Currency Trading Basics - a Simple, Timeless Method For Huge Gains
by kelly Price
Here we are going to look at currency trading basics from the standpoint of getting a currency trading system for profits. The one enclosed is simple to understand and will enable you to seek huge gains.
Here we are going to look at a long term breakout method for profits and how to make it part of your forex trading strategy for success.
What is a breakout?
It's simply a break to new chart highs or lows and if you look at a forex chart, you will see that most major moves start from these breaks.
Why Most Traders Can't Trade Them
Breakouts work yet most forex traders can't trade them because they think they have missed a bit of the move and want a better entry price but if the break is valid they wait in vain, as the trade sails over the horizon piling up huge profits and there not in!
The fact that most traders cant trade breakouts is the reason they are so profitable, so trade breakouts and get in the winning minority.
While these breaks can sometimes be hard to take, if the support or resistance is valid, the odds favour a big move - but not all breakouts are created equal.
Let's look at the definition of a valid breakout.
The Best Breakouts
Generally, the more tests the better, the more time frames the better and the wider they are apart, the better.
The minimum you should look for is 3 tests in at least 2 different time frames.
Patience is the Key!
Be patient and wait for the big breaks the market considers valid and you will be well rewarded.
I know a few traders who trade less than once a month yet, make triple digit annual gains from breakouts.
Confirm the Move
When the break occurs check price velocity or momentum is accelerating through the break and here you need some momentum oscillators to help you7 1 or 2 is fine and we find the stochastic and RSI, great indicators to use.
We don't have time to go into them here check our other articles.
Stop and Profit
Stops are easy - right under the breakout point. Now the key with trading breakouts is not to trail your stop to soon. Wait until the move is well underway and trail your stop well behind normal price volatility, so you don't get stopped out to soon.
It doesn't matter if you give a bit back at the end of the trend (you don't know when it's going to finish anyway) so don't try! If you caught 50% of every major trend though, you would be very rich.
Does the above sound simple?
It is.
Does it make money?
Yes and it will always make money as long as markets trend breakouts will occur and if you are selective on the ones you choose and confirm the moves, you could enjoy spectacular currency trading success.
You can learn and be up and running with a breakout strategy in about a week and seeking big profits.
แสดงบทความที่มีป้ายกำกับ Currency Trading Basics แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ Currency Trading Basics แสดงบทความทั้งหมด
วันเสาร์ที่ 31 พฤษภาคม พ.ศ. 2551
วันศุกร์ที่ 16 พฤษภาคม พ.ศ. 2551
Currency Trading Basics - A Simple System Anyone Can Use For Big Profits
Currency Trading Basics - A Simple System Anyone Can Use For Big Profits
by kelly Price
I have been a trader for 25 years and have seen all types of market and seen lots of innovations - but my forex trading strategy has NOT changed, it's still the same as it was 25 years ago and still works. I will share the logic of it with you here.
First - we have seen lots of changes in the last 25 years but understand this being clever and trying to make your trading strategy complicated is a mistake. Simple systems work best and always will.
Despite all the advances in technology over the last 25 years, the ratio of winners to losers still remains the same 95% lose 5% win, this shows technology has nothing to do with forex success.
You need a simple system, because its very robust complicated ones fail because they have too many elements to break.
Here is the logic of my system:
1. Look for Valid Support and Resistance
Yes good old trend lines then, check for a valid level - lots of tests, in lots of time frames. Next I wait for the level to break and new high or low to be made.
All the big trends come from breakouts and these are the moves to go for.
Most traders like to wait for the pullback but they never get in. By waiting for a better price they miss the move. Losers don't go with breakouts winners do.
2. Confirm the Trading Signal
You then need to see if the odds are on your side with the breakout so you check price momentum. There are lots of momentum indicators to help you time your move and get the velocity of price on your side. The ones you choose are a matter of personal preference but I like the ADX, RSI and stochastic. If my momentum calculation adds up I go with the break.
3. Stops
Stop below the breakout point and then trail the stop up behind random volatility not to get clipped out I like the 40 day MA.
That's it! Simple yes of course but it works for me. The real trick is being patient I only trade 1 - 2 times a month with this method and to take short term draw down trailing the stop.
Adapted to Swing Trading
If the market is not trending, I adopt the strategy to look for shorter term moves and swing trade i.e using momentum to trade the moves between support and resistance. When doing this there is no trailing stop, just a target.
