Forex Trading Charts - Nothing Else Matters
by Harold Hsu
Many Forex traders like to obsess over economic announcements and fundamental analysis. While these are indeed important aspects to pay attention to, many traders tend to forget that at the end of the day, the only thing that really matters is what the charts are telling them.
Fundamental Analysis?
It makes logical sense to trade according to the recent economic happenings and general market sentiment as published in the news. Currency analysts often try to predict where certain currencies are headed: Is the U.S. dollar going to keep depreciating? Or is it going to turn around soon?
I know this may sound contrary to common knowledge, but as good Forex traders, we really shouldn't care about what currency analysts think. Please allow me to explain why.
Analysts Aren't Traders
This may seem blatantly obvious, but you'd be surprised at how often people tend to forget this fact. Without trying to discredit any currency analysts (I still love them!), you'll do well to remember that at the end of the day, currency traders are the ones that put their money where their mouth is; not the analysts.
Analysts WRITE about what they think is going to happen, but it is the traders that TRADE with their money on the line. If I had to take trading advice from someone, I'd rather take it from a profitable trader, not an analyst or news report.
Why Not Always Listen To Analysts?
Again, I want to stress that currency analysts do have their place in the Forex market... it's just that they're not good trading advisors.
You see, in the market there are typically 2 aspects of trading:
1. Economic News / General "Market Sentiment"
2. Actual Market Price Movements / Actual Reactions To Economic News
The first aspect is what the market analysts specialize in. They're good at discussing the theoretical side of currency movements. They talk about how currency prices SHOULD move in relation to recent news.
The part they don't cover too well however, is the second aspect. When it comes to the practical application of analyzing ACTUAL currency movements in response to news, they tend to fall short.
แสดงบทความที่มีป้ายกำกับ forex signals services แสดงบทความทั้งหมด
แสดงบทความที่มีป้ายกำกับ forex signals services แสดงบทความทั้งหมด
วันจันทร์ที่ 21 มกราคม พ.ศ. 2551
วันศุกร์ที่ 11 มกราคม พ.ศ. 2551
How to Use a Forex Trading Signal
How to Use a Forex Trading Signal
by Ryan Lee
Forex trading signals are triggered when technical conditions signal a good trading opportunity. Email and SMS (text message) are popular delivery methods for forex trading signal alerts, but Web-based option can often be best if you're at your PC when the signal emerges.
For example, some forex trading signal services have automatic pop-up software to indicate the perfect entry (or exit) point of a trade. These will often include candlestick currency charts that may flash or blink so long as the entry (or exit) point remains valid. If you trust the service provider and you don't have any conflicting information telling you the trade is bad, right then is the perfect time to execute the trade.
But other forex trading services specialize in catering to traders who have medium- or long-term strategies, rather than short-term. A medium- or long-term trade may have a forex trading signal that remains valid for an entire day (or longer), so for traders specializing in longer-duration trades, these forex trading signals services can be delivered via email or SMS at no detriment.
Another way to use signals is to pair them with a service that automatically executes your trades. This can be a risky prospect for traders who prefer to use forex trading signals as mere recommendations and like to do their own homework before making their trades, and such services are better for short-term traders who don't have time to do their own analysis before pulling the trigger on a trade, anyway. The good news is that, thanks to modern technology, forex traders have the option to choose which style of trading -- and which style of corresponding forex trading signals -- works best for them.
Some forex trading signal services allow you to sign up for a free trial; usually consisting of ten or fourteen days. Take advantage of these free trials to make sure your style of trading is compatible with their forex trading signals. If you are new to the forex market, then you can sign up for a free trial and use the signals with a free "practice" account in which you trade "demo money". This way you can learn how to use signals without undue risk.
But ultimately, if you want to make money in the forex market, you're going to have to risk money in a real account, and unless you are incredibly good (or lucky), you're probably also going to have to spend money on a good forex trading signal service. The forex market is not for passive investors -- it is for active traders who wish to rely solely on their wits... And a little help from forex trading signals, of course!
by Ryan Lee
Forex trading signals are triggered when technical conditions signal a good trading opportunity. Email and SMS (text message) are popular delivery methods for forex trading signal alerts, but Web-based option can often be best if you're at your PC when the signal emerges.
