So You Want To Learn To Trade?

No doubt you've heard stories about how some people make a fortune literally over night and have caught the bug myself trading. You are armed with as much information and charts as you can stand on your head is swimming from overloading ... but still missing one more thing.


Vince Lombardi, the famous football coach, summed it up best when he said that the winners not only have the desire to win, the winners are willing to do what you will to win. Did you catch the difference? Many people have a desire to make money trading futures. Sometimes this desire is so deep that they can almost taste ... but few are willing to do what it takes to become a successful trader.


This factor alone can be the difference between winning traders and those who join the vast majority of traders lose. I had an interesting telephone conversation with a wannabe trader the other day. This fellow was quite sincere about his desire to learn a trade. He told me all about his life and his work and how OLE pay check was getting stretched thinner and thinner each year. He was very eager to find another, better way to earn some money and thought that learning how to trade may be the answer.


While he was never traded before this man told me that he was following the commodity markets at a distance for several years and reading many books on this subject. Sometimes he even pick up a trade magazine in the hope of finding that one missing ingredient that will help him change his trading dreams into reality.


With the desire to help him become a "merchant of his dreams, " I assured him that I will do everything I could to help him on the road. I told him that he should study and learn manual trading on the spot the important support and resistance areas. I told him to follow along in the ezine and nightly updates to be able to see how Tom and I structure trades based on material we teach. I told him that he could write or call me with any trade issues could have, and I'd be happy to help in any way I could.


Most importantly, I told him he should start work trading as much as possible to get a feel for the market and to get some practice trading. You know what he said? He said: "I can not do without paper trading?" I was floored. According to this person, securities trading was too boring, so he did not want to do. He asked me whether there is another way. I told him that he could bypass the paper trading and start trading with a small account, maybe $ 5000 to $ 10,000, but be prepared for a very quick and very expensive lesson in trading commodities.


This person had loads of desire. He could see already see myself enjoying a life of their dreams - driving a nice car, living in a nice house, buying all those things he always wanted but could not afford it - this man had the desire, but he did not want to do what is need to make your dreams come true. Welcome to the 90% club.


# Money loves action.


# Money likes people who make things.


# Money loves speed.


# Money likes people who are willing to take risks.


# money does not like procrastination.


# as the money does not "want", or hope.


# money does not like indecisiveness.


# like money decisions (Henry Ford was notoriously stubborn, but incredibly decisions - right or wrong ).


What about you? Will you still just a desire to succeed, or are you willing to do what will work? It is not as difficult as you might think you know.

Trading Forex - Simple Straddle Trading

The popularity of forex trading is to make hundreds if not thousands, of new traders in the market every day. Most of these new participants are familiar with the currency, since they bought the trading book, course or some other tool that promises to forecast which direction the market will go in the future. All that's left to do is to place trades and reap the rewards.


Unfortunately, even the best methods do not work all the time. Some loses are inevitable, even expected. Some can last for a longer period. During this time traders, newbies and experienced alike, begin to doubt their trading systems and search for a new angle. It allows access to many sources of information. Trouble is, there can easily be information overload, causing total confusion. The trader can not decide which direction to trade, lost confidence in his abilities and his decision-making process becomes erratic.


There are ways to trade without guessing or even care how the market will go over some period of time. One of them is using the surrounds. "straddle" and placing buy and sell orders above and below the current price. When this happens, the trader is said to be "straddling" the market. The merchant also has no bias directions, only expected to move either way. Most straddle method of trading will have all the other elements of trading in place: stop / loss of both legs of the straddle, target price or the length of the trade

.

There is a whole systems based on this style of trading. Some of them do nothing but place orders affected the entire time. Traders never care which way the markets will go, until they move. These types of system calls to update orders every predetermined time interval. For example, once a day. This means that the old orders / trades must be canceled / closed each day at the same time. That is when new orders are placed. People looking for a mechanical trading strategies may find this approach is suitable because he did the same thing over and over again, without the due diligence.