This method was simply one I picked up from a commodity trader in the late seventies and after trying all sorts of methods, it's the one I settled on in the mid eighties and have used ever since. It works on commodities currencies and stock indexes.
Is it perfect? No, does it make money longer term - Yes and good money for the effort of 30 minutes or less a day.
I always get amused by people saying you have to keep updating your forex trading strategy and keep a journal of losses and why they occurred etc. To complicated for me! If I lost that's fine you have to have losses to make gains and if the system isn't broke don't fix it.
I have the confidence to follow it, as know its logic and therefore have the discipline to follow it.
You can do it!
The above currency trading basic plan for profit will work for you, if you want it to.
You just have to learn the logic, settle on your indicators and you're all set to lock into the exciting world of global currency trading.
If there is one area of life where you can keep it simple its currency trading and the real key is to have the confidence and discipline to follow your plan.
by kelly Price
I have been a trader for 25 years and have seen all types of market and seen lots of innovations - but my forex trading strategy has NOT changed, it's still the same as it was 25 years ago and still works. I will share the logic of it with you here.
First - we have seen lots of changes in the last 25 years but understand this being clever and trying to make your trading strategy complicated is a mistake. Simple systems work best and always will.
Despite all the advances in technology over the last 25 years, the ratio of winners to losers still remains the same 95% lose 5% win, this shows technology has nothing to do with forex success.
You need a simple system, because its very robust complicated ones fail because they have too many elements to break.
Here is the logic of my system:
1. Look for Valid Support and Resistance
Yes good old trend lines then, check for a valid level - lots of tests, in lots of time frames. Next I wait for the level to break and new high or low to be made.
All the big trends come from breakouts and these are the moves to go for.
Most traders like to wait for the pullback but they never get in. By waiting for a better price they miss the move. Losers don't go with breakouts winners do.
2. Confirm the Trading Signal
You then need to see if the odds are on your side with the breakout so you check price momentum. There are lots of momentum indicators to help you time your move and get the velocity of price on your side. The ones you choose are a matter of personal preference but I like the ADX, RSI and stochastic. If my momentum calculation adds up I go with the break.
3. Stops
Stop below the breakout point and then trail the stop up behind random volatility not to get clipped out I like the 40 day MA.
That's it! Simple yes of course but it works for me. The real trick is being patient I only trade 1 - 2 times a month with this method and to take short term draw down trailing the stop.
Adapted to Swing Trading
If the market is not trending, I adopt the strategy to look for shorter term moves and swing trade i.e using momentum to trade the moves between support and resistance. When doing this there is no trailing stop, just a target.
This method was simply one I picked up from a commodity trader in the late seventies and after trying all sorts of methods, it's the one I settled on in the mid eighties and have used ever since. It works on commodities currencies and stock indexes.
Is it perfect? No, does it make money longer term - Yes and good money for the effort of 30 minutes or less a day.
I always get amused by people saying you have to keep updating your forex trading strategy and keep a journal of losses and why they occurred etc. To complicated for me! If I lost that's fine you have to have losses to make gains and if the system isn't broke don't fix it.
I have the confidence to follow it, as know its logic and therefore have the discipline to follow it.
You can do it!
The above currency trading basic plan for profit will work for you, if you want it to.
You just have to learn the logic, settle on your indicators and you're all set to lock into the exciting world of global currency trading.
If there is one area of life where you can keep it simple its currency trading and the real key is to have the confidence and discipline to follow your plan.
วันศุกร์ที่ 18 เมษายน พ.ศ. 2551
Currency Trading Basics - To Make Profits You Must Know the Answer to This Question
Currency Trading Basics - To Make Profits You Must Know the Answer to This Question!
by kelly Price
Here we are going to look at currency trading basics and the most basic question you need to answer before you start trading - If you don't know the answer you will get wiped out and join the 95% of losers, answer it correctly and you could win and win big so here is your question...
My Trading Edge is (defined) .... To elaborate
Why is it you will win what's your edge over the 95% of traders that lose. Think about it carefully and while you are, the correct answer is NOT.
- I have bought a forex robot from a vendor with a simulated track record - I trade news stories and expert opinion - I trade the supply and demand fundamentals - I use a day trading system - I Employ forex scalping methods - I use scientific theories to predict market movement - I am clever and have a complicated trading system - I like to buy low and sell high
All the above are statements that will see you lose and do not constitute a trading edge and are all commonly stated by novice or naïve traders.
