Lessons From Past Performances
Fri, 20 Aug 2010 13:50:56 GMT

A GRASP OF REALITY “You can never achieve anything worthwhile in life by taking shortcuts and in the world of trading, it is absolutely no different.” – Sam Evans Hello: Today we’re going to comment on the real past performances of a group of top traders. There are lessons we can learn from this. These would help us maintain a realistic outlook; remain calm, disciplined and objective while trading. The performances table is displayed below. Please go through it and I bet some thoughts will

 

How to Trade
Mon, 02 Aug 2010 09:29:05 GMT

High frequency finance, with the analysis of tick-by-tick market data, offers new insights in how to trade. Before you continue reading, I want to caution you that over 80% of the traders in any one-year lose money. Of the 20% who ended with a profit, many were just lucky and are likely to lose money in the following year. Does this mean that it is impossible to make money in financial markets? No, definitely not – it is feasible to earn money on a consistent basis, but it is difficult. The

 

The Three Laws of Successful Trading
Mon, 19 Jul 2010 14:25:52 GMT

This article is taken from the YourTradingEdge magazine (MAY/JUN 2010 issue) The author, Mario Singh has been trading forex for five years. He is the co-founder and CEO of FX1 Academy, the largest Forex Academy in Asia. He is a popular seminar speaker, writer and forex coach. As he is a regular guest on CNBC, his views are widely sought in the industry. Mario Singh on how to become consistently profitable in the forex market. ‘Until you can manage your mind, do not expect to manage money.’

 

An old debate
Fri, 16 Jul 2010 14:57:24 GMT

“News creates opinions whereas price is fact.” --- Sam Evans Hello: The supreme goal of any trading activity on the markets is to achieve profit. Therefore it’s natural to use any technique or information that might help us achieve that goal. You know an old debate: Whether technical analysis or fundamental analysis is a better method. None of the two is perfect. There are benefits and drawbacks for each. For example, a good knowledge of fundamental analysis often makes it possible to better

 

Creating a trading strategy
Tue, 13 Jul 2010 14:06:49 GMT

One of the most common mistakes new forex traders do, is that they have no trading strategy. Because of the many appealing characteristics (24 hours, trade both short and long, leverage etc) most of the new traders entering the market are eager to prove themselves in an often egoistic approach. Egoistic in that they believe that they can become very profitable and make a fortune in the short term, but soon enough they end up with a bad psychology which at the end accelerates their loosing

 

Money Management and Building Your System
Mon, 12 Jul 2010 13:53:44 GMT

The final, and by far one of the most important factors to your success is money management (sometimes also referred to as position-sizing). To illustrate just how important it is to your final results, there has actually been a mathematical study which confirms that even completely random entries, based upon a coin toss and yielding only a 35% “win” ratio, can produce steady profits when combined with proper money management formulas. As a matter of fact, to break it down by level of

 

The interview series
Tue, 13 Jul 2010 14:05:50 GMT

Who are the women working in the Forex Market, a typical "man’s world"? How did they get there? How being a woman can be an advantage or disadvantage? How do they manage to combine their private life with their professional career?  Why is trading so exciting? We were curious to better know those female bank analysts, traders and strategists. Through our series of interviews, you will discover a myriad of personalities, opinions and careers for these − undoubtedly − atypical women. Enjoy

 

The Greatest Traders
Mon, 12 Jul 2010 13:35:24 GMT

What separates the 10% that make money from the 90% that don’t? 10,000 hours. In his recent book ‘Outliers’ Malcolm Gladwell describes the 10,000-Hour Rule, claiming that the key to success in any cognitively complex field is, to a large extent, a matter of practicing a specific task for a total of around 10,000 hours. 10,000 hours equates to around 4hrs a day for 10 years. For some reason most people that ‘try their hand’ at trading view it as a get rich quick scheme. That in a very short

 

'I win, I lose, it's my job... And I love it!' – Valeria Bednarik
Mon, 12 Jul 2010 09:26:46 GMT

V. Bednarik PROFILE: • Current Job : Professional Trader and Expert Advisor for Fxstreet.com • Career: 7 years in Forex, 20 years in Accountancy. • Age : 41 After 20 years in Accountancy, Valeria Bendarik left her job to dedicate herself to trading.  "I had 'invested' in what finally was a Ponzi scheme that left 11,000 victims in South America. So I learned my lessons and decided I could only be serious about it." After a couple of years studying and teaching through two different

 

A Minus-Sum Game
Thu, 08 Jul 2010 13:57:49 GMT

So trading is a zero-sum game? ‘I think it’s a minus-sum game. The amount of money is very large. I had a number in my first book, Trading for a Living, and I thought it was the most scandalous number in the book. Nobody paid attention. 25% of profits and losses. 25% of change. They get lost in the machinery. That’s what makes trading so difficult. Trading is expensive.” – Dr. Alexander Elder “If we want a consistently profitable trading strategy, we had better make sure that the person on the

 

Effective Trading Systems
Thu, 08 Jul 2010 13:56:28 GMT

‘The best way to become successful in trading is to learn from someone with more experience than you, and for that person to become your mentor. You train alongside them in a professional environment, preferably as part of a team of traders. Trading by yourself is extremely hard without a team of people to watch, question and bounce ideas off.” — Mike Baghdady (a 35-year veteran of the financial markets) Hello: Many markets wizards trade behind closed doors. They’ll never let you see how they

 

Effective Trading Systems
Thu, 08 Jul 2010 13:54:28 GMT

“Knowing when not to trade can be all the edge you need. In their quest for an edge, traders tend to focus solely on finding additional reasons why they should enter a trade. Knowing when to stay out of a trade is equally, if not more important. As an example, let us say that over 100 trades you have 50 winners and 50 losers. You are profiting 50% of the time on your 100 trades. Now if you could find a slight edge that, while not increasing your number of winning trades, does help you to cut

 

Protracted Training and Practice
Thu, 08 Jul 2010 13:53:05 GMT

How long does it take to become a successful trader? ‘Years, not weeks or months – and that’s true in any performance field. Neglect of that reality is perhaps the single most common source of trading failure.’’ – Dr. Brett N. Steenbarger Hello: We all have a strong desire to be financially free. This is a noble desire, and forex trading is capable of giving you the wealth you dream of. But this wealth won’t come easily. For you to belong to the small percentage of successful traders, you need

 

Is The FX Market Scary?
Thu, 08 Jul 2010 12:53:58 GMT

Hello: Someone reading my previous thoughts about FX markets could have been scared. I didn’t intentionally want to scare anybody; I was only telling you the reality. I like to treat others as I’d like them to treat me. I don’t want to tell me lies in other to get people interested in something or buy a product, neither would I like anyone to do that to me. There is no risk-free business or activity under heaven. When it comes to forex, people always have a wrong approach, no wonder over 90%

 

'Women have an intuition about the market, almost like a gut feeling' – Jody Samuels
Wed, 07 Jul 2010 10:06:32 GMT

J. Samuels PROFILE: • Current Job : Forex Instructor and Coach, Founder of FX Trader’s EDGE • Career: Over 10 years in the FX Market, as bank trader at JP Morgan and retail traders coacher • Age : 52 "Thinking back it should have been more daunting than it actually was”, says Jody Samuels, the “Queen of the quid”, about her first years back in the 80's at JP Morgan in NYC. Jody Samuels, traders coach and founder of FxTradersEdge.com, discovered Forex in 1979 in the Arbitrage (Foreign exchange)

 

