Options Trading Unearthing the Commandments and Indicators - forex quotes from trading charts

Options Trading Unearthing the Commandments and Indicators ~ forex quotes from trading charts

The popularity of the options trading market is always on top. No one can simply be active in this kind of enterprise if he is unprepared to tackle the most important things that encompass it. There are jargons, techniques, and commandments which have to be taken into consideration and be learned by heart. Most of the times, the person who makes himself ignorant is oftentimes the one who digs up his own pitfall. For you not to suffer a terrible fate, all that you have to ensure is that of abiding by what is certainly a bunch of concepts which must be inculcated into your mind.

A Brief Background

The buying and selling of options is generally considered to be one of the most attractive and then economical ways of making yourself a part of the stock market. Investments can turn out to really big profits. The shares need to be disposed of within a particular time frame or else there will be no profit at all. The seller then has the preference to wait some more until the market proves to be well enough to accommodate a good trade. What matters most is for the trader to keep track of the date of termination of those options.

A List of the Commandments and Reminders

Are you up and about to hit the options trading market? As part of the basics, you have to learn some of the very fundamental factors that will lead you towards the path to success. For starters, here are the very relevant commandments as well as reminders which you must keep in mind.

First thing on the list is that you must not let any option reach its expiration without getting credits for it. You must understand that your options have set deadlines. Prior to the stipulated expiration, you should let it go and make sure that you earn what is due you.

Second, never ever forget the expiration days of your options. As mentioned above, you need to let it profit before its expiration. Meaning to say, every second counts and you are racing against time.

Third, place enough importance on the ask price or option bid. Although you should be flexible, it still matters that you become keen to the real ask prices and bid.

Fourth, always have a set of plans. Be ready to switch your plan A with that of plan B whenever necessary. 

Fifth, never buy any option that cant sell. You know your main objective as you trade. That is, to make profits.

Sixth, dont imprison yourself in a type of market that will make it really hard for you to get your way out. There is no one but you who is going to be held responsible for your actions.

Seventh, never pass the time. Always work with the right pacing for the market to execute its own move. Meaning, you should know when to strike and when to avail of the highest value that the market is offering.

Eighth, refrain from buying options from the markets that exude higher risks especially in terms of price precariousness. 

Given these commandments and reminders about options trading, you have to program yourself towards following them. Take note that your own success highly depends on how wise your decisions will be. These are merely your guidelines. You still need to concert your effort to make things work.

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NO MANS LAND GUEST POST - great forex trading books

NO MANS LAND GUEST POST ~ great forex trading books

The No Mans Land Strategy is actually a very simple strategy.

It is based on Multiple Time Frames, Moving Averages (5 - 22 - 42) , and Pivot Points (for Support and Resistance), and I only run it on GBP.

The signal is generated from H4 Candle. I take the previous High + 10 pips ( you may use any number you like) + spread as a Buy Stop Order, while for the Sell Stop Order is previous Low - 10 pips.

Suppose I have a target 20 pips from my Buy Stop or Sell Stop Order. I then look to see whether there are some Support/Resistance or MA or Trendline Support/Resistance ahead to act as a barrier to the move I want to make. If there is, then I use the next S/R or MA or trendline S/R as a new point of calculation for my Buy Stop or Sell Stop Order. I repeat this step on the H4, H1, M30, M15 and M5.

Here is an example :
Prev High of H4 : 1.6300
Prev Low of H4 : 1.6250
Spread : 3 pips

Buy Stop order : 1.6300 + 10 + 3 = 1.6313 --> TP 20 pips = 1.6333
Sell Stop order : 1.6250 - 10 = 1.6240 --> TP 20 pips = 1.6220

I check my H4 Chart, to see if there is any resistance from 1.6313 to 1.6333, if not, then I go to my H1.
I continue repeating the above step. Suppose I find Resistance on 1.6320. I then recalculate making 1.6320 the new basis for calculating my Buy Stop Order.
So my new calculation is : 1.6320 + 10 + 3 = 1.6333 ---> TP 20 pips = 1.6353.
Then I recheck to see if there is any resistance that might prevent me from reaching my new target.

I do this until I get to M5.

This is why I called this strategy : No Mans Land.
Pivots, S/R, MA, Trendlines S/R are things that I consider landowners.

For example:
There is Pivot Resistance at 1.6250 and Trendlines R on 1.6265. This 15 pips distance I consider as "Pivots Land and Trendlines Land."
I dont want to fight either Lands owner, so I avoid them. I prefer to trade on "No Mans Land" where, there is no land owner who will be angry if I steal a few pips from the market.

I do the exact opposite for my Sell Stop Order. For the trendline I use the DeMark Indicator found at the Forex Factory.

