Deciding to venture into trading the Forex is a big decision, and it requires you to make some very important decisions about what kind of trader you are and what your goals are for trading the Forex. That’s because trading the Forex is unlike trading any other market. The main difference in Forex vs. all other markets is that the Forex market is never closed, except on weekends. It trades 24 hours a day, 5 days a week. If you like fast-moving action, the Forex is definitely the market for you.
One of the first things you must decide as a Forex trader is what time-frame you are going to trade. All this really means is are you going to trade tick charts, 1-minute, 5-minute, 15-minute, 1-hour, daily, weekly, monthly, or yearly charts? The type of chart you trade will have a huge impact on what kind of trading you will do. The kind of trading you SHOULD do is whatever is suited to your personality. This is something you may not have thought about before, but you should definitely give it some thought before you get too far into your Forex career.
The two main types of trading are day-trading and position-trading. The definition of “day" varies in Forex trading as opposed to other markets, because the Forex trader’s day could happen anytime during the 24-hour period. This is great news for traders in countries not located in the US or Europe, since they no longer have to keep opposite hours from the rest of their family just to be able to trade – since many of the World’s major markets are located in the US or Europe. The Forex gives them the unique opportunity to unleash themselves from the restrictions of someone else’s time zone.
A day trader typically starts each day with no trades left open from the day before. He will start the day by looking at the day’s news and announcements and then examine his charts for whatever activity has been going on overnight and how that activity may have affected what how he was trading the day before. A day-trader will usually trade with shorter time frames, such as 1, 5, or 15 minute charts, since he’s only trying to capture whatever moves happen during the day so he can exit all of his positions by the time his day is over. An hourly chart is probably about as large of a span as a day trader will need to pay attention to. However, most traders will probably keep tabs on the weekly and daily charts in order to know what the major underlying trends currently are.
A position trader, on the other hand, doesn’t worry as much about the short time frame charts because he is looking at the longer time frames such as daily, weekly, monthly, or yearly charts. The position trader might pay attention to the hourly charts in order to find the best entry and exit points, but will not usually trade based on the hourly charts’ movements.
The position trader will almost always be carrying his positions overnight from one day to the next, often for weeks at a time as he waits for the longer-term trends to move him along. The only caveat is that you need to have large stops and fairly deep pockets to keep from getting stopped out due to daily price swings. . If you can absorb the up and down swings that occur on a daily basis, then this is probably the best way of profiting from the Forex, since the Forex tends to trend so well over long time frames. As long as your stops are set fairly far away from the daily price action you will be most likely be able to profit quite handsomely from this type of trading.
So basically, it sums up like this: The day trader can trade with a smaller account because he uses tighter stops and watches the market almost constantly during the day. This can be hectic and stressful, but many traders thrive on the adrenaline rush that this type of trading provides. If your personality is right for this type of trading, then you will probably not be satisfied with slower pace of the position trader.
Position trading is best suited for those who either don’t care for the stress that accompanies day trading, or for those who have deep trading pockets, or both. The position trader also must be able to feel comfortable about whatever positions he has left overnight, since he know the market will be doing things while he is off work or sleeping. For some, especially for day traders, the stress of leaving positions unwatched and unprotected overnight is more stressful than the stress of watching the markets during the day.
Knowing your personality type will help you decide what time frame you will be best suited for trading. If you aren’t sure, then try each one until you decide what suits you best. Just be sure you don’t burn out on the wrong style before you decide, because it would be a shame to miss out on the profitable opportunities of trading the Forex.
Good trading.
For E-book on 40 TOP FOREX TRADING STRATEGIES. Email: omoluabii2@yahoo.com
Oluwaseun, 40 TOP FOREX TRADING STRATEGIES. I have an ebook on this. I can BOOST to you that, you will make more that 1000pips weekly if properly used. omoluabii2@yahoo.com
www.investment-arena.blogspot.com
Wednesday, April 29, 2009
Monday, April 27, 2009
5 TIPS ON TRADING FOREX
If someone tells you that you can get rich quick day trading...run for the hills! There are no overnight successes, unless you are very lucky!
Day Trading isn't easy, but with experience, dedication, self- control and hard work, you *can* become a successful day trader.