Trading Psychology - Greed & Fear
Mon, 05 Jul 2010 12:40:44 GMT

Besides all of the fundamental and technical factors a trader must keep track of in order to be successful, there is another area which is often overlooked – themselves. No matter how good your strategy is, the other factor which will always influence your outcomes are your own emotions. After all, it is emotions that move the markets. Emotions are what most of our indicators are designed to give us a measurement of. And in order to be able to profit on market movements created by the emotions

 

'Markets don't care I'm a woman: men see the same price that I do' – Raghee Horner
Fri, 02 Jul 2010 13:10:34 GMT

R. Horner PROFILE: • Current Job : Trader and Author at RagheeHorner.com; Chief Currency Analyst at InterbankFX • Career: 15 years in financial markets: Futures since 1996 and Forex since 2000 • Age : 38 “Quality of life comes from the understanding of when I should and should not be at my desk.” Raghee Horner was 17 years old when she started trading. She has managed to balance private life and work through a well-studied schedule discipline. Involved in the financial markets since the early

 

Indicators, part II: The Oscillators
Mon, 28 Jun 2010 12:46:59 GMT

Oscillating indicators get their name due to their tendency to oscillate within a range of values. They can signal when price is at extreme levels and due for a reversal. Stochastics Stochastics consist of a fast line and a slow line, and oscillate between 0 and 100. Levels above 80 are said to be over-bought and levels below 20 are referred to as over-sold. When the red line crosses above the blue we know that the bulls are overpowering the bears. When the red line crosses below the blue, on

 

'My gender has helped me and made me more recognizable' – Kathy Lien
Fri, 25 Jun 2010 10:45:18 GMT

Kathy Lien PROFILE: • Current Job :  Director of Currency Research at GFT • Career: More than 10 years in the FX Market • Age : 29 “I truly believe that the more you are a conscious of the existence of a glass ceiling, the more that you will credit your lack of progress on that and the more it will become reality”, says Kathy Lien when asked about the limitations her female gender could create. The young woman, aged of only 29 years, is Managing Partner of BKForexAdvisors.com and Director

 

'More than any other market FX provides a window on the world' – Jane Foley
Mon, 28 Jun 2010 14:33:14 GMT

Jane Foley PROFILE: • Current Job :  Research Director at Forex.com. • Career: Over 20 years in the Bonds and Forex Market, 10 years for Barclay's. • Age : 43 “The beauty of this business for me is that there is almost always something fresh to write about.” Jane Foley is an economist with over 20 years of experience and whose writing on fundamental analysis has garnered a lot of attention. She was appointed as Research Director at Gain Capital in May 2009. Before that, Foley spent eight

 

Striking Gold in Your Trading
Tue, 22 Jun 2010 10:46:24 GMT

A Sufi Story There was once two farmers in the desert. They both desperately needed to acquire water so they could survive the desert and support their families. After searching the area together, they conclude there is water somewhere in the area but they are not sure where. So they set out to find a water well and start digging in a similar location between their two properties. After several days with both of them digging, the second farmer strikes water. As soon as this happens, the first

 

Indicators, part I: The Trend Followers
Fri, 18 Jun 2010 14:14:18 GMT

An indicator (sometimes also called a study) is a tool which helps you analyze price movements. There are two groups which most indicators fall into –trendfollowing indicators are the most useful when price is trending in one direction or the other, meanwhile oscillating indicators can be helpful when price is consolidating into a range. It is important to know which group the indicator you are using falls into, and to choose the correct indicator for each situation. Some common

 

'The discipline of Technical Analysis is ideally suited for the FX market' - Karen Jones
Fri, 18 Jun 2010 13:06:57 GMT

   K. Jones PROFILE: • Current Job :  Head of FICC Technical Analysis at Commerzbank • Career: Over 20 years in the Forex business. Worked for a Commodities broker and two major investment banks. • Age : 44 Karen Jones is a purely technical analyst with more than 20 years of experience in the financial business and has always monitored and analyzed currencies. “Of all the markets I analyze, it is simply the most harder to do [… and] also the most volatile” says Karen. She joined

 

Trends & Trendlines
Fri, 11 Jun 2010 09:52:54 GMT

A trend can do one of 3 things: it can go up, go down, or it can go sideways. An up trend is defined as having higher highs, and higher lows. Similarly, a down trend is defined as having lower highs and lower lows. When a trend is moving sideways, price is said to be in a range. Trendlines Lines can be drawn connecting the tops of support levels, as well as the lows or resistance levels to form trendlines. Typically, when drawing trendlines, people use the candle bodies as opposed to the

 

'Understanding ourselves helps us understand our trading decisions' – Triffany Hammond
Mon, 14 Jun 2010 14:44:44 GMT

T. Hammond PROFILE: • Current Job : Professional Trader and Coach, Founder of TrifFX.com • Career: Full-time trader in the FX retail market since 2002. Previous jobs as PC Technician. • Age : 37 “Though it has been difficult at times (there’s no harder reality check than a depleting account), I’ve enjoyed the process of self discovery. I’ve learned a lot about myself through learning to trade currencies.” says Triffany Hammond , professional currencies trader and coach. Triffany quit her last

 

'Charts are there to make us money, you shouldn't need a doctorate to understand them' - Carol Harmer
Wed, 16 Jun 2010 07:59:18 GMT

  C. Harmer PROFILE: • Current Job : Founder of CharmerCharts.com • Career: 30 years in the FX Market spent at the London Futures Exchange, in banks and as a traders coach. • Age : 54 “Most the newer technical analysts today who base their analysis on algorithmic or mathematical models have never traded on a market,” says Carol Harmer , founder of Charmercharts. “I am sure they would not be able to trade in today's markets using the tools we had when T/A first became popular…” With a

 

Support, Resistance, and Moving Averages
Fri, 04 Jun 2010 14:55:45 GMT

As price moves up and down on our charts, it encounters “barriers” along the way. If this barrier acts like a floor, keeping price from dropping any lower, it is known in trading terminology as support. When it acts more as a ceiling and stands in the way of upward moves, it is called resistance. What is interesting to note is that if a certain price level acts as resistance on the way up (such as the doji candle which highlights a moment of market indecision on the way up at 1.4848 in the

 

Technical Analysis: An Introduction to Chart Reading
Fri, 28 May 2010 10:39:15 GMT

The markets represent the struggle between two opposing forces… the bulls, who want to push the price higher, and the bears, who wish to push it lower. As each side tries to overpower the other, they leave footprints behind. Technical analysis is the art and science of reading a price chart in order to determine who is stronger, and who is winning the struggle at any given moment. Chart Types There are three types of charts commonly used in technical analysis: The line chart is the simplest

 

5 Ways To Identify Fake Forex Broker Reviews
Thu, 27 May 2010 15:16:13 GMT

Many traders or future traders shop for a broker to work with and find endless reviews on the web, and not all are genuine. Here are 5 ways ways to separate the good from the bad. There are lots of sites that specialize in forex broker reviews and lots of talk about brokers in various forums. While a lot of information comes from real experience of people that have used a brokers’ services, some may have a hidden agenda of promoting the broker. Promoting a broker is OK, as long as it’s done in

 

Habit #10: Add Balance to your Life and Celebrate Progress
Wed, 26 May 2010 06:43:04 GMT

