Saturday, March 31, 2007
Forex Day Trading System : importance of correct forex charts
Forex Day Trading System : importance of correct forex charts to follow trade
I have observed that most of the traders and newbies generally tend to focus on the book to learn trading stratgies or systems and not focus on rest of the essentials. What they don't realize is that it doesn't matter if you have wheat in the house and not the utensils to cook it.
Same goes with forex trading. Along with having a sound forex day or swing trading system, you also need to have other necessaties lined up. One of such necassity is a good trading chart. Without the currency trading chart its as good as doing gambling. Your entry points, exit points may not be right, you will not know the trend and other points.
Here are the important points to consider when identifying a good forex chart -
1. It should update realtime.
2. It should allow yoputo fluctuate between different time periods such as a daily chart or 1 hr chart or 5 min chart etc.
3. It should allow you to put atleast some popular technical indicators such as EMA, RSI, MCD and Fibonacci. Others are parabolic sar, stochastics, candlesticks etc.
4. It should allow to follow charts of multiple currency pairs such as EUR/USD, USD/CHF or GBP/USD etc.
Thats all in this session of forex day trading..Visit again to learn more on the exciting world of currency trading.
I have observed that most of the traders and newbies generally tend to focus on the book to learn trading stratgies or systems and not focus on rest of the essentials. What they don't realize is that it doesn't matter if you have wheat in the house and not the utensils to cook it.
Same goes with forex trading. Along with having a sound forex day or swing trading system, you also need to have other necessaties lined up. One of such necassity is a good trading chart. Without the currency trading chart its as good as doing gambling. Your entry points, exit points may not be right, you will not know the trend and other points.
Here are the important points to consider when identifying a good forex chart -
1. It should update realtime.
2. It should allow yoputo fluctuate between different time periods such as a daily chart or 1 hr chart or 5 min chart etc.
3. It should allow you to put atleast some popular technical indicators such as EMA, RSI, MCD and Fibonacci. Others are parabolic sar, stochastics, candlesticks etc.
4. It should allow to follow charts of multiple currency pairs such as EUR/USD, USD/CHF or GBP/USD etc.
Thats all in this session of forex day trading..Visit again to learn more on the exciting world of currency trading.
Labels: currency trading, EMA, Entry, exit, forex chart, Forex day trading system, forex pips, rsi, technical analysis
Monday, March 26, 2007
Forex Day Trading system : Hitting of stop loss on my last trade
Forex Day Trading system : Hitting of stop loss on my last trade
Today the EUR/USD market unexpectedly turned. Euro became stronger and the currency pair jumped about 100 pips in a span of 2 hours..As expected, it would have taken out the stops of all the forex traders that were short.
That included me as well. My trade was short and was up 67 pips. My stop loss as 40 pips away. Since my stop loss was hit, I ended with a profit of 27 pips on this trade. Not bad!!
The weaking of $$ (dollar..:-)) was seen across the board..In GBP, AUD, NZD and all. However I saw that Eur and so the swiss franc were the big gainers.
Having a stop loss is always advantageous since it protects you from such quick reversals..No matter what kind of trade one may have like on the basis of technical analysis and indicators such as rsi, macd, stochastics etc or if it is a trade purely based on economic analysis..However your stoploss should give room for the currency pair to move as well. So, no point having a stop loss of 15 pips on an hour chart, since the currency pair may just hit that and then go in the direction where one anticipated. True for swing trading as well as forex day tradong and any system for that matter.
Thats all in this session..By the way all those who are using ebook of Avi Frister Forex Trading Machine , how are you finding that ebook??simple and easy to use, right?? And what about the one by Adam Burgoyne called "5 EMA forex trading system"
You might find that these ebooks have different methodologies..which are easy to use and easy to practice.
Today the EUR/USD market unexpectedly turned. Euro became stronger and the currency pair jumped about 100 pips in a span of 2 hours..As expected, it would have taken out the stops of all the forex traders that were short.
That included me as well. My trade was short and was up 67 pips. My stop loss as 40 pips away. Since my stop loss was hit, I ended with a profit of 27 pips on this trade. Not bad!!
The weaking of $$ (dollar..:-)) was seen across the board..In GBP, AUD, NZD and all. However I saw that Eur and so the swiss franc were the big gainers.
