Succesful Traders
Forex, FX and the Forex market are some common abbreviations for the Foreign Exchange market. Actually it is the largest financial market in the world, where money is sold and bought freely. In its present condition the Forex market was launched in the seventies, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from demand and supply. As far as the freedom from any external control and free competition are concerned, the Forex market is a perfect market.
With a daily turnover of over trillions of dollars, the Foreign Exchange market conducts more than three times the aggregate amount volume of the United States Equity and Treasury markets combined. The Forex market is an over-the-counter market where buyers and sellers conduct foreign exchange business using different means of communication.
Unlike other financial markets, the Forex market has no physical location or central exchange. Since the Forex market lacks a physical exchange, the market trades continuously on a 24-hour basis, moving from one time zone to the next, across each of the worlds major financial centers every day. Trillions of dollars of foreign exchange activity takes place every day. From 1997 to the end of 2000, daily forex trading volume surged approximately from US$5 billion to US$1.5 trillion and more (according to various recent studies it has touched $1.7 trillion per day and dwarfs all other markets for trading in size and volume). It is really difficult, if not impossible; to determine an absolutely exact number because trading is not centralized on an exchange. But one thing is for sure that the Forex market continues to grow at a phenomenal rate.
Before the advent of Internet and ecommerce, only big corporations, multinational banks and wealthy individuals could trade currencies in the Forex market through the use of the proprietary trading systems of banks. These systems required as much as US$1 million to open an account. Thanks to advancements in online technology, today investors with only a few thousand dollars can have access to the Forex market 24 hours a day and around 5 days of a week.
The Forex market is a nonstop cash market where currencies of nations are traded, typically via brokers called forex brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets while traders increase or decrease value of an investment upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events so it is also considered to be a highly volatile and fragile market too. Conditions of the Forex market never remain the same they changes every second.
The foreign exchange market dwarfs the combined operations of the New York, London, and Tokyo futures and stock exchanges. According to its size and scope it is many times larger than all other markets. Stats shows that spot transactions and forward outright Forex trading take place in the inter-bank market. 51% of the market is in spot Forex transactions, followed by 32% in currency swap transactions. Forward outright Forex transactions represent another 5% of this daily turnover, with options on interbank Forex transactions making up another 8%. Therefore the inter-bank market accounts for 96% of the global foreign exchange market, with the remaining 4% being divided among all the global futures exchanges.
For traders, Forex trading provides an alternative to stock market trading. While there are thousands of stocks to choose from, there are only a few major currencies to trade (the Dollar, Yen, British Pound, Swiss Franc, and the Euro are the most popular). Forex trading also provides a lot more leverage than stock trading, and the minimum investment to get started is a lot lower. Add to that the ability to choose flexible trading hours (forex trading goes on 24 hours a day) and you have the reason why so many stock traders have flocked to day trade currencies.
About The Author
Anthony Trister is a currency trader and is an owner of OneDayTrades which offers free, mechanical forex signals and an automated trading program for those wanting to trade forex. Free access available here: http://www.onedaytrades.com.
Make your products sell quickly by adding a lot
Make your products sell quickly by adding a lotof bonuses. You could get the free bonuses for littleor no cost by joint venturing with other businesses.You could go to the freebies directories and findthings. Then you could ask the legal ownerspermission to use the item as a free bonus for yourproduct.
Keep your loyal customers happy because theyare your future profits. Give them discounts andfree gifts as often as possible. If you are thoughtfuland loyal to your customers, most of them will beyour customers forever. They will make up about80% of your business and profits.
Test different web site color themes to see whichcombination will sell your product better. You canalso test the size and style of your web site text. Forexample, red usually signals: stop, anger, excitement,love, sex, fun, etc. Another example, blue usuallysignals: relaxation, authority, coolness, etc.
Promise your readers an end result or outcomein your ad. You must give them a solid guaranteethat your product will solve their problem. Forexample, you could say, I personally guarantee youwill get over your shyness in 10 days or less or yourmoney back.
Increase the perceived value of your free thingsor bonuses by including the retail dollar amount thefreebies would normally sell for. For example, youcould say, Bonus 1# Marketing Tips Newsletter(a value of $120). Another example, Get 7Bonuses With A Retail Value Of $345! That morethan pays for your purchase!
