Tuesday, September 18, 2007
Forex Day Trading - FOMC Rate decision push to market
Forex Day Trading - FOMC Rate decision push to market
Today the FOMC meeting was scheduled and the fx market was speculating about the rate interest decision from the meeting as that will have direct impact on $$ based currency pairs.
If the interest rates go up AS PER EXPECTATION then its USD bullish and which means USD will get stronger and will cause EUR/USD, GBP/USD and other pairs to tumble.
But today the forex news on FOMC was not as per expectation and this has caused the currency pairs to move in anti-$$ direction.
The market jump was significant and my trade was open. But my trade was in favour of USD, so guess what, my trade closed by hitting -35 pips stop loss. Well thats the drawback of trading during fundamental announcement time. The market moves due to fundamental announcement, but it honors technical also. E.g. the market will move heavily and then hit the 200 EMA to retrace back.
Thats all in this message..Visit again to learn more on forex day trading.
Today the FOMC meeting was scheduled and the fx market was speculating about the rate interest decision from the meeting as that will have direct impact on $$ based currency pairs.
If the interest rates go up AS PER EXPECTATION then its USD bullish and which means USD will get stronger and will cause EUR/USD, GBP/USD and other pairs to tumble.
But today the forex news on FOMC was not as per expectation and this has caused the currency pairs to move in anti-$$ direction.
The market jump was significant and my trade was open. But my trade was in favour of USD, so guess what, my trade closed by hitting -35 pips stop loss. Well thats the drawback of trading during fundamental announcement time. The market moves due to fundamental announcement, but it honors technical also. E.g. the market will move heavily and then hit the 200 EMA to retrace back.
Thats all in this message..Visit again to learn more on forex day trading.
Labels: FOMC, forex day trading, forex ema, forex news, fundamental announcement, fx market, stop loss
Saturday, August 25, 2007
Forex day trading - How do you decide the stop loss?
Forex day trading - How do you decide the stop loss?
The importance of a stop loss when placing a trade, is very evident. One will not want the entire account balance to come to zero which can happen if stop loss is not in place.
But how do you decide a stop loss? Should it be anything?? Are there any factors that decide the stop loss?
There absolutely are the factors -
1. Foremost is how much can you risk? That amount should not only drive your stop loss, but it should also decide the time frame you should forex trade on.
2. The indicators you use. Ideally the stop loss should be the below the indicators you use to decide entry point. For example if you use 5 ema, then your stop loss can be few pips below that ema (exponential moving average)
3. The time frame you place your forex trades at. If you use 15 min chart, the stop loss should be at least 20 pips. If 1 hr chart, then atleast 40-45 pips.
4. Fundamental news or announcements. Always make sure that there are no fundamental announcements such as NFP (Non Farm Payroll) or FOMC etc are coming out. Since they can hit your stop loss in seconds if the news are against your direction of trade.
Thats all in this message...Keep visiting to learn more on online forex trading.
The importance of a stop loss when placing a trade, is very evident. One will not want the entire account balance to come to zero which can happen if stop loss is not in place.
But how do you decide a stop loss? Should it be anything?? Are there any factors that decide the stop loss?
There absolutely are the factors -
1. Foremost is how much can you risk? That amount should not only drive your stop loss, but it should also decide the time frame you should forex trade on.
2. The indicators you use. Ideally the stop loss should be the below the indicators you use to decide entry point. For example if you use 5 ema, then your stop loss can be few pips below that ema (exponential moving average)
3. The time frame you place your forex trades at. If you use 15 min chart, the stop loss should be at least 20 pips. If 1 hr chart, then atleast 40-45 pips.
4. Fundamental news or announcements. Always make sure that there are no fundamental announcements such as NFP (Non Farm Payroll) or FOMC etc are coming out. Since they can hit your stop loss in seconds if the news are against your direction of trade.
Thats all in this message...Keep visiting to learn more on online forex trading.
Labels: entry and exit, forex day trading, forex pips, forex technical indicators, fundamental announcement, nfp, stop loss
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.
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.
Labels: 5 EMA forex trading system, avi frister, currency trading, forex pips, forex trading ebook, forex trading machine, stop loss
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
