Trading education » Trading Forex

The Real Secret to Day Trading Forex Currency

admin — Thu, 03 Jun 2010 07:48:45 +0000

You want to know the real secret to day trading forex currency? Well, here it is: Confidence and understanding of the market. There you go. There’s your real holy grail. If you can accomplish these two feats then you can write your own paycheck. Happy? Ok, so you probably need a little more information. Fine. Here it is:

Confidence! I cannot begin to tell you how many forex traders in the world are having anxiety attacks watching their trades just as I am typing. If you can’t handle a trade or trading or in general, then don’t do it. You’ll never have success day trading forex currency if you are watching every pip move like it’s life or death. Emotions can destroy a trader. A trader’s fear can cause him/her to hold a trade even though the obvious trend is going against them. It could also have the adverse effect in which a trader closes a trade WAY too early because he’s afraid to hold it, even though all the signs are pointing in the right direction.

I could give you the greatest trading system in the world, but it won’t do you much good if you don’t have any confidence in trading it.

The understanding of the market goes hand in hand with the confidence. When I say understand, I mean just that: Understand what you are looking at. Don’t be like everybody else who has to use indicators to tell them what the market is doing. Does anybody understand what these indicators even mean? Can you honestly tell me what using an MACD Divergence does? It’s colorful and its pretty on a chart, but what does that have to do with the tea in China? Take the time to understand the underlying causes of price and market movement.

Take off the indicators on your charts and see if you notice some repeated patterns. If you can start to see them then you can be ahead of the other 95% of forex traders who end up losing money on the markets. After all how can you have confidence day trading forex currency if you have no idea what you are looking at.

By: Jim Buhs

Forex Day Trading Success For Idiots

admin — Sat, 29 May 2010 02:52:12 +0000

Forex day trading is one form of trading forex investors can participate in. This type of investing involves making many short sells and trades in a single day, trading one currency for another within a matter of hours, or even minutes. Multiple currencies are bought and sold in a single day. The main purpose of forex day trading is to have no total variation at the end of the day. So, for every currency purchased, there is one currency sold.

Many advantages adorn Forex day trading, as opposed to stock day trading. For one, since forex is open 24 hours a day, trades are not limited being made within a certain time frame. No split second selling decisions must be made before the market closes. Decisions can be thought out and executed in a timely manner. Since forex is a 24 hour market, there is no closing price for the end of the day. There are no drastic jumps or declines of the value of a currency between trading periods. A major incentive of forex day trading is the ability to lessen the burden of maintaining a position during the night. To see a profit or deficit, the difference between the values of a currency being sold to the purchase amount.

Though forex day trading is appealing to many forex investors, experts say almost 90% of forex day traders lose profit. Why? Forex day trading may not be as dangerous as other types of forex trading, but the use of margin purchases, like utilizing funds on loan, increases deficits and profits. Shortfall and returns happen in very little time. So in order to be a successful forex day trader, it is vital to learn the basics of day trading. Learn the market from professional traders, workshops, books, and personal experience.

Know that forex day trading is course oriented. In other words, day trading focuses on development. Day traders must be able to determine what makes a winning trade. Once you are able to determine good outlines of trades, you will be more confident when good investing opportunities arise. You’ll make wise investments without guilt.

Remember, though, that 90% of day traders will lose profits. You are bound to lose profits before you are able to gain when day trading. In fact, these experts say most day traders lost large amounts of profit before becoming successful. If you decide to take the plunge into forex day trading, be prepared to soak up a few losses. The key is to speculate positively. You will lose, but keep positive and do what you feel you must to win. Besides, with day trading, losses are fairly small. It will only take you a few minutes to make errors. Risk will be involved, but profits are waiting to be made. Fail if you must, particularly if you feel failure is inevitable. Remember, speculate positively to be successful in forex day trading.