1. How to Treat Gap Openings?
A gap up or gap down open is an emotional move, and it often will reverse course and turn in to "trap open". Gaps that are less than 4 points on the SP Future tend to get filled in the same day, especially Tuesday through Thursday. Turns will occur within 20 to 40 minutes after the open. A trader must be on the lookout for a reversal as soon as early momentum is lost.
A gap into a good support /resistance zone is almost always a good "fade" - with stops no more than 1 point on other side of the support /resistance zone.
(A "fade" is simply entering a position opposite of the direction of the gap. If the market gapped down, a "fade" would be entering
a long position (buying) in to the selloff.)
2. When the Market Moves Against You, When Do You Exit a Trade?
The way I trade, I exit as quickly as possible. There's no sense in waiting around for your "stop-loss" to get triggered when the perceived edge is gone. I like to stay in control of my trades, and if the market doesn’t do as anticipated, I don't wait for my stop to get hit.
When there is no longer a high probability situation, exit and take a second look.
3. When Are The Best Times of the Day to be Trading?
For me, the best times of the day for trading are the first hour and the last 2 hours.
Here's an old rule of thumb (and this used to work like clockwork in the "old days", and although it has diminished a bit, it still
happens):
"The Minor Time of Day"-
If the Market opens higher, then there tends to be a pullback within the first 20 to 40 minutes. If the pullback is weak, there will probably be a continuation of rally into the early afternoon. But, if the pullback is sharp, then
you've likely seen the high for the day and you'll want to be selling the bounces.
"Major Time of Day"-
Around the 2:20pm to 2:40pm time frame, we'll often see moves reverse or gather steam in that timeframe.
People that have been holding positions all day long become a bit "antsy" - they have to do something with them before the Market
closes for the day. When people holding losing positions into late into the day see the time until the close is near, that can
cause the market to make some sharp turns in the last 90 minutes. The program gang also likes to get active that time of day.
4. How Can Anyone Trade a Choppy Market?
I take a number of scalps in choppy markets. I time entries with Tick extremes, especially when price pops into previous high
areas of congestion, or other intraday support and resistance. Moving averages are not good during choppy days.(Scalps : small profit, "hit and run" type of trades)
5. How Do You Measure Pullbacks
In a trend move, I like to see shallow pullbacks to a steeply sloped moving average on one of the 3 time frames I follow. (more time frames, the better) Pullbacks to symmetry in a persistent trend are useful when present.
Example: Rally, dip 2.00 points – Another run up, then a dip of 2.25 points – A another push higher, then a dip 1.75 points. Note
continued dips of 1.75-2.25 points repeatedly hold. A pattern has developed, and you want to be buying those shallow pullbacks. This works great used in conjunction with a steep slope of the 20 ema on the 5 minutes charts, or slightly bigger picture, the 60 ema on the 5 minute chart.
For E-book on 40 TOP FOREX TRADING STRATEGIES. Email: omoluabii2@yahoo.com
Oluwaseun, 40 TOP FOREX TRADING STRATEGIES. I have an ebook on this. I can BOOST to you that, you will make more that 1000pips weekly if properly used.
omoluabii2@yahoo.com
http://www.investment-arena.blogspot.com
Day Trading isn't easy, but with experience, dedication, self- control and hard work, you *can* become a successful day trader.
1. How to Treat Gap Openings?
A gap up or gap down open is an emotional move, and it often will reverse course and turn in to "trap open". Gaps that are less than 4 points on the SP Future tend to get filled in the same day, especially Tuesday through Thursday. Turns will occur within 20 to 40 minutes after the open. A trader must be on the lookout for a reversal as soon as early momentum is lost.
A gap into a good support /resistance zone is almost always a good "fade" - with stops no more than 1 point on other side of the support /resistance zone.
(A "fade" is simply entering a position opposite of the direction of the gap. If the market gapped down, a "fade" would be entering
a long position (buying) in to the selloff.)
2. When the Market Moves Against You, When Do You Exit a Trade?
The way I trade, I exit as quickly as possible. There's no sense in waiting around for your "stop-loss" to get triggered when the perceived edge is gone. I like to stay in control of my trades, and if the market doesn’t do as anticipated, I don't wait for my stop to get hit.