The idea behind this strategy is to make a high percentage of winning trades. It works very nicely at the London open, around 6-7 GMT, depending on H4 cycle from the brokers chart we use to analyze. ( I like to use the ALPARI-UK, as I trade the London open).

I usually look to gain 20 pips; but if I am constantly profitable with this strategy, I think I can be one of the few winner in the forex market. The BIG BOSS who drives the market, that come from the big financial institutions and old-fashioned people who use just candlestick pattern and support-resistance as their trading guide; I am trying not to fight them, but to align myself with them.

Thanks Eko and Aan

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A Basic Introduction to Firmly Trading Mindset - forex trading chart download

A Basic Introduction to Firmly Trading Mindset ~ forex trading chart download

Lots of individuals talk concerning the wonders of trading and exactly how it often is best approached. However understanding how to firmly establish and establish your entry signals will mean plenty to firmly setting the very best path to firmly trading, so, a basic introduction to firmly trading needs to be so as.

The primary goal to firmly trading is for profit, since the penultimate goal for its to firmly sell and get a profit. however do take note that trading is like gambling, where one cant verify or tell what exact market forces are at play and just what it might ultimately do to firmly spell your trading choices.

 

Self determination is another key to your trading success. No one will tell you what to do next, you have to plan for yourself, expecially since there are no hard and fast rules for this career.

Other people may tell you what to do, and they could be right for a time, but do try to consider that the point is that the market fluctuates, and trading is about watching the market, analyzing it, and acting on your own.

Understand and manager your opportunities and risks.

All those people grabbing opportunities mean that the really good ones go away.
The random opportunity that most likely pops up in a trader’s life is a crisis in supply. Something has interrupted the normal flow of supply and demand, dramatically raising the price and this is a temporary chance. 

Others will also be jumping on opportunities the same as you do. These may be the regular suppliers, those with surplus stock or another trader with a source elsewhere.

Wisely judge the risk and make your move.

Scamming is a career for some, so always be wary of people offering cutthroat deals or tempting offers. Thoroughly read the conditions of a contract, count zeros, and just be aware of every possible fine print on documents before signing.

Gambling to win means not letting the house make the rules. The difference between luck and success lies in the amount of risk managed. Sometimes you could get lucky and at other times not, so risk analysis and management lie at the heart of any method that can be termed reliable.

Setbacks happen and this is a risk in trading, where there are casualties and losses.  Play at the stakes and risk levels you can afford, don’t lay down all your cards and have nothing left to pick up on. Make every effort to know the market. This will help a lot in determining how you could establish the ins and outs of the market you are in.

Every trader needs to know his territory,and those item markets he is interested in

Trading is a world of compound interest, challenges and opportunities. One can invest in buying and selling more items in a single item market, you can pick up when you fell there is a slack on one item or you can diversify into other types of items.

The nature of the market is purposeful chaos. This is so because the market is the aggregate actions of thousands of people, therefore it cannot be trusted. It will change on you at the flick of a finger, void plans, erase profits, render prior knowledge obsolete or even render you penniless if you don’t play your cards right.Patterns change, so don’t just rely on it totally. As what the previous point indicates, one day it could be favorable for you, but that can change the next day, even the next hour or so. So this is a basic introduction to a trading mindset and this can help you be on your way to more profitable gains and calculated risks.

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STRATEGY VIDEOS IN ONE PLACE - forex trading ebooks

STRATEGY VIDEOS IN ONE PLACE ~ forex trading ebooks

My Friends, I am always honored to have you along. I am going to post some strategic videos here that you can book mark so that you can review them from time to time. Keep in mind that every market day is different. Your candlesticks are always telling a story. Look at the past story of the candles to help accurately interpret what your candles are telling you right now.

ALWAYS WAIT FOR PROPER TRADE SET-UPS. Great trading is mostly waiting to meet with great profit opportunity. No truly great trader is in the market all of the time. A truly great trader waits to pounce when she/he sees profit ripe on the horizon. However, I know some scalpers that make more than 200pips a day, but they wait for proper trade set-ups.

You have to choose the trading style that fits your personality, as there are many ways to successfully trade forex and no one has the monopoly on great trading. We have just found what works for us successfully. When you find good stuff, learn what you can, then tweak it to make it your own. Forex is a consistent building of knowledge.

YOU CAN DO THIS (^_^)

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Ivy bot discount 120 only 5 copies - forex trading basics tutorial

Ivy bot discount 120 only 5 copies ~ forex trading basics tutorial

Only 5 copies remains, grab it here ... Ivybot Instant Free Download, top EA

Why does IvyBot succeed while all others fail?

The reasons are endless, but one prime cause stands out.

Back tests ALONE are worthless...
Period, end of story.

We dont ONLY rely on back test results !