Having a stop loss is always advantageous since it protects you from such quick reversals..No matter what kind of trade one may have like on the basis of technical analysis and indicators such as rsi, macd, stochastics etc or if it is a trade purely based on economic analysis..However your stoploss should give room for the currency pair to move as well. So, no point having a stop loss of 15 pips on an hour chart, since the currency pair may just hit that and then go in the direction where one anticipated. True for swing trading as well as forex day tradong and any system for that matter.
Thats all in this session..By the way all those who are using ebook of Avi Frister Forex Trading Machine , how are you finding that ebook??simple and easy to use, right?? And what about the one by Adam Burgoyne called "5 EMA forex trading system"
You might find that these ebooks have different methodologies..which are easy to use and easy to practice.
Labels: 5 EMA forex trading system, Adam Burgoyne, avi frister, EUR/USD, forex pips, forex technical indicators, forex trading machine, stop loss, technical analysis
Sunday, March 25, 2007
Forex Day Trading System : Another opportunity to trade EUR/USD
Forex Day Trading System : Another opportunity to trade EUR/USD
I mentioned that my previous trade on this currency pair had me a profit of 53 pips..That was when I went long..
After my trailing stop loss was hit, when I looked at the currency pair again on a daily chart, I found that the currency pair has hit a massive resistance..A kind of double top and the currency pair has started retracing..
So, as you can guess, This is another opportunity to trade on hourly chart..This time to go short on EUR/USD. This means that I am buying the USD by selling Euro.
Thats exactly what I did, as soon as the currency pair closed below a particular EMA, I went short. Currently I am at a profot of 37 pips..This is such a nice opportunity, that I again bend one of my trading rules and have left my trade open on the weekend.
This is another trading strategy that can be used. In this forex day trading system, one can look the currency pair to hit a support or resistance on the hourly chart. If the next candlestick shows a reversal patter, go long/short in the direction of reversal candle and place the trade using a 15 min or 5 min. chart with profit target of 25-45 pips
Tis strategy is equally effective for forex swing trading..This time the daily chart to be refferred to identify support and resistance level and trade to be placed using hourly chart for a currency pair. generally, the profit targets should be 80-150 pips!!!
This is a sort of a mechanical forex trading, but not entirely mechanical.
By the way has anyone of you triedany alert service to do currency trading? How effective is it?
Thats all in this message..Visit again to learn more on the online currency trading market.
I mentioned that my previous trade on this currency pair had me a profit of 53 pips..That was when I went long..
After my trailing stop loss was hit, when I looked at the currency pair again on a daily chart, I found that the currency pair has hit a massive resistance..A kind of double top and the currency pair has started retracing..
So, as you can guess, This is another opportunity to trade on hourly chart..This time to go short on EUR/USD. This means that I am buying the USD by selling Euro.
Thats exactly what I did, as soon as the currency pair closed below a particular EMA, I went short. Currently I am at a profot of 37 pips..This is such a nice opportunity, that I again bend one of my trading rules and have left my trade open on the weekend.
This is another trading strategy that can be used. In this forex day trading system, one can look the currency pair to hit a support or resistance on the hourly chart. If the next candlestick shows a reversal patter, go long/short in the direction of reversal candle and place the trade using a 15 min or 5 min. chart with profit target of 25-45 pips
Tis strategy is equally effective for forex swing trading..This time the daily chart to be refferred to identify support and resistance level and trade to be placed using hourly chart for a currency pair. generally, the profit targets should be 80-150 pips!!!
This is a sort of a mechanical forex trading, but not entirely mechanical.
By the way has anyone of you triedany alert service to do currency trading? How effective is it?
Thats all in this message..Visit again to learn more on the online currency trading market.
Labels: EMA, EUR/USD, Forex day trading system, forex pips, mechanical forex trading, stop, stop loss, support and resistance, swing trading
Wednesday, March 21, 2007
Forex Day Trading System : My trade on EUR/USD
Forex Day Trading System : My trade on EUR/USD
In my last post I mentioned that I opened a EUR/USD trade on a buy side at 1.3306 with target of 1.3345. I kept the stop at 1.3268..
Currently I am 80 pips profit since the EUR bounced higher crossing the double top of 1.3345 resistance. Due to this, I closed on half of the position at 1.3345. This is a gauranteed 39 pips profit for me..The other I am keeping afloat to book more profits.