For example, some forex trading signal services have automatic pop-up software to indicate the perfect entry (or exit) point of a trade. These will often include candlestick currency charts that may flash or blink so long as the entry (or exit) point remains valid. If you trust the service provider and you don't have any conflicting information telling you the trade is bad, right then is the perfect time to execute the trade.
But other forex trading services specialize in catering to traders who have medium- or long-term strategies, rather than short-term. A medium- or long-term trade may have a forex trading signal that remains valid for an entire day (or longer), so for traders specializing in longer-duration trades, these forex trading signals services can be delivered via email or SMS at no detriment.
Another way to use signals is to pair them with a service that automatically executes your trades. This can be a risky prospect for traders who prefer to use forex trading signals as mere recommendations and like to do their own homework before making their trades, and such services are better for short-term traders who don't have time to do their own analysis before pulling the trigger on a trade, anyway. The good news is that, thanks to modern technology, forex traders have the option to choose which style of trading -- and which style of corresponding forex trading signals -- works best for them.
Some forex trading signal services allow you to sign up for a free trial; usually consisting of ten or fourteen days. Take advantage of these free trials to make sure your style of trading is compatible with their forex trading signals. If you are new to the forex market, then you can sign up for a free trial and use the signals with a free "practice" account in which you trade "demo money". This way you can learn how to use signals without undue risk.
But ultimately, if you want to make money in the forex market, you're going to have to risk money in a real account, and unless you are incredibly good (or lucky), you're probably also going to have to spend money on a good forex trading signal service. The forex market is not for passive investors -- it is for active traders who wish to rely solely on their wits... And a little help from forex trading signals, of course!
วันจันทร์ที่ 31 ธันวาคม พ.ศ. 2550
Forex Trading - 6 Character Traits That Cause 95% Of Traders To Lose
Forex Trading - 6 Character Traits That Cause 95% Of Traders To Lose
by kelly Price
Forex trading is all about having the right method but also the right attitude. Here we will look at 10 character traits that the losing 95% of traders have and if you want to enjoy currency trading success you need to avoid them.
Here they are in no particular order of importance.
1. I am not responsible
A symbol of losers - they think success will come with no effort on their behalf and blame everyone else for their failure from the tip they got from friend, newswire or broker, to the market being against them.
These people make up a surprising amount of the losing majority and they fail to see that no one can give them success but themselves. Instead of seeing this they do the following.
2. I Like to take expert advice
If you do be very careful as most of the people who put themselves out as experts on the net are anything but - their marketing companies and have never traded in their lives.
Again a vast amount of traders buy systems with unbelievable track records and then are surprised when they fail in real time (they never look at the disclaimer that says the track record is a simulation and not real). If something looks to good to be true it probably is and this is very true in forex trading.
If you follow an expert and have not done your homework on the logic they base their views on, then you are unlikely to have the confidence to follow their method with discipline when it hits a losing period.
If you don't follow a method with discipline then you have no method at all.
3. I don't like being wrong
Well in forex trading your going to be wrong a lot of the time, as only you can be wrong and the market price is always right - no matter what you or I think. Most traders hate taking a loss and looking stupid but the markets do that to everyone and even the best traders lose at times.
If you try and argue with the price and justify your position, you will run up losses and lose and your emotions will take over.
4. I deserve to win I am smart
I have met some very clever people in forex trading and the majority of them lose - if you think that being smart helps you then it won't.
In forex trading you get paid for being right with your trading signal that's it and it's a fact that the best forex trading systems are simple.
They work far better than complicated ones as they have fewer elements to break.
Clever people tend to over elaborate their trading and think the more they put in the more they get out but this does not apply in forex trading.
If you want to make money keep it simple and remember forex trading is probably 20% method and 80% mindset.
5. I am not a patient person
If you are an anxious or nervous person then you are unlikely to win at forex trading. You need patience to wait for the right opportunities and you need patience to hold positions through short term volatility to bigger profits.
If you are an anxious trader you will probably let your emotions get the better of you trade too much, engage in revenge trading etc and lose.