Here is why... As you know, the markets constantly change.
IvyBot is intuitive enough to recognize not only major shifts in market patterns, but minor ones too!

Simply put... a Forex trading robot that made money in a back
test a few months ago probably will not work today.

Let us be clear, IvyBot back tests are amazing.

However, the best results are found in real day to day trading.

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Confirm your main trend with LMT Forex Formula - trading forex for beginners - the basics

Confirm your main trend with LMT Forex Formula ~ trading forex for beginners - the basics

L.M.T Stands for Low Maintenance Trading. The L.M.T Forex Formula is a trend following system that requires little time to manage and trade.
The L.M.T Forex Formula was originally designed for trading the Daily charts but can also be used very profitably on the 4 hour charts.
If you currently have a demanding day job but still wish to trade Forex then you will want to focus on the daily charts. This allows you to only check your charts for 10-15 minutes a day (at the close of the daily candle). Trading the daily charts will also provide you with very profitable trades sometimes netting anything between 100 and 2000 pips profit. Trading 10-12 pairs on the daily charts you can expect around 8-10 trades a month which is 2-3 trades a week on average.
If you have more time to spare you may wish to drop down to the 4 hour charts
giving you plenty of opportunities to trade, however this will also require a lot
more time managing the trades as they progress.
Yesterday , I noticed a perfect WolfWave pattern , so I sold 3 lot E/U and made nice profit, the decisions were confirmed by LMT forex Formula. 

Needless to say much about this hot forex system, it help you detect and confirm the main trend so you will always feel at ease when open new positions, we always go with the trend, Get LMT Formula.
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Multiple Time Frames combine with RSI and support resistance - forex trading charts eur/usd

Multiple Time Frames combine with RSI and support resistance ~ forex trading charts eur/usd

A technique to improve your trading decisions

Have you ever seen RSI overbought and wonder whether it was the right time to sell? Let’s face it, an overbought reading in a momentum oscillator can merely mean that price is strong and may even turn into an uptrend.

Is it a valid overbought signal? Do you sell? Where do you sell? Where should you place your stop?

Quite often using two charts of different time frames can help. For instance, let us suggest you have seen an overbought reading in the daily chart but there is no bearish divergence. What you can do is look at a shorter time frame chart, a 4-hour or 2-hour chart to see what is happening there an whether a more accurate sell signal can be identified. Let us look at recent example in EURUSD:

Above is the daily chart of EURUSD as it approached 1.3258. Daily Rapid RSI was showing an overbought reading but there was no bearish divergence. From this chart alone we probably couldn’t work out whether there was a selling opportunity or not.

This second image is the 2-hour chart of EURUSD but here it can be seen that the peak at 1.3258 was accompanied by a bearish divergence in Rapid RSI. We are therefore on warning that a reversal can occur and that the daily overbought reading may well be correct.

Next we have to identify a selling level and in this case it is on the break of the price support line which has touched price four times before it finally breaks and this is where we can place our sell-stop. The money management stop should ideally be placed above the 1.3258 high but if this is too high and would cause a large loss then we can look at placing a stop above the rising trend line. However, do note that is a rising trend line and could mean that your stop needs to be raised to allow a possible retest of the line.

In this case the trade would have been very profitable with a decline down close to the daily pivot support which rests around 1.3050. A take profit order can be placed just above this to exit the position at a tidy profit.

Utilizing a lower time frame chart to identify when Bollinger support/resistance will hold

Following on from the first description of using multiple time frame charts to both strengthen your analysis and enable tighter entry and exit trades, let us take another look at using these in a different example.

Many traders like to use Bollinger Bands to try and identify entry signals. The problem I have always had with them is that they only provide approximate support and resistance which causes problems in knowing where you should enter and where the stops should be placed. Not only that but sometimes they just don’t seem to work at all as a support/resistance tool and the judgment of when they’ll work appears purely subjective.

Take a look at the daily chart of GBPUSD:

In the center of the chart we can see that price has declined to the Bollinger low and on first touch it does bounce only to fall below the lower band and does so on three consecutive days. On the day before the absolute low Rapid RSI moves into the oversold extreme. Does this mean we can buy? Maybe. Sometimes it works and sometimes it doesn’t.

So what should we do?

The following chart is the 2 hour chart showing the approach to the low at 1.9400.

On the left of the chart we can see that price falls below two identical lows and these can then be considered as pivot resistance. We then see the three pushes lower and on the daily chart we know that the Rapid RSI went into an oversold extreme.

Do we buy at that point because is looks like the Rapid RSI on the 2 hour chart is developing a bullish divergence? The answer is “no.” Divergences should only be traded on a break of a pattern. In this case we have an intermediate downtrend line and it is only after the final low that price breaks above the trend line and thus confirms the bullish divergence in Rapid RSI. You will also note that following the break above the trend resistance that price reverses briefly to retest the trend line which provides a second buying opportunity.