In between, my trade was in 30 pips loss and as per my trading rules, once the currency pair breaks below a particular EMA level, am supposed to close the trade..However I identified that the 1.3375 was a strong support level with currency pair of EUR/USD consistently bouncing from that, so I stayed in the trade despite it required me to bend my trading rules.
In a nut shell, this trade converted from forex day trading to swing trading.
Different people have different trading styles - Some generally like to have some strategies that are more of trading guidelines and have flexibility of defying them as per forex market conditions like the example mentioned above. Other prefer to have a total mechanical approach. They are the ones that generally don't put too much of focus on technical indicator and their analysis such as mACD, RSI or even EMA (exponential moving average) for that matter.
Many of you have sometimes asked me which ebook is the best for finding the strategies..1st of all, in my blog itself if you continously follow, I reveal strategies from time to time as and when I come across any..However, if you are looking for a specialized ebook that mentions inside out of a forex trading strategy, here are the 2 books which I recommend on the basis of limited trades I placed using the currency trading system mentioned in them -
1. Mechanical trading style - For, this style of traders, the book I recommend is Forex Trading Machine by Avi Frister. I placed 4 swing trades using cash cow system out of which 3 were profitable. Total profit 210 pips.
2. Flexible trading style - These traders should definitley buy 5 EMA forex trading system by Adam Burgoyne. Great system..I placed 3 trades using my demo account on this with total profit of 177 pips.
So, decide what is your trading style and if you are looking for a system, then above mentioned two ebooks should be bought. However, use the strategies mentioned in them in your demo account 1st. Also, if you are totally new to forex trading, I suggest you to learn the important technical indicators 1st.
Thats all in this message..Visit again to learn more on online currency day trading.
In my last post I mentioned that I opened a EUR/USD trade on a buy side at 1.3306 with target of 1.3345. I kept the stop at 1.3268..
Currently I am 80 pips profit since the EUR bounced higher crossing the double top of 1.3345 resistance. Due to this, I closed on half of the position at 1.3345. This is a gauranteed 39 pips profit for me..The other I am keeping afloat to book more profits.
In between, my trade was in 30 pips loss and as per my trading rules, once the currency pair breaks below a particular EMA level, am supposed to close the trade..However I identified that the 1.3375 was a strong support level with currency pair of EUR/USD consistently bouncing from that, so I stayed in the trade despite it required me to bend my trading rules.
In a nut shell, this trade converted from forex day trading to swing trading.
Different people have different trading styles - Some generally like to have some strategies that are more of trading guidelines and have flexibility of defying them as per forex market conditions like the example mentioned above. Other prefer to have a total mechanical approach. They are the ones that generally don't put too much of focus on technical indicator and their analysis such as mACD, RSI or even EMA (exponential moving average) for that matter.
Many of you have sometimes asked me which ebook is the best for finding the strategies..1st of all, in my blog itself if you continously follow, I reveal strategies from time to time as and when I come across any..However, if you are looking for a specialized ebook that mentions inside out of a forex trading strategy, here are the 2 books which I recommend on the basis of limited trades I placed using the currency trading system mentioned in them -
1. Mechanical trading style - For, this style of traders, the book I recommend is Forex Trading Machine by Avi Frister. I placed 4 swing trades using cash cow system out of which 3 were profitable. Total profit 210 pips.
2. Flexible trading style - These traders should definitley buy 5 EMA forex trading system by Adam Burgoyne. Great system..I placed 3 trades using my demo account on this with total profit of 177 pips.
So, decide what is your trading style and if you are looking for a system, then above mentioned two ebooks should be bought. However, use the strategies mentioned in them in your demo account 1st. Also, if you are totally new to forex trading, I suggest you to learn the important technical indicators 1st.
Thats all in this message..Visit again to learn more on online currency day trading.
Labels: 5 EMAs Forex Trading System, Adam Burgoyne, avi frister, EMA, Forex day trading system, forex pips, rsi, technical analysis
Monday, March 19, 2007
Forex Day Trading system - Quick chances of market reversel for EUR/USD
Forex Day Trading system - EUR/USD at important resistance area
This currency pair is at a very high point as per the daily charts..So, it is at a very strong resistance area. If it breaks that, then the trading charts will show the forex market zoom.
