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วันเสาร์ที่ 8 มีนาคม พ.ศ. 2551

Forex Trading Strategies Using Trendline Analysis

Forex Trading Strategies Using Trendline Analysis

by Andrew Daigle


When your trading strategy involves a technical analysis you will need to chart the data, which means that you must become comfortable with using charts to determine trends and indicators. You must able to spot ongoing trends and recurring patterns that disrupt the continuity of data. Charted data may be divided into two categories, which includes reversal patterns and continuation patterns. Reversal patterns indicate a market entry point or time to liquidate an open position. Continuation patterns indicate that a trend was disrupted and then continued in the direction of the original trend.

Market trends present a pattern of the market's broad movement. Trend lines are determined by connecting two points on a linear graph of historical market data as either peaks or troughs in the data. Even though a trend may be established with only two points, more points provides a better picture of true market trend. Trends may be established for any chosen timeframe, from minutes to years. Trend lines may indicate an upward or downward pattern or they may not point in either direction. Data sometimes settles into familiar charting patterns

A common analytical technique is to analyze the intersection of trend lines with the most recent price. If a downward trend intersects with the most recent price, it indicates that you should buy. If an upward trend line intersects with the most recent prices, it indicates that you should sell.

Trend lines are controversial because many traders become confused as to where to actually draw the lines. Since trends are defined by price actions, trend lines are intended to be a tool for determining the direction of a trend. Upward trends represent higher lows and indicate that prices are going up while downward trends represent lower highs and indicate that prices are going down. With an upward trend, you should draw a straight line that connects the lowest low to the highest high and in a downward trend; you should connect the highest low to the lowest high. Prices are then expected to fall within these boundaries. Many traders are confused as to whether they should draw the lines at closing price highs and lows or the highs and lows of a particular period. They are confused as to whether the lines should be adjusted to account for spikes in the data, whether spikes in the data should be ignored or whether trend lines should be adjusted to the scale of the chart.

Advocates of trend lines use more sophisticated trend line channels. These channels connect the lows of price actions on one side and the highs of price actions on the other side and a purchase is made at or near the support trend line and a sale at the line of resistance. The objective is to buy cheap and sell at profit several times over the length of a price action. This can very profitable so long as price remains within the chosen channel. Should the price break out of the channel, traders need to make consideration for several factors and establish parameters for their measurements.

วันอังคารที่ 4 มีนาคม พ.ศ. 2551

Forex Education - What is The Best Time Period to Trade for Profits?

Forex Education - What is The Best Time Period to Trade for Profits?

by kelly Price


One of the basics of your forex education is deciding the time span you want to trade in. Sure there are forex trends - but they occur in short, medium and long term time spans but which of these are the best to catch for bigger profits - let's find out.

Forex Day Trading and Scalping

By far the most popular way of trading for novice traders but it's doomed to long term failure - Why?

Because all short term volatility is random and support and resistance levels are not valid you can't get the odds in your favour longer term and you will lose.

Think about it:

Countless millions of traders are trading all with different aims, objectives and skills and to say you can tell what they are going to do in short time spans is rubbish.

You will see a lot forex scalping and day trading systems sold that claim to make money but check the track record and it will say simulated in hindsight and we can all do that!

If you want to learn currency trading, the first thing you need to do is forget day trading.

Forex Swing Trading

Swing trading catches moves that last for a few days to around a week and it's very popular and can be profitable.

This is a great way for novices to start trading because it's exciting, fun and requires very little mental discipline. Profits and losses come quickly and there is plenty of action - you know if you are right or wrong quickly and you can put together a forex swing trading system quickly that is robust and will make you money.

If you like action and are not patient then this is the method for you.

Forex Trend Following

The longer term trends last for weeks, months or years and if you can catch them you can pile up huge gains but be warned you need to be patient to catch the right opportunities and you need discipline and the courage to accept big gains.

If you have the traits of discipline and patience this method can be the most rewarding of all but most traders can't do it.

Why?

Because when they get a profit they get excited and the bigger it gets the more they want to bank it before it gets away. Of course, a trend doesn't just go one way and there are plenty of pullbacks that eat into open profit and watching your equity dip short term by thousands of dollars can be very hard! In the end most traders simply cannot hang on and bank a marginal profit where they could have had a huge one.

Keep in Mind.

You can choose forex swing trading or long term trend following or of course you can mix them both, so think carefully which one suits your personality, before incorporating it into your forex trading strategy.

