Forex Trading Style

Option Trading Basics
Monday, June 25, 2007

Trading options is a simple concept to learn but a very difficult one to master. However, in order to become proficient at trading options, you first must completely understand the basics. So what exactly is an option? An option is the right to buy or sell (it depends on the type of option) an asset (like a stock) at an agreed upon price for a fixed amount of time. The two basic types of options are a call and a put. A call is an option that gives you the right to buy a stock at an agreed upon price for a specified amount of time while a put gives you the right to sell a stock at an agreed upon price for a specified amount of time.

Let me give you an example: In your opinion, you think that Microsoft is undervalued at $30 per share. In this case you would want to buy a call on Microsoft at a strike price (the agreed upon price) of 30. The longer an option is good for the more the option will cost. Let's say you decide to buy a 3 month call option on Microsoft with a strike price of 30. This option is likely to cost around $150 for every 100 shares. One option gives you the right to buy 100 shares of stock. To summarize, it has cost you $150 for the right to buy 100 shares of Microsoft at $30 per share anytime in the next 3 months.

Now that you own a call option you want the stock to go up. If Microsoft were to go up to $35 in the next 3 months you could still buy it for $30 per share with your option. This would give you a $500 gain [($35-$30) x 100 shares] from the purchase of 100 shares of Microsoft. If you subtract your option cost of $150, your profit would be $350. You may be able to earn a higher profit by closing your position through selling your option, but to fully explain why would require me to go into much more detail that is not suited for a beginning article on option investing. Of course, if Microsoft were to go below $30 for the next 3 mont1C84hs, you would lose the $150 you spent on the option. When you buy an option, you can never lose more than the cost of the option.

On the contrary, if you think Microsoft is overvalued at $30 per share, you would want to purchase a put option. After you purchase a put option you would like the stock to decrease in value. For example, if Microsoft were to decrease to $25 per share you would still be able to sell the stock for $30 if you have a put option with a strike price of 30. If Microsoft were to go up, you would lose whatever you spent to buy the option. Once again, you can never lose more than the cost of your option when buying an option, regardless of whether it is a call option or a put option.

A few things to keep in mind when buying options as an investment. Basic options require something to happen to become profitable. This simply means that if the stock price doesn't change much, the option will erode in value until the option expires and becomes worthless. Also, an option's value will erode more quickly the closer it is to expiring. Finally, options offer the opportunity for a greater investment return, but with this opportunity comes greater risk.

Forex Signal System Trading 62766

posted by currency-forex-online-trading14727 @ 10:55 PM, ,

The 5 EMAs FOREX SYSTEM, Exponential Moving Averages Full Potential.

Among one of the important concepts a new forex trader should know is what a Moving Average means, how its calculated and what its use as a trading indicator is.

Moving Average is defined as a technical indicator that shows the average value of a particular currency pair over a previously determined amount of time. This means, for example, that prices are averaged over 20 or 50 days, or 10 and 50 min depending on the time frame you are using at the moment of your trading activity.

As an averaged quantity, MAs can bee seen as a smoothed representation of the current market activity and an indicator of the major trend influencing the market behavior.

The basic mechanics of how Moving Averages can tell you where the forex market is moving (up or down), at the moment of your analysis is by considering two different time frame Moving Averages and plotting them on the forex chart. It is very important that one of these MA is over a shorter time period than the other one; lets say one will be over a 15 days period and the other over a 50 days period. Most trading station software available by a number of brokers will let you do this plotting and much more.

Recently there has been the realese of a new forex trading system called The 5 EMAs FOREX SYSTEM. This system will allow you to identify both entry and exit points with incredible accuracy. He even claims you can convert $1000 into $1000 000 in just 24 months. He may be exaggerating a bit on this, but his plan of action and use of moving averages is quite outstanding and accurate.

Depending upon the exit strategy selected, the system generates monthly returns of between 30% and 55%. Which is more tha enough to make a living trading the forex markets with the 5 EMAs Forex System.

Forex Seminar 42660

posted by currency-forex-online-trading14727 @ 10:51 PM, ,

Does Forex Make Money?

Forex Trade 34636

posted by currency-forex-online-trading14727 @ 9:10 PM, ,

Forex Currency Trading System - How To Pull The Trigger To Trade At The Right Time

If you are day trading the currencies in the forex market, then you will be familar with the need to decide quickly when to pull the trigger to enter or exit a trade.

In fact, if you are day trading, the slightest hesitation on your part when the situation demands quick action, would be detrimental to you and in fact can hurt your trading account.