By: Peter Flemming

Successful Forex Trading – Secrets of the Millionaire Traders and What You Can Learn From Them

admin — Thu, 29 Apr 2010 08:39:49 +0000

Successful forex trading can be achieved by anyone so, what separates out the real pros who make huge long term profits, from the vast majority of losers? Let’s find out…

I am going to start with an experiment which is in fact one of the most successful in trading history which proved anyone could learn to trade.

The Experiment

The experiment took a group of ordinary people, who ranged from a security guard to a kid fresh from school and in 14 days they learned to trade – the result?

They made a $100 million and went down in history as legends.

The experiment was conducted by trading legend Richard Dennis, who wanted to prove anyone could learn to trade, with the right trading education and he proved the point.

The paradox is – anyone can learn to trade but most people lose. So what set this group of millionaire traders apart?

The answer is, forex trading is mostly down to mindset and not method, further explanation will make this clear…

If you take the above trading experiment, the system the traders learned was simple ( a long term trend following breakout method), so simple in fact they mastered it in 14 days. The hard part though was not learning the trading system, but learning to apply it with discipline.

The Key to Forex Success

You need to have a totally different mindset when trading forex.

For example, you can only be wrong and the market price is always right, it will give you long periods of losses and make you look a fool. The challenge for any forex trader is to keep going, through these losing periods, executing trading signals with discipline, until you hit a home run.

You have to have a set of rules you can survive with and have total confidence in them to bring you victory. This means not falling prey to your emotions and ego as most traders do and staying on course.

If you can’t follow a method with discipline you don’t have one!

Dennis knew this and that is why he made them not just learn the system but taught them everything about it, so they had confidence and could stay on course.

A Mindset for Success

Anyone can learn Forex trading and that’s a fact, what you need to concentrate on is your mindset. This means having these traits – An acceptance of you are responsible, confidence in what you are doing, iron discipline to reach your goal and a humble nature with no ego.

If you think it’s easy to do this -its not but if you come into forex trading with the right attitude, learn the right education and trade with discipline you can win.

In any financial market the trader is not defeated by the market itself, he defeats himself success comes from within and if you want to be a successful forex trader you can be its as simple as that.

By: Sonia Kristina

Trading Forex – New Korean Currency Crisis?

admin — Thu, 01 Apr 2010 02:49:46 +0000

Back in 1997 major financial slump rocked number of countries in Asia, an event that became known as “Asian currency crisis”. Effected countries included Taiwan, Thailand South Korea and others. One of the memorable comments of the time came from one of leading Thai politicians. He blamed this whole mess on speculators, with George Soros being the main culprit. The remarks went so far as to public statement of “not being able to guarantee his safety if he visited Thailand”. Quite ominous.

The fallout in South Korea was brutal. The US Dollar has about doubled in value against the Won, with USD-KRW moving from just above 800 in early 1997, to 1600 by the year’s end. Local stock market suffered similar fate, as did all areas of economy. Perhaps most telling was an enormous spike in unemployment, as the jobless rate soared to almost double digits, with about 9 million people out of work.

This author observed the aftermath first hand, during one of his business trips to South Korea at that time. Collapse of once high flying conglomerate Daewoo under burden of debt. The sight of many construction projects suspended or stopped all over Seoul and Pusan. Daily failure of scores of small business. It was good time to visit South Korea, due to low prices, but very difficult period for residents.

The country has rebounded nicely since then and became one of Asia’s most dynamic economies. KRW strengthen considerably reaching level 900 against USD in 2007. The stock market has recorded double digit gains in four of the last five years, gaining 32% in last year alone. Korean companies like Samsung Electronics Co, and Hyundai Motors Co, have established themselves as some of the world’s leading corporations.

Things have changed in 2008. Challenges like high oil prices, inflation, external debt and account deficit have shaken investors confidence. While many countries have seen outflow of funds into the dollar, this process became especially painful in South Korea. The Won has become the Asia’s worst performing currency, loosing 20% to date. Stock market was no better, falling 25%, with farther sell off of equities expected.