Following the break of the trend line which was the day after the daily oversold reading price rallies by 200 points. That’s a good profit… Not only that, by waiting and observing the 2-hour chart you can avoid trying to pick the bottom as suggested in the daily chart.

Remember, it is normally best not to try and pick tops and bottoms as these will often provide losing trades. Waiting patiently for the right signal by fine-tuning the entry on a shorter time frame chart can reduce losing trades and make the final trade a more profitable one.

Good luck !

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Guest Traders Syndicate - must read forex trading books

Guest Traders Syndicate ~ must read forex trading books

ADVICE:

Hi, Gypsy here.... 8^)

Most of us who are successful traders went broke at one time or another; but if youre still trading, chances are, you have learned the valuable lesson of money management. One thing I want to point out that is just as important and goes hand in hand with money management is over trading!!!!!

Even if you have the best money management skills, and over trade chances are, youre still going to end up as broke as the day you were born....as time goes on....I will share more with this blog..for now institute good Money Management and dont Over Trading your account.. Have a wonderful evening, and good luck in your trades......

Strategy:

For the beginner day traders out there. One of my favorite most basic trades is when the market has an extreme move, it will almost always drift back towards the pivot point as we get near the end of the day.

For example, if the market rallies big, around 10:30 -12:30 Ill short the SP selling usually an hour before the close. Rarely the last 45 minutes as we almost never trade the last 45 minutes or the first 30 minutes of any session.
Crude O.

Advice:

Create a game plan and act accordingly. Preserve wealth, drill and rehearse on your demo account. Find a better way to trade, through continual education. Under no circumstances do you ever truly give up FOREX. If you need help, find it! There are advisers out there who are willing to help you be successful. NEVER GIVE UP!!!!!! NEVER SURRENDER!!!! REST IF YOU MUST!!!!!! PRACTICE DRILL AND REHEARSE ON A DEMO, BUT DONT QUIT!!!!!!!!!!
Micheal C.


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YOU CAN BE SUCCESSFUL AT FOREX!!!!!!

This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.
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A Forex Broker Is Your Best Friend - forex trading charts instaforex.com

A Forex Broker Is Your Best Friend ~ forex trading charts instaforex.com

If you traded in the Forex market before or if you’re still trading now, you may have heard the term Forex broker a lot of times. However, as an individual trader, you may want to know what is a Forex broker and what they do.

Forex brokers are individuals or companies that assist individual traders and companies when they are trading in the Forex market. These individuals can really give you that extra edge you need in order to be successful in the Forex market. Although they will be trading your funded account, all the decisions are still yours to make if you want to.

Forex brokers are there to assist you with your trading needs in exchange for a small commission from what you earn. Here are some of the services that a Forex broker can give you:

•A Forex broker can give you advice regarding on real time quotes.

•A Forex broker can also give you advice on what to buy or sell by basing it on news feeds.

•A Forex broker can trade your funded account basing solely on his or her decision if you want them to.

•A Forex broker can also provide you with software data to help you with your trading decisions.

Searching for a good Forex broker can prove to be a very tedious task. Since there are a lot of advertising in the internet about Forex brokers, Forex traders get confused on which Forex broker they should hire. With all the Forex brokers out there that offers great Forex trading income and quotations, you will find it hard to choose a good and reputable Forex broker.

With a little research, you can find the right Forex broker who can be trusted. If you lack referrals for Forex brokers, you can try and do a little research of your own. The first thing you need to find out about a particular Forex broker with the amount of clients they serve. The more clients they serve the more chances that these brokers are trusted. You should also know the amount of trades these brokers are conducting.

Knowing the broker’s experience in the Forex market is also a great way to determine if he or she is the right broker to hire. Experienced Forex brokers will increase your chances of earning money from the Forex market.

If you have questions or complaints, you should call or email the company and ask questions regarding their trading system. You should never be uncomfortable doing this. Besides, they will be the one who will manage your money. And, it is your right to know about what they are doing with your money.

When choosing a Forex broker, you should also consider their trading options. You should also know that Forex brokers are different from what they can offer you. They differ in platforms, spreads, or leverage. You have to know which of the trading options is very important to you in order to be comfortable when you trade in the Forex market.

Most online Forex brokers offer potential clients with a demo account. This will allow you to try out their trading platform without actually risking money. You should look for a demo platform that works just like the real thing and you should also determine if you are comfortable with the trading platform.

Look for the features you want in a trading platform in order for you to know what to expect if you trade with them. If you are comfortable with a trading platform, you should consider trading with them, and if you are not, scratch them off your list. This is a great way to test their trading platform and not risk your money.