What then can be done?

For a forex currency trading system, separate the decision making and the trading execution into two distinct components of the trade. Then during the trading period, all you need to do is to execute the trading action the moment all the technical requirements of the trade setup are fulfilled.

In this way, you have pre-decided on your trade setup. The decision has already been made that a valid trade setup would occur when all the requirements of the technical setup are fulfilled during trading.

By doing so, you remove a whole lot of pressure because it is relatively easier for you to have a checklist of the requirements to be fulfilled for a trade setup and when all the requirements are ticked off as being met, you can proceed to quickly execute the trade without question.

This is where it is important for you to be familar with the trade setups and the forex currency trading system being employed. To benefit from this technique, the forex trader can run some tests on his strategy by using a trade simulator and also a forex strategy builder. Test to ensure that the trading setup and the forex currency trading system is feasible and profitable before adopting it for trading.

A good forex currency trading system must not be too complicated with a whole lot of indicators cluttering your chart. In contrast, a simple trading system such as a price-time action system which has been back tested and proven to be robust and which can allow you to identify B1Dthe trade signals is preferred over a complicated trading system which can do the same thing.

Once you are able to pull the trigger the moment you are sure the technical requirements of the trading setup have been fulfilled, you will notice a new found sense of confidence in your trade. You will no longer try to force a trade where a forex currency trading setup is not present, and you will no longer trade on hope where clearly there is no trade setup.

About Forex Trading Course22759

posted by currency-forex-online-trading14727 @ 8:38 PM, ,

Take the Guesswork Out of FOREX

Have you ever wondered how other people are making money on the foreign exchange? Does FOREX seem too complicated or unreliable to you? For some time now, the foreign exchange was reserved for those few intelligent investors who had the insider secrets, stock brokers and large investment firms and those people that give their accounts over to a large broker to handle. But today, that has all changed.

Now literally anyone can learn to profit from the foreign exchange and investing. With this system, you can work at your own pace from your own home and you only have to invest a small amount of time each day which means you have plenty of time left for enjoying life. This proven-effective investment strategy takes the guesswork out of FOREX because:

You control your money with your own brokerage account and you place all of your own trades
There are no confusing charts or graphs to read
No research required
No signals
You will trade in currency pairs which always move in opposite directions
You rarely exit your position
It only takes a few minutes a week to manage a portfolio of any size
There is no need to "watch" your account all night long when the market is most active
You can select your interest rate. Keep in mind the higher the rate the higher the risk
Alerts you by text message or email when your trades execute, so there is no need to monitor your progress throughout the day and there is no risk of you missing a trading opportunity.
Allows you to balance your portfolio to earn varying rates of interest on your account.

You can see that this makes investing in the foreign exchange so easy that virtually anyone can do it. No wonder so many people are upset about this being released to the everyday public just like me and you! They don't want these secrets to get out.

Now is the perfect time to get in on this opportunity to take the guesswork out of FOREX once and for all and begin making your own living from investing in foreign exchange. This investment strategy takes the guesswork out of FOREX because it contains software that does all of the calculations for you. All you have to do it take the time to learn how to program in your own parameters such as how much you have to invest and how much you are willing to risk.

About Forex Trading60007

posted by currency-forex-online-trading14727 @ 8:05 PM, ,

Finding a Forex Broker

Foreign exchange is the largest financial market and everyday new investors plan to jump in when they learn of the benefits, that is, high returns on investment which is as high as 20% per month a month. However, inexperience and over enthusiasm can only do bad and bring in losses so, youll need an experienced forex broker to help you put your money in the right place at the right time.

A forex broker with a cool head, preferably with a long list of satisfied clients and experience is the right guy. Once youve found the right forex broker, all thats to be done is, keep a regular check on your investments and it is advised to do it independently to avoid scams, because one can never know. So, how to find the right forex broker, is that the question? Well, good news, this article was written just for you.

In a market where cash flows faster than the F1 circuit, scams should come as no surprise even with reputed names and its your responsibility to be aware of where the money is and keep a check on the movement and earnings. Different people prefer different levels of risk and depending on that factor you might like to check how different forex broker work and then select the one from them.

Even before you start the search, remember to strike down brokers promising windfalls, they are scams without doubt and same 10EFfor brokers who are promising huge profits or no risk. Trading always involves some form of risk because of the nature of the market which you must be prepared to incur.

Make sure to check the spread of the forex broker as thats where they earn their money, read their terms of service carefully and check the services offered. There might be a lot of services being offered upfront at no cost but you might be billed for them later on, so make sure to sign up only for the services that are required.