The second method involves the use of surrounds the core notice. Many of these events cause rapid price movements, but the direction of moves after the number of releases is notoriously difficult to predict. Especially popular among the traders are FED interest rate announcement and the release of unemployment data. These are also the time when a great deal if there is a reluctance, which resulted in both legs of the straddle is stopped. Despite its popularity, it is perhaps the worst way to use the surrounds.


more promising approach to capitalizing on range contraction. This can be done on most time frames 4H higher. For example, if the daily trading range of individual currency pair start to get smaller and smaller, it is likely that more action will follow. a longer period of contraction, the greater the potential move after him. If someone has a hard time deciding which way to trade, it would be very easy to locate straddle order. A very simple way to implement this strategy is to take orders over the previous bar high and the low. Stop loss could be around half of the bar range, and target something like twice the value of the stop, or perhaps close the position at the end of the time value used. For weeks at least in the immediate vicinity will be the end of the week, daily bars will dictate the closing position at the end of the day.


These opportunities happen all the time, depending on the time frame. The current example is the monthly chart of EUR-GBP. Ranges of the last 3 bars are getting smaller, which may represent an opportunity for a successful straddle trade. buy order can be placed at 0.8035 and sold at 0.7840. Protective stop of 80 pips for each order is about right. The goal of profit of 150 pips in line with risk. An alternative exit to the end of July, regardless of the gain or loss.


Trading around is very easy to implement and can be profitable. As with any trading strategy, there is potential for loss. If you decide to use them on a regular basis, a mechanism for precise level of stop / loss and profit must be included. All of the straddle-based trading systems can be especially attractive for traders who do not have time to spend all day in front of a computer.

The Hidden Strengths of Volume Analysis

the power of the proper volume of analysis can not be overlooked. Unfortunately, the ability to correctly read the volume is not easy to discuss and freely available. Off-the-cuff remarks such as "increased volume is bullish on the progress and increase the volume of the drop is bearish" are bantered around, but that's how it goes. proper use and application volumes can make for some pretty amazing insights into price action, especially when leaning or swing trading support and resistance points or zones of the estuary.


I set up my charts with a few extra measure of volume. I use a normal volume histogram that can be found almost all software packages. However, if there is a large volume spike skewing the ability to correctly read the volume will edit the data accordingly. Next add a 10-day moving average of volume. It gives me a guide on what is below average or above average volume on any given day. Finally I added the 2-standard deviation of 20-day volume average. In essence this is like the upper Bollinger band volume average. It shows me where the ultra-high volume occurs.


the team has added extra we can quickly assess the personality on the volume, and to benchmark against the surrounding volume. The exact volume of reading is not important. The concept of relative volume is the key.


I'm going to make reference to the Smart Money throughout this article. definition can be used for Smart Money:


a group of professional users who act in unison to a certain level, and points of time to change the order of supply and demand.


Smart Money as someone who constantly buy lows and sell highs. Let me say that this is not a bunch of dealers around the ring trying to manipulate the price. We do not need to know who or why, but these people want to follow. We also look at their footprints and their fingerprints are displayed within the daily volume. Smart Money will show their hand by selling into strength and buying weakness. Now as Smart Money can change the order of supply and demand, we can therefore determine that the strong price action of May, in fact, include weakness and poor price action of May, in fact, contain the power. I appreciate that goes against most of the things I've ever learned about volume, but it is important to keep this thought in the back of your mind. The increased supply and therefore the weakness can occur over the price of power. Increased demand and thus the power can come to weakness in the price.


The first thing to understand about the volume is that it is not in itself the volume we are interested in the main misconception is to think that for every buyer has a seller, and turn the volume of the void. That this is indeed the case, then the price just does not make a move. What drives the price of fear and greed of buyers and sellers. Therefore, the relationship and interaction between volume and price, which shows us what is really happening in the market. Consider the volume as an effort by the price action as a result of these efforts. If the sellers are desperate to exit then it will be more inclined to sell on the offer, and not sit back on the offer. If there is not much demand to buy below market price then you are going to be driven lower until they met or sellers are not willing to keep the price was lower. Also, if customers are desperate to buy the offer and not sit on the offer. If buyers are desperate and there is not much above the market supply then you will see prices move up to those customers are met or not they want to keep the prices any more.
mantra volume analysis:


"What is the result of efforts ?"