The first rule of focus is this: "Wherever you are, make sure you're there." Dan Sullivan, Strategic Coach Founder Over the past 20 years working with many traders, I have learned that these 10 habits will help you take your trading to the next level. To illustrate this point, I’m going to introduce you to two traders, frustrated Fred and successful Steve. Fred has fallen into the technical traders trap. Fred is “out of shape” with no business plan or trading goals. He trades emotionally and

 

Placing Orders
Tue, 25 May 2010 08:19:28 GMT

The price buyers are willing to pay is called the bid. The price sellers are asking is called the ask. And the distance between the two is called the spread. If you believe the price is going to go up, you would buy a long position, and then look to close it by selling when the higher price is reached. If instead you think the price will go down, you would sell and enter into a short position. The idea then is to cover your position by buying back at a lower price. Order Types When you want to

 

Habit #9: Learn the Secrets of Successful Traders
Tue, 25 May 2010 07:01:17 GMT

Obstacles are those frightful things you see when you take your eyes off your goal. Henry Ford (1863 - 1947) Over the past 20 years working with many traders, I have learned that these 10 habits will help you take your trading to the next level. To illustrate this point, I’m going to introduce you to two traders, frustrated Fred and successful Steve. Fred has fallen into the technical traders trap. Fred is “out of shape” with no business plan or trading goals. He trades emotionally and would

 

Pricing in the FX Marketplace
Fri, 21 May 2010 10:36:57 GMT

Price displacement in the fx market is an artifact of market mechanics that have nothing to do with determining fundamental value. The inefficiency of over-shooting is disruptive, increases risk, and drives uncertainty. Olsen’s investment methodology counters this uncertainty by anticipating imbalances between buyers and sellers and providing liquidity that can restore prices to more reasonable levels. Finding a foothold in the shifting sand The potential profitability of currency trading is a

 

How to trade: managing exposure
Fri, 21 May 2010 10:29:41 GMT

The biggest danger for any trader is excessive exposure. An unexpected price spike can then trigger a margin call that wipes out all the profits generated over months of hard effort. This is the most frequent reason why traders lose money. How can we prevent this from happening? What do we have to know? Diversification As there is no such thing as perfect foresight and an unexpected price spike can occur at any time, a trader should always diversify his risk and trade not just one, but two or

 

Habit #8: Measure Your Performance
Fri, 21 May 2010 07:12:22 GMT

"Practise as if you are the worst, perform as if you are the best." Over the past 20 years working with many traders, I have learned that these 10 habits will help you take your trading to the next level. To illustrate this point, I’m going to introduce you to two traders, frustrated Fred and successful Steve. Fred has fallen into the technical traders trap. Fred is “out of shape” with no business plan or trading goals. He trades emotionally and would rather search the net for the next latest

 

Habit #7: Plan the Trade and TRADE THE PLAN
Thu, 20 May 2010 08:13:00 GMT

One of the most common causes of failure is the habit of quitting when one is facing defeat. Next time, think of the adage: - Combine time (at least 2 years) with perseverance and a strong desire to win! Over the past 20 years working with many traders, I have learned that these 10 habits will help you take your trading to the next level. To illustrate this point, I’m going to introduce you to two traders, frustrated Fred and successful Steve. Fred has fallen into the technical traders trap.

 

Habit #6: Follow a System
Wed, 19 May 2010 07:24:06 GMT

"My specialty is being right when other people are wrong." George Bernard Shaw Playwright and Essayist (1856-1950) Over the past 20 years working with many traders, I have learned that these 10 habits will help you take your trading to the next level. To illustrate this point, I’m going to introduce you to two traders, frustrated Fred and successful Steve. Fred has fallen into the technical traders trap. Fred is “out of shape” with no business plan or trading goals. He trades emotionally and

 

Habit #5: Understand and Exploit your Unique Trading Personality
Tue, 18 May 2010 06:43:17 GMT

"Today you are You, that is truer than true. There is no one alive who is Youer than You" Dr. Seuss Over the past 20 years working with many traders, I have learned that these 10 habits will help you take your trading to the next level. To illustrate this point, I’m going to introduce you to two traders, frustrated Farah and successful Sally. Farah has fallen into the technical traders trap. Farah is “out of shape” with no business plan or trading goals. She trades emotionally and would rather

 

Pips, Lots, Leverage & Margins
Mon, 17 May 2010 10:03:51 GMT

The forex world is filled with its own unique terms and concepts. Here are some of the most common you need to know: Pips A pip is similar to a tick or point in stocks, futures, or other markets. It stands for percentage interest point and is the smallest individual unit of trading in forex. The pip is always the right-most digit of any forex price quote. Exactly how much an individual pip is worth depends upon the currency being traded. The Euro is measured out to four decimal places, thus

 

Habit #4: Commit to your EDUCATION and a TRADER'S COACH
Mon, 17 May 2010 07:05:47 GMT

"Success starts from within a person. Nobody can help you achieve success unless you have that inner strength and belief to overcome all roadblocks to riches. And when you are ready to achieve greatness, the teacher will appear." Author Unknown Over the past 20 years working with many traders, I have learned that these 10 habits will help you take your trading to the next level. To illustrate this point, I’m going to introduce you to two traders, frustrated Farah and successful Sally. Farah

 

Median Lines
Thu, 05 Aug 2010 08:28:31 GMT

This article is taken from the YourTradingEdge magazine (JUL/AUG 2010 issue) The authors is Timothy Morge , who has been a professional trader, author, educator and mentor for more than 39 years. Timothy Morge on how to draw and use median lines, a leading indicator. Median lines, or pitchforks, are one of the few true leading indicators in technical analysis today. They are an offshoot of action and reaction lines, which were developed by Dr Alan Andrews in the mid-1920s. It is said that Dr

 

The Kondratieff Wave
Wed, 04 Aug 2010 15:00:34 GMT

The Kondratieff Wave is an economic theory that states that Western capitalist economies are susceptible to extreme performance volatility as they expand and contract over the years. Unlike what is referred to as the business cycle, the Kondratieff Wave holds that these fluctuations are in fact part of a much longer cycle periods known as “super cycles” that last between 50-60 years or longer depending upon factors such as technology, life expectancy, etc. and thus must be examined over their

 

The Gap theory applied on unsustainable movements in EUR/USD
Tue, 13 Jul 2010 10:54:03 GMT

In late 1980s John J. Murphy published his book titled “Technical Analysis of the Futures Markets”, a comprehensive and detailed guide to the concepts of Technical Analysis and their applications to the futures market. Till this day the author’s book is characterized as the “Bible” of Technical Analysis. Almost thirty years later the same concepts are applied to almost any pattern that can be plotted on graph in some way or form, from the commonly used currency fluctuations all the way to

 

Manual Trading Versus Automated Trading
Thu, 08 Jul 2010 13:26:30 GMT

‘The goal of any automated system, other than obviously being profitable, is to minimize drawdowns during times when the market conditions are not favorable to system trading.” — Dr John F. Clayburg. Hello: Auto trading has become a popular way of making money on the markets. It offers great opportunities when it comes to forex trading. The future of auto trade looks spectacular. The idea of making money consistently without lifting your fingers is intriguing. Trillions of dollars are changing

 

Which Works Best - GPS or Road Map? Trading with Elliott Wave Analysis
Wed, 24 Mar 2010 16:39:29 GMT

Some of the best stories about global positioning systems (GPS's) are the weird detours they sometimes recommend to drivers. Just like some of the weird detours that financial markets can make you take when you think they would be better off going in a straight line either up or down, depending on how you've positioned your trades. Not long ago, while taking a trip with my family through Great Smoky Mountains National Park on the way to Gatlinburg, Tenn., I decided to use my GPS to drive