A forex broker is a long term partner for financial success so, make sure to research their background well. All thats to be done is put in a little effort by checking the credibility of the forex broker or company upfront for peace of mind in long term.

About Forex Cargo47368

posted by currency-forex-online-trading14727 @ 7:31 PM, ,

FOREX Trend Following A Major Mistake Made By Novice Traders

Currencies exhibit trends we all know this and some of these trends can last for months or years, yet most novice traders make a fundamental error when trying to turn these trends into profit.

What is it? Read on and find out.

Most novice traders are right about market direction in FOREX trend following, but then end up losing, because they simply cannot accept huge gains!

Sure, all traders want them, but most traders cant accept them, this will become clearer with a little more explanation.

One of the most important rules of trading is run your profits to cover your inevitable losses.

Most traders fail to do this.

In my experience I have seen traders who are great at getting trend direction right Yet they end up getting bumped out of the longer term trends.

They bank a $1 or 2,000, when they could have made $10 20,000!

When they get a profit their delighted.

The bigger the profit gets, the more inclined they are to take it (even though the market is going their way) in the end they snatch it and bank a minor profit.

Why Traders Cant Follow Trends

The reason they do this, is simply they cant accept that in any long term trend volatility will eat into open equity on pullbacks.

This causes emotional turmoil and the thought of losing a profit, means they are grateful for any profit they get.

You must maximize Your Winners

If you are FOREX trend following then you need these trades to pile up huge gains and only exit when your system tells you to.

Look at the Big Picture

It takes courage and discipline to hold a trade when you see a few thousand dollars lost on a pullback, but that is what you have to do.

If you are FOREX trend following try this way of trading:

1. Only trade significant breaks of important market highs or lows These normally become the big trends of the year.

2. Place stop below the breakout point Do NOT trail the stop to closely give the market room to breathe.

3. Set a profit target based upon your study of pr58Aice history.

4. Only exit when your system tells you to.

You can make huge profits if you do this.

The big trends last a long time

Keep in mind significant breaks of support or resistance coincide more often than not with economic conditions changing in the country of origin and these can last for months or years.

Accept big drawdowns in open profit - Their normal

Stick with the big trends and you will be rewarded longer term with your FOREX Trend following method.

Forex Data 69561

posted by currency-forex-online-trading14727 @ 6:24 PM, ,

Day Trading Success- The Key Is Survival

Most new traders tend to focus just about all their time and energy on finding nearly perfect "setups", but trade setups, even very good ones, are *not* the key to successful trading. It's the *way* you trade your setups that keeps your losses smaller than your gains. And this is the single most essential key to trading success. To me, the process of limiting losses is more than just money management...it is survival.

I can't give you a list of mechanical survival rules that will take the place of experience and make you a successful trader overnight, but if you stick to the following principles in your trading, you'll be on track. You'll be doing just about the opposite of the crowd, and you'll eventually learn to limit your losses. Limiting your losses is the only way I know to make money in this business.

The following guidelines will sound radical, but they have guided me in making my living from trading for many years.

1. If a trade doesn't go your way within the first one to five minutes, get out. I usually get out within one or two minutes as soon as my perceived edge is gone.

2. If a trade goes against you in the first few seconds, begin drawing in your hard stop and/ or your target, trying to get out of the trade at break even.

3. Never let your hard stops get hit. When it happens, you may want to take a break and get some fresh air.

4. Hard stops are adjusted to market conditions. At the moment (July 6,2005) I am using 1.50 point hard stops on the SP futures.

5. Never move your hard stop away from your entry point, hoping that a bad trade will turn around.

6. If you find yourself *hoping* as you trade, it is a clear sign that you are not following good survival (money management) principles.

It will be impossible to put these principles together without a set of high-probability setups. Without good setups, trading is just a flip of the coin.

Forex Currency Trading 17649

posted by currency-forex-online-trading14727 @ 4:42 PM, ,

Technical Indicators In Forex Trading - Understanding Their Limitations

Forex traders often look at indicators such as Bol21F0linger Bands, Pivot Points, MACD, Moving Averages and the such to help them determine where to enter or exit trades. Using technical indicators is fine, however many traders overemphasize their importance or just plain misunderstand them.

Many forex traders think that they can simply download an indicator and then mechanically apply it into their trading and do so profitably. This is just a plain illusion. Successful traders realize that there is a lot more to using indicators than just asking them to generate buy/sell signals or pin-point exact entry points. Technical indicators for them represent just one part of their trading strategy.

