Author: kelly Price
Article:
If you want to make big triple digit profits in forex trading,
these simple tips will help you even if you have never traded
forex before...
Here we will give you the basis of a simple forex trading
strategy which is simple to understand, can be implemented in
just 30 minutes a day or less.
There is a big misconception in forex trading that you get
rewarded for effort - you don't, you get rewarded for being
right with your trading signal and that's it.
You also don't get rewarded for trading often in fact, this
causes most traders to lose which leads me into the tips.
1. Trade Infrequently
Be patient, the big trends and high profit trades don't come
around every day and you need to be patient. I know traders who
trade about once a month and make triple digit gains, because
they are so selective with their trades.
2. Learn to Trade Long Term Trends From Breakouts
It's a fact selling breaks to important new highs or lows on a
forex chart, works as most trends develop from them. If you want
to know more about breakouts, simply look up our other articles,
it is one of the most simple and profitable ways to trade.
Focus only on the big trends which last for many weeks or months
and forget short term trading. The reason for this is you don't
have the risk to reward on your side and will lose.
3. Hit High Odds Hard and Don't Diversify
This will simply dilute your gains and on a small account and
most traders don't have enough money anyway, to diversify
properly. When you have a trade you like, focus on it and don't
be tempted to take other trades on.
4. Risk 10 - 20% Per Trade
If you are trading a high odds trade you need to hit it hard,
risk 10 - 20% of your equity on it and don't make the mistake
most traders do, of trailing a stop within normal volatility.
Most traders get a profit, bring the stop right up, get taken
out and then the trade goes back the way they thought and makes
thousands or tens of thousands of dollars and their out.
I have always maintained picking the long term trend is easy,
entering it and staying with it, is the hard part.
Tail your stop slowly and outside of normal volatility, sure you
give a bit back when the trend changes but you will get far
bigger profits overall doing this.
Keep in mind if you could get just 50% of every major trend you
would be very rich.
Remember This to Win
In forex trading does not require you work hard, it requires
that you work smart and get the right education.
If you have a simple robust forex trading strategy, are
selective with your trading and have the discipline to follow
long term trends, you can make a lot of money and enjoy currency
trading success.
About the author:
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uccesful Forex Trading visit our website at:
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Monday, August 4, 2008
Forex Trading Profits - Simple Tips For Triple Digit Profits Any
Currency Trading Basics - the Best Currencies to Trade
Author: kelly Price
What are the best currencies to trade? Here we will answer this
question and also look at a few over looked currencies and in
particular one of the best for novice traders.
Here we are going to look at the best currencies against the US
Dollar.
Perhaps the most important consideration is turnover and
liquidity of the currency traded. and these currencies also
offer the tightest pip spreads which reduce your cost of doing
business. You can trade the majors for just 2 or 3 pips and the
currencies with the highest volume against the dollar are.
- The Euro
- The Japanese Yen
- The British Pound
- The Swiss Franc
Any trader should consider the above 4 and the euro and the yen
are favorites for most traders and will work well for swing
traders or trend followers.
I trade the euro, yen and Pound but not the Swiss Franc -
nothing against it, it's a great trending currency but it tracks
the euro to a degree now as the country has become more
integrated with Europe so I have picked the euro.
Two other great currencies to trade are, the Australian and
Canadian Dollar.
They don't have the volume of the big 4 and spreads are a little
wider but for trend followers they offer some excellent trends
and with both being commodity currencies, they have given some
great trends over the last few years with the recent surge in
commodity prices.
If I was to pick a currency that is good for novices, it
wouldn't be the euro or the yen - but the Canadian dollar.
It works well on any technical system and offers reliable trends
and the major advantage is it lacks the frequent volatility
spikes you see in the big two
Of course any list of best currencies to trade is going to be
subjective but if you are a novice trader or trading the majors
and want a change, check out the Canadian dollar - it really is
a great currency to trade.
About the author:
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on href="http://www.learncurrencytradingonline.com/subscribe.html">C
urrency Trading Basics visit our website at:
href="http://www.learncurrencytradingonline.com">http://www.learn
currencytradingonline.com
www.forextradingwins.blogspot.com
Forex Trading Education - How to Use Support and Resistance For
Author: Monica Hendrix
An essential element of your forex trading education is using
valid support and resistance to time your trading signal. Here
we are going to walk you through a live example of how to use it
properly.
