RESISTANCE DROP - forex trading course book

RESISTANCE DROP ~ forex trading course book

Resistance is a powerful word, but in the market it can mean the end of a long climb up the latter of a successful bullish run. Points of resistance arent necessarily concrete, think of them more as a tightened rubber band that if you push into it to hard, it can send you plummeting very quickly.

Resistance is what it implies, a possible push against current price action. There are two correct responses you can have at a resistance, turn back (with a proper candlestick confirmation), or wait to see if the resistance is overcome, You never want to go head on into resistance because chances are you will get your butt handed to you. The other thing you dont want to do is automatically turn back without a little push. YOU DONT ALWAYS WANT OR HAVE TO BE IN THE MARKET. There are times when you need to be on the sidelines in observation mode; at a point near resistance is one of those times. Trying to break resistance is like trying to run over a locomotive on a bicycle. You cant do it!! Your best option at resistance is to rest to see either the strength or weakness of your price action. Whether price is successful at demolishing or chipping away resistance or does a turnabout, wait until it makes a concrete decision before following. NOTE: wherever price leads, follow until you get a signal that it is no longer safe to do so, or until you have had your fill of a nice fat profit.



Let other traders jump in front of the locomotive to slow it down; DONT YOU DO IT! Save yourself and wait until it is safe. Resistance points can either be safety zones put in place to help you protect your profits or the force and authority to crush you if you try to cross the line. When you come to a resistance point it means STOP!!!!, DO NOT PROCEED WITH CAUTION it is a RED LIGHT, when it is green, proceed with caution because there are times when price will break resistance only to fall back limp under the weight of the break through triumph.

This is not rocket science.

YES, YOU CAN DO THIS (^_^)

PRACTICE, DRILL, and REHEARSE ON YOUR DEMO!!!!!!!!!!!!
EDUCATION, EDUCATION, EDUCATION

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WHAT ARE MARKET MAKERS - forex trading best selling books

WHAT ARE MARKET MAKERS ~ forex trading best selling books

In the financial markets, we often hear the term Market Makers, but who are the Market Makers and what do they do????????????

Market Makers are the people who insure that your orders get filled, they keep the market liquid. If you want to move 3,000,000 shares of xyz and there is no buyer waiting for those shares; the Market Makers will buy those shares from you even if though there is no buyer on the other end of the transaction.

Wont the Market Maker go broke doing this???????????

No the Market Makers are Banks and very large financial institution that make their money off of the the difference between the Bid/Ask price which is referred to as the spread. The spread acts to offset the risk of their buying your xyz with no seller lined up in case something goes wrong. Though the spread is often very little, millions of transactions a day creates a very lucrative profit for the Market Maker.

The Market Maker makes money by buying your xzy at 25.5 and reselling it at 25.8. The Market Marker buys low and sells high or sell high and buy low. The Market Maker takes advantages of both the buy/sell, making money in both directions as the market goes up and as the market comes down.

Can a Maker Maker lose money??????????

Sure, if the Market Maker misjudges the market sentiment thinking that the market is going to go up when it comes down. If he bought your xyz at 25.5 and it falls to 13.3, the Market Maker is in trouble if unable to get rid of those shares before price plummets .

Market Makers also get rebates from ECNs (electronic communication networks) for each share that is sold to you at the bid price. On the other hand, the trader who buys the bid of an ECN (your trading platform) is charged a fee. The Market Maker will profit regardless of what kind of order you place whether buy/sell.

In short the market maker makes it possible for you to buy/sell whether there is an existing counterpart to your trade or not for a small fee as long as there is a bid/ask price available.


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YOU CAN DO THIS (^_^)

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