There of course other losing traits but the above are very common ones and hold anyone of them and you will lose.
Forex trading is not hard to learn anyone can do it but most fail because they don't realize that correct mindset is the key to success. To be successful at forex trading you need to rely on yourself, have a deep understanding of why your method works, so you can have the confidence to apply it with discipline.
If you understand the above you can avoid these common losing traits and get a mindset for forex trading success.
by kelly Price
Forex trading is all about having the right method but also the right attitude. Here we will look at 10 character traits that the losing 95% of traders have and if you want to enjoy currency trading success you need to avoid them.
Here they are in no particular order of importance.
1. I am not responsible
A symbol of losers - they think success will come with no effort on their behalf and blame everyone else for their failure from the tip they got from friend, newswire or broker, to the market being against them.
These people make up a surprising amount of the losing majority and they fail to see that no one can give them success but themselves. Instead of seeing this they do the following.
2. I Like to take expert advice
If you do be very careful as most of the people who put themselves out as experts on the net are anything but - their marketing companies and have never traded in their lives.
Again a vast amount of traders buy systems with unbelievable track records and then are surprised when they fail in real time (they never look at the disclaimer that says the track record is a simulation and not real). If something looks to good to be true it probably is and this is very true in forex trading.
If you follow an expert and have not done your homework on the logic they base their views on, then you are unlikely to have the confidence to follow their method with discipline when it hits a losing period.
If you don't follow a method with discipline then you have no method at all.
3. I don't like being wrong
Well in forex trading your going to be wrong a lot of the time, as only you can be wrong and the market price is always right - no matter what you or I think. Most traders hate taking a loss and looking stupid but the markets do that to everyone and even the best traders lose at times.
If you try and argue with the price and justify your position, you will run up losses and lose and your emotions will take over.
4. I deserve to win I am smart
I have met some very clever people in forex trading and the majority of them lose - if you think that being smart helps you then it won't.
In forex trading you get paid for being right with your trading signal that's it and it's a fact that the best forex trading systems are simple.
They work far better than complicated ones as they have fewer elements to break.
Clever people tend to over elaborate their trading and think the more they put in the more they get out but this does not apply in forex trading.
If you want to make money keep it simple and remember forex trading is probably 20% method and 80% mindset.
5. I am not a patient person
If you are an anxious or nervous person then you are unlikely to win at forex trading. You need patience to wait for the right opportunities and you need patience to hold positions through short term volatility to bigger profits.
If you are an anxious trader you will probably let your emotions get the better of you trade too much, engage in revenge trading etc and lose.
There of course other losing traits but the above are very common ones and hold anyone of them and you will lose.
Forex trading is not hard to learn anyone can do it but most fail because they don't realize that correct mindset is the key to success. To be successful at forex trading you need to rely on yourself, have a deep understanding of why your method works, so you can have the confidence to apply it with discipline.
If you understand the above you can avoid these common losing traits and get a mindset for forex trading success.
วันศุกร์ที่ 21 ธันวาคม พ.ศ. 2550
Forex Trading Strategy - A 3 Step Method for Success
Forex Trading Strategy - A 3 Step Method for Success
by kelly Price
Here we will outline a simple way to make money with a forex strategy anyone can learn and apply in a few days and it works. Let's look at this forex trading strategy in more detail.
First things first
The key to currency trading success is a simple robust method combined with discipline.
If you don't understand how and why your method works you will NOT be able to apply it - that's why you have to learn it yourself.
Currency trading success comes from within.
Now how do you trade?
1. Methodology
The first point is you need a simple robust method - simple systems work far better than complicated ones as there are fewer elements to break.
The best system to use is a breakout system, based upon support and resistance and confirmed by momentum.
2. A Forex Trading System
How should your system work?
Firstly, forget all about the idea of buying low or selling high it doesn't work in the real world of forex trading - the best way to trade is to buy breakouts to new highs or lows. Most big trends start from these breakouts and the odds are in your favour.
Trade breaks of valid resistance (the more test the better) and if possible in two different time frames spaced by weeks or months and the more periods the better.
When a break occurs you want to go with it. How do you decide?
You look at forex price momentum.
If you don't know about momentum indicators are, now is the time to start.