You can't get the odds in your favour with a forex trading system that trades short term so don't even try it. You need to trade the odds so choose long term forex trends and go for them or swing trade - both work and can bring you currency trading success - Good luck

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.

Forex Trading Mistakes - 10 Deadly Ones That Will Slash Your Profits

Forex Trading Mistakes - 10 Deadly Ones That Will Slash Your Profits

by kelly Price


If you want to learn currency trading the right way then you need to get the right forex education and avoid these common mistakes - make one or all of them and you will lose all your money...

Here are your 10 forex mistakes, in no particular order of importance:

1. Day trading or scalping

All short term volatility is random and all forex day trading and scalping systems lose money longer term. You can't win at it so don't try. If you want to know why so many people claim to make money day trading, check out point 5.

2. Trade news stories or expert opinion

News stories are just that - stories and opinions and should not be traded.

All forex news is instantly discounted in the price and therefore cannot be traded Furthermore, the news always reflects the opinions of the crowd and the majority always lose.

3. Try to predict forex prices

If you try to predict forex prices in advance and what they might do, you are simply hoping or guessing and you will see your forex predictions become as accurate as your horoscope.

Trade the reality of price change only and confirm every move.

4. Using scientific methods

You will see vendors selling forex trading strategies based around such methods as Gann, Elliot Wave and Fibonacci and they all don't work - think about:

If forex prices were predicable with scientific accuracy, we would all know the price in advance and there would be no market.

Leave the above to the dreamers and the far out investment crowd and concentrate on trading the odds.

5. Following a mechanical System From a Vendor

This is true in 99% of the cases.

The huge majority of forex trading systems sold on the net come with the disclaimer "simulated in hindsight" in plain English this means the vendor made the track record up. Avoid these trading systems

6. Using to Many Indicators

20 indicators are better than 2 right? Dead wrong!

If you use too many indicators in your forex trading strategy you will lose, as your system will have more elements to break.

Simple systems work best and always will so keep it simple!

7. Using indicators incorrectly

How many times have I seen traders buy dips to moving averages and execute a trading signal? I have lost count - hundreds of times but moving averages are a lagging, not a leading indicator and should not be used in this way.

The above is the most common example but there are many more.

8. Working to hard

In many occupations the more effort you put in the more you get out - not so in forex trading, you get paid for being right with your market timing and that's it.

Don't make the mistake of working to hard and thinking you will win - you won't.

Work smart and get the right forex education and forget about working hard.

9. Over leveraging

Forex brokers will give you leverage of up to 400:1 - this is way too much to be using. De leverage, so you can take more risk per trade and this leads me on to the final point:

10. Placing stops to close and trailing to fast

Most forex traders because they over leverage, have to put their stops to close and then get taken out by the market noise. They try so hard to avoid risk, they actually create it and guarantee they will be stopped out. Most traders also trail their stops to quickly and never manage to run a profit.

The 10 mistakes above are made by most losing traders if you avoid them and get a sensible, simple, trend following method which trades the odds, you can enjoy currency trading success and make big profits.

วันเสาร์ที่ 1 มีนาคม พ.ศ. 2551

Forex Trading Machine Review - Is This Trading System For You?

Forex Trading Machine Review - Is This Trading System For You?

Forex TraWHAT IS "FOREX TRADING MACHINE"?

Forex Trading Machine is a new e-book on forex trading systems. The author, Avi Frister, is a full time professional Forex trader and educator with experience of over 11 years in the market. Frister offers a simple strategy to trade large short term moves in the forex market. If you cannot dedicate more than a hour a day for trading due to your full time job or any other reason, this strategy might be exactly what you are looking for.

WHAT KIND OF TRADER ARE YOU?

There are a few ways to trade in the forex market. One group of traders are the scalpers. These highly skilled professional day traders execute dozens, sometimes hundreds, small trades per day scalping a few pips in every single trade. On the other side of the scale are the professional position traders who execute very few large trades per year, sometimes less. In the middle are the momentum traders who try to trace strong short term moves which typically occur couple of times per week. If you have a full time job and cannot actively trade during the day, you should definitely try momentum trading strategies such as the "Cash Cow" strategy revealed in Forex Trading Machine.

PROS & CONS

The purpose of the CASH COW strategy is to catch large strong moves of approximately 100 pips or more per trade. The strategy is amazingly simple to understand and implement. So simple, that no indicators, support & resistant lines, Fib. lines, pivot points etc. are needed. This is an important point, as the strategy can be easily executed by traders who do not have a sound knowledge in Technical Analysis. In addition, searching the graphs for trading opportunities according to the strategy, as well as entering the trade, do not require you to watch the screen all day long, 24/5. All it takes is a few minutes every day to scan the graphs and another few minutes to place the trades.