When there is no longer a high probability situation, exit and take a second look.
3. When Are The Best Times of the Day to be Trading?
For me, the best times of the day for trading are the first hour and the last 2 hours.
Here's an old rule of thumb (and this used to work like clockwork in the "old days", and although it has diminished a bit, it still
happens):
"The Minor Time of Day"-
If the Market opens higher, then there tends to be a pullback within the first 20 to 40 minutes. If the pullback is weak, there will probably be a continuation of rally into the early afternoon. But, if the pullback is sharp, then
you've likely seen the high for the day and you'll want to be selling the bounces.
"Major Time of Day"-
Around the 2:20pm to 2:40pm time frame, we'll often see moves reverse or gather steam in that timeframe.
People that have been holding positions all day long become a bit "antsy" - they have to do something with them before the Market
closes for the day. When people holding losing positions into late into the day see the time until the close is near, that can
cause the market to make some sharp turns in the last 90 minutes. The program gang also likes to get active that time of day.
4. How Can Anyone Trade a Choppy Market?
I take a number of scalps in choppy markets. I time entries with Tick extremes, especially when price pops into previous high
areas of congestion, or other intraday support and resistance. Moving averages are not good during choppy days.(Scalps : small profit, "hit and run" type of trades)
5. How Do You Measure Pullbacks
In a trend move, I like to see shallow pullbacks to a steeply sloped moving average on one of the 3 time frames I follow. (more time frames, the better) Pullbacks to symmetry in a persistent trend are useful when present.
Example: Rally, dip 2.00 points – Another run up, then a dip of 2.25 points – A another push higher, then a dip 1.75 points. Note
continued dips of 1.75-2.25 points repeatedly hold. A pattern has developed, and you want to be buying those shallow pullbacks. This works great used in conjunction with a steep slope of the 20 ema on the 5 minutes charts, or slightly bigger picture, the 60 ema on the 5 minute chart.
For E-book on 40 TOP FOREX TRADING STRATEGIES. Email: omoluabii2@yahoo.com
Oluwaseun, 40 TOP FOREX TRADING STRATEGIES. I have an ebook on this. I can BOOST to you that, you will make more that 1000pips weekly if properly used.
omoluabii2@yahoo.com
http://www.investment-arena.blogspot.com
Saturday, April 25, 2009
40 TOP FOREX TRADING STRATEGIES
Does anyone really know when and how Forex trends determine its direction? My response is “YES”. How about you? Even most of Forex experts give analysis of the proposed direction of the market using Mechanical Strategy (TOP FOREX TRADING STRATEGIES).
In the past, lots of strategies has been tested and created in form of Robot (Robot is a programmed software for trading instruments automatically) but later discovered that most of the programmed Robot still need mechanical skill to complete or compliments it efforts. Mechanical, in the sense of having manual intervention in other to perform well.
In recent times, lots of Forex trader, the experts, the intermediates, the beginners are always advised and encouraged to learn the basic rudiments of trading, that is, having a Mechanical strategies in place (ability to determine trend direction using indicators, charts, graphs, new alerts, economic forecasts and all) setting your trade yourself in other to achieve great result. There is one common mistake about Automated System, it lacks common sense but with Mechanical Strategies, having gotten all your parameters and information needed, you can hardly place a wrong position because you will input value derived yourself.
Top Forex trading strategies are mostly mechanical in nature because, entry to any position either a buy order or sell order is made on the formation of valuable candles and calculation you derived. One interesting thing about Mechanical Strategies is that market movements are captured to the fullest. For example, if you have indicators like 5SMA and 8 SMA on an hour chart timeframe. Immediately you get a cross of both SMA’s, you wait for a confirmation on the lower timeframe (5minutes) for a close above or below to fill your position. With this, you can more than 200pips because you keep trailing your profits until trend changes. Stop orders can also be used to ensure you enter your position at your specified price.
There are three important advantages to why you should trade learn to trade Forex Mechanically.
• You are required to learn all the gimmicks, that is, the charts, the currency type, correlation between your trading pairs. Knowing all these, gives you an edge over placing wrong trades.