 

Currency Corner: Trading in the pits
Thu, 14 Jan 2010 16:18:27 GMT

This article is taken from the YourTradingEdge magazine (SEP/OCT 2009 issue) The author, Wayne McDonell is the Chief Currency Coach of FX Bootcamp. He is a member of the US National Futures Association and registered as a Commodities Trading Advisor. His latest book ‘ The FX Bootcamp Guide to Strategic and Tactical Forex Trading ’ is available from Wiley Publishing. Wayne McDonell provides analysis of the currency market: how professionals use weekly pivot points. "A few weeks ago, I was lucky

 

Introduction and Oscillator Divergence/Momentum Confirmation
Wed, 23 Dec 2009 15:18:44 GMT

Technical analysis can be defined as the study of past price behavior in an effort to determine patterns and trends that are believed to be predictable of the future. At the core of this school of thought is the assumption that human behavior is repetitive in nature. We all recognize that, although human behavior patterns may have recurrent tendencies, they do not normally express themselves in the same exact, mechanical manner each time. Even with this qualification in mind, technical

 

Pivot System Support and Resistance
Wed, 23 Dec 2009 15:17:35 GMT

Pivot System Support and Resistance Judgements made about likely market behavior which are based on momentum analysis can be even more productive if we have predetermined levels available which can act as "price templates" in interpreting the day's trading activity. The "Pivot System" is one such approach. Floor traders and other professionals who do the actual buying and selling of futures contracts in the trading pits of the exchanges, generally employ very similar systems for valuing the

 

Dynamic Support & Resistance Levels for Intraday Trading
Wed, 23 Dec 2009 15:15:45 GMT

Dynamic Support & Resistance Levels for Intraday Trading As helpful as Pivot System levels often are, a significant drawback to their use lies in the fact that they are calculated from the prior day's price action, and may not accurately reflect recent changes in market psychology. Effective intraday trading also requires a means of identifying support and resistance which can more easily adapt and more accurately represent price activity under rapidly changing market conditions. The 20

 

Use of Prior Day Highs and Lows
Mon, 28 Dec 2009 08:30:33 GMT

Use of Prior Day Highs and Lows Each of the intraday trading techniques discussed so far have relied on reference levels arrived at by means of mathematical calculations. The technique discussed in this section, in contrast, will deal with a set of support and resistance levels which are much more intuitively obvious. In short, we will discuss a technique for using the prior day's price extremes as a means of determining market-based valuation levels. If market activity is thought of as an

 

Combining Japanese Candlesticks with Western Technical Analysis for a High-Probability Forex Trading Combination...
Tue, 22 Dec 2009 16:59:24 GMT

This article is taken from the Forex Journal (December 2009 issue). The author, James Chen , CTA, CMT, is Chief Technical Strategist at FX Solutions, a leading Forex broker. He is a registered Commodity Trading Advisor and a Chartered Market Technician, as well as the author of the book, Essentials of Foreign Exchange Trading (John Wiley & Sons, 2009). His newest book, Essentials of Technical Analysis for Financial Markets (John Wiley & Sons) will be released in early 2010. James Chen

 

Managing your trades with ATR
Tue, 22 Dec 2009 11:49:16 GMT

This article is taken from the Trader's Journal magazine (December 2009 issue) The author, Don Dawson , has been trading the futures markets for 20 years. His perseverance through the ups and downs of trading, openness to experience of others, balanced tolerance for risk and patience to wait for his setups are a few of his strengths as a trader. He obtained his Series 3 license in 1990. Soon afterwards, he registered as a Commodity Trading Advisor with the National Futures Association and

 

Average True Range
Mon, 14 Dec 2009 15:32:05 GMT

This article is taken from the Trader's Journal magazine (October 2009 issue) The author, Don Dawson , has been trading the futures markets for 20 years. His perseverance through the ups and downs of trading, openness to experience of others, balanced tolerance for risk and patience to wait for his setups are a few of his strengths as a trader. Don obtained his Series 3 license in 1990. Soon afterward, he registered as a Commodity Trading Advisor with the National Futures Association and

 

Ups and Downs Price-Oscillator Divergences in FX Trading
Tue, 24 Nov 2009 16:26:56 GMT

This article is taken from the Forex Journal (October 2009 issue). The author, James Chen , CTA, CMT, is Chief Technical Strategist at FX Solutions, a leading forex broker under the City Index Group. He is a registered Commodity Trading Advisor and a Chartered Market Technician, as well as author of the new book, Essentials of Foreign Exchange Trading (John Wiley & Sons, 2009). Many Forex traders consider divergence to be a complete, self-contained trading signal that can accurately

 

Trading Broadening Top/Bottom Patterns
Mon, 23 Nov 2009 15:48:57 GMT

This article is taken from the Trader's Journal magazine (September 2009 issue) The author, Suri Duddella , is the author of a new book Trade Chart Patterns Like The Pros. Suri is a private trader and has been trading full time futures and equities markets for the past 14+ years. Broadening top and bottom patterns are considered reversal patterns and usually appear at the major tops/ bottoms. Suri Duddella discusses how to identify and trade these reliable chart patterns.

 

Video Interview with Kim Cramer Larsson: Which are the most useful tools for patterns and trends?
Wed, 11 Nov 2009 17:24:34 GMT

Kim Cramer Larsson, CEO at Financial Trend Analysis, shares with you, in an exclusive interview recorded at the FXstreet.com's International Traders Conference 2009 in Barcelona, tips on how to find top and bottom on candlestick patterns with the use of RSI that could help to confirm these reversal signals.

 

Video Interview with Markus Heitkoetter: How to determinate the trading conditions in volatile markets
Tue, 01 Dec 2009 11:17:32 GMT

Markus Heitkoetter, CEO at Rockwell Trading, comments the best way to determinate trading conditions. He also shares some tips about how to identify what markets are doing and the necessity of incorporating volatility in your trading. Markus gives know his three favorite technical indicators. An exclusive interview with Markus Heitkoetter, recorded during the ITC 2009:

 

Video Interview with Andrei Knight: How to improve your Fibonacci reading?
Thu, 27 May 2010 08:54:56 GMT

Andrei Knight , Chief Technical Strategies, gave us his key tips to do a better Fibonacci analysis in an exclusive interview recorded at the FXstreet.com's International Traders Conference 2009 in Barcelona. Andrei comments the four essential points in Fibonacci.

