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
Wednesday 31 October 2007
Tuesday 30 October 2007
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
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
Monday 29 October 2007
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
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
Friday 26 October 2007
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.
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.
Thursday 25 October 2007
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
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
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
Monday 22 October 2007
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
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
Friday 19 October 2007
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
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
Thursday 18 October 2007
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
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
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!
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