Lets take a look at some of the reasons why you should not put all your faith into those sometimes confusing little indicators.

Take Moving Averages (MAs) for example. They are "supposed" to show the direction of the trend. The most common and often used are the simple 200day MA, 100day MA, 50day MA, 35day MA and the 21day MA but they are only valid on daily graphs. Some forex day traders say that a good signal is when the 50day MA is crossed by the 13day MA and that when this occurs you should trade in the direction of the cross.

The problem with this (apart from the fact that it only works on daily graphs) is that these types of crosses do not occur often enough for traders to exploit them. This can often lead to a situation where traders are seeing what they thought was a cross now reverse and uncross. Even worse, it can lead to a situation where day traders are "chasing" and trying to anticipate a cross. If you are doing this, you are distancing yourself from the market which you are trying to trade. Not only are you trying to guess what the price is going to do next but you are guessing what the indicator, based on the prices, is going to do next.

Other problems with technical indicators involve issues with the quotes and prices given to you by your broker. Forex brokers are market makers and as such different brokers will give you different quotes and prices at a specific point in time. Naturally, a different price could lead to a situation where different traders, trading the same market have the same indicators giving them different responses. Thats how arbitrary technical indicators can be.

Finally, a lot of these technical indicators were developed by people trading the stock market. With the growth of computers and software packages that incorporate these indicators, technical analysis has become very popular and spread to other markets such as the forex market. What currency traders should be aware of however, is that as these indicators were developed in a time where real time information did not exist. As such, the limitations of technical analysis becomes even more exaggerated in forex trading not only is technical analysis an interpretation of historical events but it becomes even more so in the forex market, a market moved by real time events.

Conclusion:

Successful forex traders understand the limitations of technical indicators and realize that technical analysis should incorporate just one part of their trading strategy. In a recent international Forex market event visited by the major banks and institutions - the main players that influence the foreign currency market a survey was done to better understand what analysis they use. The results might be surprising to some tarders. The survey showed that a mere 26% use technical analysis and indicators compared to 41% who said they use fundamental analysis.

Forex Training 9323

posted by currency-forex-online-trading14727 @ 4:08 PM, ,

Learn Forex - Trading Currencies On The Margin

For many people the key to Forex trading is the ability to trade on the margin. Without this ability, many small investors would not be able to trade the currency markets. But just what is trading on the margin and how does it work?

A margin account allows a Forex trader to open an account with a relatively small amount of money, and to then control large amounts of currency. In effect, opening a margin account with a Forex broker allows you to borrow money from the broker to control large currency lots. The degree to which you can borrow is known as leverage and is usually expressed as a ratio. For example, a leverage of 100:1 means that you can control assets worth 100 times your deposit.

By opening a 1% margin account and depositing just US $1,000 you can control standard Forex and lots of US $100,000. The ability to trade on the margin can clearly increase your profits, but it can also increase your losses with the possibility that you could lose more than your original deposit. Brokers, however, normally monitor margin accounts closely and will terminate a transaction which extends beyond the margin deposit.

While it is obvious that being able to trade US $100,000 with as little as US $1,000 provides for the possibility of both greater profit and greater loss, we need to look in a little more detail at just how this works.

Forex currencies are traded in much smaller lots than cash is. If we take the American dollar for example, a Forex quote might read $1.3256, rather than the $1.32 which you might expect. This is because in Forex trading currencies are traded in units down to four decimal places, with the smallest unit in Forex currency being known as the pip. In a standard US $100,000 lot therefore each pip is worth US $10.

If our example quote for the American dollar of $1 .3256 were to change to $1.3356 this would represent a change of 100 pips and a profit or loss of US $1000 and, if you were holding US $1000 of currency, a profit or loss of just US $10. This might be significant to a tourist but is unlikely to impress an investor. However, by using your US $1,000 on a 1% margin account to control US $100,000, your US $1,000 profit now looks far more healthy.

Of course your risks are also increased and, if the American dollar moves by just one cent against you on your 1% margin account, you stand to lose your entire account.

Fortunately there are a number of tools available to the Forex trader to help in minimizing any potential losses. One such tool is the stop loss order which automatically closes your position if the value of the currency reaches a level which you set.

One price that Forex traders have to pay for operating a margin account is that brokers normally have the right to override a transaction when they believe that it may result in an unacceptable loss. It may be the case therefore that, while you are riding out a downturn in the market in the expectation of a market reversal, your broker may close out your position and leave y8B5ou with a substantial loss.