If the market is high on daily charts, one still has the chance to do forex day trading by being bullish since in that case you are looking for a profit of 20-25 pips per trade. However, the swing trading is slightly risky since the swing trading is mostly done using an hour chart.
I currently have opened a buy trade at 1.3302 with a stop loss at 1.3268. I a expecting the currency pair to touch about 1.3345 types..which is a profit of 40 pips.. So you can consider this trade as more of a day trading.
Thats all in this message..Visit again to learn more on currency trading.
This currency pair is at a very high point as per the daily charts..So, it is at a very strong resistance area. If it breaks that, then the trading charts will show the forex market zoom.
If the market is high on daily charts, one still has the chance to do forex day trading by being bullish since in that case you are looking for a profit of 20-25 pips per trade. However, the swing trading is slightly risky since the swing trading is mostly done using an hour chart.
I currently have opened a buy trade at 1.3302 with a stop loss at 1.3268. I a expecting the currency pair to touch about 1.3345 types..which is a profit of 40 pips.. So you can consider this trade as more of a day trading.
Thats all in this message..Visit again to learn more on currency trading.
Labels: currency trading, EUR/USD, Forex day trading system, forex pips, forex technical indicators, online forex trading
Sunday, March 11, 2007
Forex Day Trading system: My results for the last NFP announcement
Forex Day Trading system: My results for the last NFP announcement.
Few days back I mentioned in my post that I am going to trade Non Farm Payroll as a trial using Avi Frister 's system in Forex Trading Machine course..
Along with that I thought of trying another forex strategy that I came to my mind few days back..Its more of a hedging technique.
I cannot tell you the details about the strategy that "Forex trading machine" course tells or else Avi will sue me..:-)..However, I can share with you the results of my gains in the trades I placed -
I placed 3 forex trades on 3 currency pairs on my Demo Account -
a. Buy Trade on GBP/USD using Avi's forex day trading system for NFP fundamental announcement.
b. Long on EUR/USD on an entry price using my strategy
c. Long on USD/CHF on an entry price using my strategy
My target on trade b & c was 50 pips each and stop loss was 25 pips.
Here is what happenned -
a. Trade A went successfully and I acheived good amount of pips.
b. Trade b was loss of 25 pips
c. trade c was profit of 50 pips
In all, its still early to say about my startegy, however I can say that Forex trading machine is a nice course and contains good forex trading systems for day as well as swing trading..
I still would like to place few more trades using the cash cow startegy before I can say for certain..However, what ever trades I have placed have been profitable..
This week I am going to place trade on my mini trading account with real money using Avi's system..And, yes, I'll share the results with you.
For people looking for a book on startegy for currency trading, for now I'll recommend
Forex Trading Machine
Thats all in today's post on NFP which is more about my experience in this month's fundamental news.
Few days back I mentioned in my post that I am going to trade Non Farm Payroll as a trial using Avi Frister 's system in Forex Trading Machine course..
Along with that I thought of trying another forex strategy that I came to my mind few days back..Its more of a hedging technique.
I cannot tell you the details about the strategy that "Forex trading machine" course tells or else Avi will sue me..:-)..However, I can share with you the results of my gains in the trades I placed -
I placed 3 forex trades on 3 currency pairs on my Demo Account -
a. Buy Trade on GBP/USD using Avi's forex day trading system for NFP fundamental announcement.
b. Long on EUR/USD on an entry price using my strategy
c. Long on USD/CHF on an entry price using my strategy
My target on trade b & c was 50 pips each and stop loss was 25 pips.
Here is what happenned -
a. Trade A went successfully and I acheived good amount of pips.
b. Trade b was loss of 25 pips
c. trade c was profit of 50 pips
In all, its still early to say about my startegy, however I can say that Forex trading machine is a nice course and contains good forex trading systems for day as well as swing trading..
I still would like to place few more trades using the cash cow startegy before I can say for certain..However, what ever trades I have placed have been profitable..
This week I am going to place trade on my mini trading account with real money using Avi's system..And, yes, I'll share the results with you.
For people looking for a book on startegy for currency trading, for now I'll recommend
Forex Trading Machine
Thats all in today's post on NFP which is more about my experience in this month's fundamental news.