These developments created widely spread comparisons to situation from 1997 and were quick to be picked by the press. International Monetary Fund disagrees with this assessment and expressed confidence by saying that South Korea is a mature and resilient economy with country’s fundamentals much stronger than a decade ago. Korean financial authorities, however, felt obligated to act by intervention on Wons behalf in the open market. This seemed to stop the bleeding for now.

What can be expected next? In all reality, 1997 type sell off is extremely unlikely. As South Korean economy is cooling down together with the rest of the world, Seoul might not be able to stop bleeding of the stock market but there is one thing they can do- keep intervening on behalf of its currency. Unlike before, there are huge foreign reserves, about 250 billion dollars worth of, and they can be used to support Won.

Very likely scenario, as of this writing, is continued fall of Korean equities, in tune with broader stock declines. The Won should also keep dropping, but in much more measured and steady pace. Central Bank has not mentioned what the comfortable level for USD-KRW is, but as we noticed over last few years, major trends are very powerful and can go through any “line in the sand’ drawn by anybody.

Current rate is around 1150. Even with expected interventions, Won can easily weaken to 1300 and maybe 1400, but far short of the previous low of 1600. Also, one shouldn’t look for a fast move, but rather steady depreciation, lasting a year or two. This is not a situation for active traders, but for those who prefer longer term positions current development might present good opportunity for farther selling of KRW.

By: Mike Kulej

Beginning Education and Forex – How to Begin Forex Trading

admin — Mon, 08 Feb 2010 08:37:01 +0000

Forex trading is a very difficult type of trading especially for beginners. Before you begin to lose your money, one of the first things you should do is set up what is called a demo account. This allows you to trade fake money as you learn how to begin to trade.

When you first start out, there is so much to trading, especially on the computer systems, that you may become overwhelmed. This is why you should always begin practicing before actually investing money.

The best decision that anyone can make is choosing the right broker. There is a lot of competition between broker stop once you were business. They will change their prices and their services in order to attract you to their particular company.

Always make sure that you are working with someone who is registered with the commodities future trading commission. If not, you need to find one that is, along with the fact that they are reputable company.

With high technology improving and increasing everyday, you need to consider purchasing a Forex system that is designed to update itself as the company changes and you learn. Most of these systems have a demo account and this is where you want to begin.

There are other companies that provide demo accounts but they do not provide help while you are learning the process. Your best bet is to find a Forex company that offers a 30 day trial and broker assistance that can help you with the demo system on a daily basis.

By: Tommy Hilligan

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

admin — Sat, 16 Jan 2010 14:10:44 +0000

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

Forex Day Trading and Scalping

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

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

Think about it:

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

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

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

Forex Swing Trading

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

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

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

Forex Trend Following

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

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

Why?

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

Keep in Mind.

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

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

By: Kelly Price

Currency Trading Education – 2 Weeks Forex Training and These Traders Made Fortunes How?

admin — Fri, 15 Jan 2010 03:04:52 +0000

The story of “the turtles” has always fascinated me a group of people with no trading experience were taught to trade in just 14 days and went on to become legends piling up hundreds of millions of dollars. It’s an intriguing story and one you should make part of your currency trading education.

Trading forex looks easy but 95% lose and 5% win and this story will give you a bit of an insight into how to enter the elite minority.

One day trading legend Richard Dennis was having a friendly debate with his business partner who said traders were born not made – Dennis disagreed. He therefore set out to prove the point that with the right attitude and education anyone could win.

He gathered a group of people who only had one thing in common they had never traded.

They included: A couple of professional card players, an actor, a security card a female auditor and a kid just out of high school to name just a few.

He then taught them a simple trading system based on long term trend following principles, combined with rigid money management criteria and set them off to trade and the result is now well known – they went onto make hundreds of millions of dollars and go down in trading history.

