Investing + Trading

Traders need to be familiar with Forex Trading Psychology to thrive

Forexabodeman

Traders of Foreign Exchange (Forex) now get lots of chances to trade profitably. On the other hand, small unfavorable issues related to psychology have an effect on successful trading nowadays. Many people all through the globe decide on different trading platforms to succeed in Forex trades. They have to improve their trading skills in addition to decision making skills successfully. This is because of a trader with a plenty of options alike how a person can identifies his fortune without delay. It is time to throw out trading anxiety completely. Emotional issues during trading activities not at all lead to a profitable situation. That is why many traders with the best awareness about how negative emotions affect their trades now listen to ways that help them to improve their trading skills. They can succeed when they get a noticeable improvement of their ability to control emotions.

Read more

Which is the best trading method for your business?

forex1

Today people are making money on the trading market by simply trading the foreign currency and use secret trading methods in order to gain more profit on their business. There are many trading methods and strategies are followed by traders in order to make their dream come true. Some of them only really work. Many of them lead us to loss. Before entering or trading in the Forex market must follow the advice from the experienced or expert people who are in this field for several decades. Many online tool and software is available for this purpose.

Read more

The Forex Exchange Market for Beginners

forex

An easy way to take home money satisfies everyone in this unstable economic world. However, every system to earn money has both pros and cons.  Many individuals throughout the world now like to give attention to the forex market. The forex market is foreign exchange market in which different currencies are traded. As the largest successful trading market in the world, forex has users increasingly. People all around the world keep an eye on comings and goings in this market. It is time to give attention to this market in depth.   The forex market has traders not only from the large financial institutions, financial corporations, wealthy people but also every person with the best knowledge about buying and selling currencies profitably. Beginners to this trading world have to keep in mind several vital issues as follows.

Read more

EURUSD Jumps Up

At the end of the past week EURUSD has made a break into 1.3 level before dropping back a little …

Read more

Trading EURUSD, June 25th

So the last trade didn’t go exactly as I expected and the EURUSD didn’t reach my target before it bounced back down. I did, however, move the stop loss to break even when the price was up.

Following the same strategy I’ve now opened a position at 1.2499 with a T/P 1.2415 and a S/L 1.2580 as I expect the pair to continue to plummet at least until the upcoming European summit.

Read more

Trading EURUSD, June 19th

I’ll try something new on this blog. I’ll trade live and post as I go. The purpose of this exercise is not to give out signals but it’s just for informational and entertainment purposes – just a regular guy trading. You should not attempt to repeat what I do here and should you choose to do so do it at your own peril.

I’m going to trade EURUSD using a very simple support/resistance based strategy coupled with some global economy insight (fundamental analysis).

Read more

The Hammer and the Hangman Candlestick Patterns are Important Reversal Signals

Illustration: Currency

The hammer, the hangman and the doji are some of the few most important candlestick patterns that every trader should recognize. Both the hammer and the hangman have a small real body and a long lower shadow with almost no upper shadow. To be a hammer or a hangman, the shadow should be at least two times the body (the longer the shadow the more significant the pattern). However, it is very easy to confuse hammer with the hangman.

Read more

Combining Doji Candlestick Patterns with Bollinger Bands and Stochastic

Illustration: Forex Chart

Doji is considered to be one of the most important candlestick patterns. Appearance of a Doji signals the beginning of a minor or an intermediate trend reversal. Failing to recognize the Doji pattern, means you run the risk of buying at the top or staying far too long in a trade. As a trader, you must be able to immediately recognize the four different type of Dojis. The four type of Dojis are:

Read more

What You Should Be Doing When You Hit A Losing Streak Day Trading

Illustration: Money

If you have traded the markets for any length of time you know that markets can and will change every so often. The problem with most trading systems is that they are designed for one type of market condition and that is it. As soon as conditions change, you are left with a system that under-performs. The great part about the NetPicks systems is that they are very flexible and can be adjusted to fit different market conditions. The Seven Summits Trader indicators give us access to so many different inputs that we can fine-tune our system should markets change. This gives us an incredible amount of power with our trading.

Read more

Three Reasons Why the Euro is Going Back to 1.45

Illustration: Euro

At the time of this writing — February 2012 — the Euro is trading at around 1.31. Though it may seem unlikely now, here are three reasons to believe EURUSD is headed back to 1.45 in the years to come.

Euro Bulls are Defending 1.28. As the monthly chart below illustrates, 1.28 has historically been a support/resistance zone — meaning a focal point where strong buyers/sellers capable of pushing the market step in. On top of that, technical analysts will observe that it is around the 38.2% retracement level of the big move up from the Euro’s inception in 2001 to its 2008 highs past 1.60 while also being around where the 200 month exponential moving average is. The fact that these technical indicators are all finding themselves in roughly the same price zone tells us that there is a “price wall” of sorts; it will be tough for sellers to push through this zone, as those who have been short sellers for a while will look to take profits, while speculative buyers will feel comfortable jumping in here.

