1How To Increase Forex Profits 100% in 10 MinutesThis simple exercise will increase Forex profits 100% and works for 99% of all short-term FX traders - stop trading so much - widen out your stops - widen out your profit targets - and only trade in the direction of the trend indicated by 4 hour chart.
1) Stop trading so much
Sure there are no commissions but the spreads are HUGE and believe it or not (well you’ll believe it after you do the simple exercise below) the spreads are reducing your profits 100%!
2) Widen out your stops
Initial stop loss should be a minimum of 23 points; I use between 23 and 35 point stop losses for short-term trading.
3) Widen out your profit targets
Unless you think a trade can make you 100 points or more don’t do it.
4) Only trade in the direction of the 4 hour chart
The real money is made in the direction of the trend
Simple exercise
1) Download all your trades for the year into an excel spreadsheet (if you don’t know how to do this ask your broker for help).
2) Determine the dollar value of the spread for each trade.
3) Sum up the total dollar value of all spreads for all trades and add this number it to your current account balance; this is your spread adjusted account balance.
4) Take your spread adjusted current account balance and divide it by your opening balance at beginning of year; the result will be a percentage change.
5) Take your actual current account balance and divide it by your opening balance at beginning of year; the result will be a percentage change.
6) Subtract your spread adjusted year to date percentage change from your actual year to date percentage change.
7) That number should be 100% or more
Take the necessary steps as outlined above (1 to 4) and improve your results 100%
Jumat, 01 Februari 2008
Rabu, 16 Januari 2008
Forex News - a Tip for Massive Gains and an Opportunity Right Now
The true value is about 80.00 a barrel.
Every time sentiment has pushed it up toward the psychological $100.00 we have sold it - look at our other articles. If you would sold on the last two pops to this level, you will have seen the decline is $20,000 based upon 1 contract.
Its only sentiment that drove prices up - greed and fear drove the market NOT Supply and demand.
A CURRENCY TRADE EXAMPLE
Now let's look at a currency that is overbought and a huge profit to be made.
The euro against the dollar is the trade.
Regular readers again will know that 1.50 is the psychological number that traders want to target.
1.50 is too high just like $100 in crude is. This is simply sentiment driving prices near these levels and the euro will not trade above this level in our view.
The last time it got up we sold (see our other articles) and said it would target 1.46 it did and that's a tidy 600 pips profit.
It's up testing the highs again - but the bad news for the dollar is discounted in the price and its now only greed and fear driving the euro.
All the arguments you here for dollar weakness are discounted:
A 50 bps rate cut, a housing market in trouble, sluggish growth etc and there is no more bad news that's not known.
Now throw into the equation that the euro zone has problems of its own (which traders seem not to bothered about) and you could see a break in the dollars favour.
How far?
We expect the dollar to trade back to 1.46 and if this level gives way target 1.40
The majority don't agree with us (they didn't in crude either) but we won't let that bother us, were sticking with our euro short view to give us another thumping profit.
When looking for extreme bullish or bearish news to break a price always get confirmation of weakening momentum on your forex charts, so you are trading the reality and not getting in to soon.
Will Rogers once said:
"I only believe what I read in the papers"
He was joking but many traders simply take it as gospel when a news story says the dollar is going to fall into oblivion.
Hold your head, look at the facts and if prices gone too far to soon, get ready to trade against the losing herd.
Can you do the above?
Of course you can - it simply means standing back, examining the facts and then looking for trading signals on your forex charts.
This article was written at 8AM Eastern time 15th January
Every time sentiment has pushed it up toward the psychological $100.00 we have sold it - look at our other articles. If you would sold on the last two pops to this level, you will have seen the decline is $20,000 based upon 1 contract.
Its only sentiment that drove prices up - greed and fear drove the market NOT Supply and demand.
A CURRENCY TRADE EXAMPLE
Now let's look at a currency that is overbought and a huge profit to be made.
The euro against the dollar is the trade.
Regular readers again will know that 1.50 is the psychological number that traders want to target.
1.50 is too high just like $100 in crude is. This is simply sentiment driving prices near these levels and the euro will not trade above this level in our view.
The last time it got up we sold (see our other articles) and said it would target 1.46 it did and that's a tidy 600 pips profit.
It's up testing the highs again - but the bad news for the dollar is discounted in the price and its now only greed and fear driving the euro.
All the arguments you here for dollar weakness are discounted:
A 50 bps rate cut, a housing market in trouble, sluggish growth etc and there is no more bad news that's not known.
