Is Forex Managed Money a Good Idea?

Maintained Funds will be a more frequent sensation inside areas regarding investment as compared to Forex trading, but some organizations offer you this kind of program, at the same time. Maintained funds will be virtually any method of purchase the location where the trader determines to position their particular money in a great purchase finance which is taken care of by way of a specialist or perhaps specialist business as opposed to creating their particular alternatives inside assets.


The theory is that, with a specialist deal with the particular consideration an individual will notice far better income end result.


One of the better samples of maintained funds can be a common finance. Although maintained funds is significantly a smaller amount frequent inside the Forex trading, several specialist organizations nonetheless offer you that. Usually the particular company could have a free account within your identify, and they are going to help make every one of the investments to suit your needs.


They could try this by means of different deals, fundamentally a small strength regarding legal professional in which enables these business in which money in in which are the cause of an individual.

The particular purchase company tends to make handful of funds around the bid/ask distributed (this will be typical regarding maintained Forex trading accounts) and many require a specific proportion with the income produced by the end of each and every calendar month, from 15-40%.

This kind of can supply the business inducement to be sure you are doing properly, considering that the a lot more income an individual help make, greater any minimize they will acquire. The particular invert can be correct: unless you help make virtually any income, none carry out they will.

These types of organizations could have their particular procedures and also forms to be able to fill in so that you can create any Forex trading maintained funds consideration. Balances needs to be accessible by means of World wide web and so the trader is able to see just what investments are increasingly being produced and also just what the outcome and also account balance will be. It's also advisable to get the standard papers assertions by means of snail email.

Almost all balances must also have got some type of quit damage to ensure that even when they will require a conquering, you are not vulnerable to shedding your entire funds.

If you opt to work with a Forex trading maintained funds consideration, you'll not manage to business oneself away from in which consideration. The complete level of experiencing your cash maintained will be relying specialists to produce the proper purchases so that you can acquire that you simply greater income as compared to choosing able to taking care of all on your own.

These types of balances could have the very least level of downpayment, sometimes on the $10, 000 array and even increased. You will need to have a look at every person purchase company to find out just what the particular bare minimum sums are usually.

Maintained funds will be one fashion to move, yet it really is nonetheless simply no ensure regarding income. When here is the course you would like to move, be sure to do your research to be able to get a professional investment company it is possible to rely on. Normally, choose a investing method in which operates to see when you can diy. Every person which investments of course profitably needs a productive method, thus when they may be merely using a method : you will want to diy?

Then you can certainly retain in which added 30% income, not necessarily also poor in any way!

What is the Forex Market?

The Forex market, established in 1971, was created when floating exchange rates started to materialize. It relates to the foreign exchange market, where brokerage firms and banks are linked over an electronic network that allows them to exchange the currencies of countries around the globe. The Forex market is not centralized, like in currency, futures or stock markets. Trading occurs over computers and phones at thousands of locations globally.

The Foreign Exchange market, usually referred as forex, is where banks, capitalists and speculators exchange one currency to another. The largest foreign exchange activity retains the spot exchange among five major currencies: US Dollar, British Pound, Japanese Yen, Eurodollar and the Swiss Franc. It is also the biggest financial market in the world. In comparison, the US stock market may trade $10 billion in one day, whereas the Forex market will trade up to $2 trillion in one single day. The Forex market is an opened 24 hours a day market where the primary market for currencies is the 24-hour Interbank market. This market follows the sun around the world, moving from the major banking centers of the United States to Australia and New Zealand to the Far East, to Europe and ultimately back to the Unites States.

There are three main causes to participate in the Forex market. One is to facilitate an actual transaction, whereby international corporations convert profits made in foreign currencies into their domestic currency. Corporate treasurers have their own forex trading strategies so they also get into the Forex market in order to hedge against undesirable exposure to future price movements in the currency market. The third and more popular reason is speculation for profit. In fact, today it is estimated that less than 5% of all trading on the Forex market is actually helping a true commercial transaction.

Forex trading system views forex market as an Over the Counter (OTC) or Interbank' market, due to the fact that transactions are carried on between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange, as with the stock and futures markets. In this big forex trading system forex trading
starts each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. Unlike any other financial market, investors can react to currency fluctuations caused by economic, social and political consequences at the time they occur - day or night.

So far, professional traders from major international commercial and investment banks have ruled the Forex market. Other market participants range from large multinational corporations, global money managers, registered dealers, international money brokers, and futures and options traders, to private speculators. The Forex market is called an Interbank' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes big multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators. lowongan kerja

Forex trading system is the biggest financial market in the world, with a daily average turnover of approximately US$1.2 trillion. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen. Approximately 80% of all Forex trades close seven days or less and more than 40% last fewer than two days. As a universal rule, a position is kept open until one of the following occurs: realization of enough profits from a position, the specified stop-loss is triggered, another position that has a better potential appears and you require these funds.

Forex Trading- Money Management Rules

watch the Trend- 3 Rules to Make serious profit

Most beginner traders don't bother trying to trend following forex longer term - instead they try forex scalping or day dealing. These methods focus the trader on small moves and they hope to catch small gains however as most short term moves are random, this leads to equity eliminate.

The other picks are swing dealing and long-term term forex trend following and this article is all about the latter method. If you look at any forex chart, you will see long-term term trends that last for months or years. These moves can and do yield serious profit - present we will outline a simple method to catch them.

Looking for Breakouts

By far the greatest way of catching the serious moves is to use a forex trading strategy based around breakouts. A breakout is simply a move on a forex chart where a new high or low is made and resistance or support is ruined.

New High and Lows

While it might appear that you are not buying or selling at the greatest level, you are in terms of the odds of the trend continuing. Most forex traders
make the mistake of waiting for the breakout to come back and get in at a better price but these traders never get on board. The grounds for this is if a breakout occurs, then you have a new strong trend and a pullback is not very likely to occur.

Most traders don't buy or sell breakouts and that's exactly why it's such a important method.

The only point to keep in mind is a support or resistance which is ruined, should be valid and that means at least 3 points in at least 2 different times frames. The more tests and the wider the spacing between the tests the more valid the level is.