It is also very easy to back test the strategy. Although the author indicates that he conducted a proper back testing, I back tested the strategy myself . The bottom line is that the strategy is profitable in the long run, although I noticed that best results obtained in trending market (bearish or bullish) whereas in stable market there are much fewer trading opportunities and more flops. After demo trading the strategy for a while, I added it to my trading toolbox and use it when there is a good trading opportunity. If you are a day trader like me, it can be a nice tool for catching +100 pips per trade.

For newbie traders that look for some forex education, Forex Trading Machine includes a quick introduction to the forex world with all the basics that you need in order to trade the strategy. From my experience, the covering of fundamental issues such as reading charts, technical and fundamental analysis, trading psychology, money management and forex broker selection is to-the-point and definitely suffice for a start.

To summarize, if you are looking for a simple and profitable strategy which does not require hours of screen watching, Forex Trading Machine might be a good investment. If you are a day trader, Forex Trading Machine is an additional powerful tool for catching some more pips.
by Ben Lipski

Forex Trader Training - Getting That Trading Edge

Forex Trader Training - Getting That Trading Edge

by Harold Hsu
If you've done your homework on retail Forex trading, you'll come to realize that the market is geared to make you lose money.

The big financial institutions around the world have all the necessary human talent, technology and resources to 'hunt' for your money, and let's not forget the smaller pip spreads that they enjoy. Add to this the fact that many brokers have been known to trade against their clients (i.e. taking opposing trade positions), and you'll have every reason to fear for the loss your money.

Play to your strengths

That's why it's important that you have an edge in the way you trade to balance the field. You'll need to take advantage of your position as a retail trader, to avoid falling prey to the big institutional traders. Play to your strengths as a retail trader!

Strength #1 - No Pressure To Perform

Unlike institutional traders who are constantly under pressure to perform, retail traders (like you and me) have the luxury of cherry-picking the trades with the highest winning probability. The idea here is to enter into fewer, but more potentially profitable trades.

The more traders you enter, the more chance you give the institutional traders to take your money. Don't give them any such opportunities.

Strength #2 - Small And Agile

Unlike institutional traders who have to trade with hundreds of thousands of dollars (or more), retail traders typically trade with much smaller amounts of money. This enables us to suffer from less slippage and gives us the opportunity to ride on most price trends, since our trades generally won't influence prices.

This means that retail traders are able to quickly enter and exit the market for small (but quick) profits. This is an area where few institutional traders can go. Because of the sheer size of the funds they trade, institutional traders rarely have the opportunity to move in and out of their positions quickly. Use this to your advantage.

Forex Killer Discount - Buy Forex Killer at Half Price for a Limited Time

Forex Killer Discount - Buy Forex Killer at Half Price for a Limited Time

by Jane Hamilton


The excitement contiues to buzz about this automated forex trading software. This extremely efficient software application can help you becom a more profitable trader in the Forex markets. Once you learn how to use Forex Killer, it will only take you about 20 minutes per day to set your trades and collect your profits. This is a workable and proven method for dramatically increasing your number of profitable trades. While no method is 100% guaranteed, with patience and this reliable forex trading strategy at your fingertips it is possible to make a significant amount in of money in a short period of time.

Here are some of Forex Killer's best features:

No experience needed, well suited for beginners and professionals alike Compatible with all trading platforms Use it with any broker from any country - world wide application Trade any currency pair and any financial market It can be used 24 hours a day It offers proven autopilot system Simple to understand and easy to use One time payment, no hidden fees Free software updates for life Uses only proven profitable methods Wonderful Forex Killer Benefits for Customers

Forex Killer software is a one of a kind application that provides easy to use forex trading signals.

Forex Killer Discount - For a imited time you can download Forex Killer at 50% off of the regular price of $198.

3 Bonuses: Exclusive Forex E-book, No-Farm-Payroll Strategy and a Beginner's Crash Course on Forex Trading.

Money Back Guarantee - If you decide that Forex Killer isn't the forex trading software for you, then you have an 8 week, 100% money back guarantee.

Excellence in customer service

Not only do you have access to a 24 hour help desk, but you can also pick up the phone and ask a question as well.

If you've ever thought about trying to make money from home, this could be the right opportunity for you. Forex Killer has a 9 out of 10 rating based on features, customer satisfaction and ease of operation.

Free Online Forex Trading Information