Now throw into the equation that the euro zone has problems of its own (which traders seem not to bothered about) and you could see a break in the dollars favour.
How far?
We expect the dollar to trade back to 1.46 and if this level gives way target 1.40
The majority don't agree with us (they didn't in crude either) but we won't let that bother us, were sticking with our euro short view to give us another thumping profit.
When looking for extreme bullish or bearish news to break a price always get confirmation of weakening momentum on your forex charts, so you are trading the reality and not getting in to soon.
Will Rogers once said:
"I only believe what I read in the papers"
He was joking but many traders simply take it as gospel when a news story says the dollar is going to fall into oblivion.
Hold your head, look at the facts and if prices gone too far to soon, get ready to trade against the losing herd.
Can you do the above?
Of course you can - it simply means standing back, examining the facts and then looking for trading signals on your forex charts.
This article was written at 8AM Eastern time 15th January
learn forex
If you are serious about getting into currency trading, then you would do well to learn at least the basics of Forex trading before you ever submit that first order. In order to get a handle on the essentials, you can make use of several basic suggestions that will serve you well throughout your trading career. Here are some valuable tips that will help you learn to trade in the Forex market and be successful.
One of the first things you need to learn is that you have a great deal of knowledge to acquire. Many people jump right in and learn as they go. Sometimes that works without a lot of problems. However, many people who go this route end up losing a lot of investment capital before they begin to get the hang of the process. Before you make that first attempt at a trade, spend some time learning the basic terms and how to go about researching the background of a given trade you are considering.
Books on Forex trading can be a great way to go about learning the basics of Forex. One rule of thumb is to go with books that are written with the beginner in mind. Often, they will go to slightly more effort to explain some of the terms you will need to know, as well as provide easy to understand scenarios to illustrate each of the basic procedures involved with trading. Also, make sure that the books you read were written in the recent past. While many of the fundamentals never change, there are a number of variables with this type of investment. Older books may contain information that is out of sync with current market conditions. You will do much better if you learn based on the here and now.
Along with books, check into online resources to broaden your education about the Forex market and current trading methods. There are a number of web sites that are devoted to the subject of currency trading. Many of them will include a wealth of articles that deal with one facet or another of the process, and can provide excellent food for thought. Along with the articles, you may also come across a message board or forum that will prove to be very helpful. The forums allow you to begin networking with others who have an interest in the Forex market, and pick up some valuable trading tips.
If possible, you may want to learn the ropes of Forex trading by finding a mentor. By working with someone who is very experienced with the market, you will have the chance to try your hand at deals while someone is watching over your shoulder. This approach can allow you to learn as you go, and probably will also make it possible for you to pick up some valuable tips that would take years to acquire. A mentor may be a trusted associate who is willing to take you under his or her arm, or a professional that works with you for a fee.
One of the first things you need to learn is that you have a great deal of knowledge to acquire. Many people jump right in and learn as they go. Sometimes that works without a lot of problems. However, many people who go this route end up losing a lot of investment capital before they begin to get the hang of the process. Before you make that first attempt at a trade, spend some time learning the basic terms and how to go about researching the background of a given trade you are considering.
Books on Forex trading can be a great way to go about learning the basics of Forex. One rule of thumb is to go with books that are written with the beginner in mind. Often, they will go to slightly more effort to explain some of the terms you will need to know, as well as provide easy to understand scenarios to illustrate each of the basic procedures involved with trading. Also, make sure that the books you read were written in the recent past. While many of the fundamentals never change, there are a number of variables with this type of investment. Older books may contain information that is out of sync with current market conditions. You will do much better if you learn based on the here and now.
Along with books, check into online resources to broaden your education about the Forex market and current trading methods. There are a number of web sites that are devoted to the subject of currency trading. Many of them will include a wealth of articles that deal with one facet or another of the process, and can provide excellent food for thought. Along with the articles, you may also come across a message board or forum that will prove to be very helpful. The forums allow you to begin networking with others who have an interest in the Forex market, and pick up some valuable trading tips.
If possible, you may want to learn the ropes of Forex trading by finding a mentor. By working with someone who is very experienced with the market, you will have the chance to try your hand at deals while someone is watching over your shoulder. This approach can allow you to learn as you go, and probably will also make it possible for you to pick up some valuable tips that would take years to acquire. A mentor may be a trusted associate who is willing to take you under his or her arm, or a professional that works with you for a fee.
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