Confirmation- Make sure you confirm before the trade

Of course not all breakout keeps and some reverse, these are false and can cause losses. You therefore need to confirm each move. All you need to do to achieve this is to put a few momentum indicators in your forex trading system to confirm your dealing signal.

These indicators give you an estimation of the strength and velocity of price and there are many to choose from. We don't have time to discuss them present (simply look up our other articles) but two of the greatest are - the stochastic and Relative Strength Index RSI

STOPS AND YOUR TARGETS

Stop levels are easy with breakouts - Simply behind the breakout point.

If you have a huge trend then you need to be careful you can milk it, so don't move your stop to soon and keep it outside of normal volatility. If it is a huge move, trailing stops should be held a long-term way back and the 40 day moving average is a good level to use.

You have to keep in mind that when the trend does eventually turn you are going to give some profit back. You don't know when the trend is going to end, so don't predict.



The above is a simple way to trend observe forex and catch the high odds moves that yield the serious profit. If you are learning forex trading and want a simple method that is robust and will help you catch every superior move, then you should base your dealing on the above method.

Forex Broker- Finding the Ultimate Forex Broker

Introduction

The following report includes some fascinating information about forex broker--info you can use, not just the old stuff they used to tell you. So what is forex broker really all about. Because of the global nature of the business, there is a diverse range of financial regulatory environments depending on where the forex broker is based. Forex Broker Introductory forex brokers are generally, existing traders who have solid experience and sound knowledge of the forex market. All Forex Brokers — a detailed list of all on-line Forexbrokers with descriptions without breaking down into specific categories. 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.

Forex Markets and Broker

Forex markets are the most liquid and accessible markets in the world. Forex trades do not involve commissions, but they do have what are known as spreads, which is the difference between the price a currency can be purchased and the price for which it can be sold at a given point in time. The webs's most complete Forex Broker listing, managed Forex accounts, institutional Forex accounts and much more - Forex News Search for a Broker by Product Offering, Name, Title using the search box below:. 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. FOREX brokers have many different trading platforms for their clients, just like brokers in other markets. Forex (FX) trades executed through Most Forex Broker are commission free. Foreign currency trading with us is simple, safe and open to every forex trader
and investor.

So How do I find the ultimate broker

Forex Brokers can be gauged according to the main criteria:Reliability, and what the spreads that they offer. FOREX Broker What to consider when selecting a FOREX broker. Forex Brokers and Bonus Types Online forex trading attracts thousands of investors daily and almost every forex broker offers bonuses iberia online banking for new traders. So, on one of the major forex broker review sites I typed in a few other companies we have personally traded forex with and have been very happy with and I was quite surprised to see that they too scored very poorly. In the past it was pretty easy to decide which Forex broker was the best for you as there were not many around. Since the rise of internet use in recent years, Forex trading has experienced tremendous growth and so too has the number of Forex brokers. The sheer number of Forex brokers out there can be pretty overwhelming, but with a bit of research you should be able to choose the Forex broker that is right for you. Finding a Forex Broker you can trust to act in your best interest is important to Foreign Currency Investors. The easiest way to make Forex broker comparisons is on the basis of their spread charge, to see who the expert recommend email support@cfdfxreport.com

Forex Trading Signals - How to Spot the Trend Easily in Currency Trading

You may have heard of this frequently in some forex trading tutorials, 'Trend is your best friend'. So there is really nothing to be afraid of trends in forex trading. In fact, one should leverage the power of the trend to make money in currency trading
.

Although many people is aware that they have to trade with the trend, but surprisingly for some reason, a lot of people may have problem of spotting a real trend. It may be true that different people has different views on whether the currency pair is trendy or not. But the bottom line is, if you can't spot a trend in forex trading, there is nothing else much simpler that you can do.

The first step that anyone attempts to trade the forex will be identifying the trend, wait for a good entry point into the existing trend and then hope to ride the trend as long as possible. So they will try to figure out whether its a down trend or up trend by looking at their arsenal of forex indicators. Are you doing the same too? If you are, that is the mistake that most people make! You should train your eyes to judge instead of using those moving averages to be able to know where the trend is.


So how do you do it? It's not as difficult as you think it is...yes, it's simple! What you have to do is to pull out a chart of the currency pair that you would like to trade. First look at the chart and try not to look for very long, the first impression will always be the more accurate one. If price is going upwards from the bottom and if the past 3 to 5 candlesticks are bullish, then it's obviously an up trend. Vice versa for a down trend.

If you are a short term trader, you should look at longer time frame charts to have an idea on what the main trend is before looking for forex trading signals
in shorter time frame. For example, if you are trading using the 1 hourly time frame, you should also be looking at the 4 hour and daily charts to see what is the trend of the longer term. This will definitely filter off some whipsaws. Another example, if you are scalping the 5 minutes chart, what should you do? Yes, you will be looking at the 15 minutes and 1 hourly chart to read the trend.

Knowing where the trend is going always put you in the driving seat. So start training your eyes from now on to look at whether the charts are trendy or not. You can be sure that you will consistently make profits when you follow the trend with a forex trading system
.

Japanese Candlesticks Can Predict Reversal of Major Trend

Observing the movement of stock prices in Japanese Candlestick format and in real-time depiction is somewhat akin to watching the printout of an electrocardiogram in motion. One is seeing at first hand the story of an unfolding investor psychology. The first practitioner of Candlestick price representation, so many centuries ago in Japan, was no doubt seeking to develop a strategy or a system of tactics which would deliver to him a trading advantage which would assist him in planning his next moves. The technique of price recordation which he developed was based on the principle of expanding the “line,” or “bar,” on a chart representing the range of prices for a given time period so as to create a fattened-out line, or cylinder, in which the opening price and the closing price for that time period would be the upper and lower limits of the cylinder. If the closing price of the day were higher than the opening price, then the cylinder would not be filled in, or would be left “white;” whereas if the closing price of the day were lower than the opening price, then the cylinder would be filled in, or made “black.”

This style of price display presented a visual picture which was instantly recognized by the eye. It was easy to discern the mood of the rice traders which was in effect during that session; and, depending on the relationship of that particular Candle bar’s relationship to adjacent and nearby bars, the operator had a basis for making a prediction of the direction of prices for the next day.