Give your customers free shipping. If you can’tafford that, you can give free shipping to customerswho buy over a certain dollar amount to raise profits.You could also charge other businesses for insertingads in your product package. This will make up foryour free shipping losses.
About the Author: Ed is the owner of a couple of websites that providesvaluable information on how to retire early by usingyour computer in the comfort of your own home.http://www.online-home-based-business.bizhttp://www.ezinfocenter.com/8614146/SIMhttp://1269187225.freestoreclub.com webmaster@online-home-based-business.biz
Faced with the threat of a foreclosure on their home, with all the weight of the mortgage industry and its army of attorneys against them, the average homeowner might feel like David facing Goliath.
But David defeated Goliath !
David had a sling and some pebbles.
You have an armory of tactics and options which can enable you to stop foreclosure proceedings in their tracks.
There are certain basic rules to follow if you want to stop foreclosure on your home.
*** Do not leave your home. If you do, you may lose your eligibility for assistance.
*** Do not speak to the lender’s Collection department, especially over the phone.
*** Never speak to any of your lender’s representatives without having all your facts assembled, and your strategy determined.
*** Don’t ask the lender what your options are - know your options before the real discussions begin. Know and be prepared for the questions and forms you will be faced with.
*** Don’t volunteer the fact that you are either unemployed or insolvent, or you’re dead in the water.
(If you are either unemployed or insolvent, you’d better change things pretty quick, for the lender has to be convinced that you have the means to meet the loan repayments, and he will want to see evidence supporting this fact before he will stop foreclosure proceedings.)
*** Don’t rely on your memory - have everything written down clearly, and all your credit history records at hand.
*** Speak to the lender’s Loss Mitigation or Foreclosure department. Be firm, and insist on speaking to the right people every time.
*** Make a real effort to understand the legal terms relating to mortgages. To stop foreclosure proceedings, you need to speak the same language as your adversaries.
If you cannot fully understand the options, or the terms used, you should certainly speak to a HUD approved counselor - ring (800) 569 4287.
And do this as soon as you realise you might be heading for foreclosure.
Know your options ! Know your rights !
Stop Foreclosure - Tip 1
Read all communications from your lender. Time is your enemy, so the earlier the potential problem is recognised by both parties, the better the chances of a resolution.
Stop Foreclosure - Tip 2
If your property is FHA or VA insured, then your lender must give you the opportunity for a workout. If they refuse, then the FDA/VA may fail their claim for foreclosure.
Stop Foreclosure - Tip 3
If you are suffering financial loss due to the death or loss of a spouse, illness, or unexpected increase in your outgoings, contact the lender and request a loan modification, which effectively changes the terms of the loan to lower the payments.
This is a very common process, but you will need to provide evidence about the change in your circumstances.
If you feel that you qualify for a loan modification, and your lender refuses, contact the HUD for advice.
Stop Foreclosure - Tip 4
If your loss of income is temporary, contact your lender and request a forbearance. This means that you may be granted a period during which your monthly payments are suspended, after which you must resume your monthly payments plus a partial payment towards the payments you missed.
Most lenders have a forbearance program, but may require you to make an initial down payment.
Stop Foreclosure - Tip 5
If you have a FFA/HUD loan, you may qualify for a partial claim if the present loan is between 4 months and 12 months delinquent. The partial claim has to be repaid only after the original loan has been repaid in full.
Any of these measures can enable you to stop foreclosure on your home.
Stop Foreclosure - Tip 6
If all else fails, you could always file for bankruptcy at any time during the lender’s collecting process, and this would put an immediate stop on the lender’s activities.
Unfortunately, new bankruptcy reform legislation, to be introduced in October 2005, will effectively invalidate this tactic.
Under the new legislation, you must receive credit counseling from an approved agency 180 days - yes, that’s 6 months - before you can file for bankruptcy.
By which time the lender could have filed for foreclosure, and you could be out of your home.
Stop Foreclosure - Tip 7
Remember these facts.
The US is facing an ever-increasing tidal wave of homeowners defaulting on their mortgages. The average cost to the mortgage industry for each foreclosure is around $25000 !
Foreclosures cost lenders money, big money, so it is in their interests to reach a workout with the borrower, either to rescue the mortgage, if this is possible, or to reduce the loss as a result of foreclosure.
Don’t be intimidated by the lender or his attorneys. Appraise yourself of your exact financial position. Seek advice. Know your rights. Know your options. Be honest in your statements. Keep a written record of all communucations.
