindset to apply it with confidence and discipline. Trading are as much in the mind as in the knowledge.

If you want to learn currency trading, keep the above points firmly in mind and they will lead you to currency trading success.

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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!

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!

Day Trading Futures Contracts - How To Win

(by D.Bennett)

The successful futures day trader knows that trading is a form of betting. It is a numbers game based on probabilities. The trader’s task is to adopt a strategy with favourable odds and execute the strategy as perfectly as possible.

To be successful, the trader identifies one or more setups which signal high expectancy trades. The setups are most often related to some kind of chart pattern, or a signal given by one or more technical indicators. I look at some ideas for setups in other articles. For now it is sufficient to understand that a setup should be measurable. It is a clear, unambiguous signal to enter a trade, and each trade should be managed in exactly the same way so that the results of the trade can be accurately determined in a theoretical test situation.

The expectancy of a trade cannot be estimated without testing the strategy. You test by either trying out the strategy on historical data (back-testing), or paper trading the strategy for a period of time. In either case you are unlikely to get a decent estimate unless the sample includes a minimum of 20 trades, preferably more.

You should observe the results for the trades in your test sample and calculate the Probability of Winning - P(W), the Probability of Losing - P(L), the Average Win in dollars - A(W), and the Average Loss in dollars - A(L). Use the following formula to estimate the Expectancy for your strategy:

E = P(W) x A(W) - P(L) x A(L)

For example, you test 50 trades resulting in 30 wins (60%) and 20 losses (40%), with an average win of $300 and average loss of $200.

E = (60% x 300) - (40% x 200) = 180 - 80 = $100

This means that in the long run you expect to make $100 per trade using this strategy.

Many people examine historical data to determine a good trading strategy. After this, you cannot use the same data to estimate Expectancy, because the strategy is optimised for this particular set of data. To estimate Expectancy, back-test data from a different period or run an independent paper trading trial. Ignoring this principle results in curve fitting and you delude yourself into thinking your strategy is better than it really is.

No strategy can be profitable unless it has a positive expectation, but higher expectation does not necessarily lead to higher profit. You must also consider the opportunities to trade generated by your strategy. A strategy averaging 10 trades per day with an Expectancy of $50/trade is better than a strategy providing 2 trades per year with an Expectancy of $1,000/trade.

You can see from the formula that Expectancy is a function of both the Probability of Winning and the Average Win to Average Loss ratio. If you only win 1 in 4 trades, but the average win is $400 versus an average loss of $80.

E = (1/4 x 400) - (3/4 x 80) = 100 - 60 = 40

This is a situation where a strategy with a low probability of winning has a positive Expectancy because wins are much bigger than losses. In contrast, suppose you win 8 out of 10 trades with an average win of $80 and an average loss of $300:

E = (0.8 x 80) - (0.2 x 300) = 56 - 60 = -4

This strategy wins much more often than it loses, but has a negative Expectancy because losses are substantially bigger than wins.

There is no right answer for the balance of these parameters, other than that the Expectancy for your trading strategy must be positive. Often, improving your average win to average loss ratio will decrease the probability of winning, and vice-versa.

However, for a small trader there is an advantage in gaining positive Expectancy by having a high probability of winning. Sticking to a strategy that generates a lot of winners is less strain on the trader!

A positive Expectancy is no guarantee against a run of losses. Indeed, with most strategies it is almost certain that there will be significant strings of losses at some time. However, a positive Expectancy should lead to profits in the long run, providing the trader uses proper money management and can survive losing sequences.

In summary, the trader needs to specify clearly defined strategies which can be traded in a mechanical manner whenever their setup occurs. The strategy should be tested (avoiding the trap of curve fitting) to ensure that it has a positive Expectancy. Thereafter, the trader should execute the strategy at every possible opportunity.

That is how to win.

David Bennett trades US commodity futures from his home on the Gold Coast in Australia. He provides coaching and mentoring services for people wanting to start trading for themselves. Visit http://www.12oclocktrades.com to read more futures trading articles.

Are Your Stops Being Hunted In Forex? Don't Let This Happen To You!