Furthermore, when interpreted properly in the light of human judgment, the shape of a bar, especially when considered in conjunction with adjacent or nearby bars, was found to possess an ability to forecast a reversal of major trend.

After long and expensive historical research and translation of old records into English, the Candlestick approach to price charting was brought to the Occidental world about 25 years ago. In the early years, the Candles developed a following only very slowly. More recently, however, professional traders and investors, as well as those who do not trade or invest for a living, have begun to appreciate the advantages of the Candlesticks, to the point at which it seems reasonable to predict that they will be the standard within the foreseeable future.

What is so unusual about the Candles? In short, they form patterns which have meaning in terms of revealing traders’ theretofore-hidden investment rationale, and also in terms of allowing forecasts to be made regarding the future course of price action. Some of these visual formations or images are useful in foretelling the end of a trend and a possible topping out and rollover to the downside (if the major trend has been one of increasing prices) or of bottoming out and rolling to the upside (if the major trend has been one of declining prices).

At the top of an extended rising market, one of the more dependable reversal patterns is the “Evening Star,” a three-bar pattern in which the first bar is a tall white bar; the middle bar is a small “Star” which usually sits higher than the first bar; and the third bar is a tall black candle which usually sits lower than the Star. This formation is bearish in its implications; and the implication is strengthened if the Star is a “Shooting Star,” which looks like its namesake. At the end of an extended declining market, the inverse pattern can also appear; and, perhaps not unexpectedly, its name is the “Morning Star.”

The opposite of the Shooting Star is the “Hammer,” which appears only at the end of an extend downtrend. The Hammer is considered to be one of the more reliable predictors of a possible change of trend to the upside, especially when the next day’s closing price is higher than the closing price of the Hammer.

A “Doji” is a price bar in which the opening price and the closing price are the same. It is considered to be an indicator of a reining-up – of indecision – and of a possible change of trend, when it appears at the end of an extended move in either direction. A Star whose opening price and closing price are the same is called a “Doji Star.” A “Bearish Engulfing” pattern occurs at the top of an uptrend, and is marked by the “real body” (i.e., the cylinder in the price bar) engulfing the real bodies of one or more previous bars. The “Bearish Engulfing” formation is, quite naturally, bearish. Its converse is the Bullish Engulfing pattern, which occurs at the bottom of a downtrend; and, obviously, carries a bullish signal.

In Candlestick parlance, gaps (“windows”) are celebrated as being generators of support and resistance. Often, a comparison of price action before and following a gap clearly reveals the power of a gap to repel prices which venture within it.

The Candles are useful in any time frame, including day trading. Although they are valuable in foretelling reversals, they do not predict the extent of a move. They are perfectly compatible with all “Western” Indicators, and the synergy which often results from the Candles and the Western Indicators used together can be remarkable. Furthermore, the Candles are equally adaptable to use in every financial market, including stocks, indexes, commodities, and Forex.

Technical analysis of Japanese Candlestick price imaging is founded on the hypothesis that price action in the financial markets is not random or mechanical; rather, that it is patterned (if the practitioner is following Elliott Wave theory), and that it is the result of human emotion in action.

There are many practitioners of Candlestick analytics who make their services available to the investing public. Some of them publish investment advisory newsletters (alternatively called “investment newsletters” or “market letters” or permutations thereof); some offer instructional and training seminars, forums, and chat rooms; some publish books; and some of them offer multiple services and products. Their observation of the Candlestick world sometimes leads to a critique of the common wisdom as propounded by the media, and to explicit review of, and commentary on, the state of the markets. Expostulation of the Candlestick analytical technique is not commonly a part of financial news programs, either in the popular printed media or on television; nor are the particulars of Candle theory often the subject of study, research, investigation, or illustration for the benefit of the investing public.

This is unfortunate, because the information which flows from these concepts could often open up new possibilities for investors and be of value to them in their decision making process.

Using Candlestick Charts In Equity Trading

Trading
in the financial markets is not a venue for the timid or for someone that is uneducated in technical analysis. One way of increasing your chances of profitability in the financial markets
is acquiring knowledge in candlestick chart patterns. Candlestick charts have a long history and it has been said that rice traders in eighteenth century Japan used candlestick charting. Applying candlestick charts to stock trading and viewing past trading history of stocks, can give the stock trader an idea of what the stock may likely do in the future.

Individual candlesticks on a stock chart are unique in shape. The body of the candle is different each day depending on whether the stock closed up or down for the day.
If the stock closed up for the day, the color of the candle will be white or light in color in most cases depending on what setting the stock trader has chosen. Also, the candle body is wide with the upper portion of the candle showing where the stock closed on the day and the bottom showing where the stock opened in the trading session. It should be noted that often times there will be thin lines coming from the bottom and top of the candlesticks, but not always. These thin lines are called shadows and show the range in which the stock traded during the day.

In the case of a shadow on the top of a white candlestick, the shadow shows the high of the day that the stock traded during the market session. A shadow at the bottom of the candlestick would show the lowest point that the stock traded during the day. When a stock has a down day, the candlestick will usually be red or a dark color, again depending on the stock traders preference. The same applies for a down day candlestick with the exception that the bottom of the candlestick will show where the stock closed for the day and the upper candlestick will show where the stock opened on the day, the reverse of a white candlestick.

Candlesticks will vary in length depending on price movement during the trading session for each particular day. On days when a stock is moving higher, the stock will show a long white body since the buying pressure pushed the stock higher. On down days where traders and investors are selling, the candlestick represents the sell off with a long red or dark candlestick. Long white candlesticks show buying pressure and long red candlesticks show selling pressure.

Short and fat candlesticks show that a war was being fought during the session between buyers and sellers with no real winner since the price did not change significantly during the session. Also, if there was no candlestick body and only a flat line with shadows on the top and bottom of the straight line, this is called a doji. In some cases the doji appears when a change of trend is about to take place with the stock. The flat horizontal line with no candlestick body represents the struggle that took place during the trading session. The shadows on the top and bottom of the horizontal line represent the high and low during the session. When the doji appears, the following trading session may show that the stock is reversing direction and going the opposite direction of the trend in previous sessions.