You can stop foreclosure in its tracks. And save your home.
About the author:
After 15 years working in the IT industry, author Brendan Forde now specialises in the financial world, particularly the mortgage
and insurance sectors.For your free Morthage Calculators, and tons of mortgage advice and information, visit
http://www.mortgageloans-info.com
Sending signals for trading in forex Gary BergFOREX SIGNALS
Sending signals for trading in forex
Forex signals are sent by a forex firm to their subscribers in order to buy and sell currencies. These signals are called entry and exit signals for the forex dealers. The firms, which send this forex signal, do so after tedious and meticulous research and analysis into the currencies that their dealers are trading in. For example a firm may send the entry and exit signals at designated time frames in real time. These will remain valid for a short period only after which they are going to be different.
Let’s say that there is a forex trading company say Acme Forex traders who send entry and exit signals to their clients in the following way
The first signal is provided to the trader at 08:30, and this signal is going to remain actual till 12.30
The trader will receive the second signal at 12.30, which would remain actual till 16.30.
The last signal would be sent to the trader at 16.30.
The transactions are given according to GMT. Please adjust for local time changes. The transaction shall be calculated till the signal is actual. The charges would be $300 per month per trader.
Forex dealers and experts provide forex-trading information and data to both institutional clients and individual investors and provide these kind of signals. Investors like to subscribe to credit worthy forex dealers / companies since their information and data would be genuine and more accurate. In fact many forex dealers would kill to get information before the rest of the market gets the same information. As forex dealing is a very competitive business.
These signals or forex indications are given to the forex dealers through the forex trading platform or hub. The signals or forex indicators are the specific entry and exit strategies. Therefore when you enter a currency trade buying currencies at lower price and then selling at higher price, you book a profit. currency pair. For example the forex dealer is trading in GBP/USD. The rate is for GBP/USD is .9800 . If you expect that Euro is likely to go up in the future you would buy the Euros today to sell them off at a later date thereby booking a profit. If you expect the dollars to appreciate, then you would buy the dollars selling them off at a later date to book profits.
Most forex dealers will get the information via email or straight on their computer screens. It is then up to the forex dealers to decide whether they want to sell / buy / hold the currencies till further information is given to them.
Those who contribute in giving the information on currency dealing are hedge managers, foreign exchange dealers located in the major financial markets of the world, professional stock brokers, finance managers and a host of other finance professionals. They make it their business to collect, analyze and disseminate information in such a way, that can be used by forex dealers to buy / sell / hold the forex.
Therefore the companies take extreme care to send the forex signals for the currency dealers.
About the author:
For the most updated information, articles, and news related to the Forex Market.
An online forex broker is a firm that facilitates retail trading using Internet technologies. Global Forex Trading (GFT), one of the popular online forex brokers.
An online forex broker is a firm that facilitates retail trading using Internet technologies. Global Forex Trading (GFT), one of the popular online forex brokers.
It provides retail traders with a free demo trading account, allows users to open a live account, gives live help, provides software called DealBook FX 2, and allows viewing of account documents. (DealBook FX 2 can be downloaded for the demo trading account).
Gain Capital Groups Online Forex offers 200:1 leverage. In some cases, the total return on investment is higher due to leverage. For example, with $1000 cash in a margin account, the investor can control up to $200,000 in notional value. Of course, trading on leverage magnifies both the investors profits and losses.
GCI Financial Ltd. offers commission-free online trading in forex. GCI offers Internet trading software, fast and efficient execution, and 0.5% margin requirements. This broker offers USD or Euro denominated trading accounts. The spreads are 3 pips in EUR/USD and USD/JPY, and are 4 to 5 pips for other major commissions. Clients can hedge by opening positions in the same currency in opposite directions. Risk to the investor is limited to the deposited funds. Market analysis and research, real-time charts, and forex trading signals are available at no charge.
ACM, part of the REFCO group, offers 3 pip spreads on all major currencies, which works out to between 0.02% and 0.03% on the dollar value. They also offer commission-free trading, and forex trading with a 1% margin, which means that a trader can control $1,000,000 with $10,000 in his account.
There are many online forex brokers that offer free demo accounts for potential forex traders to practice trading. It is only a matter of registering and starting demo trading to get a feel for forex trading. In addition, at most sites, traders can find free forex news to assist them with their trade strategies.