If a Forex broker is not willing to share financial information about their company, you shouldn’t trade with them because they are reluctant to share company information. They should answer your questions regarding on how they manage their client’s money and how they trade that money.

Always remember that if you see an offer that’s too good to be true by Forex traders, it probably is too good to be true. The Forex market is a very risky place to trade and Forex brokers must tell you that there are certain risks involved when trading in the Forex market. Avoid hiring a Forex broker who says that trading in Forex is easy and a very good money making market with very low risks.

These are the things you should consider when you look for a Forex broker. If you find that right broker, you can be sure that you can really earn money.

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YOUR MARKET OPPONENT - forex trading education books

YOUR MARKET OPPONENT ~ forex trading education books

Most traders are under the illusion that their greatest opponent in the market are the skilled pros out there who are waiting to gobble them up. While they are worthy opponents, there is an opponent even more worthy, if you go to the mirror, you will find them. The biggest enemy to trading successfully is YOU and your mindset.

The thing that usually demolishes traders besides getting into the game way too early (while they are still very, very green) is their lack of discipline and patience. The hardest thing in the market, especially if you are a natural Type A personality, is the waiting.

The natural type A makes the perfect forex victim, because we like to see things move and like to get things accomplished. While this is a very desirable trait in most other aspects of life, it can be to your determent in forex.



It is the incredible volatility and fast pace of forex that attracts us in the first place, but when the market is stagnant, it can make us nuts, often causing us to make premature ill-timed entries.

That is why it is essential to your long term success for you to perfect your WAIT!!!!!

What are you waiting???
For proper trade set-ups!

Trades in harmony with your trend will usually be the most profitable and give the most reliable signals.

LEARN YOUR CANDLESTICK PATTERNS!
LEARN YOUR TRENDS!!!
LEARN YOUR SUPPORT/RESISTANCE!!!!!
LEARN ABOUT MARKET RHYTHM!!!
LEARN MARKET PSYCHOLOGY!!!!!

AFTER LEARNING ALL OF THAT.

YOU MUST PERFECT THE ART OF WAITING !!!!!!!! (^_^)


YOU CAN DO THIS (^_^)


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Investing Basics – What Are Your Investment Goals - forex trading flowchart

Investing Basics – What Are Your Investment Goals ~ forex trading flowchart

When it comes to investing, many first time investors want to jump right in with both feet. Unfortunately, very few of those investors are successful. Investing in anything requires some degree of skill. It is important to remember that few investments are a sure thing – there is the risk of losing your money!

Before you jump right in, it is better to not only find out more about investing and how it all works, but also to determine what your goals are. What do you hope to achieve with your investments? Will you be funding a college education? Buying a home? Retiring? Before you invest a single penny, really think about what you hope to achieve with that investment. Knowing what your goal is will help you make smarter investment decisions along the way!

Too often, people invest money with dreams of becoming rich overnight. This is possible – but it is also rare. It is usually a very bad idea to start investing with hopes of becoming rich overnight. It is safer to invest your money in such a way that it will grow slowly over time, and be used for retirement or a child’s education. However, if your investment goal is to get rich quick, you should learn as much about high-yield, short term investing as you possibly can before you invest.

You should strongly consider talking to a financial planner before making any investments. Your financial planner can help you determine what type of investing you must do to reach the financial goals that you have set. He or she can give you realistic information as to what kind of returns you can expect and how long it will take to reach your specific goals.

Again, remember that investing requires more than calling a broker and telling them that you want to buy stocks or bonds. It takes a certain amount of research and knowledge about the market if you hope to invest successfully.

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How to Know When to Sell Your Stocks - forex trading gold charts

How to Know When to Sell Your Stocks ~ forex trading gold charts

While quite a bit of time and research goes into selecting stocks, it is often hard to know when to pull out – especially for first time investors. The good news is that if you have chosen your stocks carefully, you won’t need to pull out for a very long time, such as when you are ready to retire. But there are specific instances when you will need to sell your stocks before you have reached your financial goals.

You may think that the time to sell is when the stock value is about to drop – and you may even be advised by your broker to do this. But this isn’t necessarily the right course of action.

Stocks go up and down all the time, depending on the economy…and of course the economy depends on the stock market as well. This is why it is so hard to determine whether you should sell your stock or not. Stocks go down, but they also tend to go back up.

You have to do more research, and you have to keep up with the stability of the companies that you invest in. Changes in corporations have a profound impact on the value of the stock. For instance, a new CEO can affect the value of stock. A plummet in the industry can affect a stock. Many things – all combined – affect the value of stock. But there are really only three good reasons to sell a stock.

The first reason is having reached your financial goals. Once you’ve reached retirement, you may wish to sell your stocks and put your money in safer financial vehicles, such as a savings account.