Learning to read and understand candlestick charts can unlock a wealth of information about stocks, revealing their past history and what they may do in the future. Reading a candlestick chart is akin to a commander of an army receiving reports from the front lines of a battle, showing the daily struggle between his army and the opposing army. On days when the candlestick is long and white, the buyers reigned supreme. On days when the candlestick is long and red, the sellers won the day. On days when the candlestick is short or non-existent, the battle was a draw with no clear winner.

Candlesticks and their patterns are powerful indicators that can help a trader decide entry and exit points when trading stocks. They can also help in removing the emotion when trading. Emotion tends to remove rational thought and usually causes the trader to make unwise decisions that create losses. Candlestick charting is a tool that every stock trader and investor should have in their arsenal.

Forex Day Trading Systems and Strategies

You've already made the decision to begin your career in forex day trading, but how do you go about choosing which forex day trading system to use? The good news is that choosing a strategy is the most difficult decision you have to make; the bad news is that only you can make this decision. Because you will always open and close your trades within the same 24-hour period, you must choose a forex day trading system that relies on short-term indicators. As a day trader, you should only look for forex day trading systems that accommodate your needs.

You're probably wondering why it's so important to choose a strategy for forex trading. It's very important because the temptation to chase price is so great with enormous leverage and unlimited profit potential. Without a proper forex day trading strategy, all you have to rely on is how you feel, which isn't a reliable indicator. Without one or two forex day trading systems, you won't have the resources you need to succeed. When you're just waiting and speculating on when to enter and exit the market, you're just guessing and you would be better off trying your luck at the Roulette table.

Rule #1: Keep it Simple. When you choose a forex day trading strategy, make sure you understand every aspect of the strategy. Many currency trading systems rely on reading and interpreting data before making a decision to enter or exit the forex market. If you can't read these charts or decipher them, choose a simpler strategy. Forex day trading can be profitable even at small amounts, if you have a clear understanding of your forex day trading system and you implement it correctly.

Rule #2: If You Need Help, Get it! Don't think for one second that because you need help, you won't be successful at forex day trading. Even the largest financial institutions get a help making their money, and there's no reason you can't. Unless you plan to watch the market 24 hours a day, consider using automated trading software. In addition to watching the forex market when you can't, automated software allows you to see the information the software uses to make market decisions. It's almost like having a forex mentor of your very own. Automated software will allow you to see if you've chosen an effective forex day trading strategy.

Rule #3: Stick With It. This rule seems like a no-brainer, but you'd be surprised how many day traders experience a bit of success and cast their forex day trading systems aside. The whole point of choosing an effective day trading system is to make money, and ignoring your trading strategy is guaranteeing loss. A bad day forex trading doesn't mean you've chosen a losing forex day trading strategy; it just means that you had a bad trading day. Give your strategy time to work, and understand you will have winning days and losing days. By sticking with a forex day trading system, you can make sure you have more good days than bad.

Forex Trading Traps

I wish I was reading this a couple of years ago!!

It would have saved me a lot of money!

Well it might not be a lot of money to the guys who sold me their Forex trading systems, but it was to me. I spent thousands of my hard earned and saved dollars on Forex systems that promised big results, yet did not deliver for me.

Don’t get me wrong, some of the Forex systems work; I actually talked to people who did get results from the programs.

Unfortunately I was one of them!

Yes you read it correctly I made money in my first week of trading!

In Forex you basically trade long term or short term, I was doing the short term trading (a day or less).

Yes I made good money thousands of dollars, boy was I excited I was wondering how long had this been going on. Forget the 9 to 5 job that just gets you by, that pays the bills but you don’t have anything left over to live on. I was going to make a killing, retire, work a few hours a day and live the good life!

Everything was great for a couple of weeks then I lost on a few trades, no big deal I will get it back on the next one. Because I had made good money for a couple of weeks I "knew I would get it back".

Then I began to learn what really goes on in the Forex world.

Swimming in shark infested water would be safer than playing with these guys.

Sometimes little bites, then big bites that almost break you in two, yes sir these guys know how to get at you.

This is what happened to me.

The market would be heading steadily in one direction then all of a sudden reverse and take my position out; you guessed it I would lose money. The weird thing about it was that when I did not set my stop loss it hardly happened to me. (The problem with putting a trade on without a stop loss is that you have to watch the trade all the time in case the market makes a big move against you, very dangerous.)

What was going on?

Ok there is a lesson here, the Forex broker was playing games with me he would manipulate the price to stop out my position and take my money! I found that one out too late, but you need to take note there are a lot of crooks out there in the Forex World. These guys know every trick in the book and they have been doing this for years. I started a demo account with another broker and compared the price movements and that’s how I found out that my broker was playing games.

Once I knew their tactics I could change brokers and see if the next one did the same or not put a stop loss on and spend all day in front of the computer. Well I still had to work and pay the bills so that was not going to work for me and frankly I did not have a lot of money left in the account to work with.

I learnt something else during this period; you need to take all the emotion out of your trading. I found that difficult as I had made money to start with and as I am not a robot, making money to start with turned out to be part of my downfall, it clouded my judgement.

What I needed and it is what you need!!!

An honest broker that is happy earning their money from the spread they get for each trade, their commission if you like.

A system that get better than 50% winners and takes the emotion out of the trading!

I was determined to get this Forex thing working for me; I could see the potential I just could not get it working for me.

So I tried several auto trading systems, some that only cost a $100 dollars and others that cost me over a thousand.

The real cheap ones could get a 50% or better winning trade result but only in certain market conditions. If the market was not working the way they assumed I would lose (I was only using demo accounts for these, I have learnt a little bit since I started trading Forex) and all the gains made would disappear.

The systems that cost a lot more where complicated you had heaps of setting that you had to adjust depending on things like, time of day, market trends- steady market volatile market, the currency pair that you were trading etc etc.

You getting the picture? You need to be an analytical person or plainly put a rocket scientist to get it right. I not either of them so that did not work.

Frankly it was all too hard and too costly and I needed a break.

I never gave up on the Forex market I just needed to regroup and start a fresh.

A few months later I was looking at a website that promised results in the Forex market. My first reaction was oh yea I have heard that before, yet I had a look.

These days I know what I am looking for:

• An automated system, to take the emotion out of it.

