Strategies Of Forex Risk Management

All businesses are open to some measure of risk. These risks are often the result of competitors prices, exchange rates, raw material prices, interest rates among others. To ensure that your business has not gone down, strategies for effective risk management should be put in place. Forex market is different. Although statistics show that nearly 70% of all Forex trading is successful, it is 30% which is a cause for concern.

Strategies Of Forex Risk Management

A currency exchange risk is the potential gain or loss that occurs as a result of trading in Forex market. To ensure that the risk that can be caused is significantly reduced, every trade should adopt appropriate strategies forex risk management. These exposure management strategy should be well understood, internalized and adapted so that they can work better to protect you from unnecessary risk and to ensure that you conduct Forex trading profit.

There are some guidelines that will help you minimize the risk Forex. One is to understand than ever that the value of any given currency remains the same, but change frequently and this has an effect on companies and individuals that are involved in international business. Two is that these changes in exchange rates will affect the value of your assets, liabilities and flow of your money.

Risk management strategies

Earn Set objectives
When trading in Forex market, it is best not to let your greed get the better of you. A profit and marketing objectives in advance to prevent further once you hit those targets. This will create a disciplined trading principle, because Forex market is a speculative market, you never know what happens tomorrow. So exit the market as soon as you can trade and live another day.

Limit your losses
Not every trade will be made successful. This is the case of making sure your broker knows the exit point for your loss. This will help to control risk conditions. Also gives you the knowledge before it would incur risk should happen worse.

Place your stop and limit orders accurately.
Commercial way stop should be placed very close to market price, because a small price fluctuations may cause order. Limit Orders overexpose you should not trade, but should not be very close to market price.

Understanding the intricacies of the Forex market is the best forex trading tool you can possess. Take time to establish rational and profit levels for your business losses.

Strategies Of Forex Risk Management.

Information on Forex Trading Software

There has been a growing interest in forex dealing software programs ever since the introduction of automated systems became commonplace and accessible. Formerly, this arena was solely manipulated by any big investors be it financially or not as well as banks but is now starting to rise up the interests of tiny and mid level investors. This is the place to where the dealing of currency from one country to another happens. Trillions of dollars are traded here each day without stopping making it the largest and most active financial marketplaces of the world.

Today dealing with forex is relatively simpler with the advent of the internet and superior connectivity technology anyone with an internet link, forex dealing software and some knowledge of accounts and brokering can actually indulge in this. This marketplace never closes, and to know about what is happening in the marketplace, you have to keep a constant monitoring system in place. Before you trade in any currency the automated system allows you to not just select the currency, but also its asking and selling price. All that’s required is a tiny seed amount and a broker because your buy and sell orders would be executed instantly.

You do not have to have great professional expertise in this market as the forex trading computer software handles all the jobs for you. In the case of supervised accounts utilizing the automatic dealing systems, the program automatically manages all the details for you. This process can actually save you a lot of time since the trading won’t be done by you but the auto systems itself. Over and above, the automated dealing programs are equipped to control more than one account simultaneously - a facility manual dealing does now allow you to do. With these systems you can trade in several market places with several systems working in tandem.

There is this added benefit with forex trading software programs where you can trade anytime you wish, without having to be there in person. Being away from the computer won’t scrap any chance of you creating money since you can still have all the chances that you want. Thus it becomes more handy to work with several systems, and put many of your forex schemes into action. You can broaden your investment and get the utmost profits that you desire with the nominal risk involved since the activation of each system is intended to be carried out by various specified trade factors.

The best part about this forex trading computer software is that it does not take into consideration any human factors which often stand in the way of making rational dealing decisions. This way you have the ability to manage and monitor several currencies at the same time as well as deal them as you like.

Using a forex trading software programs does not spare you from learning the basics of trading, fundamental and technical analysis, study of market indicators, etc. to enjoy sustainable profits. The forex marketplace is still reliant on a number of elements and variables therefore success can’t be guaranteed even if you are using the top rated automatic systems. It is possible to set the program of the forex dealing computer software with ease and you can even customize the settings to suit your own tastes.

What is Forex Trading????????

Forex trading

The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.

When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.

However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.