 

Unlocking Volume Analysis
Wed, 02 Sep 2009 14:04:54 GMT

This article is taken from the YourTradingEdge magazine (MAY/JUNE 2009 issue) The author, Todd Krueger , is a professional trader, educator and creator of Wyckoff Candle Volume Analysis. He is the founding President of Traders Code, LLC; which provides professional trading tools and education to the retail trader. Todd Krueger explores volume analysis techniques: supercharge your chart-reading skills by combining Wyckoff Volume Analysis with candlestick patterns. In the beginning Most traders

 

Bollinger band applications in the forex
Wed, 26 Aug 2009 15:31:23 GMT

This article is taken from the Forex Journal (July 2009 issue). The author, Alex Douglas , is an Associate Director, Head of Business Development and Market Strategist for City Index Australia. He drew his first chart by hand in 1983 and has twenty years of market experience including roles ranging from futures pit trader to Global Head of Foreign Exchange Technical Analysis. He is on the Board of the International Federation of Technical Analysts (IFTA) and was instrumental in the

 

Trading with Ichimoku Kinko Hyo
Wed, 29 Jul 2009 09:57:38 GMT

Let’s start by understanding what the name of this indicator means, in order to understand how it is used. The Japanese term “Ichimoku” means “instant view’ or “one glance”, “Kinko” is the equivalent of “equilibrium” or “balance” and “Hyo” means “chart”. So, we can translate the full name “Ichimoku Kinko Hyo” to “Instant view of the balance chart” . This indicator was developed by Goichi Hosoda around 1969, and from that point forward Ichimoku Kinko Hyo has become a permanent feature in

 

What is a market cycle?
Thu, 23 Jul 2009 12:34:02 GMT

This article is taken from the Forex Journal (April 2009 issue). The author, Franco Shao , has rich experience in the industry. As a trader, he has been engaged in the financial markets for over 10 years. Recently, he has been paying more attention to managing his website in addition to Foreign Exchange trading. Franco has written some articles presenting his opinions about the trends, estimation and analysis of the financial markets and Foreign Exchange trading. He is keenly interested in

 

Why many technical indicators are failing the current market?
Thu, 23 Jul 2009 12:36:31 GMT

This article is taken from the Forex Journal (April 2009 issue). The author, Mark Whistler , is a professional trader, author and analyst. His books include The Swing Trader’s Bible (John Wiley & Sons, Inc. 2008), co-authored with Matt McCall, Trading Pairs (Wiley, 2004), Trade with Passion and Purpose (John Wiley & Sons, Inc. 2006), Profit from China (Investment U/Wiley, 2006) and Profit from Uranium (Investment U/Wiley, 2006). Mark’s newest book, Trading Forex Volatility (co-authored

 

A view from the top and the bottom
Thu, 23 Jul 2009 10:40:53 GMT

This article is taken from the Trader's Journal magazine (April 2009 issue) The author, Don Dawson , is Online Trading Academy Commodity Futures Instructor. Don Dawson shows how to use the double top and double bottom chart pattern in trading. He also describes how to include Bollinger Band analysis to enhance the trading opportunity.

 

Elliot Wave principle
Wed, 22 Jul 2009 09:47:50 GMT

This article is taken from the Forex Journal (March 2009 issue). The author, Franco Shao , is founder of ForexCycle.com, a website that focuses on market trends and data analysis of the financial markets, especially for foreign exchange trading. It was established in year 2005. Franco has rich experience in the industry. As a trader, Franco has been engaged in the financial markets for over 10 years. Recently, he has been paying more attention to his website management and foreign exchange

 

Pivot Point Analysis
Wed, 22 Jul 2009 10:18:48 GMT

This article is taken from the Trader's Journal magazine (March 2009 issue) The author, Don Dawson , is the Online Trading Academy Commodity Futures Instructor. Today, there literally are hundreds of technical studies. For this reason, some of the more traditional studies are starting to work again. Doug Dawson outlines the benefits of using Pivot Point analysis to trade the markets.

 

Using Moving Averages as Trend filters
Wed, 22 Jul 2009 09:54:55 GMT

This article is taken from the Trader's Journal magazine (March 2009 issue) The author, Gabe Velazquez , is a professional trader with 14 years of experience. His focus is intra-day and swing trading the TF (Russell 2000 E-Mini) using technical analysis as his primary tool. Gabe has managed stocks and futures accounts and has conducted educational seminars on technical analysis for the past ten years. He is a frequent guest on Biz radio, where he shares his market knowledge and utilization of

 

Candlesticks and their whole picture
Tue, 16 Jun 2009 15:09:48 GMT

This article has been born with the help of the Investija.com customers and visitors. Popularity of the candlesticks is huge, for that reason an amount of questions about it is understandably big. All the questions have a tendency to clarify which candlestick pattern works most. I decided to write an article about my understanding about candlestick charting and give my view about practical approach to candlestick charting. Japanese candlesticks took a major place in technical analysis and

 

Practical trade with channels
Fri, 15 May 2009 08:25:50 GMT

A channel is a figure of high reliability, formed by two parallel trend lines at its borders. One connects the price highs, the other the price lows, and in between, there is a zone where the price tends to stay until it breaks. Both trend lines, upper and lower, act as support and resistance. Figure for itself shows the market trend. There are different kinds of channels, but they mostly work the same way. Let’s see a practical example of each one: Horizontal Channel: It can be find either in

 

Volume Weighted Average Price
Wed, 16 Sep 2009 14:19:18 GMT

In currency trading, many retail traders can lose fortunes, before ever even hearing about VWAP and TWAP. It's proclaimed 'hi-tech' at home traders can seemingly miss major institutional benchmarks like I have just mentioned. Clearly, the simple fact that so many retail traders have no clue about VWAP, simply proves suc within the hands of those controlling the bulk of the order flow. VWAP (Volume Weighted Average Price is really the average price over an average period of time, weighted for

 

Moving Averages. Do they work?
Fri, 17 Apr 2009 14:42:41 GMT

This article is taken from the Trader's Journal magazine (February 2009 issue) The author, Subrina Mahmood , is currently working on her MBA in finance at Monmouth University. Moving averages are a popular technical trading tool used to generate buy and sell signals. The question is – do they work? Subrina Mahmood lead a discussion on various moving average crossover strategies using simulated tenyear stock data series. Moving averages are a popular technical trading tool used to generate buy

 

Trading with moving averages
Fri, 20 Mar 2009 13:15:35 GMT

As many of you already know, Forex is the most amazing and popular electronic financial market: it moves 1.5 trillion dollars a day, what NY Stocks market moves in a year. A 24 hours a day, 7 days a week market, with high volatility and liquidity, and with a plus advantage: leverage. A market where you can choose to go bull or bear with no cost: no extra premiums to pay, no additional options. It seems pretty much convenient, right? Well, let me tell you the disadvantages before I continue:

 

Trading the trend and breaks
Fri, 20 Mar 2009 13:06:08 GMT

I always post here that we should wait for breaks or confirmations. Breaks of key levels of support and resistance or trend lines. So I will tell you the basic rules to trade with trend lines, I hope you will enjoy these basic education tips! As you may know, we always say that it is better to trade following the trend . This means that in a bullish market we should buy to take profits by selling. Of course we can trade against the trend - in fact I do it all the time - but we must be aware

 

Leash in Retracements with Arcs
Tue, 24 Feb 2009 17:41:40 GMT

This article is taken from the Forex Journal (February 2009 issue). The author, Cornelius Luca , is the writer of Technical Analysis Applications – McGraw-Hill, 2004, Trading in the Global Currency Markets – Penguin Books, Third edition, 2007, Technical Analysis Applications in the Global Currency Markets – Penguin Books, second edition, 2000, and Introduction to Technical Analysis – Euromoney, 1997. He has authored numerous articles in both Stocks & Commodities and Futures. The ability to

 

Trading Multiple CCI Time Periods
Wed, 16 Sep 2009 14:23:09 GMT

Within Forex, there’s something professional traders call, “chasing indicators.” Sadly, so many retail traders – with the mindset that trading Forex profitably is easy – fall victim to this destructive attitude and unfortunately, constantly find themselves behind the curve as volatility kicks in. However, there is another way to trade. In this special report, traders will learn why “chasing indicators” is such a losing game, while also seeing how they can begin putting indicators on their side

 

Perceiving Forex Volatility via Descriptive Statistics… Deriving Trending and Reversals - Part 2
Wed, 16 Sep 2009 14:26:14 GMT