Let's say for example that you sell EUR/USD at 1.2144 (in other words sell 100,000 and a buy US $121,440) in the belief that the euro will fall in price. Your 1% margin account has a balance of $1, 250 and so after the transaction costing $1, 214.40 the balance in your account is $35.60.

After you have entered this position, and assuming that you have not set a stop loss, let's say that the euro gains 0.0263 for a price of 1.2407 making 100,000 worth US $124,070. The requirement on your 1% margin account is now $1, 240.70 and, depending on your broker's policy, the additional funds may be taken from your account or, with such a low balance, your position may be closed. In any event, if the euro continues to gain in value, you will need to add further funds to your account or risk your account being closed and losing everything.

Despite the risks of trading on a margin account it is this ability which makes Forex trading such an attractive proposition to so many people. You should not therefore be put off by these risks, but you certainly need to be aware of them and to know your broker's policy and to manage your account accordingly.

About Forex Trading Training29861

posted by currency-forex-online-trading14727 @ 3:01 PM, ,

Forex Secret - Technical Levels at Forex, Presented by Dow Jones's Agency

For the work at Forex, every day each trader must detect technical levels of the resistance and support. As it is already mentioned in the previous chapters, detection of technical levels of the resistance and support is rather complicated. A trader (and the beginner especially) must clearly differ the levels of various currency pairs. Issuing from these criteria, one can project a commercial plan for the trading session and develop the daily working tactics.

I suppose that the most optimal technical levels are submitted by Axel Rudolph from Dow Jones Newswires agency.

There is an example of the technical levels on July 7, 2006.

According to the technical analysis given to European currency markets by Axel Rudolph from Dow Jones Newswires agency, USD will come down (drop) see the moving charts made on July 7, 2006 for 24 hours.

EUR/USD; EUR/GBP; EUR/JPY; EUR/ CHF .

The 3rd resistance! 1.2914 !0.6997 !148.12 !1.5766 !
The 2nd resistance! 1.2842 !0.6988 !147.80 !1.5742 !
The 1st resistance! 1.2789 !0.6968 !147.50 !1.5713 !
The point of reversal (pivot)! 1.2775 !0.6957 !147.15 !1.5699 !
The 1st support!1.2758 !0.6942 !146.96 !1.5689 !
The 2nd support! 1.2730 !0.6920 !146.55 !1.5669 !
The 3rd support! 1.2685 !0.6913 !146.20 !1.5650 !
Let us examine EUR/USD pair movement during the day. The pair aims at the minor (accessory) resistance at the level 1.2789 (it is Fibonacci correction level by 61.8%). If this level will be broken through, the pair will reach the point 1.2842. For this pair, the 1st level of support is located at the level 1.2758 (the minimum on Sunday). If, on the contrary to expectations, this level will be broken through, the pair can test for strength the minor (accessory, second-order) support at the level 1.2730.

In the weekly EUR/USD pair movement is depicted. It is an ascending trend.

EUR/GBP pair movement is presented in the daily chart. One can expect the pair to reach (arrive at) the secondary resistance at the level 0.6968. If this level will be broken through, the pair will aim at the resistance at the point 0.6988. The 1st level of support is located at 0.6942. If this level of support will not resists (stand up), the currency pair will aim at the level support at 0.6920.

In the weekly chart, one can see EUR/GBP pair movement. It is an ascending trend.

EUR/JPY pair movement is depicted in the daily chart. This pair aims at the minor (accessory) resistance at 147.50 until the 1st support at 146.96 is not broken through (the daily minimum on Tuesday). Exceeding the value of 147.50, the pair will aim at the mi560nor (accessory) resistance at 147.80. Below 146.96, the levels of support are 146.55 and 146.20.

EUR/JPY pair movement is depicted in the weekly chart. It is an ascending trend.

Further, EUR/CHF pair movement is depicted in the daily chart. The pair again puts on trial the minor (accessory) resistance at the level 1.5713 (it is the maximum in the given medium). If this level will be broken through, this pair will test for durability the resistance at the level 1.5742. The 1st support is located at the level 1.5689. The next one is placed at 1.5669 (the minimal value on the Thursday morning).

There is EUR/CHF pair movement depicted in the weekly chart. It is the ascending trend.

And now we regard with the following currency pairs:

GBP/USD; USD/JPY; USD/CHF ; Aussie dollar/USD.

The 3rd resistance!1.8496 !116.67 !1.2446 !0.7510 !