Automated trading platform

 An automated trading platform is used both by trading system publishers, and the investors who subscribe to them. Using it, traders can track marked-to-market performance using several different metrics for verifiability.[1] In addition to tracking performance of these "black box" systems, the automated trading platform also provides a venue to permit the system's buy/sell signals to be executed to the subscriber'sbrokerage account automatically. Some of the automated trading platforms are completely broker-agnostic and permit an interface with almost any brokerage firm.

The immediate benefit to investors is that it allows them to have insight into various trading systems that are on offer, which may make claims of profitability. The platform "allows people or institutions that believe they can outperform the market to prove to the public in a verifiable way that they indeed can do so."[2] In the second stage of use, traders subscribe to one or more of these trading methodologies, and have the trades that are specified by the system executed automatically in a brokerage account.

Although turning over decisions and execution to a "black box" system requires the investor to give up an element of control, the automated trading platform does serve the purpose of allowing the trader to spend more time on strategy and on studying trends, rather than executing those strategies manually.

Speed of execution

The appearance of automated trading systems and stock markets has greatly narrowed the window of opportunity on many trades, sometimes to just a few seconds in duration. In response, traders are turning to automated systems of their own. If for example, one is trading on one of the many systems that hinge on these very small windows, manual execution is virtually impossible. Execution of the trades must be initiated immediately, with split-second accuracy, as soon as the system gives the buy/sell signal.

Best practicesThe automated trading platform, in providing a venue for analyzing multiple stock trading systems or "black boxes", provides a tool for verifiable analysis of each of those systems. While such systems often make claims of profitability, and sometimes of unheard-of returns, the automated trading platform allows the investors to vet those systems and play the ones most likely to win. Generally accepted best practices are described by Klein as follows:

Automated Forex Trading

Are you a disciplined individual? According to expert Forex traders, the only ones who succeed in the Forex market are those people who stay disciplined despite their success or failure. Automated Forex trading has changed the way traders make their transactions. If you’re a savvy Forex trader, you can definitely benefit from using these automated systems.

For beginners in the Forex trade, be warned that most of the trading systems sold or offered online are considered junk and useless. Oftentimes, these systems provide tested simulations and cleverly hyped marketing strategies that do not work. By using ‘junk’ trading systems, you can lose your investment.

There are simple trading systems offered online which can yield higher returns when used properly and consistently. The simpler the automated trading system, the easier it is to use; you see, complicated systems do not guarantee success at all times so be very careful when choosing the appropriate Forex system.

For example, if you think that a certain currency is going to maintain four weeks high standing, buy it. If you have a low-standing currency, you can sell it before the price goes down further. This system is also called breakout wherein all your moves within the Forex market is based on the highs and lows. Soon, you will be able to penetrate the market’s big trends.

Big trends usually last for several weeks, months, or even years. Take a look at the Forex chart and study it. The whole system is automatic and the rules are quite objective. This system is also known as a Forex robot and it can operate fifteen minutes everyday. The creator of this Forex robot was Richard Donchian, a Forex trader.

If you want a simple system, the Forex robot may work for you. Traders who prefer complex trading systems often expect more from this system and so they would rather opt for another system which can meet their expectations. The Forex robot is not fussy and it can help you in identifying the top picks and the bottom picks.

Successful Forex traders spend enough time and effort to make informed trading decisions. As a wise trader, you should not rush things. Allow the system to work. Don’t believe in the myth that complex and expensive systems are more efficient. If you’re serious in Forex trading, you can earn lots of profits with minimal effort.

Observe today’s market trends. If you think that the Forex robot will work for you, considering the existing trends in the Forex market, you can use it because it is logical, very simple, and continuously works. the automated trading system can be obtained for free online just case you want to see how it works. If you think that the Forex robot is another junk like all other systems, check its background. Try to review ratings and testimonials to find out more about this excellent and efficient system.

The modern world is very different from that of long ago. Many of today’s basic tasks are now handled automatically. If you want an automated Forex system, you can make use of the Forex robot. Hurry and look for this system online; if you want, you can also check Richard Donchian to find more info about it. You will greatly benefit from this system over the long run. Don’t overexert yourself in studying the Forex market because with the aid of the automated system, you can go a long way.

