Sunday, June 17, 2007

Forex Day Trading system - Importance of an oscillator

Forex Day Trading system - Importance of an oscillator such as Stochastic

Lot of people try to place trade using a lot of indicators. Well the more the indicators, the less the number of forex trades one can place since one will wait for all the indiactors to line up which will not happen too often.

More than that it also confuses matter. According to me use of 2-3 technical indicators tops is good enough. Let one be your leading indicator such as EMA crossover or the bounce from fibonacci level. The others of maximum two can be your confirming indicator such as MACD divergance or the stochastics or the RSIs.

The best way to use stochastic which is an oscillator indicator is to check if they are in the overbought level or oversold level. If they are in overbought level, then look for opportunities to sell the currency pair. However if it is oversold, look for the opportunity to buy thye currency pair.

Keep the indicators very limited. Remeber the placing of a forex trade on any currency pair such as USD/CHF or GBP/USD or EUR/USD or any currency pair is all about probability..Its not gaurenteed that the trade will be profitable..However the probability of a profitable trade will be high.

Thats all in this message..Keep visiting to learn more on forex day trading.

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Wednesday, June 13, 2007

A key point to fit in your forex trading style

A key point to fit in your forex trading system -

I was reading an ebook on Forex Trading the other day. It was full of trading strategies. Ofcourse not all strategies fit trading style of everyone. Some are for forex day trading and some for swing trading.

However there is one point that caught my attention on money management - "Never let a profitable situation end in a loss" This means that if your open currency trade is running in profit of lets say 25 pips, adjust its stop to breakeven so that if the currency pair turns its trend direction, it doesn't end in a losing proposition.

This is a very important & vital point. Never ever let your trade be like that at one point it was in +30 pips and next moment it hits your stop loss of 45 pips. Protect the profits by adjusting the stops.

Meanwhile speaking on strategies, Forex Trading Machine is a PDFT (Price Driven Forex Trading) technique. Many of you have asked if it is suitable for you. My answer is that it depends your trading style. It mentions 3 strategies whic are very innovative and are extremely successful.

Some of these are applicable as day trading and rest is swing trading. Since this ebook mentions system that use price rather than technical indicators, its definitely a must for all those who are not comfortable with the technical indicators.

Avi Frister has really put a lot of thought in coming up with this ebook. He has also cme up with some videos to help you understand the system. Its worth atleast visiting that website and check what all is contained in that forex trading ebook

Thats all in this message...Visit again to learn more on the exciting world of currency trading.

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Sunday, June 10, 2007

EUR/USD still looking bearish - More pounding to come from $$

EUR/USD still looking bearish - More pounding to come from $$

The EUR/USD has just now broken a trend support line on daily chart. The ideal way to trade now will be to use your forex trading systems of fibonacci retracements. Identify the next target the USD can go to on the daily chart and then identify the entry and exit points on the 1 hr chart if you do currency swing trading, or 15 min chart if you do the forex day trading.

By looking at the chart, 1.3250 seems to be the next targetwhere the currency pair of EUR/USD may rest. Similarly the GBP/USD is also looking as bearish for the coming week. Alot will depend on the fundamental announcements going tocome next week. There are lots of forex fundamental news on GBP and some on USD that are going to be declared next week. So, watch for their timings before you place a trade.

Thats all in this session...Visit again to learn more on the exciting world of online forex trading.

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Saturday, June 09, 2007

A landmark post - USD in massive gains

A landmark post - USD in massive gains

There are 2 points I am trying to cover in this message. The 1st is personnal .. Here it is -

This is the 100 th post on this forex trading blog.. Yes, the overall count has reached triple digits. It started as a small journey with a quick introduction. Now it is a blog where people come regularly to get updates about happenning in Forex market from an angle they can understand very easily. 200+ RSS subscribers are a proof of that.

Out of the last 100 posts, 37 were on common technical indicators such as EMA, MACD, parabolic sar, pivot points. This category seems to be very popular among readers. However the most popular topic has been updates on NFP (Non Farm payroll) fundamental announcement and news.

During the 100 posts I have also mentioned quite a few trading strategy and system. Also, I have recommended the popular ebooks and courses..

The 2nd point I would like to cover in this topic is retaliation of USD against all majors ..USD has been on gaining spree for the last 2 days..It has already moved close to 200 pips against EUR and GBP.. Experts say that it is primarily because of strong rally in stock market or the DOW. However I feel that from technical standpoint also it was due.. The majors had a big run against USD for quite a while. Now the currency pairs will start falling back towards 200 EMA

Thats all in this session..Keep visiting to learn more on Forex day trading.

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Saturday, June 02, 2007

Famous and reliable resources to learn Forex Trading

Famous and reliable resources to learn Forex Trading -

Thanks for visiting my site again. As I was mentioning in my last post, this post is about relaible resources for learning currency trading. Without learning from the great resources if you start trading, let me tell you that it is as good as seeing money go down the drain.

So, choice of a good resource ( an ebook, or a video course, a paid mentore etc. or even a free website like mine..:-)) is the key to learn forex trading.

Here are my recommended resources -

1. Peter Bain's forex mentor - By far the best video based course. Contains a lots of DVDs and detailed explaination with example and conatins 6 month membership to his daily recommendations. Costs about $450 which I consider is equivalent of 45 pips on EUR/USD only..:-)

2. Avi Frister's Forex Trading Machine - As you know I recommend this ebook heavily. Excellent and very simple to understand. Great examples in the ebook. Besides, here is another thing I was told by him in one of his emails in last few days since I bought his Forex Trading Machine ebook - "He has created video lessons of what he teaches in the ebook". Also, Avi Frister is telling all the buyers about the strategy on high to make money during NFP announcement. The price is just $97 (equivalent to 10 pips..:-))

3. 5 EMA forex trading system - Another excellent ebook. Simple and yet very very effective. As you know that EMA are the straight forward technical indicators to use. This ebook explores its use in this system very effectively. Adam Burgoyne has truly created a fantastic product. Price for this ebook is again very low - $97 (10 pips..:-))

I won't recommend you to subscribe to any forex trading signal services..Whats the fun if you don't know what you are doing.

Mind you, you should buy the courses/ebooks explaining a strategy only when you have solid understanding of technical indicators..After that if you buy any of the recommended resources, they will make great sense to you.

Thats all in this post. Visit again to learn more on the world of forex trading.

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Friday, June 01, 2007

Top Sources to learn forex trading online

Top Sources to learn forex trading online

Sorry for posting after quite a while..I was working on something which I'll share with you within next few messages. Its kind of nice new thing.


People generally tend to ask me how should they learn about trading forex. This is a very common question. With so much information flowing on internet and significant amount of it being scan, its not difficult for someone to get overwhelmed. There are lots of ebooks that tell you about a secret strategy with which one can make loads of money immediately.


To be honest, I have not come across any strategy that will make loads immediately..However there are few ebooks on forex trading that are reliable and are written by good authors.


However before anyone starting directly on ebook on forex trading to learn some strategy, I would strongly recommend to understand the concepts of commonly used technical indicators (such EMA, MACD, RSI, Fibonacci, stochastics and parabolic SAR) and important fundamental announcements (Such as FOMC rate decision, NFP etc.).


There is no point of going through an ebook if one doesn't know the technical indicators and important fundamental news.


To learn these things, the recommended resources are -


1. My blog..:-).,Yes, I have posted quite a few articles on to learn forex trading and commonly used indicators.


2. Investopedia


After these things are learned, then one should find a reliable course or an ebook for that matter to understand a reliable strategy.


I'll go through the recommended resources in the next post..Keep visiting to learn more on Forex and currency trading.

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