This is a common practice for those who have invested for the purpose of financing their retirement. The second reason to sell a stock is if there are major changes in the business you are investing in that cause, or will cause, the value of the stock to drop, with little or no possibility of the value rising again. Ideally, you would sell your stock in this situation before the value starts to drop. 

If the value of the stock spikes, this is the third reason you may want to sell. If your stock is valued at $100 per share today, but drastically rises to $200 per share next week, it is a great time to sell – especially if the outlook is that the value will drop back down to $100 per share soon. You would sell when the stock was worth $200 per share.

As a beginner, you definitely want to consult with a broker or a financial advisor before buying or selling stocks. They will work with you to help you make the right decisions to reach your financial goals.

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YOU ARE WINNING AND THEY ARE STILL MESSING WITH YOUR HEAD! - forex trading books in tamil

YOU ARE WINNING AND THEY ARE STILL MESSING WITH YOUR HEAD! ~ forex trading books in tamil

 

Believe Your Eyes

Trading is a psychological warfare that even when you are winning, they are still messing with your head (manipulating your mind).  There are times like doji days when the market is so frustrating that you feel like your head is going to explode. When you crawl away, your emotions are so frayed and you are so battle scarred that you dont know what to do with all of that bottled up frustration and anger.

No matter how much you try to find the edge, it keeps alluding you.  You keep digging a deeper and deeper hole, losing more money,  and the pressure builds until your mind is tied in a knot so tightly that you lash out whether verbally or physically. After this kind of a day of brain-bashing, confidence-shaking, emotional upheaval cause by a choppy market; you are in a kind of market shell shock or psychological trauma.

I dont know all of the answers, but I have a few suggestions when you feel out-of-control.  First push your chair away from your screen and distract yourself with something more relaxing, stress relieving and fun.  Sometimes, you will have to take a day or two off just regaining your focus and rebuilding your confidence.

After you have created the distraction by dancing, working-out, meditating, visiting a friend, going to the movies, etc., come back to good solid forex education like this and reinforce what you know to be true.  Go study those tricky charts, watch videos, talk to other traders,-------DO WHATEVER IT TAKES TO HELP YOU REGAIN YOUR EDGE!

After they have given you a good spin in the blender, the market will usually trend again HARD, but so many traders are still in such a state of shock, panic and anger from the day/week of spinning that they miss the really good trend. 

The most important thing you can do during and after these times is to trade a good plan with consistent discipline even on losing days.  Bad trading days tempt you to abandon good, solid trading habits, but DONT DO IT !  If you abandon a good plan,  when the market comes back - you wont trade it out of fear that the market is going to turn on you again.

The psychological effects of trading can be much more devastating than any amount of money that you lose, it is a sort of mental scarring that can take place after a really hard trading bout, therefore you must trade a good plan consistently.  Cut bad trades quickly and ALLOW YOUR WINNERS TO RUN!!! It maybe hard, but doing these things will give you the edge and KEEP YOU IN CONTROL during the hard times.

NEVER HOLD ON TO A BAD TRADE NO MATTER WHAT........CHOPPY MARKETS ARE SET-UP MARKETS!

YOU CAN DO THIS (^_^)!

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Moving Average Convergence and Divergence avoid MACD pitfall in your trading - forex trading charts for mac

Moving Average Convergence and Divergence avoid MACD pitfall in your trading ~ forex trading charts for mac

MACD is used quite widely among traders mainly, it would seem, because the basis for the indicator is something they can visualize – effectively measuring the degree of convergence or divergence of two exponential moving averages. Commonly traders will consider buying or selling on crossover of the MACD lines. However, there can be problems and it is worth understanding when these may occur.
Let us take a look at the MACD plot on a weekly chart of USDJPY:

Broadly we would be pleased with the general signals being generated from MACD in this chart. While the crossover of the MACD across the signal line never really occur at market extremes, in this case they are pretty close and one cannot expect a lagging indicator to provide signals at price extremes.
It can be seen that before the moving averages cross the MACD is signaling a reversal earlier and allowing an early entry into a potential trade. Perfect. We can begin to trade on this indicator then… Or can we..?
Take a look at the second chart, still the weekly chart of USDJPY but from a year or two later:

At first it looks quite good. MACD signals a sale into the large decline to the historic 79.70 low and a little later a reversal higher. There is lots of profit to be taken there. However, watch as the MACD peaks out soon after the initial rally from the 79.70 low. The two exponential moving averages continue to point higher and indeed do not cross lower until after the 147.65 peak. However, MACD spends around one year in a decline while price has continued to rally.
This is a recipe for losses.
Why is it that MACD can provide such a bad signal since it is based on two exponential moving averages?
The answer lies in the name: Moving Average Convergence and Divergence.
While the exponential moving averages are rising, the trend has slowed to the point that while only slightly the averages are converging – that is, moving closer together and this has caused the MACD to cross below the signal line.
Well, is there any way to control the trades to make sure that we do not make those trades? Indeed. One of the best tips I can offer is to remember the definition of a trend. An uptrend is where both highs and lows are moving higher. Thus, until the most recent low s broken there is no break/reversal of the trend.
Let us look at how this would have worked:

As can be seen, I have drawn a horizontal line under each successive swing low. At no point is one of these broken until after the final high to the upper right of the chart. Thus, by combining information garnered from the price chart you can avoid many loss making trades.Good luck !