Even when traders embody substantial technical and fundamental knowledge, risk prevails without the proper understanding of the larger probability/volatility paradigm behind currency trading. Here, traders are encouraged to boldly challenge typical pre-conceived notions of charting, in an effort to see beyond the fallacy of technical analysis. In the end, traders who understand descriptive statistics will find greater clarity and perception of volatility, before it even appears. Words of

 

Perceiving Forex Volatility through Descriptive Statistics - Part 1
Wed, 16 Sep 2009 14:25:49 GMT

Forex markets often display significant volatility catching many traders by surprise. However, with a simple understanding of descriptive statistics and moving averages, many could soon find themselves ahead of the curve. Many traders – both new and experienced – often find themselves at a loss attempting to understand why Forex markets tend to experience extended volatility. In simple terms, the reasoning behind extended volatility is that of continued buying, or selling beyond easily

 

The 123 chart pattern
Mon, 22 Dec 2008 16:35:15 GMT

The 123 pattern is a reversal chart pattern which occurs very frequently and has a very high success ratio. 123’s occur at the end of trends and swings, and they are an indication of a change in trend. They can also be found within a trading range, and they take place when the directional momentum of a trend is diminishing... This is the Powerpoint Presentation of the webinar held by Sunil Mangwani about the 1-2-3 chart pattern in late December 08. You can also watch the recording of that

 

Rediscovering Gann's Law of Vibration
Wed, 22 Oct 2008 15:20:36 GMT

This article is taken from the Trader's Journal magazine (October 2008 issue) The author, James Smithson , is an investor, trader and student of Gann based in London, England. James Smithson discusses the discovery and use of Gann’s ‘Law of Vibration,’ a method for accurately forecasting the trends of the stock and commodities markets William D. Gann (1878 – 1955) was an outstanding technical analyst. He was also a prolific teacher of how to make speculation a profitable profession, writing

 

Trading Forex with Danielcode support and resistance
Mon, 22 Sep 2008 14:17:07 GMT

This article is taken from the Trader's Journal magazine (September 2008 issue) The author, John Needham, is a Sydney Lawyer and Financial Consultant. He publishes The Danielcode Report and writes occasionally on other markets. He lives with his family in Australia and New Zealand. John Needham continues to explain how the Danielcode provides early notice of support and resistance levels. All forms of analysis work some of the time but none work all of the time so traders are always in search

 

Welcome to a World Without Absolutes
Tue, 31 Aug 2010 11:23:52 GMT

It has been another week and another batch of new students for me. I have just stepped back into the classroom again after a six week break to host and teach the 6 day Online Trading Academy Professional Forex Class. As you know, I regularly work in the virtual environment of the Extended Learning Track (XLT) - Forex program where the only contact I have with my students is via the text chat box, and as much I love the XLT teaching, seeing 23 students face-to-face in the live classroom is a

 

The Benefits of Futures Trading
Tue, 31 Aug 2010 12:13:50 GMT

When it comes to trading different asset classes, I get more questions about the Futures markets than any other set of markets. This is because many people hear from others how great these markets are for short and long-term trading but know very little about them. In my opinion, these are the greatest trading markets in the world. They have many benefits that other asset classes don't and I will bullet those points for you here. Benefits of the Futures markets: No $25,000 minimum day trading

 

The Real Problem with Trend
Tue, 24 Aug 2010 11:27:12 GMT

This week, while conducting and hosting my ongoing Extended Learning Track (XLT) - Forex sessions, we have been doing our usual business of analyzing the currency markets in real-time, scouting the arena for only the very best low risk and high potential reward setups we could find. Following on from a choppy and indecisive few weeks, things seem to have settled down a little as the market, in general, goes through its own phase or transition, trapped between key levels of support and

 

Profit Margin, a Must for a Successful Trade
Tue, 24 Aug 2010 11:15:01 GMT

So often in the trading world, I hear people talk about where price is likely to turn next, where is the next key supply or demand level, where is the next big market move going to originate from, and so on. The question I hardly ever hear anyone asking is, "Where is the next big profit margin?" This is one of the most important, if not the most important, things to consider when speculating in markets. The profit margin is the distance in price between the entry point and the profit target

 

Losing Yourself to The Markets
Tue, 17 Aug 2010 11:21:04 GMT

As many of you know, the first positive steps of my personal trading journey started with Online Trading Academy. I enrolled as a student in the Professional Trader class and never looked back, soon after taking the Forex class, Futures class, and becoming a Platinum Passport holder. I made up my mind that nothing was going to stop me from attaining my goal of becoming a full-time professional trader. I learned many lessons about the market and even more about myself and now, as an instructor

 

Key Trading Nuggets Q&A
Tue, 17 Aug 2010 11:14:05 GMT

Over the past couple weeks, some very good questions have come in that I think may be on the minds of a few of our readers. Whether they are or aren't, the goal of this piece is to enlighten you through Q&A with key trading nuggets that can help you reach your financial goals. Sam, You mapped out today the levels for ES and stated that the level around 1083-1085 wouldn't be a good one and that you are more interested in the 1073-1075, and afterwards, the 1063-1065 levels. As I check the

 

The 7 Pillars of Forex Trading
Tue, 10 Aug 2010 12:18:30 GMT

I started the positive leg of my trading journey the minute I walked into my local Online Trading Academy center. Just like numerous other graduates of Online Trading Academy, I sat through a Power Trading Workshop and listened intently about the true nature of Global Markets and how the professional traders of this world adapt and weave their way through with consistent profits and few headaches. Looking back, it shocks me when I think about just how much I thought I knew about the markets!

 

The Psychology of Trading and Investing
Tue, 10 Aug 2010 12:21:59 GMT

Trading psychology is a subject most books and so-called professionals keep separate from the mechanics and strategies of trading and investing. A reality largely misunderstood is that the underlying mechanics and strategies within trading and investing are a direct function of your psychological belief system. At any given time in the stock market, there are buy and sell invitations sent out in the form of news events, technical indicators, earnings reports, company announcements, brokerage

 

A Second Opinion Can Sometimes Help
Tue, 03 Aug 2010 11:27:26 GMT

In my experience of teaching numerous students of the Forex Markets, I have pretty much heard every excuse in the book as to why they have lost money. With complete novice traders, their financial losses are usually down to a lack of decent trading education. They simply don't know what they don't know and have yet to fully understand how the large void between their perception of the market and the actual reality of the market really is. However, I also meet many traders who have been

 

News, Price, Supply and Demand, Part 2
Tue, 03 Aug 2010 12:18:28 GMT

As I have written about so many times, the movement of price in any and all free markets is simply a function of an ongoing supply and demand equation. Feel free to read my article on May 11, 2010,  News, Price, Supply and Demand . Trading opportunity exists when this simple and straight-forward equation is "out of balance." Meaning prices turn at price levels where supply and demand are most out-of-balance in any market. The key for the market speculator is to have the ability to

 

The Experts' Recommendations for Holiday Time
Fri, 30 Jul 2010 07:04:04 GMT

Summertime. What should I do? Dreaming about white sand? Vacation on a boat? Hiking in the mountains? Road trip with your family? Or will you stay at home this summer? In any case, this is holiday season and market typically behaves differently... So what strategies should we adopt? We've asked some of our contributors how they recommend to trade in August if you're not away on vacation... and what to do if you're going to leave for holidays and how to trade upon your return. They also give us

 