The 2nd resistance! 1.8475 !116.01 !1.2396 !0.7503 !
The 1 st resistance! .!1.8415 !115.84 !1.2364 !0.7481 !
The point of reversal! 1.8370 !115.20 !1.2292 !0.7464!

The 1st support! 1.8320 !115.02 !1.2262 !0.7449 !
The 2nd support! 1.8270 !114.34 !1.2197 !0.7439 !
The 3rd support! !1.8200 !114.00 !1.2135 !0.7405 !
Let us examine GBP/USD pair movement during that day. The pair aims at the minor (accessory) resistance at the level 1.841516A0. If this level will be broken through, the pair will aim at the point 1.8475. For this currency pair, the minor (accessory) support is located at the level 1.8320 (the maximum on June 23). The next level of support makes 1.8270 (the maximum on June 27).

There is GBP/USD pair movement depicted in the weekly chart. Is it the recoil from the level of support?

Let us examine USD/JPY pair movement during a day. The currency pair is descending again, aiming at the minor (accessory) support at 115.02. If this level will be broken through, the currency pair will aim at the level of support at 114.34. The first resistance is located at 115.84 (the maximum in the medium).

We now dwell on USD/JPY pair weekly movement. The increase is hampered by the resistance level.

Let us examine the daily chart of USD/CHF movement. One can expect the pair to descend down to the minor (accessory) support at 1.2262, till the growth will be restricted by the resistance at 1.2364. If this level of resistance will be broken through, an increase in this currency pair on Friday can restrict the minor (accessory) resistance at 1.2396. The support is located at 1.2197, which is lower than the level 1.2262 (the minimum in the medium).

Again, one can study USD/CHF pair movement, depicted in the weekly chart. The increase is hampered by the level of resistance.

There is AUD /USD pair movement depicted in the daily chart. This pair aims at the minor (accessory) resistance at 0.7481. If this level will be broken through, this pair will aim at the marks 0.7503 and 0.7510. These points are the maximums on June 9 and June 12, respectively. The 1st minor (accessory) support is located at the level 0.7449 (the minimum on the Friday morning). This level of support must hold out (survive) if the currency pair tests this level for strength (durability). If this level will be broken through, the minor (accessory) support at 0.7339 will hamper the decay of this currency pair.

There is Aussie dollar /USD pair movement depicted in the weekly chart. One can see the recoil from the level of support.

The point of recoil (U-turn, pivot) is equal to the sum of the maximal and minimal prices of the bargain closing at the previous day, divided by three.

Students of Masterforex Trading Academy have developed an indicator Pivot RS session. It is intended for saving time that could be spent on daily marking points of recoil (U-turn, pivot) and 3 levels of the resistance and support (see the levels of the resistance and support by Axel RS - http://forum.masterforex-v.su

Chart 2.3.1(For view the picture see notes in end of article)

Chart2.3.2 (For view the picture see notes in end of article)

.

Chart 2.3.3. (For view the picture see notes in end of article)

Chart 2.3.4. (For view the picture see notes in end of article)

Chart 2.3.5. (For view the picture see notes in end of article)

We now dwell on the advantages of the technical analysis given by Axel Rudolph to Forex market.

1.For a trader, it is so easily to see the reversal (pivot) point and 3 levels of resistance/ support as regards the 8 basic currency pairs at Forex. Surely, such approach economizes the time.

2.One should pay attention to Axel analytical review title. The further currency movement at that very day must be taken into account as well. Rudolph Alex has clearly exposed the currency pair movement direction at the beginning of trading at Forex.

3.In the charts that concern June 7, 2006, one can watch how the ally currency pairs, located place beyond the pivot, have managed to break through the levels of resistance/ support ## 1, 2, 3. It is conditioned by decrease in USD rate.

4.Let us dwell on the possibility of gaining profit at Forex. As one can judge by the above-given examples, a trader can gain profit with the currency pair movement to start from the 1st and up to the 3rd level of support/resistance.

The comments. The reader should pay attention to dispute between Masterforex-V Trading Academy students and a leader of Forex Brokers Forex Club. This Forex Brokers, every day issuing Dow Jones Newswires, somehow manages to keep on forgetting to submit the analytical reviews that contain Rudolph Axels levels to its traders. Only students of Masterforex-V Trading Academy have made one of the largest Forex Brokers of Forex club in Russia to include Rudolph Axels analytical investigations into Dow Jones Newswires for the traders.

We now dwell on drawbacks of technical levels at Forex, submitted by Dow Joness agency.