A trading edge has to be something that is based on correct logic about market movement which, you have confidence in. This then enables you to execute your forex trading strategy with discipline for long term success.
Trading success is something that comes from within and while all traders have different trading edges, they all have certain things in common which are:
- They have avoided all the forex myths (and there are loads of them)
- They have learned forex is an odds game not a game of science
- They know a method is not enough and that confidence leads to
- Discipline the single most important variable of trading to keep emotions at bay
- They know its not the news or fundamentals that are important its how their perceived that determines the course of events
- They have the ability to run profits and cut losses and have a money management strategy
- They know forex systems need to be simple not complicated to succeed
All the above come together and from this comes their "trading edge" the single variable that they have which will lead them to long term success.
The only aim of trading is to make money - its how success is judged.
Forex trading has a lot in common with this poker quote
"See, in my world - the world of high-stakes gin and poker - we play for cold, hard cash. It's all business, pure and simple. Anyone who thinks card playing is a 'game' - I'll show you a loser. Money... M-O-N-E-Y. That's how you measure success. One dollar at a time. One chip at a time. That's how you keep score."
Stu Unger
Know Your Edge and Win Big
Stu knows what the aim of the game is and he also knows his edge over other players and you must as well. It's one of the critical currency trading basics and if you do know it and can use it to your advantage, you could end up in the elite 5% of winners, who make the big consistent profits.
by kelly Price
Here we are going to look at currency trading basics and the most basic question you need to answer before you start trading - If you don't know the answer you will get wiped out and join the 95% of losers, answer it correctly and you could win and win big so here is your question...
My Trading Edge is (defined) .... To elaborate
Why is it you will win what's your edge over the 95% of traders that lose. Think about it carefully and while you are, the correct answer is NOT.
- I have bought a forex robot from a vendor with a simulated track record - I trade news stories and expert opinion - I trade the supply and demand fundamentals - I use a day trading system - I Employ forex scalping methods - I use scientific theories to predict market movement - I am clever and have a complicated trading system - I like to buy low and sell high
All the above are statements that will see you lose and do not constitute a trading edge and are all commonly stated by novice or naïve traders.
A trading edge has to be something that is based on correct logic about market movement which, you have confidence in. This then enables you to execute your forex trading strategy with discipline for long term success.
Trading success is something that comes from within and while all traders have different trading edges, they all have certain things in common which are:
- They have avoided all the forex myths (and there are loads of them)
- They have learned forex is an odds game not a game of science
- They know a method is not enough and that confidence leads to
- Discipline the single most important variable of trading to keep emotions at bay
- They know its not the news or fundamentals that are important its how their perceived that determines the course of events
- They have the ability to run profits and cut losses and have a money management strategy
- They know forex systems need to be simple not complicated to succeed
All the above come together and from this comes their "trading edge" the single variable that they have which will lead them to long term success.
The only aim of trading is to make money - its how success is judged.
Forex trading has a lot in common with this poker quote
"See, in my world - the world of high-stakes gin and poker - we play for cold, hard cash. It's all business, pure and simple. Anyone who thinks card playing is a 'game' - I'll show you a loser. Money... M-O-N-E-Y. That's how you measure success. One dollar at a time. One chip at a time. That's how you keep score."
Stu Unger
Know Your Edge and Win Big
Stu knows what the aim of the game is and he also knows his edge over other players and you must as well. It's one of the critical currency trading basics and if you do know it and can use it to your advantage, you could end up in the elite 5% of winners, who make the big consistent profits.
วันอังคารที่ 4 มีนาคม พ.ศ. 2551
Currency Trading Basics - 4 Critical Points to Consider Before Trading
Currency Trading Basics - 4 Critical Points to Consider Before Trading
by kelly Price
Here we want to look at currency trading basics and some points which will answer the question: could you win at currency trading? There are 4 points to consider and if you think you can master them, you can enjoy currency trading success.
1. You and Profits
Only you can make yourself successful no one else can.
Sure you can get knowledge from others - but you must learn and apply it by creating your own forex trading system.
A word of warning:
You will see numerous mechanical forex trading systems sold on the net, with simulated track records and none of them will make you money - they all lose. So forget them. The track records are meaningless as they have never been traded - don't be tempted to try them!
You're on your own - but that's the only place to be, if you want to enjoy currency trading success.
2. Working Smart
You don't get paid for effort in forex trading you get paid for being right with your trading signal and that's it.
You can learn all you need to know in about 2 weeks and you're done. It's a fact everything about successful forex trading can be specifically learned by anyone.