Dennis proved his point – so what did this group do right to make them enjoy such spectacular success?

Here is what you can learn for your own currency trading education.

You only need a simple system and the above was very simple but what you do need is the ability to have confidence in what you are doing, to execute the trading system with discipline and protect your equity.

Here is the difference between successful traders and the losers.

The problem most traders face is, they get the wrong forex education and lose or they cannot obtain discipline.

Most traders cannot accept responsibility and follow others and of course because they don’t have confidence in what their doing, they throw in the towel when they take a few losses. Dennis didn’t teach his group to follow him or his system blindly – he instilled confidence in them, giving them the discipline to execute their trading strategy, while taking loss after loss in the short term and focusing on the long term.

He gave them the confidence to maintain discipline and money management and stay on course.

This came from inner confidence in what they were doing – they knew their trading edge would come good.

Most traders could win – but they just don’t understand the mental discipline that’s involved in currency trading and never acquire it.

Today there is a huge industry in telling you forex trading is easy and you can follow a guru, or even more ridiculous use a forex robot with a simulated track record – its all fairy stories and these traders are just simply not prepared for the brutal reality of trading for real.

I think the major point you can take from this piece of currency trading education is:

You have the ability to win at forex trading (anyone does) but you must understand that method is only one part of the equation – confidence, discipline and courage are needed as well and this is down to mindset.

If you like the idea of a challenge and the thought of making a lot of money, study this story in greater depth, it’s motivational, very inspiring and of course the experiment worked.

Could you make as much as this group?

Probably not, I have been trying for 25 years but I have made a lot of money and achieved a level of success I never thought possible. The turtle story inspired me to have a go and gave me pleasure and an income I never thought I could achieve and I hope it does the same for you.

By: Kelly Price

Forex Education – 20 Questions That Will Tell You If You Can Win At Forex Trading!

admin — Wed, 13 Jan 2010 09:41:19 +0000

Forex trading isn’t easy and you wouldn’t expect it to be with the rewards on offer but its not hard either – if you get the right forex education. If you look at the questions below and answer them correctly yes or no, you are learning forex trading the correct way and likely to be successful.

10 Questions you must answer NO to below:

1. I believe the more knowledge I acquire and the harder I work the more successful I will be.

2. Complicated systems are more likely to successful than simple ones.

3. The more news stories I study and trade the more chance I have of making money.

4. Day trading is a great way to make money.

5. Markets move to a scientific theory because human nature never changes.

6. You never go broke banking a profit.

7. You need to predict markets in advance to win at forex.

8. I can buy an e-book from a guru and just follow it they know best.

9. If I am always in the market the better my chances of success as I wont miss a move.

10. Buy low and sell high is a great way of making money.

If you agree with any of the above statements you will lose money.

They are all common forex myths believed by the 95% of traders who lose money.

If you answered no congratulations – you’re learning forex trading the right way.

Now – here are 10 questions you should answer YES to.

1. I know that success comes from within and no one else can give it to me.

2. If I devise my own trading strategy I will acquire confidence and discipline.

3. Simple systems work best as they are more robust than complicated ones.

4. Forex trading is not a game of science it’s a game of odds.

5. I need to run the long term trends to make money all short term.

6. All short term daily volatility is random and is un-tradable.

7. I don’t predict market moves I simply respond to the reality of price changes.

8. I buy markets when they break to new highs because most big moves start from new market highs NOT market lows.

9. I trade infrequently and only trade high odds set ups.

10. I don’t need to acquire lots of knowledge just the right knowledge then I am done.

Did you answer yes to the above questions? – then well done! Your learning the right forex education.

Now if you have got them all right so far, here is one final question to determine if you are likely to be a winner:

My trading edge is (defined)

If you don’t know what your trading edge is – you don’t have one!

Your trading edge is the reason you will succeed and the vast majority fail.

Forex trading is all about getting the right forex education, ignoring the myths and focusing on the right information.