Read more

Vital Components of a Comprehensive Trading Plan

Illustration: Analyze

You must have heard several times that it is important to have a trading plan and stick to it. Not having a trading plan is like an invitation for failure as a trader. What is meant by building a trading plan? Here are some broad points to consider.

The Importance of a Trading Plan

Trading plan is nothing but a checklist. You refer to it before taking a trade. When in a trade you refer to it to make sure that you take a decision according to a plan. Checklist also helps you to stay away from trades which are low probability set ups. The whole idea behind the trading plan is to keep emotions away and take decisions logically.

Read more

Dealing with Your Forex Losses

Illustration: Currency

There’s no denying that forex trading is an exciting way to make money. You can get a return on your investment in a matter of minutes if the market goes your way. It is inevitable however, that you will take some losses, but if managed correctly they can form part of a successful strategy. Here, we will look at different methods for dealing with losses.

Read more

GBP/USD Forex Strategy That is Very Simple and Makes 20 Pips Daily Using Pending Orders

Illustration: USD

GBP/USD is one of the major pairs that gets heavily traded. GBP/USD pair is also known as the Cable. GBP/USD pair is affected by the interest rate differential between the Bank of England (BoE) and the Federal Reserve (FED). GBP/USD pair tends to have a positive correlation with EUR/USD and a negative correlation with USD/CHF. For example, a few days back this pair was trading in tandem with the EUR/USD pair.

Many traders trade GBP/USD and EUR/USD. They need to keep the positive correlation between the two currency pairs in view when trading both these pairs together. There are many strategies to trade the GBP/USD pair. Some are heavily based on the London Market Open as this pair normally starts trading in a range a few hours before the London Market open and tends to make a breakout after the London market open.

Read more

EUR/USD Rises on Easing European Borrowing Costs

Illustration: Euro

EUR/USD climbed as solid eurozone sovereign debt sales and signs of Greece moving closer to a vital debt-swap deal eased concerns and renewed confidence over Europe’s refinancing capability. Spain and France sold bonds at lower yields yesterday and today Greece and its private bondholders will resume debt-swap talks to overcome differences on interest payments. Currency strategist at Bank of New Zealand, Mike Jones said “Given that the European debt markets are the focus at the moment, positive signs emerging there have helped sooth any investor nerves. The market really focused in on the negative headlines rather than the arguably slightly firmer details of that employment number”.

Read more

How to Apply the Fibonacci Retracement Tool Correctly?

Illustration: Analyze

The Fibonacci retracement tool is one of those tools in forex that a forex trader simply cannot do without. This is because in the financial markets, prices do not move in a continuous straight line, but in a convoluted twist of pullbacks and advances. Whenever the price action of a currency has moved substantially in a particular direction due to a very strong trend, those traders who were able to get in early would at some point, decide to take some profits from their trades. This will place the gaining currency on offer and will lead to a supply excess over demand for that currency at that particular time, leading to price pullbacks.

Read more

7 Mistakes That Forex Traders Make: How to Stop Losing Money

Illustration: Forex Chart

Forex trading is a great way to make good money by leveraging your capital against the small currency movements which happen every day. Unfortunately it can sometimes get a bad name due to all of the systems and courses online which promise to make you rich overnight.

The good news is that you can still make money from trading currencies, but there is a steep learning curve and plenty of mistakes that you will need to avoid. To get you started, here are the worst ones:

Read more

Scaling In and Out of a Position Gives You the Needed Flexibility to Manage a Forex Trade

Illustration: Euro Currency

The ideal way to enter into a trade is to do it gradually. This is also known as Scaling In A Position. In the same manner, it is best to exit the trade in a gradual manner. This is also known as Scaling Out Of A Position. Trying to figure out the perfect entry and exit is only going to make you more confused and hinder you in making your trading decisions. There is no perfect entry or exit. You will never be able to catch the top or the bottom at the precise moment.

Read more

Using Parabolic SAR Indicator for Entry and Exit

Illustration: Money

In this article, we will discuss how to use the Parabolic SAR indicator for entry and exit in actual trading. When the dots of the Parabolic SAR are located below the price, it means the trend is up and the price momentum is also in an upward direction and will stay like that till the price action hits Parabolic SAR. This is also a signal for a long trade.

When the price action is below the dots of the Parabolic SAR, it means that the trend is down and the price momentum is also in a downward direction and will stay like that till price action hits the Parabolic SAR. This is also a signal for a short trade. The dots will move down as a trailing stop.

Read more

Understanding Parabolic SAR Indicator

Illustration: Analyze

Parabolic SAR is a trend following indicator that is often used as a trailing stop. Parabolic SAR indicator was introduced in 1978 by J. Welles Wilder, Jr. in his famous book, “New Concepts in Technical Trading Systems.”The term Parabolic is used because when this indicator is applied to the chart it forms strings of dots that look like a parabola, a shape you might remember from high school algebra.

The term SAR on the other hand simply means Stop and Reverse because when reached by price action, this indicator switches direction and reverses to the other direction. So a Parabolic SAR is used to identify entry and exit points based on a trailing stop that reverses when reached by the price action.

Read more

+ More