• You can have your position set by using stop order which will executed you’re your desired prices reaches. Set it and forget it and your meet your GREEN PIPS! If you have conservatively set your parameters the system should capture regular profits for you!
• From my experience, this kind of Forex trading behavior enlightens you and keeps you to your attitude. You are surely going to obey the rhythms of your indicators in other to have a profitable trading experience.
I strongly advise anyone interested in Forex trading should take his/her time in learning the Mechanical Strategy. Mechanical Strategy is all about reading and interpreting candles and lots more.
For E-book on 40 TOP FOREX TRADING STRATEGIES. Email: omoluabii2@yahoo.com
Oluwaseun, 40 TOP FOREX TRADING STRATEGIES. I have an ebook on this. I can BOOST to you that, you will make more than 1000pips weekly if properly used.
omoluabii2@yahoo.com
www.investment-arena.blogspot.com
In the past, lots of strategies has been tested and created in form of Robot (Robot is a programmed software for trading instruments automatically) but later discovered that most of the programmed Robot still need mechanical skill to complete or compliments it efforts. Mechanical, in the sense of having manual intervention in other to perform well.
In recent times, lots of Forex trader, the experts, the intermediates, the beginners are always advised and encouraged to learn the basic rudiments of trading, that is, having a Mechanical strategies in place (ability to determine trend direction using indicators, charts, graphs, new alerts, economic forecasts and all) setting your trade yourself in other to achieve great result. There is one common mistake about Automated System, it lacks common sense but with Mechanical Strategies, having gotten all your parameters and information needed, you can hardly place a wrong position because you will input value derived yourself.
Top Forex trading strategies are mostly mechanical in nature because, entry to any position either a buy order or sell order is made on the formation of valuable candles and calculation you derived. One interesting thing about Mechanical Strategies is that market movements are captured to the fullest. For example, if you have indicators like 5SMA and 8 SMA on an hour chart timeframe. Immediately you get a cross of both SMA’s, you wait for a confirmation on the lower timeframe (5minutes) for a close above or below to fill your position. With this, you can more than 200pips because you keep trailing your profits until trend changes. Stop orders can also be used to ensure you enter your position at your specified price.
There are three important advantages to why you should trade learn to trade Forex Mechanically.
• You are required to learn all the gimmicks, that is, the charts, the currency type, correlation between your trading pairs. Knowing all these, gives you an edge over placing wrong trades.
• You can have your position set by using stop order which will executed you’re your desired prices reaches. Set it and forget it and your meet your GREEN PIPS! If you have conservatively set your parameters the system should capture regular profits for you!
• From my experience, this kind of Forex trading behavior enlightens you and keeps you to your attitude. You are surely going to obey the rhythms of your indicators in other to have a profitable trading experience.
I strongly advise anyone interested in Forex trading should take his/her time in learning the Mechanical Strategy. Mechanical Strategy is all about reading and interpreting candles and lots more.
For E-book on 40 TOP FOREX TRADING STRATEGIES. Email: omoluabii2@yahoo.com
Oluwaseun, 40 TOP FOREX TRADING STRATEGIES. I have an ebook on this. I can BOOST to you that, you will make more than 1000pips weekly if properly used.
omoluabii2@yahoo.com
www.investment-arena.blogspot.com
Saturday, April 18, 2009
40 TOP FOREX TRADING STRATEGIES
Hello People,
I am here again to do the right. The right is all about $$(dollars). Do you know you can still make money despite the financial meltdown? Do you believe in trading Forex to make you financially buoyant? I have compiled 40 top forex strategies which you can trade with to wax out more than 500 pips weekly.
This Ebook is just $50 only and i am sure you will never regret buying it. Payment is by Liberty Reserve or Alertpay.
For more information, email me at: omoluabii@yahoo.com
We are born to win. I expect you buying!!!
I am here again to do the right. The right is all about $$(dollars). Do you know you can still make money despite the financial meltdown? Do you believe in trading Forex to make you financially buoyant? I have compiled 40 top forex strategies which you can trade with to wax out more than 500 pips weekly.
This Ebook is just $50 only and i am sure you will never regret buying it. Payment is by Liberty Reserve or Alertpay.
For more information, email me at: omoluabii@yahoo.com
We are born to win. I expect you buying!!!
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