You need to build a system you can have confidence in which will give you the discipline to trade for long term success through inevitable losing periods.

The rewards of trading forex are immense and the amount of money you can earn can be life changing and if you get the right forex education you can enjoy long term currency trading success.

If you have the desire to be a winner and can accept you are responsible for your own destiny then the vast rewards of forex trading await you.

By: Kelly Price

Elliot Wave Theory – Forex Trading With Elliot Wave

admin — Sat, 19 Dec 2009 18:43:59 +0000

There are many scientific theories of market movement and they put forward the idea that as human nature is constant, it conforms to a law. Know the law and you predict forex price movement in advance. Elliot Wave theory is one of the most famous of these theories; let’s look now at how successful it is…

Elliot Wave is one of those theories that traders love and it’s very clever – but the logic it’s based on is ridiculous.

Let’s take the definition of a scientific law.

If it is scientific, it should tell you exactly what to do and be totally objective – that’s the definition of a scinetific law, just like all those scientifc equations you learned at high school. These equations give the equation to follow and the end result is alwayts the same.

Does Elliot Wave theory do this?

No, so it cannot be scientific by definition. It’s totally subjective with lots of peaks and troughs in any time period you like. If there is a law of human behaviour the theory should just tell you what to do!

The other obvious flaw with it as a scientific theory is:

If there were one (and there isn’t) there would be no market, as we would all know the price in advance!

This you would have thought is common sense but Elliot Wave has a large devoted following
(despite the fact he didn’t make any real money with his theory) who think it’s the solution to finding the future.

This theory is similar to the ones of Gann and Fibonacci and there not scientific either.

Anyone who thinks these theories are, has not looked at the facts, or thought about the logic.

Human nature is constant and we are governed by greed and fear but were all also different and individual and this vast mass doesn’t conform to an exact scientific theory, this is what makes trading the challenge it is.

If you are trading forex or any other free market, you are involved in a game of odds NOT a game of certainties.

This doesn’t mean you can’t win, you can – but you need to be realistic and not a dreamer.

Leave Elliot wave to the far out crowd and the dreamers and get yourself a system, which trades the odds and a good place to start is with a study of Dow Theory.

We will look at in the next article in this series.

Traders are always looking for ways to beat the market but you can’t so don’t try.

Get an odds based system and trade the odds.

Sure, you won’t win every time but that won’t stop you making a lot of money and enjoying currency trading success.

By: Samuel Leslie Berkovits

Forex Trading – The Basic Ingredients of Forex Trading

admin — Sun, 08 Nov 2009 15:12:20 +0000

When it comes to starting up your own work from home business, there are fewer ventures better to get into than Forex trading. More and more people are starting to realize the potential this form of trading has and are enthusiastically becoming involved. But what is forex trading?

Forex trading is simply trading between different currencies from all over the world, ie. trading on the Forex market. So let’s say you use your US dollars to buy a thousand Euros. What you’ll be hoping for is that the price of those Euro’s goes up, which will intern increase your initial investment.

So how do I get started?
Before getting started, you’ll first need to spend some time educating yourself on different methods you can adopt to build a successful trading business. Too many people fail at this not because they’re not smart enough or that they’re just unlucky, but because they jump in too early, lacking the knowledge necessary to read the market.

Every successful trader has spent a lot of time studying the different ways in which to use the market to their advantage. Not only that but quite possibly the most important part of being successful on the Forex market is to find one method and stick with it!

A lot of traders end up failing because they jump from one thing to the next. They hear about someone making money using a new technique, so they try it. Then they hear another new ‘awesome’ method and forget about the one they were just using and jump on over to this next one.

These are the people who will inevitably fail. Find a method and stick to it! Sure you may lose money at first, but you’re getting invaluable experience in the process and learning more about how to use the method, which will in the end result in more of a natural reading of the market.

By: John Hopman