Labels: avi frister, forex day trading, Forex day trading system, forex pips, forex trading machine, fundamental announcement, nfp, non farm payroll, online forex trading
Saturday, March 10, 2007
Forex Day Trading System: the volatility when news break out
Forex Day Trading System: the volatility when news break out
People many times ask me why does the volitility increase significantly when a fundamental news announcement such as FOCM or NFP comes out?
It may seem to be simple question for some of you, but I must tell you that it is very important for those who don't know.
Volatility is driven by the number of people in the forex market to buy or sell a currency pair in day trading. So, when the news breakout, the banks or the traders realize what is the true value of the currency. So, lets say if US fed release a fundamental announcement that is favourable for USD, it would mean that people need to buy dollar and close all the positions which are not in short in dollar.
This will increase the volatility tremendously and the candlestick bars will get bigger and all the traders who do technical trading will jump in..In other words, the online forex trading market will become active..
Thants all in today's post..Like I said in many previous posts, Keep visiting to learn more in the day trading of the currency market..You can add this page to your favourites or can add subscribe to the RSS feed by adding the chicklets on your yahoo/google or technorati page..
People many times ask me why does the volitility increase significantly when a fundamental news announcement such as FOCM or NFP comes out?
It may seem to be simple question for some of you, but I must tell you that it is very important for those who don't know.
Volatility is driven by the number of people in the forex market to buy or sell a currency pair in day trading. So, when the news breakout, the banks or the traders realize what is the true value of the currency. So, lets say if US fed release a fundamental announcement that is favourable for USD, it would mean that people need to buy dollar and close all the positions which are not in short in dollar.
This will increase the volatility tremendously and the candlestick bars will get bigger and all the traders who do technical trading will jump in..In other words, the online forex trading market will become active..
Thants all in today's post..Like I said in many previous posts, Keep visiting to learn more in the day trading of the currency market..You can add this page to your favourites or can add subscribe to the RSS feed by adding the chicklets on your yahoo/google or technorati page..
Labels: Forex day trading system, forex technical indicators, fundamental announcement, fundamental news, nfp, non farm payroll, volatility
Thursday, March 08, 2007
Forex Day Trading System - The most volatile time of the month is NFP (Non Farm Payroll)
Forex Day Trading System - The most volatile time of the month
Tomorrow is the most volatile time in a month of the currency trading market..Yes its Non Farm Payroll time.. I like the way the forex pairs jumps during this announcement..The candlesticks size is big, the technical indicators such as RSI, EMA or MACD etc don't make sense and all the analysis goes for a toss..
Its really exciting..I generally do not trade this fundamental news announcement..However, I bought Avi frister course of Forex Trading Machine sometime back..The course comes with a strategy on how to trade the NFP news..I am going to apply this strategy on my demo account to check how is the strategy working..My target will be just 25 pips..no more..no lesss.
As always, I'll share the results with you..
Meanwhile, some of you who hava asked how has been the results of the cash cow strategy of this course..Here are the details -
1. Trade 1 - 100 pip profit..
2. trade 2 - I customized the strategy a bit to apply under certain different rules..I ended up with 60 pip profit on my demo account..
Although I made a big profit by trading NZD/USD..it was 191 pips..
As far as the Forex Trading Machine system goes, its too early for me to say how reliable is it though I had too profitable trades, but I would like to make few more trades using the strategies mentioned in that.
Thats all in today's post..Incase you have bought the forex trading machine course yourself, do share with me your results if you have done the day trading of the NFP news.
Visit again to learn more on currency trading.
Tomorrow is the most volatile time in a month of the currency trading market..Yes its Non Farm Payroll time.. I like the way the forex pairs jumps during this announcement..The candlesticks size is big, the technical indicators such as RSI, EMA or MACD etc don't make sense and all the analysis goes for a toss..
Its really exciting..I generally do not trade this fundamental news announcement..However, I bought Avi frister course of Forex Trading Machine sometime back..The course comes with a strategy on how to trade the NFP news..I am going to apply this strategy on my demo account to check how is the strategy working..My target will be just 25 pips..no more..no lesss.
As always, I'll share the results with you..