Get one or two you like - we favour the RSI and stochastic and you can look them up in our other articles.
If price momentum supports the move you are not guessing or hoping the move will continue - you are trading the confirmation.
Stop is then below the breakout point.
That's nice and simple then and it is - but breakout logic is timeless; most traders want to wait for pullback but on the big moves they don't come and their left missing the move - don't make the same mistake.
If momentum supports the break execute your trading signal on your forex chart and go with it.
Money Management & Discipline
You are only trading valid breaks of support or resistance and these normally lead to big trends so you keep your stop back - Do not trail too soon. When you do, make sure you keep your stop outside of normal daily volatility.
This system is based upon breakout methodology which works and is easy to understand.
You can also see why the bulk of traders don't do it.
You have to buy highs or sell a low which requires discipline - but if you want to make money and you have confidence in your forex trading system, then you will do it.
The fact is if you want to succeed remember this equation:
Robust simple system + Applied with discipline = forex success
You need both to come together in your forex trading strategy, to enjoy currency trading success.
It may be simple but that doesn't mean it doesn't work - it does. Furthermore, it should only take 30 minutes a day or less to apply and execute.
Forex traders constantly want to predict (this means hoping or guessing ) and lose, they also want to buy low or sell high - but this is not possible and also if you do it, your not trading high odds trades. A simple breakout system, you understand and can apply with discipline works best.
Try basing your forex trading strategy around the above and you could win big at forex trading
by kelly Price
Here we will outline a simple way to make money with a forex strategy anyone can learn and apply in a few days and it works. Let's look at this forex trading strategy in more detail.
First things first
The key to currency trading success is a simple robust method combined with discipline.
If you don't understand how and why your method works you will NOT be able to apply it - that's why you have to learn it yourself.
Currency trading success comes from within.
Now how do you trade?
1. Methodology
The first point is you need a simple robust method - simple systems work far better than complicated ones as there are fewer elements to break.
The best system to use is a breakout system, based upon support and resistance and confirmed by momentum.
2. A Forex Trading System
How should your system work?
Firstly, forget all about the idea of buying low or selling high it doesn't work in the real world of forex trading - the best way to trade is to buy breakouts to new highs or lows. Most big trends start from these breakouts and the odds are in your favour.
Trade breaks of valid resistance (the more test the better) and if possible in two different time frames spaced by weeks or months and the more periods the better.
When a break occurs you want to go with it. How do you decide?
You look at forex price momentum.
If you don't know about momentum indicators are, now is the time to start.
Get one or two you like - we favour the RSI and stochastic and you can look them up in our other articles.
If price momentum supports the move you are not guessing or hoping the move will continue - you are trading the confirmation.
Stop is then below the breakout point.
That's nice and simple then and it is - but breakout logic is timeless; most traders want to wait for pullback but on the big moves they don't come and their left missing the move - don't make the same mistake.
If momentum supports the break execute your trading signal on your forex chart and go with it.
Money Management & Discipline
You are only trading valid breaks of support or resistance and these normally lead to big trends so you keep your stop back - Do not trail too soon. When you do, make sure you keep your stop outside of normal daily volatility.
This system is based upon breakout methodology which works and is easy to understand.
You can also see why the bulk of traders don't do it.
You have to buy highs or sell a low which requires discipline - but if you want to make money and you have confidence in your forex trading system, then you will do it.
The fact is if you want to succeed remember this equation:
Robust simple system + Applied with discipline = forex success
You need both to come together in your forex trading strategy, to enjoy currency trading success.
It may be simple but that doesn't mean it doesn't work - it does. Furthermore, it should only take 30 minutes a day or less to apply and execute.
Forex traders constantly want to predict (this means hoping or guessing ) and lose, they also want to buy low or sell high - but this is not possible and also if you do it, your not trading high odds trades. A simple breakout system, you understand and can apply with discipline works best.
Try basing your forex trading strategy around the above and you could win big at forex trading
วันพฤหัสบดีที่ 13 ธันวาคม พ.ศ. 2550
Forex Signals: The Easiest Way to Trade Currencies
Forex Signals: The Easiest Way to Trade Currencies
by Ryan Lee
The forex market can be pretty intimidating to a new trader. After all, it is the domain of multi-billion-dollar banks and foreign governments -- how can a small retail trader compete? Well, forex signals are one way to help level the playing field.