The currency we are going to look at on our forex charts is the
Japanese yen.
If you look at the yen daily chart, you will see a very valid
resistance level at the 108.00 level and since March of this
year there have been numerous tests of it, over 20 and yet the
dollar has failed to close above it supported by momentum.
This resistance is very valid because there have been so many
tests. Resistance or support gain validity
- the more times they are tested and hold
- The more different time frames and the wider apart they are
- The traders who trade the market and the news sees the level
as significant
Watch the level then confirm the Trade
The way to trade it is to wait for the rise but DON'T sell until
you see momentum turn down and two great indicators for timing
your trade are the stochastic and the Relative Strength Index.
Simply wait for the level to be tested and wait for them to turn
down.
Never just assume a level will hold, wait for confirmation via
momentum indicators
Once this occurs you can be short and you know when you're wrong
- if prices close above resistance.
This simple method of trading into valid resistance or support
works and providing you time your entry correctly with momentum
indicators, it can make a lot of money.
We have used this simple strategy to clear thousands of pips
profits, this year and we have kept it simple, nothing
complicated about it but it doesn't mean it simple strategies
can't make money they can.
While resistance holds you keep doing it sell into the level and
take profits when the dollar becomes oversold, then wait for the
next test.
Follow Reality of Price Change
If the price breaks up and closes strongly above resistance, the
odds will favour further strength in the dollar.
Simple and Effective
Sure it's simple but it can be very profitable and the above is
a good example of a low risk, high reward way of trading into
valid resistance.
You don't need to do anything else, than trade the reality of
price change on the charts and if you do and you confirm your
moves this simple forex trading strategy can make a lot of
money.
This article was written on the 2nd Of August, good luck and
good trading.
About the author:
NEW! 2 X FREE ESSENTIAL TRADER PDFS + Professional Forex Course
For free 2 x trading Pdf's, with 90 of essential info and more
on href="http://www.learncurrencytradingonline.com/subscribe.html">F
orex Trading Education visit our website at:
href="http://www.learncurrencytradingonline.com">http://www.learn
currencytradingonline.com
www.forextradingwins.blogspot.com
Trading Forex - Renminbi
Author: Mike P. Kulej
Article:
China is making business headlines everywhere we look. It has
the largest population, the fastest growing economy, the biggest
export/import imbalance, most imposing foreign reserves. And, by
many accounts, the most undervalued currency, which is, in part,
the reason behind Chinese meteoric rise as on of world's
dominant markets.
There is some confusion as to the correct name of Chinese
currency. There seem to be two different names used
interchangeably. One is the Yuan, while the other is Renminbi.
Yuan is the measure of account, while Renminbi (RMB) is the
correct name of the currency, meaning "people's money". Even in
Forex circles there is no conformity, as the term Chinese Yaun
(CNY), is still commonly used. Little wonder just about
everybody is confused.
This currency is not a freely "floating" one. Since 1997 until
2005, China maintained a peg of 8.27 to a dollar. In eyes of
many economists and politicians, that was a chief reason for
Chinese staggering trade imbalance, estimated to be over 1
Trillion dollars. The People's Bank of China was under enormous
international pressure to let Renminbi float. In 2005 the bank
moved the peg to 8.11 USD.
Eventually People's Bank of China (PBC) moved to a managed
floating exchange rate based on market supply and demand with
reference to a basket of foreign currencies. The daily trading
price of the U.S. dollar against the RMB in the inter-bank
foreign exchange market would be allowed to float within a
narrow band of 0.3% around the central parity published by the
People's Bank of China (PBC); in a later announcement published
on May 18, 2007, the band was extended to 0.5%.[19] The PRC has
stated that the basket is dominated by the U.S. Dollar, Euro,
Japanese yen and South Korean Won, with a smaller proportion
made up of the British Pound, Thai Bath, Russian Ruble,
Australian Dollar, Canadian Dollar and Singapore Dollar.