Meanwhile, some of you who hava asked how has been the results of the cash cow strategy of this course..Here are the details -
1. Trade 1 - 100 pip profit..
2. trade 2 - I customized the strategy a bit to apply under certain different rules..I ended up with 60 pip profit on my demo account..
Although I made a big profit by trading NZD/USD..it was 191 pips..
As far as the Forex Trading Machine system goes, its too early for me to say how reliable is it though I had too profitable trades, but I would like to make few more trades using the strategies mentioned in that.
Thats all in today's post..Incase you have bought the forex trading machine course yourself, do share with me your results if you have done the day trading of the NFP news.
Visit again to learn more on currency trading.
Labels: currency trading, Forex day trading system, forex technical indicators, forex trading machine, nzd/usd, rsi, technical analysis
Tuesday, March 06, 2007
Forex Day Trading System - USD booms
Forex Day Trading System - USD booms!!
Anyone who is watching the currency trading charts must have realized that the USD is bullish the big time..And its bullish across the board with EUR, GBP, CHF, AUD, NZD everyone stumbling against Greenback retaliation..Except JPY!! Yes, Yen is giving bigtime pounding to the $$..
Thats because the JPY is too much driven by the fundamentals..Thats the primary reason I don't day trade USD/JPY currency anymore since I do trading by technical analysis using indicators such as EMA, RSI or MACD etc..
I entered the trade the other day NZD/USD, which I closed at 191 pips profit..In between I was in 230 pips profit, but I stayed in the trade till I got a valid exit signal..
Thats the important concept, enter the trade only when your trading system for day or swing trading mentions for forex market and exit only when the technical indicators ask you to do so..
Thats what the philosophy I applied and ended up with 191 pips profit..
Thats all in today's session..Please visit again to learn for on currency or also called trading the forex.
Anyone who is watching the currency trading charts must have realized that the USD is bullish the big time..And its bullish across the board with EUR, GBP, CHF, AUD, NZD everyone stumbling against Greenback retaliation..Except JPY!! Yes, Yen is giving bigtime pounding to the $$..
Thats because the JPY is too much driven by the fundamentals..Thats the primary reason I don't day trade USD/JPY currency anymore since I do trading by technical analysis using indicators such as EMA, RSI or MACD etc..
I entered the trade the other day NZD/USD, which I closed at 191 pips profit..In between I was in 230 pips profit, but I stayed in the trade till I got a valid exit signal..
Thats the important concept, enter the trade only when your trading system for day or swing trading mentions for forex market and exit only when the technical indicators ask you to do so..
Thats what the philosophy I applied and ended up with 191 pips profit..
Thats all in today's session..Please visit again to learn for on currency or also called trading the forex.
Labels: EMA, Entry, EUR/USD, exit, forex pips, forex technical indicators, MACD, nzd/usd, rsi, technical analysis, USD/JPY
Thursday, March 01, 2007
Forex Day Trading System - NZD/USD broke out
Forex Day Trading System - NZD/USD broke out
Thats what trading currency is all about. A currency pair that is range trading or moving very slow is bound to break free from the shakles of support and resistance and then starts trending strongly..
Its more like a runner who keeps running and reduces pace to catch some breeathe only to start running once again.
I was watching NZD/USD for last 5 days and was anticipating that this currency pair is very good for day trading or swing trading forex under any system..When it broke, Immediately jumped on it and am currently 75 pips in profit..
At this time, the indicators don't matter such as RSI or MACD and in many cases even EMA..what I generally do is identify a support and resistance level to see where the forex pair will bounce from..
Thats all in today's session..keep visiting to learn more in trading the popular market of forex.
Thats what trading currency is all about. A currency pair that is range trading or moving very slow is bound to break free from the shakles of support and resistance and then starts trending strongly..
Its more like a runner who keeps running and reduces pace to catch some breeathe only to start running once again.
I was watching NZD/USD for last 5 days and was anticipating that this currency pair is very good for day trading or swing trading forex under any system..When it broke, Immediately jumped on it and am currently 75 pips in profit..
At this time, the indicators don't matter such as RSI or MACD and in many cases even EMA..what I generally do is identify a support and resistance level to see where the forex pair will bounce from..
Thats all in today's session..keep visiting to learn more in trading the popular market of forex.
Labels: currency trading, Forex day trading system, forex technical indicators, nzd/usd, range trading, swing trading