ABOUT THE AUTHOR
Forex Brokers provides detailed information on forex brokers, forex trading and market makers, and other forex-related topics. For more information go to Forex Brokers and/or visit its sister site at Incorporating in Florida Web for related information.
In this Forex course we will review some steps you need to take care before you venture into your trading journey. Most traders venture into the Forex market with little or no experience in the Forex market. This results in painful experiences like loosing most of the risk capital, frustration because it seemed so easy to make money, etc.
The first thing you need to realize is that, it is not easy to make money. As every other endeavor in life, where important rewards are to come after mastering it, you need to work hard. You need to get very well educated and experienced before having the possibility to receive important rewards on it. The key on mastering the Forex market relies on commitment, patience and discipline.
Ok, you have decided you are going to trade the Forex market, you have seen several advertisings featuring how easy is to make money in the Forex market. You might think this is your opportunity to reach your financial freedom, right away, time is money, why waiting any longer if you have the opportunity to make money now. I know, I’ve been there, but you have a chance now, I didn’t, no body told me what I am going to tell you.
We, Forex traders, make transactions based on a set of rules. These sets of rules are what we call a Trading System. Our systems tell us the exact time where we need to get in the market and out the market in order to make a profit (i.e. buy low sell high.)
Creating a system is the first big step you need to take care first. Why is this so important? Because you need to build a system that suits your personality, otherwise you are going to find hard to follow it, thus hard to profit from. A system can be based on technical indicators or what we called a mechanical system or based on experience and intuition or what we call discretionary systems. I highly recommend using and trying first a mechanical system, because discretionary systems are dangerous during the early stages of a Forex trader (can lead to indiscipline.) With experience, on later stages, you will find out which signals work better and which ones to avoid.
The next step in this Forex course is to try your system on a demo account. Most Forex brokers offer a demo account, an account with virtual money. This is an excellent choice to test your trading system as there is no money at risk. In this step you will figure out if the strategy works for you. If you feel comfortable trading it, then it is most likely to produce good results. How much time should you stay in this step? It varies, but you shouldn’t go one step further until your system gets consistent profitable results over a period of time. It can take many months, but remember, you need to be patient.
You must be honest to yourself; you need to take every single signal generated by your system, not only the signals you thought were going to work, otherwise, you are going to have problems in the next two steps.
Ok, by know you had consistent profitable results on your demo account. You might think its time to go full. Nope, nope, nope. There is a big difference between trading a demo and a real account. The most important difference lies on emotions (fear, greed, anger, etc.) These are psychological barriers that affect every single decision made by traders regardless of what he/she is trading (stocks, bonds, Forex, futures, grains, etc.) These emotional factors, in my opinion, are the most determinant factor that separates profitable traders from the others.
The next step in this Forex course is specially designed to deal with emotions and to confirm the results obtained in the prior step (consistent results in a demo account.) At this step you need to trade in a real account with limited funds. Some brokers offer fractional lot trading. Meaning you are able to trade any desired amount (even cents.) The important thing here is that these emotions we’ve been talking about are present only when there is real money at risk. At this stage, you are going to see if you are really comfortable trading your system and if you are able to trade with such system, remember different systems produce different emotions. If you are able to produce similar results than those obtained in a demo account, then ready for the next step. If you didn’t, then you might need to create another system, there is chance your system never fit you. If you created consistent profitable results on this stage, you have a chance to produce similar results in the next one, on the other hand, if you didn’t produce good results in this stage, you will not be able to make on the next stage. Remember, you need to do things right, and be honest to yourself.
The last stage is trading in a real account with sufficient funds. If you are at this stage, and have passed successfully every prior stage, then you have a chance to make it, go ahead and try it, you need to be confident in yourself and in your system, your strategy have already produced consistent profitable results, there are reasons to believe you are going to make it. Very few traders fail at this stage (if passed successfully prior stages.)
Trading successfully is no easy task, it requires a lot of work, patience, discipline, and education. By completing the steps outlined in this Forex course, you have a chance to produce profitable results. I repeat it again, you need to be honest to yourself about the results obtained in every stage. Some times you might need expert guidance regarding your system development strategies.
About the Author
Raul Lopez is a full time Forex trader; his trades are based on a price behavior approach. Raul is also founder of http://www.straightforex.com a high quality Forex training company.