Forex signals are alerts that are sent to you, usually via email or SMS text message, when the conditions are ripe for a currency trade. Or, even better, you can sign up for an automated service that will automatically make trades for you when your preferred forex signals are triggered.
Forex signals services rely on forex signals software -- computer programs that constantly monitor the foreign exchange markets for high-probability forex signals. Most forex signals services rely on "technical data" from currency charts to identify conditions that have historically led to profitable trades. Although you don't absolutely need to understand the data behind forex signals, a little basic knowledge can help you get the most out of your forex signals service.
One way to better understand forex signals is to download currency charting software. Although there are many programs that are quite expensive, MetaTrader is a free one that works well for most forex signals applications.
Whatever forex software you use, it must be able to plot currency prices in "candlestick" format. This allows you to easily see the opening, closing, high, and low prices of a currency pair for a given time period -- daily, hourly, or even minutely! Viewing prices this way, you can see patterns that emerge with "support" and "resistance."
Support can be thought of as a "floor"; a price level which the currency seems to hit and then bounce back up. Resistance is like a "ceiling"; the price level at which the currency seems to reach its limit, and then drifts back down. But once a currency pierces through either the support or resistance, it is likely to fall or rise a substantial amount until it finds a new "floor" or "ceiling". Breaking through support or resistance is one of the best forex signals.
If you have a knack for examining charts, or you just like to do it, that's great. But the reality is that in order to profit from high-probability forex trades, you need to react to data more quickly than manual chart analysis will allow. This is why forex signals services are the busy trader's best friend, and automated trading programs are the very-busy trader's better friend! It helps to understand the science behind forex signals, but it isn't vital. What is vital is a quality service that notifies you when it's time to make a trade -- or better yet, makes the trade for you!
There are many competing services out there, so be sure to do your homework and check the company's performance data. Reputable service providers will have it linked from their home page.
by Ryan Lee
The forex market can be pretty intimidating to a new trader. After all, it is the domain of multi-billion-dollar banks and foreign governments -- how can a small retail trader compete? Well, forex signals are one way to help level the playing field.
Forex signals are alerts that are sent to you, usually via email or SMS text message, when the conditions are ripe for a currency trade. Or, even better, you can sign up for an automated service that will automatically make trades for you when your preferred forex signals are triggered.
Forex signals services rely on forex signals software -- computer programs that constantly monitor the foreign exchange markets for high-probability forex signals. Most forex signals services rely on "technical data" from currency charts to identify conditions that have historically led to profitable trades. Although you don't absolutely need to understand the data behind forex signals, a little basic knowledge can help you get the most out of your forex signals service.
One way to better understand forex signals is to download currency charting software. Although there are many programs that are quite expensive, MetaTrader is a free one that works well for most forex signals applications.
Whatever forex software you use, it must be able to plot currency prices in "candlestick" format. This allows you to easily see the opening, closing, high, and low prices of a currency pair for a given time period -- daily, hourly, or even minutely! Viewing prices this way, you can see patterns that emerge with "support" and "resistance."
Support can be thought of as a "floor"; a price level which the currency seems to hit and then bounce back up. Resistance is like a "ceiling"; the price level at which the currency seems to reach its limit, and then drifts back down. But once a currency pierces through either the support or resistance, it is likely to fall or rise a substantial amount until it finds a new "floor" or "ceiling". Breaking through support or resistance is one of the best forex signals.
If you have a knack for examining charts, or you just like to do it, that's great. But the reality is that in order to profit from high-probability forex trades, you need to react to data more quickly than manual chart analysis will allow. This is why forex signals services are the busy trader's best friend, and automated trading programs are the very-busy trader's better friend! It helps to understand the science behind forex signals, but it isn't vital. What is vital is a quality service that notifies you when it's time to make a trade -- or better yet, makes the trade for you!
There are many competing services out there, so be sure to do your homework and check the company's performance data. Reputable service providers will have it linked from their home page.
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