My Forex Trading Success Blog

Forex Success Starts In Your Mind

soamchaiq — Thu, 19 Mar 2009 14:56:15 +0000

A good Forex Trader has a disciplined character. He is more focused on the results that he want in the long run rather than a period in time. It is all about the things we have done and we have don’t. Learning should be consistent and learning from losses should be one of them. Rich Traders don’t get depressed at losses, they analyze what happened and is ready again to trade another day.

If Forex Trading is going to be your career, you should believe in the power of compound profits, just like in Stocks. Little by little you earn, and at the end of the year, you realize that your profits are a lot bigger than when you began your year.

Fear is the number one enemy of any Forex Trader. And the only way to remove this fear is understanding and constant learning. Constant Education from experience is what elite Forex Traders are made.

Trade Forex Successfully With a Minimum Knowledge

soamchaiq — Thu, 19 Mar 2009 14:55:11 +0000

My strategy depends on simplicity as it just includes 2 indicators for the technical part of it. Let’s see how would it work:
a)    Money Management:
1.    First of all count your capital well and I mean by this the money you can afford to lose “this is rule no. 1 in investment as this will remove stress from you”.
2.    Decide your monthly return average expectation from this money : This will make you able to count the average weekly and daily return “Weekly and Daily Target”.
3.    Decide what will you do with your profits in case you achieve your targets, how much will you get out from it and how much will you re-invest : This will be enough to have a steady and stable trading strategy.
4.    Most important point, limit your trade size, this shouldn’t exceed 5% of your balance if you want to survive in this market.
These are all what we need from money management right now, it’s a huge subject to be involved in.
b)    Risk Management :
1.    Limit your loss : The whole money you can afford to loss from your investment budget.
2.    According to your daily and weekly target, you could limit your daily and weekly loss, so if it touch that limit you stop trading till the other period of time, risking of $1 per $3 expected profit is good while 1: 2 still accepted.
3.    Keep in mind that “If you lost a day, it means you lost that day’s profit of the total month’s profit” don’t try and squeeze yourself the day after to get a double profit, otherwise you will be spoiling your trading system.
c)    Technical Trading System :
This trading system is a common old system traders were used to use it randomly, we will be using it in a more modern way, it contains of :
1.    2 Exponential Moving Average (EMA) of values 7 – 15 .
2.    Relative Strength Index (RSI) as a confirmation tool.
Well, now as we have everything setup, it isn’t so hard to understand that system, the usual way was used by traders is : “once EMA-7 cross EMA-15 you go with it, so if it cross to up, you buy, otherwise you are selling”, this is completely true but you need to confirm this signal by another tool like “RSI”, once you get Moving Averages signal you check your RSI line direction and value, if it’s positive you can start trading, if not you should ignore till you get a positive signal that everything is fine, your stop loss would be if the EMA-15 returns to cross EMA-7 and your stop loss would be 20% of your daily affordable loss that you decided before, so you have a chance to trade for 5 times per day if you lost all trades.
Keep in mind that you shouldn’t put all trade size limit “which you decide before while setting up your money management section” in just one trade, you may need to support your trade later or add more fund to it.

Forex Automated Software – Your Trading Partner to Forex Success

soamchaiq — Sun, 15 Mar 2009 18:33:45 +0000

Simply put, the forex automated software lets you trade in automated mode. This means that you won’t even need to sit in front of your computer to monitor the market and make your move. It would be impossible to watch over the movement of the currency pairs 24 hours a day, which is the trading duration in the forex market. By using the forex automated software’s functions of stop loss and take profit, you minimize your losses and maximize your profits. You can be sure that you are only getting the money even when you are doing other important day activities.

Another important function that comes with the forex automated software is the signal generation. The forex automated software analyzes the market’s movement and trends from the past and current situation and can come up with accurate predictions. The wonderful thing with forex automated software is that these predictions can help you see what will happen to the currency pairs and you will end up pocketing profits.

5 Intermediate Keys for Forex Success

soamchaiq — Sun, 15 Mar 2009 18:31:36 +0000

#1 – Great exits are more important than good entries

Just remember, most traders are always focused on getting their entries right and I’m not denying that that is important but it’s the exits that matter a lot more than the entries. Don’t argue with me on that please. I’ve traded long enough to know my entries and exits. Where you exit will determine the fate of your trades. Period.