(by Dean Saunders)

A stop in trading is one of the most important things you will ever use, not only does it protect your account if a trade goes against you it also defines the risk you are willing to take on a given trade.

Many traders will not give the placement of a stop any thought at all, they see it merely as a last resort, "if all else fails my stop will be hit" attitude. Stop hunting is what you will fall victim to time and time again if you do not think about where you are placing your stops. Try not to place them too tight, think outside the box and place them where you are sure if price goes the trade will no longer be valid at all. False breakouts are one of the most common trades that take out stops, in this case I always try to trade the retrace of the breakout as appose to the first breakout which reduces you stop dramatically and you can be sure that if price falls back inside the support/resistance line that was broken the trade is no longer valid.

To give you an idea of the stop size I use, I trade 3 main systems which use's 5 minute, 4hour and daily charts stops on the 5 min charts are for scalping so they are very small at 5 pips + spread. Stops on the 4 hour charts are generally around 50 pips and on the daily charts stops are around 100 pips. My stops give me room to make a mistake which is very important in the forex market, if I misjudge my entry by 20 pips I am fine because my stop is still way back behind the closest support/resistance.

It is always a good idea to try to keep your stops a good distance away from price and give the trade breathing room this ensures that the swings will not take you out, there is nothing more irritating than being taken out of a position only to have it move hundreds of pips into your favour afterwards.

If you are ever unsure where you stop should be use this little trick that has helped me in the past, choose a place you would normally put your stop. Now move it further back to the next best support/resistance, you see the first place you choose is most likely where 90% of traders have placed there stops, large institutions will be targeting these areas to trigger positions in the market. Stops are not just a last resort for your trade, they are the trade. You should be thinking about the placement of your stop as much as where you take profit.

Do You Want To Make Consistent Money In 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!

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 Day Trading - A 100% Way To Lose All Your Money Quickly

(by Kelly Price)

Having been a forex trader for 25 years it amuses me when I see writers defend day trading. They say it really can make money! - Of course they have no track record to back it up just empty words. Fact is you are guaranteed to lose in day trading for one simple reason:

All Movements in Short Time Frames Are Random

Trillions of dollars trade hands each day and million of trader’s trade, all with different objectives and opinions and to say that you can predict what they do in a few hours or a day, is ridiculous. You can’t.

Volatility takes prices anywhere in a day and support and resistance levels are meaningless, so you would have the same success rate flipping a coin.

It’s absolutely impossible to get the odds on your side – PERIOD

This is of course why you NEVER see any of the vendors selling these systems give you a real time track record – Why?

Because they don’t dare trade it!

They would rather write some enticing copy and appeal to the greed and naivety of traders and make their money selling you the system – they win you lose – period.

But I have seen a track record you may say and yes will have, but it’s NOT real.

If you check the disclaimer on it you will see there all hypothetical!

What does that mean?

It means done in hindsight knowing the closing prices!

Now who can’t do that it’s not exactly hard.

If we all knew tomorrows price today we would all be millionaires but we don’t – and neither do we know what will happen tomorrow, so there not worth the paper their written on.

Day trading is a good story but the logic doesn’t add up and the biggest lie about day trading is you can make money at it longer term.

If you could you would see a track record or the vendor would shut up and trade it himself and not need your few hundred dollars.

If you want to win

Appreciate that trading is an odds game and to trade the odds you need to trade over longer periods, where the data is valid and you can have a chance of getting the odds on your side.

Finally

Don’t day trade, get real and trade with the odds on your side.

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Forex Trading Fact - If You Try and Predict In forex Trading You Will Lose

(by Monica Hendrix)

Most forex traders think they have to predict where currencies will go next to win but this relies on hope and guessing and the market will kill you – most novice forex traders make this mistake and lose. There is another way and it will make you money so let’s look at it.

The Myth of Market Prediction

There are many people on the net that claim you can predict markets in advance and their Wrong and the facts confirm this:

1. If you could predict prices in advance with scientific theory then we would all know the price and there would be no market – that’s common sense! A market is market because it’s unpredictable and moves because people hold different opinions.