It is useful to have a map and be able to see where the price is relative to previous market action. This way we can see how is the sentiment of traders and investors at any given moment, it also gives us a general idea of where the market is heading during the day. This information can help us decide which way to trade.
Pivot points, a technique developed by floor traders, help us see where the price is relative to previous market action.
As a definition, a pivot point is a turning point or condition. The same applies to the Forex market, the pivot point is a level in which the sentiment of the market changes from ?bull? to ?bear? or vice versa. If the market breaks this level up, then the sentiment is said to be a bull market and it is likely to continue its way up, on the other hand, if the market breaks this level down, then the sentiment is bear, and it is expected to continue its way down. Also at this level, the market is expected to have some kind of support/resistance, and if price can?t break the pivot point, a possible bounce from it is plausible.
Pivot points work best on highly liquid markets, like the spot currency market, but they can also be used in other markets as well.
Pivot Points
In a few words, pivot point is a level in which the sentiment of traders and investors changes from bull to bear or vice versa.
Why PP work?
They work simply because many individual traders and investors use and trust them, as well as bank and institutional traders. It is known to every trader that the pivot point is an important measure of strength and weakness of any market.
Calculating pivot points
There are several ways to arrive to the Pivot point. The method we found to have the most accurate results is calculated by taking the average of the high, low and close of a previous period (or session).
Pivot point (PP) = (High Low Close) / 3
Take for instance the following EUR/USD information from the previous session:
Open: 1.2386
High: 1.2474
Low: 1.2376
Close: 1.2458
The PP would be,
PP = (1.2474 1.2376 1.2458) / 3 = 1.2439
What does this number tell us?
It simply tells us that if the market is trading above 1.2439, Bulls are winning the battle pushing the prices higher. And if the market is trading below this 1.2439 the bears are winning the battle pulling prices lower. On both cases this condition is likely to sustain until the next session.
Since the Forex market is a 24hr market (no close or open from day to day) there is a eternal battle on deciding at white time we should take the open, close, high and low from each session. From our point of view, the times that produce more accurate predictions is taking the open at 00:00 GMT and the close at 23:59 GMT.
Besides the calculation of the PP, there are other support and resistance levels that are calculated taking the PP as a reference.
Support 1 (S1) = (PP * 2) ? H
Resistance 1 (R1) = (PP * 2) - L
Support 2 (S2) = PP ? (R1 ? S1)
Resistance 2 (R2) = PP (R1 ? S1)
Where , H is the High of the previous period and L is the low of the previous period
Continuing with the example above, PP = 1.2439
S1 = (1.2439 * 2) - 1.2474 = 1.2404
R1 = (1.2439 * 2) ? 1.2376 = 1.2502
R2 = 1.2439 (1.2636 ? 1.2537) = 1.2537
S2 = 1.2439 ? (1.2636 ? 1.2537) = 1.2537
These levels are supposed to mark support and resistance levels for the current session.
On the example above, the PP was calculated using information of the previous session (previous day.) This way we could see possible intraday resistance and support levels. But it can also be calculated using the previous weekly or monthly data to determine such levels. By doing so we are able to see the sentiment over longer periods of time. Also we can see possible levels that might offer support and resistance throughout the week or month. Calculating the Pivot point in a weekly or monthly basis is mostly used by long term traders, but it can also be used by short time traders, it gives us a good idea about the longer term trend.
S1, S2, R1 AND R2…? An Objective Alternative
As already stated, the pivot point zone is a well-known technique and it works simply because many traders and investors use and trust it. But what about the other support and resistance zones (S1, S2, R1 and R2,) to forecast a support or resistance level with some mathematical formula is somehow subjective. It is hard to rely on them blindly just because the formula popped out that level. For this reason, we have created an alternative way to map our time frame, simpler but more objective and effective.
We calculate the pivot point as showed before. But our support and resistance levels are drawn in a different way. We take the previous session high and low, and draw those levels on today?s chart. The same is done with the session before the previous session. So, we will have our PP and four more important levels drawn in our chart.
LOPS1, low of the previous session.
HOPS1, high of the previous session.
LOPS2, low of the session before the previous session.
HOPS2, high of the session before the previous session.
PP, pivot point.