• A money back guarantee, if they don’t have one then they do not believe it works, so why should I.

• An honest broker that works with the system, it not much good having a system only to find out your broker can't or won't support it.

• A broker that has reasonable spreads, the commission the broker gets on each deal. If the spread is to much it is hard for a lot of systems to make money.

When you drop a few thousand on Forex courses and systems and then a few more on Forex trading, it prompts a lot of soul searching.

These days I know what I am looking for:

• An automated system, to take the emotion out of it.

• A money back guarantee, if they don’t have one then they do not believe it works, so why should I.

• An honest broker that works with the system, it not much good having a system only to find out your broker can't or won't support it.

• A broker that has reasonable spreads, the commission the broker gets on each deal. If the spread is to much it is hard for a lot of systems to make money.

A broker that does'nt deal against you, you win he loses- you lose he wins. Guess what happens in these situations.

A broker that does'nt deal against you, you win he loses- you lose he wins. Guess what happens in these situations.

These days I know what I am looking for:

• An automated system, to take the emotion out of it.

• A money back guarantee, if they don’t have one then they do not believe it works, so why should I.

• An honest broker that works with the system, it not much good having a system only to find out your broker can't or won't support it.

• A broker that has reasonable spreads, the commission the broker gets on each deal. If the spread is to much it is hard for a lot of systems to make money.

• A broker that does not deal against you ie you win he loses, you lose he wins. Guess what happens in this situation.

When you drop a few thousand on Forex courses and systems and then a few more on Forex trading, it prompts a lot of soul searching.

What Do Candlestick Patterns Indicate?

The Japanese candlestick, hereafter simply referred to as candlestick or candle, conveys the open, high, low, close price points for the period in question. For the sake of this article, let’s consider the daily period (using end of day historical data) which is suitable for active and short-term traders.

Candlestick patterns can embrace 1, 2, 3 or even more days. Examples of 1-day candlestick patterns include doji, hammer and harami; 2-day patterns include counterattack, engulfing and separating lines; 3-day patterns include morning star and evening star.

In general terms, the essence of candlestick pattern formations is that they indicate continuance or reversal of an up-trend or a down-trend. This is the basic answer to "What do candlestick patterns indicate?".

For example, a doji is a candlestick pattern where the open and close prices are at the same level. Following a trend in which the stock price has risen or dropped for a duration of many days, the appearance of the doji is a signal that the trend may be coming to an end, with an ensuing reversal of the stock price direction. Therefore, the trader must take the signal and observe what happens on the next trading day and react accordingly.

Let’s look at that example in more detail. Suppose a doji appears after a 10-day run-up in the price of a stock in which the trader is holding a long position. With the appearance of the doji, the trader should take note of this signal and look for a closing price below the doji level on the next trading day. If that happens, the trader would be well-advised to close the long position and take the profit because it is likely that the up-trend is in reversal progression.

This is only one example from the multitude of candlestick patterns. There are entire books and web sites dedicated to the study and discussion of candlestick patterns, what they mean, the interpretation of the candlestick pattern formations, and the trading decisions to be taken.

StockTradersPlace (http://stocktradersplace.com) provides a trend following system based on candlestick technical analysis. http://stocktradersplace.blogspot.com provides a "Stock Trading with StockTradersPlace" companion guide. Show yourself that you can repeatedly execute winning trades using StockTradersPlace as an element of your trading tool box.

Choosing Forex Brokers in USA

The US dollar is one of the most powerful currencies in the forex trading system
. It is actually one of the most basic trading values used in this specific market. So if you are new in the market and you would like to learn the ins and outs of the US dollar trading, you might be able to boost your profits with the help of forex brokers in USA. Forex brokers serve as the middle man between two different parties-you and your buyers or sellers. They can also give you their consultancy services in the process.

You can choose to either get in touch with forex brokers in USA as a consultant or you can also choose to employ them as your trading partner. Either way, they can be an asset for you if you know how to use their influence and expertise accordingly. Two of the most important things that you need to understand when choosing your US forex broker is the forex spread which they currently use and the reputation as well as the capital they have to sustain them.

Utilizing the Forex Spread through these Brokers

A forex spread is actually the method of trading in itself. When you trade with people in the currency market, each network you have can be considered as a spread. But when you make use of forex brokers, they use a number of spread methods to make sure that you get more exposure which can also translate into more profits for them. The term is coined as spread because it makes efficient use of scanning the market for potential customers. But one thing you should keep in mind is that its different spread strokes for different forex brokers.

Forex brokers in USA may or may not publish their prices on their site. This is actually an important point to consider because it helps you understand how much profits you can gain out of them when done in comparison with spreads. There are actually two different types of forex spreads-the fixed spread which makes use of a fixed method and currency rates regardless of the trading time and the variable spread which may depend loosely on the current scene in the trading market.

Reputation and the Brokers' Capital Resources

Of course there's also the issue of choosing your broker depending on the reputation they have. Reputation is important especially if you want to expand your networks. You will also be surprised how some potential business partners may choose to not deal with you if you have a forex broker who's professional ethics are questionable. In the world of forex, it may not always be about profits.

Another important consideration is capital resources, because it gives you an idea of the rates and features you will get to enjoy through the forex broker you choose to hire. Some may be able to waive your fees and there are also those who will be able to connect you with other rising forex markets. They may end up to be a wealthy source of vital business information.

Choosing a Forex Broker That Wont Rip You Off

At the best of times Forex currency trading can be a risky business with a huge potential for profit or loss. As a fulltime trader i have seen the best and the worst that the forex market has to offer, the dizzying highs of large wins, and the gut wrenching lows of people going bust.

You might be a forex trader yourself, or maybe you are just curious about how forex markets work, whomever you are, you need to learn how to seperate the legit forex brokers from the scam merchants. The internet has a great deal of genuine forex dealers offering quality services, it is also unfortunately infected with just as many thieves dressed up as companies who will gladly take your money and then dissapear. This fear of being taken advantage of puts a lot of people off the idea of trading forex, this shouldn't be the case.