Ilian Yotov's Summer Recommendations
Thu, 29 Jul 2010 15:34:51 GMT

1. What are your recommendations on how to trade Forex this summer? What should be the trader's tasks in August? What should we prepare before leaving for holidays? High volatility poses a threat to the carry trades. Since market volatility has declined and investors’ sentiment has improved in June/July, the carry trade has made a comeback. If this continues to be the environment in August, the higher-yielding currencies could remain well bid and the USD could continue to be used as a funding

 

James Chen's Summer Recommendations
Thu, 29 Jul 2010 15:34:15 GMT

1. What are your recommendations on how to trade Forex this summer? What should be the trader's tasks in August? What should we prepare before leaving for holidays? For me, and for many other traders, trading forex during the summer is much the same as trading during any other time of the year. The currency markets are almost always moving and there are plenty of trading opportunities to take advantage of, whatever time of year it is. That being said, if and when the markets are slow, that is

 

Valeria Bednarik's Summer Recommendations
Thu, 29 Jul 2010 15:33:36 GMT

1. What are your recommendations on how to trade Forex this summer? What should be the trader's tasks in August? What should we prepare before leaving for holidays? Summer is pretty much against my trading style, because I like to take advantage of the speed of movements, and the volume increases; in this case, we have a strong lack of volume, and we have an extra risk, that is, big institutions or banks, placing trades and being able to move price precisely because of that lack of volume. My

 

Wayne McDonell's Summer Recommendations
Thu, 29 Jul 2010 15:32:55 GMT

1. What are your recommendations on how to trade Forex this summer? What should be the trader's tasks in August? What should we prepare before leaving for holidays? In America, many traders take their summer vacation in July. They stop placing trades in the third week of June... on Quadruple Witching Friday. They spend the next week preparing end of quarter statements for their investors and partners. Once complete, they head to the Hamptons for the 4th of July. This year, this left the DOW

 

Rob Booker's Summer Recommendations
Thu, 29 Jul 2010 15:32:04 GMT

1. What are your recommendations on how to trade Forex this summer? What should be the trader's tasks in August? What should we prepare before leaving for holidays? Some of my methods (like trading to the weekly pivot) do not work as well in the later part of August, and the early part of September, so I do not trade that style at that time. Other methods - like counter-trend fib trading, work just fine and I keep going. One thing that I have noticed over the years is that during this period

 

Gonçalo Moreira's Summer Recommendations
Thu, 29 Jul 2010 15:31:08 GMT

1. What are your recommendations on how to trade Forex this summer? What should be the trader's tasks in August? What should we prepare before leaving for holidays? The price action in most major pairs during the last 6 to 8 weeks has been one of correction of those impulsive movements seen in the 1st and 2nd quarter of the year. The speed of correction has been practically the same of the previous impulse, so I wouldn't take a slow price action during August for granted - instead I prefer to

 

John Jagerson's Summer Recommendations
Thu, 29 Jul 2010 15:30:19 GMT

1. What are your recommendations on how to trade Forex this summer? What should be the trader's tasks in August? What should we prepare before leaving for holidays? I am a big believer in creating investing plans in advance. For example, let's assume that although inflation is not an issue in the U.S. yet that it will be eventually. I can create a plan to profit from its appearance by looking at past periods, evaluating trading strategies and designing risk control that would benefit from

 

Marco Mayer's Summer Recommendations
Thu, 29 Jul 2010 15:28:41 GMT

1. What are your recommendations on how to trade Forex this summer? What should be the trader's tasks in August? What should we prepare before leaving for holidays? I’ve seen both, summers where literally nothing happened and summers where the markets were completely crazy. You have to be prepared for both, when things slow down, so do I. So if the markets don’t offer good opportunities just take that time to relax and enjoy the summer. If you want to improve your trading you should review

 

Dr Sivaraman's Summer Recommendations
Thu, 29 Jul 2010 15:26:33 GMT

1. What are your recommendations on how to trade Forex this summer? What should be the trader's tasks in August? What should we prepare before leaving for holidays? When a trader needs to spend the summer with the family, relatives or friends then it is better to take very less position now on and try to close the positions before going off. Keep the mind cool and give importance to the vacation and avoid thinking about market when engaged with other task - not even look at the market. When

 

Phil Newton's Summer Recommendations
Thu, 29 Jul 2010 15:25:55 GMT

1. What are your recommendations on how to trade Forex this summer? What should be the trader's tasks in August? What should we prepare before leaving for holidays? There is only one thing to do: trade your plan. If a part of your plan is to trade through typically slow market phases, like the summer doll drums then follow your plan. Reduced position size might also be another option should you trade through and expecting a low performance. If as a part of your strategy TESTING it was evident

 

Ed Ponsi's Summer Recommendations
Thu, 29 Jul 2010 15:24:32 GMT

1. What are your recommendations on how to trade Forex this summer? What should be the trader's tasks in August? What should we prepare before leaving for holidays? As we’ve seen this summer, we can experience high volatility and wild trading at any time of the year. A common mistake made at this time of the year is for some traders to “load the boat” - take large positions, in other words - because they want to profit in a market that isn’t giving them many opportunities. Instead of this

 

Tackling Those Unanswered Questions
Tue, 27 Jul 2010 11:48:37 GMT

It feels like we have all been on a very wild ride in the Global Markets these last few weeks, and if volatility is any kind of gauge, then I have all the confirmation I need. What with earnings season in full swing, combined with statements of "unusual uncertainty" from Fed Chairman Ben Bernanke, what objective trader can really be surprised? I understand that the market is always capable of surprises, and if one is not fully prepared for the consequences at all times, then they are simply

 

Failure is Often a Necessity for Success
Tue, 27 Jul 2010 11:43:50 GMT

Trading is a difficult challenge that will test your emotions more than you can imagine. From birth, we gravitate towards things that make us feel good and run from things we fear. If you take this instinctual and conditioned action in trading, you will lose. For example, if you wait for news and charts to look "good" before you buy into a market, price is already high and at retail prices at that point. You can't buy when price is at retail levels and profit consistently. If you sell into

 

Forex Questions and Answers with Sam Evans
Tue, 20 Jul 2010 11:48:08 GMT

Firstly, I would like to take the time to thank each and every one of you who reads my weekly article. It is your continued support and interest which keeps me coming back for more, week in week out. As I have mentioned before, I receive a large number of emails from my ongoing students and readers alike and answering each one does take its time, with a few slipping through the net on occasion, I must admit! However, every once in a while, I like to address some of the best questions publicly,

 

The Proper Use of Indicators and Oscillators
Tue, 20 Jul 2010 11:39:17 GMT

When walking around an Online Trading Academy classroom during the trading portion of a Professional Trader class, I see the trading work–spaces of traders, the charts they are looking at and most importantly, what lines, circles, indicators, and oscillators are on those charts. This last part is most important because what you add to a raw price chart will likely strongly influence your trading decision. After all, why else would someone add something to a chart? The biggest issue I see in

 

Optimizing your trading strategy by analyzing your Risk/Reward ratio
Tue, 13 Jul 2010 13:52:25 GMT

As we have said in our previous article, one of the most important aspects of trading in any market and especially forex, is Money Management. Money Management can be defined as the way a trader manages his equity, number and size of trades, open positions, stop loss limits and take profit targets and optimizing its Risk/Reward ratio in order to yield positive results in the long run. To understand this, first you have to recognize that no one can always get it right and we all get losing

 

Defining the Trader's Edge
Tue, 13 Jul 2010 11:37:06 GMT

Since I started teaching students of Online Trading Academy, I have obviously taken a great interest in the development of their careers and progress along the way. I have taught a variety of individuals, hailing from different backgrounds and each with their very own reasons for taking on the tough challenge of seeking a life as a professional Forex trader. Some are just looking for a secondary or supplementary income, some are just looking for a new interest in life and others want to become

 

Government Intervention and Market Price
Tue, 13 Jul 2010 11:22:38 GMT

I started my career on the floor of the Chicago Mercantile Exchange facilitating institutional order flow. This means taking large buy and sell orders from banks, institutions, money managers, hedge funds, and more, paying close attention to market price, and then making sure those orders get executed and filled at the proper prices. I started in the currency quadrant and was specifically responsible for the Japanese Yen, Canadian Dollar, British Pound, Deutsch Mark, and Swiss Franc markets.