These levels will tell us the strength of the market at any given moment. If the market is trading above the PP, then the market is considered in a possible uptrend. If the market is trading above HOPS1 or HOPS2, then the market is in an uptrend, and we only take long positions. If the market is trading below the PP then the market is considered in a possible downtrend. If the market is trading below LOPS1 or LOPS2, then the market is in a downtrend, and we should only consider short trades.
The psychology behind this approach is simple. We know that for some reason the market stopped there from going higher/lower the previous session, or the session before that. We don?t know the reason, and we don?t need to know it. We only know the fact: the market reversed at that level. We also know that traders and investors have memories, they do remember that the price stopped there before, and the odds are that the market reverses from there again (maybe because the same reason, and maybe not) or at least find some support or resistance at these levels.
What is important about his approach is that support and resistance levels are measured objectively; they aren?t just a level derived from a mathematical formula, the price reversed there before so these levels have a higher probability of being effective.
Our mapping method works on both market conditions, when trending and on sideways conditions. In a trending market, it helps us determine the strength of the trend and trade off important levels. On sideways markets it shows us possible reversal levels.
How we use our mapping method?
We use the mapping method in three different ways: as a trend identification (measure of the strength of the trend), a trading system using important levels with price behavior as a trading signal and to set the risk reward ratio of any given trade based on where the is the market relative to the previous session.
About the Author: Raul Lopez is a full time Forex trader, his trades are based on a price behavior approach. Raul is also founder of http://www.straightforex.com a high quality Forex training company.
There are basically two types of Forex trading systems, mechanical and discretionary systems. The trading signals that come out of mechanical systems are mainly based off technical analysis applied in a systematic way. On the other hand, discretionary systems use experience, intuition or judgment on entries and exits. But which one produces better results? Or more importantly, which one fits better your trading style? These are the answers we will try to answer on this article.
We will first analyze the pros and cons about each system approach.
Mechanical systems
Advantages
This kind of system can be automated and backtested efficiently.
It has very rigid rules. Either, there is a trade or there isn?t.
Mechanical traders are less susceptible to emotions than discretionary traders.
Disadvantages
Most traders backtest Forex trading systems incorrectly. In order to produce accurate results you need tick data.
The Forex market is always changing. The Forex market (and all markets) has a random component. The market conditions may look similar, but they are never the same.
A system that worked successfully the past year doesn?t necessary mean it will work this year.
Discretionary systems
Advantages
Discretionary systems are easily adaptable to new market conditions.
Trading decisions are based on experience. Traders learn to see which trading signals have higher probability of success.
Disadvantages
They cannot be backtested or automated, since there is always a thought decision to be made.
It takes time to develop the experience required to trade successfully and track trades in a discretionary way. At early stages this can be dangerous.
Now, which approach is better for Forex traders? The one that fits better your personality. For instance, if you are a trader that finds it hard to follow your trading signals, then you are better off using a mechanical system, where your judgment won?t play an important role in your system. You only take the trades that your system signals.
If the psychological barriers that affect every trader (fear, greed, anger, etc.) puts you in unwanted scenarios, you are also better off trading mechanical systems, because you only need to follow what your system is telling you, go short, go long, close a trade. No other decision has to be made.
On the other hand, if you are a disciplined trader, then you are better off using a discretionary system, because discretionary systems adapt to the market conditions and you are able to change your trading conditions as the market changes. For instance, you have a target of 60 pips on a long trade. But the market suddenly starts trending up pretty strongly, then you could move your target to say 100 pips.
Does it mean that trading a discretionary system has no rules? This is absolutely incorrect. Trading discretionary systems means that once a trader finds his/her setup, the trader then decides what to do. But every trader still needs certain rules that need to be followed, such as the size of the position, conditions that have to be met before thinking to get in the market, and so on.
I am a discretionary trader. The main reason I chose a discretionary system is that my trades are based on price behavior, and as you already know, the price behaves similar to the past, but it is never identical, therefore the outcome of every trade is unknown. However, I do have rigid rules on my system, certain conditions have to be met before I even think in getting in a trade. This keeps me out of trouble, once my setup is present and in accordance with the rules I have set, then I closely watch the price behavior and finally decide whether it is a good opportunity or not.
Whether you choose to be a discretionary or a mechanical trader there are some important points you should take in consideration:
1. You need to make sure the Forex trading system you are using totally fits your personality. Otherwise you will find yourself outguessing your system.