Now there are a few key differences between stock markets and forex markets that you are going to have to learn:

1. Forex has no centralised exchange house.

2. Forex trading is 24/7.

3. Forex is a largely unregulated market.

Looking at that list, it kind of seems that the forex market is akin to a wild west town full of outlaws and gunslingers. In this market there is noone to complain to, noone who will hold your hand. So how can you find the genuine dealers amid all the garbage? Do not trust any broker whose reputation cannot be confirmed, and whose company is not tied to the forex market.

The attraction of the forex market can be overwhelming. The scent of huge profits often overpower the common sense of the average person. They enter eagerly, just waiting to invest their life savings.Lying in wait are the scammers with huge promises, they capture the new investors money, and suddenly dissapear.

The good news is, is that many genuine forex brokers do actually exist. Easy-Forex, Oanda, and many more have proven track records that justify their positions in the market. Usually if a company is small, has no affiliation to forex or a financial institution, then stay away. Also a word on looking for reviews about brokers online. You can find honest reviews on forex brokers online, however there seems to be a habit of late of competing forex companies, and/or traders engaging in negative marketing of each other. Dig deeper and you will usually find an honest answer.

So remember:

1. Validate the companies reputation.

2. Make sure they are tied to the forex legitimatly.

3. If the company is small and unheard of, stay away.

4. Finally if the broker has a proven online track record, a legitimate financial institution affiliation, and a few good reviews, give them a try.

My ultimate advice is, if unsure, invest the smallest amount you can, and find out for yourself. This is how i usually used to find brokers, and it worked for me.

John Murphy's Ten Laws of Technical Trading

Which way is the market moving? How far up or down will it go? And when will it go the other way? These are the basic concerns of the technical analyst. Behind the charts and graphs and mathematical formulas used to analyze market trends are some basic concepts that apply to most of the theories employed by today's technical analysts.

John Murphy, StockCharts.com's Chief Technical Analyst, has drawn upon his thirty years of experience in the field to develop ten basic laws of technical trading: rules that are designed to help explain the whole idea of technical trading for the beginner and to streamline the trading methodology for the more experienced practitioner. These precepts define the key tools of technical analysis and how to use them to identify buying and selling opportunities.

Before joining StockCharts, John was the technical analyst for CNBC-TV for seven years on the popular show Tech Talk, and has authored three best-selling books on the subject: Technical Analysis of the Financial Markets, Intermarket Technical Analysis and The Visual Investor.

His most recent book demonstrates the essential visual elements of technical analysis. The fundamentals of John's approach to technical analysis illustrate that it is more important to determine where a market is going (up or down) rather than the why behind it.

The following are John's ten most important rules of technical trading:

1. Map the Trends
2. Spot the Trend and Go With It
3. Find the Low and High of It
4. Know How Far to Backtrack
5. Draw the Line
6. Follow That Average
7. Learn the Turns
8. Know the Warning Signs
9. Trend or Not a Trend?
10. Know the Confirming Signs

1. Map the Trends

Study long-term charts. Begin a chart analysis with monthly and weekly charts spanning several years. A larger scale map of the market provides more visibility and a better long-term perspective on a market. Once the long-term has been established, then consult daily and intra-day charts. A short-term market view alone can often be deceptive. Even if you only trade the very short term, you will do better if you're trading in the same direction as the intermediate and longer term trends.

2. Spot the Trend and Go With It

Determine the trend and follow it. Market trends come in many sizes – long-term, intermediate-term and short-term. First, determine which one you're going to trade and use the appropriate chart. Make sure you trade in the direction of that trend. Buy dips if the trend is up. Sell rallies if the trend is down. If you're trading the intermediate trend, use daily and weekly charts. If you're day trading, use daily and intra-day charts. But in each case, let the longer range chart determine the trend, and then use the shorter term chart for timing.

3. Find the Low and High of It

Find support and resistance levels. The best place to buy a market is near support levels. That support is usually a previous reaction low. The best place to sell a market is near resistance levels. Resistance is usually a previous peak. After a resistance peak has been broken, it will usually provide support on subsequent pullbacks. In other words, the old "high" becomes the new low. In the same way, when a support level has been broken, it will usually produce selling on subsequent rallies – the old "low" can become the new "high."

4. Know How Far to Backtrack

Measure percentage retracements. Market corrections up or down usually retrace a significant portion of the previous trend. You can measure the corrections in an existing trend in simple percentages. A fifty percent retracement of a prior trend is most common. A minimum retracement is usually one-third of the prior trend. The maximum retracement is usually two-thirds. Fibonacci retracements of 38% and 62% are also worth watching. During a pullback in an uptrend, therefore, initial buy points are in the 33-38% retracement area.

5. Draw the Line

Draw trend lines. Trend lines are one of the simplest and most effective charting tools. All you need is a straight edge and two points on the chart. Up trend lines are drawn along two successive lows. Down trend lines are drawn along two successive peaks. Prices will often pull back to trend lines before resuming their trend. The breaking of trend lines usually signals a change in trend. A valid trend line should be touched at least three times. The longer a trend line has been in effect, and the more times it has been tested, the more important it becomes.

6. Follow that Average

Follow moving averages. Moving averages provide objective buy and sell signals. They tell you if existing trend is still in motion and help confirm a trend change. Moving averages do not tell you in advance, however, that a trend change is imminent. A combination chart of two moving averages is the most popular way of finding trading signals. Some popular futures combinations are 4- and 9-day moving averages, 9- and 18-day, 5- and 20-day. Signals are given when the shorter average line crosses the longer. Price crossings above and below a 40-day moving average also provide good trading signals. Since moving average chart lines are trend-following indicators, they work best in a trending market.

7. Learn the Turns

Track oscillators. Oscillators help identify overbought and oversold markets. While moving averages offer confirmation of a market trend change, oscillators often help warn us in advance that a market has rallied or fallen too far and will soon turn. Two of the most popular are the Relative Strength Index (RSI) and Stochastics. They both work on a scale of 0 to 100. With the RSI, readings over 70 are overbought while readings below 30 are oversold. The overbought and oversold values for Stochastics are 80 and 20. Most traders use 14-days or weeks for stochastics and either 9 or 14 days or weeks for RSI. Oscillator divergences often warn of market turns. These tools work best in a trading market range. Weekly signals can be used as filters on daily signals. Daily signals can be used as filters for intra-day charts.