#2 – Moving my stop to BE+1 as soon as feasible

This is a bit of an idiosyncrasy for me. I never like seeing my positive trades turn into negative ones. When I say that, I mean trades that are really in the black already and not just up by 10 or 20 pips. Forex is much too volatile for that. Typically whenever trades are up by 30 pips or more, I’ll move my stop loss to 1 pip more than break even. Essentially that means I’ve locked in at least 1 pip of profit. Let’s move on …

#3 – Not reading too much into pivots on Mondays

If you rely on pivots for trading, be sure not to read too much into them on Mondays. They are the least reliable on the 1st trading day of the week. Needless to say, these pivots are based on information from last Friday’s trading but because there’s a gap over the weekends, things tend to be screwed. I’d say to use pivots only from Tuesday and onwards.

#4 – Early European trends start around 0645GMT

Need I say more? Eastern Europeans will start the ball rolling around this time. Take note!

#5 – Reversals of the above (if any) then tend to happen around 0730GMT~0815GMT

Listen … you’ve just gotten some real gold ok? If there are any reversals from the european trend that starts around 0645GMT, it will tend to happen in a 45 minute period that starts from 0730GMT-0815GMT. Is that cool or what?

Achieving Maximum Success In Forex Trading

soamchaiq — Sat, 14 Mar 2009 08:33:05 +0000

In order to do so, he needs to learn about the fundamentals from an experienced forex trader or reliable forex source. The system is an equation and if mastered can bring in lots of money to the trader. Managing money refers to knowing what a trader may invest and what he may not. The biggest financial risk is investing more than your account can cover. A trader should not be conducting deals with amounts that can put his account into a negative balance. Professional traders advise to begin with small investments and stop loss order strategies to ensure that the trader does not get wiped out after his or her first trade.

The forex learning classes all talk about this concept and explain how to manage your money properly.

The second element studied is market levels and their analysis. Since the market is very unpredictable at times and values can change suddenly and instantly, the professionals teach traders about price behavior and discipline in trading. They discuss the fact that buying a currency at a low value and then selling it when its value increases is not the only concept essential in trading. There is a lot more involved. The third element discussed in forex trading classes or courses is detachment.

Internet Forex Trading – 3 Tips For Success

soamchaiq — Sat, 14 Mar 2009 08:32:08 +0000

Tip 1 – Do your research!

There is nothing worse than going into Internet forex trading with your eyes shut. Foreign currency trading can be extremely risky if you have no background knowledge of the various currencies, their activities and, most of all, your ability to trade them online. Internet forex trading requires a lot of work before you are ready to begin, so make sure that you understand what it is and what it can do for you!

Tip 2 – Study historical patterns

It is not wise to participate in Internet forex trading until you are able to study historical currency patterns. There are a number of website and book based sources that would be able to give you this information. As Internet forex trading is dependent on the supply and demand of certain currencies, the trends those currencies display are extremely important. If a currency historically remains steady then it is unlikely to make a profit for you but if it is unpredictable then you may lose, and so on.

Tip 3 – Keep an eye on the news

The American dollar fluctuations of 2006 and 2007 provides a prime example as to why you should watch the news whilst taking art in Internet forex trading. If you heavily invested in the dollar at the moment, then you may have to hold onto the currency for some time to profit. Economical and political factors do determine the value of various currencies at any given time. The business and financial news may provide the information you need to make a success of Internet forex trading.

Apply “the Secret” To Forex Trading Success

soamchaiq — Sat, 14 Mar 2009 08:31:04 +0000

Briefly, technical analysis involves the interpretation of price performance and chart patterns—all historical data. Some technical indicators used in this type of analysis include:

• Moving averages including Simple & Exponential
• Breakout Points
• Lines of Support & Resistance

Technical traders do not believe that the past necessarily predicts the future—but that long and short term trends can be identified and exploited to help guide current decisions on entry and exit points on positions. Technical traders try to identify current trends in the Forex market to determine entry and exit points. If they are correct, they can ride a trend (in either direction) for a profit until an exit point is reached (when the trend is ending).