1. Any system cannot be reliable if one does not understand the essence of it. So, what one can do when Axels levels would be not issued tomorrow. Otherwise, R. Axel can be mistaken.

2. How one can on ones own detect R. Axels levels in several hours before the news publication.

3. How one can manage to know the levels of resistance/support in half of an hour earlier than R. Axel would publish it? By the way, students of Masterforex-V Trading Academy somehow do get this information earlier than it appears in Dow Jones Newswires (news line), issued by leading Forex Brokers in Russia?

4. You can calculate the currency pair pivot (the point of reversal) according to the following technique: the point of reversal is equal to the sum of the maximum, minimum and the price of closing at the previous day, divided by three. However, this point will never coincide with the value, which R. Axel would submit you the next morning. Is not it true? How to calculate the pivot so that to make both these values to coincide?

5. Which other techniques can be used in order to check thA29e correctness of R. Axels levels. For instance, on July 7, 2006 the fourth level of resistance for the EUR/GBP pair was calculated before the issue of news. It made the local peak in American session. (GBP was at 1.8540; EUR was at 1.2860).

There is another example. On July 10, 2006 R. Axel has pointed out to the 3rd level of support of GBP as 1.8415. At the same time, the majority of participants of Masterforex-V Trading Academy closed their bargains at 1.8365 it was the local minimum on that very day (July 10, 2006). How one can detect a local minimum of the trading day with the accuracy up to 1 point in the first half of the trading session when GBP has moved through 160 points?

Chart 2.3.8. (For view the picture see notes in end of article)

Aiming at gaining profits regularly, students of Masterforex-V Trading Academy study such specificities. Surely, the detection of pivot point and the 3-4 levels of resistance/support is necessary for gaining profits regularly. However, the knowledge just of this method is not enough.

Note: Full text of this article and pictures of examples you can see on http://www.masterforex-v.su/002_003.htm

If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/

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posted by currency-forex-online-trading14727 @ 2:29 PM, ,

To Be or Not to Be a Psychological Currency Trader?

Currency trading, just like other trading fields, involves the risk of loss. This risk increases because of the traders psychological weaknesses. Human features make the difference between the successful and always loosing investor. Heres how to avoid making psychological mistakes while Currency trading.

There have been written many books about the psychological aspect of the trading business and Currency trading is no exception, even if the risk is diminished here. History, other peoples experience and impressive statistics have proven that more people loose, while trading, than win. Economic techniques, forecasting methods and communication technology have advanced over time, yet we still see there are no changes in the statistics: more losers than winners. This is due to the fact that human nature is the same and it is the one that we should pay more attention to.

The probability of becoming one of the many persons who act according to their feelings and loose the invested money soon after is very high if you do not pay attention to written facts:

- Human emotions have to be controlled!

- Dont act upon fear or hope! Fear of loss leads to it and so does hoping without basing your feelings on real facts. (You could be an expert in Currency trading and it wouldn't matter if you dont use this rule.)

- Exploit other peoples human emotions by learning from them. (people who are constant in their mistakes can not gain success and earn money)

- Be disciplined, make plans, follow strategies, apply mathematical and money management principles!

- Run only profitable trades and try to cut losses as fast as possible!

- Dont use rumors and advice unless you are certain of their authenticity and quality!

To be successful you have to think independently of the majority and stick out from the crowd. Just like in any trading field, these principles have to be followed in Currency trading also. Gaining money should be easy on the Forex Market, but not that easy because some have to win and some have to loose. Currency trading is much safer than other trading methods, but if you want to have an edge over other competitors than try to be wise and research first, study other peoples behavior and choose from them only the best. "When everybody thinks alike, everybody is likely to be wrong". (Gann)

Dont forget to use Currency trading tips and information because being a great psychologist isnt enough. You also have to know how and when to trade currencies, the latest news, the best moments to sell or buy currencies, get familiar with the appropriate terminology, banking procedures and the dos and donts of this type of trading. Be prepared for anything! You have to learn that investment, and therefore Currency trading too, implies risk and you may or you may not win.

So the answer to the question in the title would be Yes, to know Currency trading and be a fine psychologist beats only knowing Currency trading!

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posted by currency-forex-online-trading14727 @ 1:21 PM, ,

Forex Currency Trading System - How To Pull The Trigger To Trade At The Right Time

If you are day trading the currencies in the forex market, then you will be familar with the need to decide quickly when to pull the trigger to enter or exit a trade.

In fact, if you are day trading, the slightest hesitation on your part when the situation demands quick action, would be detrimental to you and in fact can hurt your trading account.