8. Know the Warning Signs

Trade MACD. The Moving Average Convergence Divergence (MACD) indicator (developed by Gerald Appel) combines a moving average crossover system with the overbought/oversold elements of an oscillator. A buy signal occurs when the faster line crosses above the slower and both lines are below zero. A sell signal takes place when the faster line crosses below the slower from above the zero line. Weekly signals take precedence over daily signals. An MACD histogram plots the difference between the two lines and gives even earlier warnings of trend changes. It's called a "histogram" because vertical bars are used to show the difference between the two lines on the chart.

9. Trend or Not a Trend

Use ADX. The Average Directional Movement Index (ADX) line helps determine whether a market is in a trending or a trading phase. It measures the degree of trend or direction in the market. A rising ADX line suggests the presence of a strong trend. A falling ADX line suggests the presence of a trading market and the absence of a trend. A rising ADX line favors moving averages; a falling ADX favors oscillators. By plotting the direction of the ADX line, the trader is able to determine which trading style and which set of indicators are most suitable for the current market environment.

10. Know the Confirming Signs

Include volume and open interest. Volume and open interest are important confirming indicators in futures markets. Volume precedes price. It's important to ensure that heavier volume is taking place in the direction of the prevailing trend. In an uptrend, heavier volume should be seen on up days. Rising open interest confirms that new money is supporting the prevailing trend. Declining open interest is often a warning that the trend is near completion. A solid price uptrend should be accompanied by rising volume and rising open interest.

"11."

Technical analysis is a skill that improves with experience and study. Always be a student and keep learning.

- John Murphy

Definitions: Leonardo Fibonacci was a thirteenth century mathematician who "rediscovered" a precise and almost constant relationship between Hindu-Arabic numbers in a sequence (1,1,2,3,5,8,13,21,34,55,89,144,etc. to infinity). The sum of any two consecutive numbers in this sequence equals the next higher number. After the first four, the ratio of any number in the sequence to its next higher number approaches .618. That ratio was known to the ancient Greek and Egyptian mathematicians as the "Golden Mean" which had critical applications in art, architecture and in nature.

Stochastics - an oscillator popularized by George Lane in an article on the subject which appeared in 1984. It is based on the observation that as prices increase, closing prices tend to be closer to the upper end of the price range; conversely, in down trends, closing prices tend to be near the lower end of the range. Stochastics has slightly wider overbought and oversold boundaries than the RSI and is therefore a more volatile indicator. The term "stochastic" refers to the location of a current futures price in relation to its range over a set period of time (usually 14 days).

Swing Charting

What do Point & Figure charts, Kagi charts, Renko charts, Filtered Waves, and Zig Zag have in common? They are all related to swing charting in some way. Swing charting follows a simple concept: additional information to the chart is made when a new price swing penetrates the level of the prior swing in the same direction. The basis of this type of charting is the filter. Once prices have moved by the distance specified by this filter, a new line is drawn next to the previous one. In a nutshell, it is a chart that shows up and down price movement of a minimum size regardless of the time it takes.

Another concept of swing charts is that it works similarly to a breakout system. A new high made after so many days is a buy signal and a sell signal occurs when a new low is made after so many days. This has been written about for years, by Gann, Merrill, Livermore, Donchian, Hochheimer, Wilder, and Keltner, to name a few. They all used some form of swing charting.

Many swing based systems use volatility as the basis for determining the parameters to use for determining the swing filter. This way, as the current volatility increases, the number of days used in the calculation of the swing filter decreases.

On of the more simple swing systems was Donchian's Four-Week Rule. Buy when the current price goes above the highs of the previous 4 full weeks. Sell (go short) when the price falls below the lows of the previous 4 full weeks. That's it. Guess what? In 1970, Dunn and Hargitt Financial Services rated it as the best of the popular systems of the day.

There are a host of different swing charting techniques. Some use 3 consecutive new highs as an up move and will remain as such until 3 consecutive new lows. The list is endless, but the concept is the same.

Arthur Merrill first wrote about filtered waves in his book, Filtered Waves, in 1977. His swing filter was merely a percentage of price movement. This technique removes actual price from the decision and can work on just about any time series. For all you engineers, it is just an amplitude filter; it helps remove undesirable information.

Zig-Zag is the term used by many charting programs, including StockCharts.com, for this filtered wave type of charting.

One simple example is to display price data identifying only moves of 5% or greater.




One can see that it filters out all the small price variations and only shows the moves of 5% or greater.

IMPORTANT: One caveat however, the last leg of Zig Zag is going to change as the most recent price changes until prices are reversed by the filter amount (5% in the above chart). The important item is the turning point, which is the point at which prices have reached at least the filter amount since they reversed. If you see a turning point, then prices have already moved at least the filtered amount in the opposite direction. Please read this paragraph again.

Below is the same price data but with a 10% filter being used. Notice how it removed some of the smaller waves.



Below is a chart using the exact same data, but with a filter of 15%. That is, only moves of 15% or greater are shown by Zig Zag. Notice that the small up-move in the last few days of the previous charts is gone. This is because prices have not moved upward by 15% since the down leg started.



Swing charting is a viable tool for trading and making investment decisions. It covers all the basics:

*stay with the trend
*limit losses
*follow well-defined rules

Elliott Wave Theory

According to the Elliott Wave Theory, stock prices tend to move in a predetermined number of waves consistent with the Fibonacci series. Specifically, Elliott believed the market moved in five distinct waves on the upside and three distinct on the downside. The basic shape of the wave is shown below.

R. N. Elliott believed markets had well-defined waves that could be used to predict market direction. In 1939, Elliott detailed the Elliott Wave Theory, which states that stock prices are governed by cycles founded upon the Fibonacci series (1-2-3-5-8-13-21…).


Waves one, three and five represent the 'impulse', or minor up-waves in a major bull move. Waves two and four represent the 'corrective,' or minor down-waves in the major bull move. The waves lettered A and C represents the minor down-waves in a major bear move, while B represents the one up-wave in a minor bear wave.

Elliott proposed that the waves existed at many levels, meaning there could be waves within waves. To clarify, this means that the chart above not only represents the primary wave pattern, but it could also represent what occurs just between points 2 and 4. The diagram below shows how primary waves could be broken down into smaller waves.