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Stabilize your current situation before investing - forex daily chart trading

Stabilize your current situation before investing ~ forex daily chart trading

Before you consider investing in any type of market, you should really take a long hard look at your current situation. Investing in the future is a good thing, but clearing bad - or potentially bad - situations in the present is more important.

Pull your credit report. You should do this once each year. It is important to know what is on your report, and to clear up any negative items on your credit report as soon as possible. If you’ve set aside $25,000 to invest, but you have $25,000 worth of bad credit, you are better off cleaning up the credit first!

Next, look at what you are paying out each month, and get rid of expenses that are not necessary. For instance, high interest credit cards are not necessary. Pay them off and get rid of them. If you have high interest outstanding loans, pay them off as well.

If nothing else, exchange the high interest credit card for one with lower interest and refinance high interest loans with loans that are lower interest. You may have to use some of your investment funds to take care of these matters, but in the long run, you will see that this is the wisest course of action.

Get yourself into good financial shape – and then enhance your financial situation with sound investments.

It doesn’t make sense to start investing funds if your bank balance is always running low or if you are struggling to pay your monthly bills. Your investment dollars will be better spent to rectify adverse financial issues that affect you each day.

While you are in the process of clearing up your present financial situation, make it a point to educate yourself about the various types of investments.

This way, when you are in a financially sound situation, you will be armed with the knowledge that you need to make equally sound investments in your future.

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YOUR FOREX EDUCATION 8 - forex news trading books

YOUR FOREX EDUCATION 8 ~ forex news trading books

As a forex trader, you have entered one of the most difficult and tricky playgrounds in the world; with price hiccups and retracements often causing you to second guess your previous decision. In a market with so much panic and loss going on. Allow me to ask you; how much time have you invested in your Forex education today??????

Many highly competent professionals who are at the top in other fields come into Forex and get wiped out. The most important thing you can do to insure your success in Forex is to keep learning. When you are in the market live, you need this stuff to be automatic, because lots of time when you see price moving randomly, you forget your objective.

Everyday, take some time and invest in educating yourself in this market, if you dont, you will lose here. Once you learn what is going on, you will find that Forex is not hard, but it is no stroll in the park either. You must stay alert, develop patience and be ready when the opportunity for profit presents itself.

Keep a practice account, because it helps build market confidence and helps you overcome many of the fears that have been created from your losses.

When you have taken a loss in the market, it is an education you paid for. Learn from it!

Continual education gives you the advantage. Never stop learning!

Lastly you can be successful at Forex! While experience is a great teacher, it is not necessarily the best; pick the brain of a good trader when you can. When you learn something important from your chart studies, a book, a video or another trader; WRITE IT DOWN!

Discard what doesnt work, and review what does OFTEN!!!!!

Get 10 Trading Lessons FREE Click Here

Happy Trading!

This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.


Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.
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WHEN THE MARKET IS CRAPPY PRESERVE YOUR CAPITAL ! - forex trading books best

WHEN THE MARKET IS CRAPPY PRESERVE YOUR CAPITAL ! ~ forex trading books best

 

There are times that no matter how good Your strategy or how hard You try, the market just will not cooperate with Your plans to get paper.  What You do in those times is more important to Your success than what You do in a good flowing market!

Why????????????????

Because what You do on those day can mean the difference between thriving in forex or having to fold Your hand and walk away from the table.  On days when the market is stubborn and uncooperative no matter how patient You are or how much discipline You exercise, YOU MUST PRESERVE YOUR CAPITAL.

Believe me, I know how hard and frustrating a market like that can be.  To stay through an entire session or sometimes a day and the market is just indecisive feels like a waste, and it can be easy to become discouraged.  These are the times Your discipline is the most important even though Your emotions may be a bit frayed.  Stay the course of discipline, these are the times we are also most likely to abandon a really good strategy.  DONT DO IT!

THERE ARE TIMES WHEN THE MARKET IS JUST CRAPPY! 

Be careful during these times not to beat Yourself up or doubt Your ability, There is nothing wrong with You or Your strategy, it is the market, and the truth is no matter how crazy the market gets, it has control over Your paper, so IT IS RIGHT!  so PROTECT YOUR WEALTH.  Even if You come out of the day slightly down beat up, battered and bruised, its ok, as long as You preserved as much of Your wealth as You could.  On days like this, it is most important not to let the market take You out of the game!