What then can be done?

For a forex currency trading system, separate the decision making and the trading execution into two distinct components of the trade. Then during the trading period, all you need to do is to execute the trading action the moment all the technical requirements of the trade setup are fulfilled.

In this way, you have pre-decided on your trade setup. The decision has already been made that a valid trade setup would occur when all the requirements of the technical setup are fulfilled during trading.

By doing so, you remove a whole lot of pressure because it is relatively easier for you to have a checklist of the requirements to be fulfilled for a trade setup and when all the requirements are ticked off as being met, you can proceed to quickly execute the trade without question.

This is where it is important for you to be familar with the trade setups and the forex currency trading system being employed. To benefit from this technique, the forex trader can run some tests on his strategy by using a trade simulator and also a forex strategy builder. Test to ensure that the trading setup and the forex currency trading system is feasible and profitable before adopting it for trading.

A good forex currency trading system must not be too complicated with a whole lot of indicators cluttering your chart. In contrast, a simple trading system such as a price-time action system which has been back tested and proven to be robust and which can allow you to identify B1Dthe trade signals is preferred over a complicated trading system which can do the same thing.

Once you are able to pull the trigger the moment you are sure the technical requirements of the trading setup have been fulfilled, you will notice a new found sense of confidence in your trade. You will no longer try to force a trade where a forex currency trading setup is not present, and you will no longer trade on hope where clearly there is no trade setup.

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posted by currency-forex-online-trading14727 @ 1:39 AM, ,

Global Forex Traders Come In All Shapes And Sizes

Despite the fact that there is no centralized market for foreign exchange trading and that Forex trading involves a variety of market makers rather than just a few specialists, there in nonetheless a structure and a hierarchy to the market.

At the top of the market is the interbank market which sees the highest volume of trading and principally trades in the currencies of the G8 nations, which together represent some 65 percent of the world economy. Here the major banks trade with each other on lines of credit which are established between individual banks and the rates at which trading takes place are clearly visible to all of the participants. Trading is conducted through interbank brokers, electronic brokerage systems or Reuters.

Below this 'top level' market1C25 other participants, such as smaller banks and corporations, must trade through commercial banks. Unlike the interbank market however here there are rarely established lines of credit and this means that traders below the interbank market often trade at less competitive rates and are tied to using just one bank for their foreign exchange dealings.

A few years ago the Forex market was very much dominated by the big banks and was very much an 'old boys club' which it was very difficult to get into. Today however technology has changed the market dramatically and even small investors can now access the market as global Forex traders and take advantage of the opportunities previously only available to the big boys.

Access to the market has also been helped considerably in recent years by the changing nature of the market itself. Foreign exchange dealing was formerly very much an activity associated with the international trade in goods and services and was essentially seen as servicing import and export markets. Today however investment plays a major role in the market with capital flowing between countries through participants such as insurance companies, institutional investors, mutual funds and others.

The size and diversity of today's market, combined with the ease of trading as a result of advances in technology, brings not only extremely high liquidity to the market, but also considerably price stability. Unlike equity markets, the Forex market always has an abundance of both buyers and sellers available and this also creates a very orderly market.

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posted by currency-forex-online-trading14727 @ 12:47 AM, ,

Forex Software - Choosing the Best

When it comes to forex trading the forex software you choose is essential. There are so many forex trading companies all competing for your business that choosing the right forex software can be quite a difficult task. Most of the forex software products available offers live online forex trading platforms but what other components are vital when it comes to your forex software.

Key Elements For Your Forex Software

Before purchasing any forex software there are a few essential items that should be included. The most important is security and your online forex trading software should include a 128 bit SSL encryption which will prevent hackers from accessing any of your personal details and information such as your account balance, transaction history, etc.

Providing the best security for your forex trading will include a company that provides 24 hour technical server support for your forex software, 24 hour maintenance should anything go wrong, daily backups of all information, and a security system that has been designed to prevent any unauthorized access. Along with these security protocols there are also some forex trading companies that use smart cards and fingerprint scanners to ensure that only their employees can have access to their servers.

Another important factor when it comes to choosing your forex software is to check what the companys downtime is like. When it comes to trading forex and particularly your online forex trading you need to ensure that the forex software you choose is reliable and available 24 hours a day. The forex software you choose for your forex trading should also have technical support available at all times should your session be cut short.

Ensuring that all the above features are listed in the forex software you choose will help to ensure your forex trading success.

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posted by currency-forex-online-trading14727 @ 12:14 AM, ,

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