2. You also need to have some rules and most importantly have the discipline to follow them.
3. Take your time to build the perfect system for you. It?s not easy and requires time and hard work, but at the end, if done correctly, it will give you consistent profitable results.
4. Before going live, try it on a demo account or even on a small account (I will go for the second option, since psychological barriers will be present.)
About the Author: Raul Lopez is a full time Forex trader, his trades are based on a price behavior approach. Raul is also founder of http://www.straightforex.com a high quality Forex training company.
Most of the people fail in forex. That`s a fact. Some people say that 90% fail, I don`t believe it`s that big the amount of unsuccesful traders. However, the vast majority fails, and that`s a fact without any doubt.
Most of the ads are about trading systems. That`s also a fact. So there`s a problem in here. If most of the ads are about ways of trading, this means that the people buy that. On the other hand they fail. Therefore, definetly there`s a problem in here.
It`s true that you need a trading strategy that works. However this is only a little part of the game. Actually is quite easy to get a strategy that works, and you can get it for free. You`ve got woodies cci, for example. So you must be asking, why most people fail. There are several problems to this. Let`s analyse each of them.
Trading strategy: you need to masterize and feel confident in one strategy at the time. Choose one, the one that`s comfortable for you. Stay with that. Test it. Get involved with it. You`ll loose sometimes. Don`t worry, you have to loose sometimes. There isn`t a single strategy that doesn`t fail. But on the whole year you have to get a profit. Not in each trade. People are not patient enough, and they want the best strategy that leads them to the million dollars in one day. I am sorry to inform you that there isn`t such strategy. In addition, if someone creates a strategy like that, he won`t sell it for nothing in the world. So don`t trust in the people that promises you heaven.
So this part is easy. Find a strategy that suits you and STAY WITH IT, don`t change thinking that there is a better one, unless you already make profit with the first one. And the second one, you start with demos, and once you dominate it you can change it, or, if you prefer, stay with both.
Trading strategy is only 20% of what a succesful trader is made of.
And remember, without taking into account the spread, if you throw a coin and trade with that, you`ll have 50% of probabilities, therefore, with a little analysis you have to have more probabilities.
Psychology: you have to be disciplined. This is the most important part of the trading. I read in a web page: READ YOUR SIGNALS, TRADE SMART, STAY FOCUSED. If your systems doesn`t indicate to trade, DO NOT TRADE. If there aren`t opportunities in a day DO NOT OPERATE, let the others loose money, don`t loose your moeny. If you have to be a whole week without a single trade, that`s it, it is OK. Don`t worry. If you loose in a trade, close your windows, and stay quiet, have a break. Do not trade because you have to. Don`t start the day expecting to trade, just trade when your signals say you should trade.
People say that this is 80% of the trading. I would give this a 40% of what a succesful trader is made of. However, notice this, how many ads have you seen about psychology? I think none, or just a little. So this is really important. Don`t underestimate the power of a psychology strategy.
Money management: I place the last 40% of what a trader is made of, in this topic.
Imagine this: throw a coin, head you buy, the other side, you sell. You place a stop and a limit at the same number of pips (I am not considering the spread, though, this is just for being illustrative). If you analyze this way of trading, the possibilities are half and half. And this is a better strategy than what the majority use. Why? Simple, the majority, let`s their looses run and close the profit fast, because they have the fear that the trend will change (this is also psychology). It is the other way round, you have to let the profits run, and cut your looses fast. If you have a stop loss of 10 pips, and a limit profit of 50 pips, you can loose 4 out of 5 trades and still be a succesful trader. When you consider how to control the money management, you have to think of: how many trades you loose and how many you win, what`s the relation between your stop loss and your limit profit, how many loosing trades subsequently can you have, and what is the % of the account that you risk in each trade (stop loss). After calculating with these numbers, you`ll be able to know if your money management is ok.
This is just an introduction about a succesful trader. Remember that a succesful trader doesn`t build millions in one week. He is consistent. You can be a succesful trader if you manage to achieve a 20% per year and you are consistent. Of course you can achieve more. But if you have a profit, and you are consistent, it is great. It is all what you need. Once you get this, you can start looking for another system to implement.
Once again, as I read:
READ YOUR SIGNALS, TRADE SMART, STAY FOCUSED.
Happy trading.
www.4xintradaytrading.blogspot.com
Tags: Succesful, Traders
Written by admin on January 13th, 2009 with
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