 

Why the Fundamentals Never Stand a Chance
Wed, 07 Jul 2010 11:31:35 GMT

With another interesting month of trading activity behind us, toasts to success and open wounds of defeat are just some of the scenarios faced by the growing population of speculators across the world. It's been a turbulent time for all, no matter what your toolkit contains, and anyone who says otherwise is a braver man than me! Uncertainty and indecision are the flavors of the times and never has there been a greater need to filter through the noise and keep things as simple as possible.

 

Motion Into Mass: Your Questions Answered
Wed, 07 Jul 2010 11:33:50 GMT

Last week's article entitled, Motion Into Mass: An Example Trade , generated some good questions that I will address in this piece. Never be afraid to ask questions as they can hold answers that can change the way you think about little things as well as major, life-changing thoughts. The trick is to ask the right questions to the right people; easier said than done sometimes. My answers always stem from the basic laws of supply and demand, motion into mass, or whatever you want to call it.

 

How I Apply Risk Management
Thu, 08 Jul 2010 12:52:07 GMT

‘I risk a fixed, small portion of my portfolio on each trade… I raise my size if I’m trading well and seeing markets well; reduce my size if I’m not in sync with the markets. I make those adjustments very quickly. I want to ensure that, from peak to trough, I never go down more than 5%. I know that’s very conservative, but that’s worked well for me. I go for small, consistent returns – not home runs.” — Brett N. Steenbarger Hello: Some asked me if I’m not worried about revealing my secrets.

 

The Hidden Costs of Forex Trading
Tue, 29 Jun 2010 11:54:19 GMT

For the purpose of this article, I would like to highlight an aspect of Forex trading which is often the very last thing on the minds of traders: The cost of doing business. As is widely known, if one participates in the Equity or Futures markets, there is always a commission charge for taking a trade. This charge pays the broker for allowing the position to be taken in the first place. While there is a difference in commission charges among the various equity and futures clearing firms, the

 

Motion Into Mass: An Example Trade
Tue, 29 Jun 2010 11:32:12 GMT

Before starting my career at the Chicago Mercantile Exchange, I did two things and really two things only. I played ice hockey and went to school where the focus of my studies was Biology and Genetics. I know what you're thinking, how boring... Well, I actually was and am still fascinated with the study of life so I really enjoyed those days. Around every corner of Biology, Chemistry, Genetics, and so on is another mathematical equation. After diving into this field, I quickly realized that

 

'The worst is behind but the US is still in a healing mode' - Wayne McDonell
Tue, 29 Jun 2010 14:12:24 GMT

W. McDonell PROFILE: • Position : Chief Currency Coach at FX Bootcamp. See bio • Educational videos: Strategic & Tactical FOREX Trading: Watch Part 1 and Part 2 • Wayne's book : The FX Bootcamp Guide to Strategic and Tactical Forex Trading In honor of the 50th Anniversary of "Trade Non-Farm Payrolls LIVE" webinar presented by FX Bootcamp, FXstreet.com developed this audio interview with Wayne McDonell , who has been presenting all the NFP webinars since the first edition in June 2007! You

 

A Practical Use of Technical Indicators
Tue, 22 Jun 2010 11:30:42 GMT

After having just spent six days in the Online Trading Academy classroom with a brand new group of Professional Forex Trader students, memories of my own experiences in the class have come flooding back to me. I distinctly remember how I felt when I was learning all about support, resistance and trends and as the pieces of the puzzle slowly started to fit together. Now that I am on the other side of the room, I use my own experiences to teach my students in the most practical manner in which I

 

Why Proper Market Speculating is so Difficult for Most People
Tue, 22 Jun 2010 11:13:59 GMT

Compare the average investor's returns around the world to the average Wall Street firm's returns. I think we would all agree that the average Wall Street firm is making the lion's share of the money, while the average investor is either losing or not making much at all. Next, think about what the average investor does in the markets, they "buy stock." Now, think about what the average Wall Street firm does, they "sell stock." Hhmm... One group is selling and making super high returns each

 

Trade Management: Often Overlooked and Mostly Ignored
Tue, 15 Jun 2010 11:47:34 GMT

There are many factors that determine the overall success rate for a trader. It is easy to see the vast differences between the novice and professional speculators, but as the beginner starts to make progress, it comes down to the more subtle factors which greatly distinguish the level of their consistency. We all know that the majority of novice Forex traders fail to protect their capital efficiently enough, resulting in early account retirements and huge losses, plus they typically do not

 

Sam Answers Your Questions
Tue, 15 Jun 2010 11:50:42 GMT

With a strong stream of email questions coming in lately, I thought it would be a good idea to answer some of the popular ones for you here in Lessons from the Pros. I hope this is helpful for you.  Sam, I really like your simplistic approach to trading, makes a lot of sense keeping it simple. I have one question, when you are looking for levels on index charts, do you include any that may have formed in the afterhours time frame? Thanks, Joe  Sam – Thanks for the email and good

 

When a Commodity is Really a Commodity
Tue, 08 Jun 2010 11:33:16 GMT

As we all know, the Forex markets offer a variety of interesting and unique opportunities. While I personally trade a variety of asset classes, including Stock Index Futures and Commodities as well as Forex, my discipline and technical approach to each of these markets remains the same. I look for low risk, high probability opportunities, respecting the governing laws of Supply and Demand at all times. Price is simply price, no matter what we are looking at, and it will always be the greatest

 

Những kiến thức cơ bản trong kinh doanh mua bán ngoại tệ FOREX (phần 9)
Saturday, March 15, 2008

 

Những kiến thức cơ bản trong kinh doanh mua bán ngoại tệ FOREX (phần 8)
Saturday, March 15, 2008

 

Những kiến thức cơ bản trong kinh doanh mua bán ngoại tệ FOREX (phần 7)
Saturday, March 15, 2008

 

Những kiến thức cơ bản trong kinh doanh mua, bán ngoại tệ FOREX (phần 6)
Monday, March 10, 2008

 

Những kiến thức cơ bản trong kinh doanh mua, bán ngoại tệ FOREX (phần 5)
Sunday, March 09, 2008

 

Những kiến thức cơ bản trong kinh doanh mua, bán ngoại tệ FOREX (phần 4)
Sunday, March 09, 2008

 

Những kiến thức cơ bản trong kinh doanh mua, bán ngoại tệ FOREX (phần 3)
Sunday, March 09, 2008

 

Những kiến thức cơ bản trong kinh doanh mua, bán ngoại tệ FOREX (phần 2)
Friday, March 07, 2008

 

Những kiến thức cơ bản trong kinh doanh mua, bán ngoại tệ FOREX (phần 1)
Friday, March 07, 2008