Now you get a lot of scientific theories the king being Elliot wave but that never made Elliot any money and is not scientific its all subjective judgment – if its subjective its not a scientific predictive theory!

You also get Fibonacci numbers prices are supposed to retrace to exact levels but they don’t – try it and lose. This theory is nothing to do with financial markets and was actually devised to solve a problem based on the copulation of rabbits! And has nothing to do with finance.

So if you can’t predict how can you win?

You trade the odds and trade on confirmation and this means simply following price momentum.

For example if prices dip towards a level of support you don’t assume it is going to hold - you WAIT and get confirmation and that means prices testing support and then turning up. You then trade with price momentum.

You are not guessing or hoping you are trading the reality of price.

If you don’t use momentum indicators now is the time to learn. There are many indicators to choose from, but two of the best are the:

Relative Strength Index and Stochastic

Why the odds are in your favour?

You are trading the odds.

Forex is an odds game you will lose trades but if you trade with the odds, you will have more winners than losers and pile up big money over time.

So when you trade forex don’t predict and rely on hope trade the reality, trade the odds and make money – losing forex traders think they need to predict to win but as we have just shown, you this is a myth and will simply see you lose.

Trade the smart way on confirmation and get the odds in your favour for big forex profits

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Forex Trading - If 95% Of Traders Lose Then To Win You Need To Do This

(by Kelly Price)

Do the opposite of what they do! This may sound obvious but most traders like to follow accepted market wisdom and trade in the direction of the crowd. If you want to win at forex trading you need to step away from the crowd – and that’s what this article is all about.

In terms of following accepted market wisdom like day trading, buying low – selling high and predicting the market, these are 3 examples of how to lose when devising a forex trading strategy and if you don’t know why read our other articles!

Here we want to focus on taking trades that the majority take and see their equity slaughtered and how you can trade in the opposite direction at the right time.

FACT:

If you buy into extreme bear markets and sell into extreme bull markets, as greed and fear blinds the participants to the reality – you will win.

Not only that - but you will trade with low risk and high reward.

It’s a fact that humans push both bull and bear markets too far and if you can spot these extremes and hit the turn you will rack up fantastic gains with low risk.

But How Do You Spot Them?

There are of course forex charts, where you can use technical analysis to look for price spikes - but this does NOT tell you how bullish or bearish the participants are - it just shows you price spikes and trends.

What you need are some sentiment indicators that show how much emotions are moving prices and when the turn is coming.

The best one of all is the CFTC Net Trader Positions and their FREE!

Not many traders use them, but this bi-weekly report is essential for all forex traders.

They show the breakdown of the futures forex markets - but these positions are just as useful when trading cash.

What do they do?

Quite simply they break the position into three main groups:

- Hedgers: These guys are the real pros and are simply hedging a cash position. There not trying to make money so are not influenced by greed or fear.

- Large Speculators: These are large funds who are mostly trend followers

- Small speculators: Everyone else

So why is the above breakdown so relevant?

Quite simply, you can look for extremes either bullish or bearish in speculative positions – with commercials holding and opposite position and moving the other way.

History shows us that the commercials are the right way around at EVERY major top or bottom and the speculators get slaughtered as the market turns.

Be careful!

You have to look for extremes. Once you see speculators heavily net long and commercials moving to the short side – a turn is coming - Prices are to far from fair value and its time to look for a position.

Watching these positions and spotting extremes in sentiment will allow you to:

Trade against the majority when everyone else thinks you are crazy!

You will have the confidence to do this, as the commercials are right about market extremes time after time and you can then look to enter your trading signals, knowing your trading with the smart money.

A Word of Caution

Net Traders positions alert you to the fact a big contrary trade is coming against the herd – but they should not be used on their own – they are not a timing indicator.

You need to use your forex charts and your normal indicators to enter a trade when price momentum turns in your favour.

Trade With the Pro’s

Want to know what the real pros are doing?

Then that’s what following the commercials via Net Trader Positions gives you.

If you want to trade with the smart money and catch the big profits from the big moves - trade with the commercials for bigger forex profits!

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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.

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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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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.

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