Ever heard the truth, "buy the rumor, sell the fact"? Do you ever wonder why the price goes down after a positive announcement? Do you think Smart Money new facts and good news in advance and therefore they do for a long time? I think so. So, when he announced the good news in the market weaker hand to jump and start buying and Smart Money to take the opportunity to resolve their positions in the demand for power.

Moving Average of Alligator

MTF Stochastic Oscilator & MA

Trend is Your Friend

Technical Analysis is based upon studying price movements using price patterns and/or statistical data. Technical analysis = Charts, also helps us identify trends which can help us find profitable trading opportunities. Technical analysis offers insight into what Forex traders are doing. Traders use charts to identify patterns and trends to make successful trading decisions. Technical analysis can be used in different time frames. Whether it is monthly, weekly, daily, hourly, or even minutes, a trader gets to choose the time frame that suits his trading style best. There are widely used concepts of technical analysis are:
* Support and Resistance Levels
* Trends
* Fibonacci Retracements

Support and Resistance Levels
Support and resistance levels are points where a chart experiences recurring upward or downward pressure. Support level is usually the low point in any chart pattern (hourly, weekly or monthly). Resistance level is on the other hand, whereas a highest of the peak point of the pattern. Look at chart below!


The zigzag pattern is making its way up (bullish market). When the market moves up and then pulls back, the highest point reached before it pulled back is now resistance. As the market continues up again, the lowest point reached before it started back is now support. In this way resistance and support are continually formed as the market oscillates over time. The reverse of course is true of the downtrend.

Support and Resistance levels are not exact numbers. Often times you will see a support or resistance level that appears broken, but soon after find out that the market was just testing it. With candlestick charts, these "tests" of support and resistance are usually represented by the candlestick shadows.


How the shadows of the candles tested the 111.79 resistance level. At those times it seemed like the market was "breaking" resistance. However, in hindsight we can see that the market was merely testing that level.

So how do we truly know if support or resistance is broken?
No definite answer of this question. Some argue that a support or resistance level is broken if the market can actually close past that level. See the chart below!


The price had closed above the 111.54 resistance level but ended up falling back down below it again. If you had believed that these were real breakouts and bought this pair, you would've been seriously hurt in!

So to help you filter out these false breakouts, you should think of support and resistance more of as "zones" rather than concrete numbers. One way to help you find these zones is to plot support and resistance on a line chart rather than a candlestick chart. The reason is that line charts only show you the closing price while candlesticks add the extreme highs and lows to the picture.


The highs and lows can be misleading because often times they are just the "knee-jerk" reactions of the market. It's like when someone is doing something really strange, but when asked about it, they simply reply, "Sorry, it's just a reflex."

Trends
Trends are simply the general direction that the currency pair is moving. It could be up, down or sideway. An uptrend or a downtrend could be drawn by the tools named Trend Line. An uptrend line is drawn by connecting at least two successive lows. Naturally, the second point must be higher than the first. The continuation of the line helps determine the path along which the market will move. An upward trend is a concrete method to identify support lines/levels.

1. Uptrend

Conversely, downtrend lines are charted by connecting two points or more. The validity of a trading line is partly related to the number of connection points. Yet it's worth mentioning that points must not be too close together.

2. Downtrend


A Channel is defined as the price path drawn by two parallel trend lines. The lines serve as an upward, downward or straight corridor for the price. A familiar property of a channel for a connecting point of a trend line is to lie between the two connecting point of its opposite line.



Sideway or flat market consists of a narrow ranging channel with very little spread, in the illustration that the pip spread hardly goes beyond 12 to 14 pips.

3. Sideway


Fibonacci Retracements
These are the levels at which the market is expected to retrace to after a trend. Fibonacci retracement key levels in most markets are: 38.2%, 50% and 61.8%. Suppose a currency pair is on an uptrend from 1.2000 to 1.3000, which is a 1000 pip rally. When the currency pair reaches 1.3000, how much will it retrace?, 38.2%: The size of this movement is 1000 pips. So 1000 * 0.382= 382 pips. So after rallying 1000 pips we expect the currency pair to retrace 382 pips. Using similar calculations we find out that after a 1000 pips rally a currency pair would retrace 500 pips back to the 50% level and 618 pips back to the 61.8% level. Obviously, the 50% level is a more significant buying level than the 38.2% and the 61.8% is the most significant.

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