As of this writing (late July 2008), RMB is quoted at 6.82 USD.
This represents a 21% appreciation since the removal of peg.
Large move in currency terms. Despite this fact, many studies
indicate that RMB is still severely undervalued, and is expected
to rise in value over coming months and years, against the
entire basket of tracking currencies. How can a trader take
advantage of this appreciation? There is number of
possibilities. The easiest is to enter Chinese equities market
through any ETF exposed to China. There are many of them, with
varied level of both exposure and play. While this approach is
the simplest one, it is also the least direct one when pure
currency movement is sought. Not the best option for Forex
trader.
Another financial vehicle to consider is a Market Vector
Currency Exchange-Traded Note, a form of ETF. Morgan Stanley
issued Chinese Renminbi/USD ETN, which trades under the ticker
symbol CNY. This instrument is supposed to shadow the currency
fluctuation and trade like a stock. It can be purchased through
any stock broker. Just like all of this type of products, it
lacks the the advantages of spot Forex market, namely 24 hour
trading and scalable leverage.
Most appealing option to a Forex trader is to trade Renminbi in
a spot market. Fortunately, this possibility exists, but is
offered by very few brokers. You might have to look around a
little. There are some shortcomings to this option. The spread
is very wide, making day trading prohibitively expensive, to the
point of not being practical. Some periods during trading day
lack liquidity, making it very difficult to get in or out of the
market. If your intention is to take advantage of long term
expected appreciation, you can easily use this option for "buy
and hold".
General long term predictions for Renminbi are calling for
significant gain against the earlier mentioned basket of
currencies. While it might very likely be true, one musn't
forget that China is still a developing country by western
standards. Her financial markets will go through many peaks and
valleys, some of which will surely be prolonged. Renminbi is no
exception and is certain to experience large corrections.
About the author:
Mike P. Kulej is a Chief Forex Strategist for Spectrum Forex
LLC. He specializes in mechanical trading systems as explained
on
Spectrum Forex LLC offers numerous services to individual
traders. He also publishes trading blog
questions and comments e-mail him at kulej@spectrumforex.com.
www.forextradingwins.blogspot.com
Summer Forex Trade.Advice.
Author: roman sadowski
We are coming into summer forex trading season on foreing
exchange market.Most of experienced traders would tell you that
this is the worst time to trade anything and the best time to
lose your forex capital.If you have been watching Forex currency
movements you would probabaly notice how much they have slowed
down over the past two month sand how difficult is to make any
pips these summer days on forex market.
Econimic situation is not very stable this summer.It is clear
that nobody really knows what next trading day may bring.Many
financal businesses are off for the summer,interenet activity is
slow and there are not too many people out there in their
offices in front of the screens following forex market.They all
having fun in the hot spots. As a forex trader you will have to
consider all those aspects to plan your summer trading with
confidence. If you wonder what happened to your system or why
the other systems do not perform as good as before this is only
because above reasons.Summer trading is always extremely
difficult and tricky even for most experienced traders. Maybe
the time has cometo change your approach to trading for a while
until they are all back to work in september. There are few
things you could do to wait it throughj and not expose your
account to much damage. First and the most effective is to go on
holidays yourself.There is nothing you can lose this way and we
all need holidays anyway.
If you have no luck to do so and you decided to stay on
trading,there are few tactics you can implement and you may come
out not bad overall. Pick up signal providers with free trials
and demand performance evidence before you join.All providers
with an honest and positive summer results are the way to go .If
thet can make profits in summer so can you.. Review your money
management strategy .Risk less and trade less.Remember this is
going to be difficult now to make profits. Do not trade pairs
which you are not sure off.In other word do not gamble trades..
The big advantage we would like to recommend is to be extra
careful and watch closely your trades.Watch your account balance
and do not let it go down.It will be difficult to build it again
in september. For more information and advice please go to
About the author:
For more information and advice how to trade in summer please go
to
www.forextradingwins.blogspot.com
Forex Money Management - a Simple Strategy For Bigger Gains and
Author: kelly Price
Forex money management is crucial to your trading success and
you need to at all time protect your core equity. This is a
simple effective strategy I have used for many years to improve
profitability and it works.