Sometimes the market is a kitten, but there are times she is a lion; sometimes you just gotta get out alive.  If you survive, the day will come again for you to thrive.  It is just part of the market cycle and it happens.  Dont take it too hard, because the time will come again when the market is lovely and will want to caress and cuddle You, then she will yield plenty of paper for You.  It is the days that the market is sweet and cooperative that we as traders Preserve Capital for.

#1.  First job of every trader: PRESERVE WEALTH!

#2,  Second job of every trader: BUILD WEALTH!

 YOU CAN DO THIS (^_^)!

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Ten Vital Technical Indicators for the Stock Market - forex trading from charts

Ten Vital Technical Indicators for the Stock Market ~ forex trading from charts

Several experts agree at one point. That is, it is not enough that you have an ample knowledge regarding the stock market. You must conceptualize your trading plans. You can only say that what you have there is a good trade when you know that you have followed the conditions and rules. You should not tie yourself too much to the assumed outcome. Rather, you need to concert your best efforts to drive towards that outcome. Your emotions also play part in effective trading. In other words, you should not let other people pull the trigger for you but you must do it yourself.

The Ten Vital Technical Indicators for the Stock Market

Here are the mostly adhered to stock market indicators. Learn each one of them and apply them along with your plans.

1.  The Price.

Just think of patterns. Imagine them moving towards a particular direction. It is by means of which that you can determine the course of action to which the price is moving towards.

2.  The Volume.

Your own conviction matters a lot. This indicator basically works hand in hand with the price. So that you will be able to get the relevance of volume, you must learn of the baseline or the percent change in an average day.

3.  Support and Resistance.

This provides you with the clue on the direction to which the market is heading towards. Remember that human emotions pose a great effect on this one.

4.  Moving Averages.

This is one perfect tool that lets you notice any particular change in the trend. Moving averages actually gauge the selling and buying pressures. This technical indicator is then based on the underlying concept that there is no commodity which can carry on either an uptrend or downtrend without succumbing to the buying and selling pressure.

5.  Market Internals.

They show you the way the internals act using some key price levels. They will likewise help you out in confirming the acceptance or rejection of the support or resistance.

6.  Bollinger Bands.

This tool is geared towards determining the time period when there is the low or high volatility of the stock.

7.  ADX.

This indicator further calculates how strong a trend can be and if it can be utterly useful or not. When you see high readings, it means that there is indeed a strong trend. On the other hand, the low readings show a weak trend.

8.  Stochastic.

It includes the "buy signals" which point out that there is a lower risk opportunity as it is trending down and the divergence which means that the indicator either reaches the new high or low trend in the market and it therefore fails to acquire it.

9.  RSI.

Relative Strength Index is one of the leading indicators. It gives off two valuable signals—an overbought stock is up by above level 70 while an oversold stock is below level 30.

10. MACD.

Moving Average Convergence Divergence is one trend that follows a momentum indicator. It spots any reversing trends too.

Therefore, make use of these basic and most vital technical indicators as you tackle the business in the stock market. After all, your success lies on your wisest decisions.

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Determine Your Risk Tolerance - forex trading charts iqd usd

Determine Your Risk Tolerance ~ forex trading charts iqd usd

Each individual has a risk tolerance that should not be ignored. Any good stock broker or financial planner knows this, and they should make the effort to help you determine what your risk tolerance is. Then, they should work with you to find investments that do not exceed your risk tolerance.

Determining one’s risk tolerance involves several different things. First, you need to know how much money you have to invest, and what your investment and financial goals are.

For instance, if you plan to retire in ten years, and you’ve not saved a single penny towards that end, you need to have a high risk tolerance – because you will need to do some aggressive – risky – investing in order to reach your financial goal.

On the other side of the coin, if you are in your early twenties and you want to start investing for your retirement, your risk tolerance will be low. You can afford to watch your money grow slowly over time.

Realize of course, that your need for a high risk tolerance or your need for a low risk tolerance really has no bearing on how you feel about risk. Again, there is a lot in determining your tolerance.

For instance, if you invested in the stock market and you watched the movement of that stock daily and saw that it was dropping slightly, what would you do?

Would you sell out or would you let your money ride? If you have a low tolerance for risk, you would want to sell out… if you have a high tolerance, you would let your money ride and see what happens. This is not based on what your financial goals are. This tolerance is based on how you feel about your money!

Again, a good financial planner or stock broker should help you determine the level of risk that you are comfortable with, and help you choose your investments accordingly.

Your risk tolerance should be based on what your financial goals are and how you feel about the possibility of losing your money. It’s all tied in together.

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