The most successful traders on the Forex tend to look for long-term trends and favor technical analysis. Fundamental traders have to enter and exit positions very quickly in order to capitalize in price fluctuations caused by news events (interest rate changes, release of economic data, etc.) and are therefore more vulnerable due to excessive trading. If there truly was “a secret” to trading success on the Forex, the top investors all tend to agree on the following:

1. Choose currency pairs involving U.S. dollar (has volume to produce the price fluctuations necessary for big profits and the liquidity to enter/exit positions at will)
2. Find currency pair through backtesting that has most profit potential (pip movement) and least volatility through use of technical analysis
3. After determining trends, set stops and exit points for both protection and maximum profitability
4. Review charts once per day (overtrading and day trading can hurt your portfolio)
5. Remain patient and exit positions once technical decision point has been reached

A Fun Look At Forex Trading Success

soamchaiq — Sat, 14 Mar 2009 08:30:18 +0000

In the case that some well-meaning person has already helped you create a trading system, by all means, do not ever follow it!

Take Risks – Caution Is For Wimps

Risk all the money you have on any deal, live carelessly because life is short and you want to have as much fun as possible. Remember; NEVER have a sensible trading system and ALWAYS open and close deals at the drop of a hat without analyzing the risk or profitability.

Never trade in a disciplined, planned, and logical manner. Remember your goal is to avoid riches. You might gain exponential profits from this so-called logical system and, even worse, you could develop the knowledge and experience necessary to master the Forex market.

Training? We Don’t Need No Stinking Training!

Do not ever take a Forex training program and never, ever look at historical charts of previous deals and successes.

Stay uninformed. Ignorance is bliss and will lead to a happy, contented life. Most wealthy traders are very well educated, so steer clear of their methods and advice. Do not learn about the economic status or political stability of a country whose currency you are considering investing in. Education is a dangerous commodity for someone devoted to poverty. To ensure failure at Forex trading, be undisciplined, uneducated, and unaware.

Mismanaging Your Money Matters

As far as money management techniques go, they have an underlying insipid purpose. Please don’t be fooled into thinking a money management program is a benefit to you. It will cause you to avoid irresponsible, bankrupting risks and foolish, impetuous decisions. Money management actually helps boost your profits incredibly. Those techniques can cause you to make ten or twenty lucrative deals in a short span of time and greatly increase your Forex trading account. Stay far away from any tried and true money management program. This is in your best interests of failure, of course.

Expect Success With Your FOREX Software

soamchaiq — Sat, 14 Mar 2009 08:29:21 +0000

FOREX is a twenty-four hour market that allows you to trade any time of the day or week and anywhere in the world. This obviously contributes to the booming effect FOREX has had on the market. To attract traders and gain their trust, FOREX websites must be reputable and abide by Foreign Exchange regulations. FOREX utilizes foreign exchange trading software that assures compliance. As such, dreadful information is uncovered to avoid any discrepancies.

Using software for foreign currency trading should not be overlooked. This software plays an important role in building up the trading endeavor and establishes trust in a website. A foreign exchange website must have everything necessary to obtain the information that traders are searching. The information must be accurate and factual.

With foreign exchange software, information is always accessible. There is no need for a trader to be burdened down when vital information is needed. No matter what information needs to be discovered, the information will be right at the searcher’s fingertips. When visitors find an exchange website to have a solid reputation, is informative with services paramount, they will stay with you.

Traffic is highly important to your venture. The more visitors you have, the better the possibility of trading and therefore you will have a greater gain. There are numerous search engines available on them internet. Make sure you know how to get visitors to the site by using significant key words and tags.

Forex Trading Success – The 3 Things You Never Knew

soamchaiq — Sat, 14 Mar 2009 08:28:22 +0000

1. Method. This is your strategy that dictates when/what you buy and sell. You need a set of rules to keep your decision process consistent at all times. This is important and a lot of time must be spent ensuring that you have a valid system to work with, but it is the least influential component in determining your overall success. Yet, it is practically the only thing you see spread over the Internet.

2. Money. This refers to your risk management plan. It dictates how much you risk on any given trade or set of trades. Important to realize is that you can have a brilliant method, but if you mismanage your risk, you are doomed just the same. How much you risk is far more important that when you decide to get in and out of positions.

3. Mind. Alas, the most important aspect that gets, at most, a quick look-over by new traders and popular media. In fact, many would say that it’s an inability to acquire and maintain a proper trader’s mind-set that accounts for as much as 90% of failure. Discipline is something that most traders lack but is a very important part of the proper mind-set.

You must have all 3 of these success factors working together if you expect yourself to succeed in the long run. You can’t have one without any of the others. But the one factor that brings it all together more than anything else is # 3, your mind-set.