This was proved by trading legend Richard Dennis, who taught a group of people to trade in 14 days and they went on to make $100 million! Yes, forex trading is a learned skill - so where do you get the best education?
Well you can get a ton of free info on the net and you should also take a look at some books by the great traders from Amazon.
The best way to trade is to use a simple system, based upon forex charts but keep in mind - nothing complicated!
Simple trading systems work best, as they are more robust in real time trading with fewer elements to break.
Learning a trading method yourself is essential, as you will know how and why it works and this will give you:
3. Confidence
If you do not have confidence in what you are doing, you will never acquire the vital trait all traders' need - discipline.
Most traders who trade don't have confidence in what their doing - they follow news stories or other traders systems and when they hit a few losses, they throw in the towel.
You need confidence to allow you to accept short term losses as a natural part of making big longer term profits. No trading system is perfect, so you need to have confidence when you hit a bad spell.
4. Discipline
Confidence will give you discipline the vital trait all successful traders have.
To be successful you must follow your currency trading system with discipline and execute your trading systems to the rules of the system- through good times and bad.
If you don't have the discipline to follow your trading system you don't have one!
Finally ...
Forex trading is 25% method and probably 75% attitude.
The reason most traders fail is they simply cannot accept responsibility for their actions and blame everyone else - from their broker, to the wife for putting them in a bad mood!
If you are not prepared to accept responsibility and create and understand a framework of rules, you have the confidence to follow with discipline, then you need to forget forex trading and do something else.
Forex trading has huge rewards and is a big boys game and not for cry babies.
So if you understand the above and what you need to do and you're up for the challenge, then welcome to the world of currency trading!
We hope our quick review of the currency trading basics above help you on the road to currency trading success.
by kelly Price
Here we want to look at currency trading basics and some points which will answer the question: could you win at currency trading? There are 4 points to consider and if you think you can master them, you can enjoy currency trading success.
1. You and Profits
Only you can make yourself successful no one else can.
Sure you can get knowledge from others - but you must learn and apply it by creating your own forex trading system.
A word of warning:
You will see numerous mechanical forex trading systems sold on the net, with simulated track records and none of them will make you money - they all lose. So forget them. The track records are meaningless as they have never been traded - don't be tempted to try them!
You're on your own - but that's the only place to be, if you want to enjoy currency trading success.
2. Working Smart
You don't get paid for effort in forex trading you get paid for being right with your trading signal and that's it.
You can learn all you need to know in about 2 weeks and you're done. It's a fact everything about successful forex trading can be specifically learned by anyone.
This was proved by trading legend Richard Dennis, who taught a group of people to trade in 14 days and they went on to make $100 million! Yes, forex trading is a learned skill - so where do you get the best education?
Well you can get a ton of free info on the net and you should also take a look at some books by the great traders from Amazon.
The best way to trade is to use a simple system, based upon forex charts but keep in mind - nothing complicated!
Simple trading systems work best, as they are more robust in real time trading with fewer elements to break.
Learning a trading method yourself is essential, as you will know how and why it works and this will give you:
3. Confidence
If you do not have confidence in what you are doing, you will never acquire the vital trait all traders' need - discipline.
Most traders who trade don't have confidence in what their doing - they follow news stories or other traders systems and when they hit a few losses, they throw in the towel.
You need confidence to allow you to accept short term losses as a natural part of making big longer term profits. No trading system is perfect, so you need to have confidence when you hit a bad spell.
4. Discipline
Confidence will give you discipline the vital trait all successful traders have.
To be successful you must follow your currency trading system with discipline and execute your trading systems to the rules of the system- through good times and bad.
If you don't have the discipline to follow your trading system you don't have one!
Finally ...
Forex trading is 25% method and probably 75% attitude.
The reason most traders fail is they simply cannot accept responsibility for their actions and blame everyone else - from their broker, to the wife for putting them in a bad mood!
If you are not prepared to accept responsibility and create and understand a framework of rules, you have the confidence to follow with discipline, then you need to forget forex trading and do something else.
Forex trading has huge rewards and is a big boys game and not for cry babies.
So if you understand the above and what you need to do and you're up for the challenge, then welcome to the world of currency trading!
We hope our quick review of the currency trading basics above help you on the road to currency trading success.