If you want to make money in forex, you have a choice of long
term trend following and trading the big trends, or trading the
over bought - oversold areas via swing trading.
Before we move on forget day trading or scalping it doesn't work
so you have the choice of the above trading methods and this
strategy combines them.
I am going to start with an example of my own trading. I am
dollar bullish on the euro and got my short in at 1.60 and we
have seen a big decline of 500 odd pips. A nice return and I
think the euro is going far lower - but we could get a good
rally as we are oversold at present. So what am I going to do?
Simple...
Put 50% of the trade in the bank and leave 50% in the market.
Ok it could run lower but I am still in the market with 50% and
will put another 50% in on the next euro rally when it becomes
over bought.
The advantage of this simple money management tool is:
You are following the long term trend and banking along the way
using swing trading indicators, taking profits on surges and
putting dollar longs back in when the euro becomes overbought.
You are active but still following the long term trend.
Sure 500 pips is nice - but I think the euro is going to trade
into the 1.40s, so I want to hold the trend but if things go
against me, this strategy allow me to come out with a profit.
This method allows you to take a bit more risk to the stop and
remember - most traders can pick direction of trends, what they
can't do is get their stop levels right and get stopped out to
soon.
Most traders cannot simply sit on a long term trend and this
method allows them to do so and you are always in the market. If
you look at any forex chart you will see trends that last for
many months and make tens of thousands of dollar and this method
will let you tap into them.
50% is the core position 50% is liquidated on surges in your
favour and then put back in for full exposure on short term
rallies against you.
In the next article I will show you the indicators to use and
how to decide when to take profit and when to enter new
positions, with this simple but powerful money management
technique.
About the author:
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on href="http://www.learncurrencytradingonline.com/subscribe.html">F
orex Money Management visit our website at: href="http://www.learncurrencytradingonline.com">http://www.learn
currencytradingonline.com.
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Saturday, July 5, 2008
Sorting Through a Forex Brokers List
Author: lockearticles1
Article:
Forex trading will be easier if you hire a forex broker. A forex
broker will not only be a “middleman” between you and the
forex market, but it will also be the one to supply facts and
figures, suggest forex trading strategies, and offer trading
decisions whenever necessary.
Forex brokers are trader companies with a level of experience in
the forex market. Their experience can be crucial for you for
higher chances of winning. On the other hand, you may hire the
wrong forex broker and end up losing instead of gaining profit.
That is why you have to make the right choice and browse through
the forex brokers list. To effectively choose a broker, you only
have to follow these easy tips:
Choose a Broker with Proper Credentials
How can you identify those forex brokers with the right
credentials? You can immediately create a shortlist by
eliminating prospective broker companies that are not registered
with the Commodity Futures Trading Commission as a Futures
Commission Merchant.
The designation of FCM will mean that the trading client will
have protection against fraud or anomalies that violate existing
trade practice regulations. It will also be a good way to
preserve your personal security and to ensure your safe entry to
the trading circuit.
Make an Effort at Research
Research has gone a long way since the advent of the Internet.
Nowadays, if a company has no website, you will think twice
about its business acumen. This is because if a company is
maintaining a website, it will usually mean that they are
exerting an effort to penetrate new horizons such as the
Internet. Companies like these are to be taken seriously.
Try to look up some of their existing clients and how they fare
in their trading. Note that facts and figures are easily made-up
in a website, so be sure to cross-check any information that you
may find.
Test Their Response Time
Now that you have researched about the prospective forex broker,
try to test their response time to their clients. You can do
this by sending an email to their customer service.
A company that timely answers inquiry requests from prospective
clients is serious in its business. The response time reflects
the level of their customer service to their clients and is a
sign of professionalism.
Know How Much You Are Going to Pay
Keep in mind that forex brokers are never free. Never let your
guard down just because they gave you free trading tips.
About the author:
Though some offer free advice, you will always have to pay for
their services so when choosing the right forex broker, be sure
to be aware of how much they charge for their services. To get
some great tips on forex, visit
http://www.forextradingmethods.net now! The best forex
information on the net, guaranteed.