Elliott Wave theory ascribes names to the waves in order of descending size:

1. Grand Supercycle
2. Supercycle
3. Cycle
4. Primary
5. Intermediate
6. Minor
7. Minute
8. Minuette
9. Sub-Minuette

The major waves determine the major trend of the market, and minor waves determine minor trends. This is similar to the way Dow Theory postulates primary and secondary trends. Elliott provided numerous variations on the main wave, and placed particular importance on the golden mean, 0.618, as a significant percentage for retracement.

Trading using Elliott Wave patterns is quite simple. The trader identifies the main wave or Supercycle, enters long, and then sells or shorts, as the reversal is determined. This continues in progressively shorter cycles until the cycle completes and the main wave resurfaces. The caution to this is that much of the wave identification is taken in hindsight and disagreements arise between Elliott Wave technicians as to which cycle the market is in.

Here is an example of an Elliott Wave cycle. Ideally, Wave Two would not retrace more than 66%, but you can get a real sense of the wave patterns in action from the chart, just as well.


For more information, check out Elliott Wave Principle: Key to Market Behavior by Robert Prechter.

MARKETIVA FOREX

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Additional Information
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Contact Marketiva Team

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Bollinger Band Tactics

Bollinger Band Tactics

Bollinger Bands draw their power through two important characteristics. First, they exhibit an underlying trend-range axis just like price or moving averages. Second, they constrict or expand as they move. The interaction between these two forces draws unique patterns as bars unwind through its boundaries. Candlesticks work especially well with bands. For example, a Doji that strikes through a constricting band effectively signals a short-term reversal.

BBs bend and twist in response to price movement. These undulations predict how far trends should stretch before central tendency forces them back toward a central axis. Complex relationships develop between price-band direction and price-band constriction. For example, a trend tends to pause when constricting bands oppose it. It takes great skill to predict the bands' ultimate impact on price but is well worth the effort. More than any other tool, BBs pinpoint hidden swings and telegraph whether the profit door lies open or closed.

Bands may swing through relative highs or lows and then pull back into proportional retracement to start another trend thrust. Or they can enter extended ranges that meander back and forth without direction. Movement frequently stops dead in its tracks when price rises into a falling band or drops into a rising one. Sideways bands can appear in both rangebound and trending markets. Price often fails to reach new high or low territory until bands expand to clear the path. In many ways, Bollinger Bands predict time better than they predict price.


Buy Signal: The top Bollinger Band rises toward a test of the intraday high as Worldcom drops. This sharp divergence signals the eventual breakout after price finally reverses off of the bottom band. Watch band slope closely when bars return to test important highs or lows. It often reveals the time and force needed to push price through a S/R barrier.

The skilled eye watches constricted bands in real-time to estimate the buying or selling force required to push them out of the way. They work extremely well during the second test of an important high or low. When markets finally break out, expanding bars often shoot into the band's edge where congestion forms a flag until the BB allows further movement. Bands constrict tightly around narrowing price in sideways markets. Apply NR7 methodology here to anticipate an impending positive feedback event.

Bollinger Bands signal early warning of trend change. Sharp price movement forces bands to expand outward. When these active markets finally turn sideways, the bands slowly tighten and roll toward price. Time passes and the BB door closes on rapid vertical movement. Experience enables the swing trader to quickly estimate the time required before bands will tighten and plan accordingly.

Strong buying or selling may push price well outside a band. A tall bar can even print completely through the barrier in extreme conditions. General tactics suggest that violent reversals often follow these major band violations. But trading against these events carries risk since markets can print a short series of these volatile bars before the reversal takes place. Also note that this price action rarely occurs during intraday markets, except at the open.

Reduce risk by dropping down to the next lower time frame and waiting for a reversal there before executing a countertrend position. Odds also improve if the thrusting bars run into other forms of S/R that allow cross-verification for the entry level. Stay defensive during the trade. Once price returns within the band's limits, the underlying trend can reappear quickly unless the pullback generates other reversal signals. Look for Dark Cloud Cover or a similar candle pattern that fills any gap created by the bar outside the band. This complex setup can produce windfall profits if managed properly.

Swing traders work the quiet middle ground of Bollinger Bands for consistent profits. Build strategies that enter countertrend positions at one band and exit at the other. These swing setups face far less whipsaws than breakout entries at band extremes. Keep in mind that the center band presents a natural profit obstacle that needs special consideration when calculating reward: risk. Make sure a safe exit near this center point still produces a decent profit for the trade.


Multiple Support-Resistance: A broad range sets up profitable swing conditions for KLA-Tencor. This 13-bar Bollinger Band combines with simple horizontal S/R to uncover natural reversal zones at band extremes. Enter a countertrend position when the prior bar prints a candlestick reversal outside the band line. Wait for a break of the center band if no clear signal arises. Exit if price does not expand quickly in the other direction or if the signal fails and the candle shadow gets taken out. Watch S/R closely for positive feedback that will eventually carry price out of the sideways market.

Use multi time frame Bollinger Bands to avoid expensive trend relativity errors. Look at the same market through 3 different time frames. This corresponds to one above and one below the chart that aligns with the holding period. Each setting produces a different range of band extremes and relative price location within the indicators. Match reward: risk to the central time frame but observe all intervening S/R on the other charts. Consider whether the holding period allows enough time to mount barriers and reach targets at other band levels.

Keep in mind that all bands change dynamically in response to price. This allows continuous feedback that shifts target values with each bar. Experience with this powerful indicator helps swing traders anticipate how it will move. The longer that price travels sideways, the tighter the bands become. Trend change for the bands themselves first begins with a turn by the band closest to the prior price trend. For example, when an uptrend prints along a top band, expect this side of the indicator to turn down before its twin when price moves into a range or downtrend.

Combine Bollinger Band study with momentum-based indicators. This helps filter directional movement from rangebound markets and improves trade timing. Add MA Ribbons to price and display the MACD Histogram across the lower pane. Price often remains well within band constriction during the early phases of new positive feedback events. As these indicators show rising momentum, shift attention to natural pattern/band breakout levels and look for entry within narrowing bars.