วันจันทร์ที่ 28 มกราคม พ.ศ. 2551
Currency Trading Basics - Answer This Question Correctly or Lose Your Equity
Currency Trading Basics - Answer This Question Correctly or Lose Your Equity
by kelly price
Here we are going to look at currency trading basics and one specific question any novice forex trader must answer correctly, if they are going to win with their forex trading strategy, so here it is...
My trading edge over the 95% if traders who lose is (defined)
To win you need to have a trading edge - it's as simple as that. Here are some answers the bulk of losers will give and they will all see you lose
- I intend to use a forex day trading or scalping method
- I am going to blindly trade a vendors system
- I like to take expert opinion and trade the news
- I have a forex trading system that can predict forex prices
- I believe the markets move to a scientific formula and will take advantage of one
- I have a complicated system that I have refined in back testing
- I am simply going to buy into support and sell into resistance
All the above do NOT constitute and edge and will see you fail at forex trading - keep in mind 95% of traders lose!
If you learn anything in your forex education it should be that forex trading is not as simple as it first appears and to learn currency trading correctly you must end up with an edge that you can define - no two peoples edges are identical but successful traders know what it is and why it gives them an advantage and they have the confidence to apply it with rigid discipline.
Lets first start with a fact - forex trading is an odds game not a game of certainties.
There is no scientific method to help you determine prices in advance.
If there was we would all know the price and there would be no market! Furthermore, if you try and predict forex prices, you will lose because you are simply hoping and guessing and you should really be trading the reality and confirming every trading signal before executing.
Forget complicated trading system!
Simple systems work best as they are more robust in the face of brutal ever changing market conditions and have fewer elements to break.
Forget the news its just stories.
The news reflects the emotions of the losing majority and if you get involved in trying to follow it, you will lose.
You need to trade the odds to enjoy currency trading success.
The best way is to use forex charts, where you can simply see the reality of price change and you can either forex swing trade or trend follow - but never day trade!
Day trading is the best way to lose money out and doesn't work in the real world.
Forget all the gurus out there with their regular income systems and simulated track records; it's a loser's game.
Forex trading is a combination of a simple forex trading system; you totally understand this then allows you to execute it with discipline.
If you don't have the confidence in your system you will never have the discipline to follow it and these traits come from understanding and knowing a trading edge.
So there you have it perhaps the most important point of currency trading basics to learn but if you do and apply what we have written you could enjoy huge forex success.
by kelly price
Here we are going to look at currency trading basics and one specific question any novice forex trader must answer correctly, if they are going to win with their forex trading strategy, so here it is...
My trading edge over the 95% if traders who lose is (defined)
To win you need to have a trading edge - it's as simple as that. Here are some answers the bulk of losers will give and they will all see you lose
- I intend to use a forex day trading or scalping method
- I am going to blindly trade a vendors system
- I like to take expert opinion and trade the news
- I have a forex trading system that can predict forex prices
- I believe the markets move to a scientific formula and will take advantage of one
- I have a complicated system that I have refined in back testing
- I am simply going to buy into support and sell into resistance
All the above do NOT constitute and edge and will see you fail at forex trading - keep in mind 95% of traders lose!
If you learn anything in your forex education it should be that forex trading is not as simple as it first appears and to learn currency trading correctly you must end up with an edge that you can define - no two peoples edges are identical but successful traders know what it is and why it gives them an advantage and they have the confidence to apply it with rigid discipline.
Lets first start with a fact - forex trading is an odds game not a game of certainties.
There is no scientific method to help you determine prices in advance.
If there was we would all know the price and there would be no market! Furthermore, if you try and predict forex prices, you will lose because you are simply hoping and guessing and you should really be trading the reality and confirming every trading signal before executing.
Forget complicated trading system!
Simple systems work best as they are more robust in the face of brutal ever changing market conditions and have fewer elements to break.
Forget the news its just stories.
The news reflects the emotions of the losing majority and if you get involved in trying to follow it, you will lose.
You need to trade the odds to enjoy currency trading success.
The best way is to use forex charts, where you can simply see the reality of price change and you can either forex swing trade or trend follow - but never day trade!
Day trading is the best way to lose money out and doesn't work in the real world.
Forget all the gurus out there with their regular income systems and simulated track records; it's a loser's game.
Forex trading is a combination of a simple forex trading system; you totally understand this then allows you to execute it with discipline.
If you don't have the confidence in your system you will never have the discipline to follow it and these traits come from understanding and knowing a trading edge.
So there you have it perhaps the most important point of currency trading basics to learn but if you do and apply what we have written you could enjoy huge forex success.
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