The Difference Forex and Futures

1. A Forex trader could trade more transaction compared to the futures market (the trading volume could be a times larger), and the risk will be strictly under control. The trading volume of the Forex market is 46 times larger compared to the futures market, moreover Forex traders could make more profit from the Forex market due to the larger trading volume (the transaction volume is a few times larger), the REFCO Switzerland rich transaction platform allowed transaction between 1-100 times to be carry on, moreover a Forex trader could decide his or her own transaction amount, for example: Your account has $30,000, the basic transaction unit is each $1,000 (which transaction amount in $1.00, million), namely, so the proportion of the margin of each transaction unit is 100:1.

2. The risk of the Forex trader is under control, such margin call will not happen compared to futures, through the Forex trading system, your risk will receive the strict limit, even if your margin if lower then the deposit required, the Forex trading system will automatically settle your position, this means even if a Forex trader suffered losses, moreover if the market is suffering from a disaster fluctuation, your loss could not surpass your account amount. In order to understand the advantages, please apply for the demo account to carry on the complete zero risk.

3. A Forex trader will receive a large limitation of liquidation and a relatively fair market because the trading volume of the Forex market is large and it is also the largest liquidation market in the world. At present the trading volume in the Forex market is 140 billion Dollars, such big market will completely digest your transaction cash.

4. A Forex trader may do 24 hours transactions and other markets are different, the Forex market is a 24 hour linkages market, it starts from every Sunday before dawn Australian Sydney market, substandard collect the transaction center Singapore, Tokyo, London, Frankfurt to New York continuously to open, such linkage market enable you to do 24 hours transactions, also provide flexibility for Forex trader to do transaction.

Strategies You Can Use In Forex Trading

Being a trader in the Forex market has its ups and downs. There are times when you earn lots of profits but there are also times when you lose a great deal too. Foreign Exchange is a complicated, profitable, and risky endeavor. If you’re not ready to take some risks, you can’t be an effective and efficient trader.

Are you aware that the Forex market is the largest market to conduct trade all over the globe? This is true and so if you want to earn more money, learn how to trade in the Forex market.

Currencies are traded in the Forex market. This market was primarily created to meet the demand and supply of different kinds of currencies by individuals, companies, and government. It was also created to assist exporters and importers. Most of the traders are investors, businesspersons, speculators, businesses, and those in the industry of banking.

As you probably know by now, countries have different kinds of currencies. The values of these currencies also vary. In Forex trading, two currencies are being traded which are also called ‘trading pairs’. When you sell a currency, you’re also purchasing another. For example, you can get the British pounds by using US dollars. If there is a small supply of British pounds, you will need to pay more US dollars. In this transaction, the buyer of the British pounds hopes to sell it at a much higher price (more than what he ir she paid for it).

Speculators accept the risk of any adverse movements in the exchange rate and in the case of a favorable currency movement, the speculator can earn lots of profits.

You must have your own trading system. This is a must for all traders and beginners in the industry are encouraged to develop their own system. For starters, you can start with a small investment. With the system in place, you can easily decide when to enter the market and when to exit. The cost for every transaction is very minimal and so you can trade for as many times as you like in a day; besides, the Forex market is open round the clock.

It’s quite hard to manipulate the Forex market because it is extremely huge. The market is also often influenced by global events and news. Insider trading is definitely eliminated because of these factors.

Never enter the Forex market with limited knowledge. You must be aware that around 90% of all Forex traders suffer great loses. Only 5% are able to gain profitable results while the remaining 5% are only break-even.

You will need to have adequate knowledge about the Forex market. You can start by researching online for useful information about Forex trading. Try to choose among the many Forex software programs available in the market and you have to ensure that you’re using an efficient program. That way, you can easily monitor the activities and changes in the Forex market online. With an internet connection at home and efficient trading software, you can make educated transactions. You can’t rely on sheer luck if you want to succeed as a trader. You need to study and analyze the market trends while considering market indicators and generators. You can also get a broker to help you out with your trading concerns. You can’t keep afloat in the Forex market without adequate help and knowledge. Know the strategies to use.

Stock-market » Stock Market Trading - Winning

Successful stock market trading begins with a winning trading plan. It's as simple as that. If you develop a well-conceived trading plan to guide your actions in the stock market you will already have the advantage over most of your market competition. Put simply, it gives you the edge you need to win over the long haul when trading the stock market or forex market.

A stock market trading plan will not guarantee your success in the markets, but a good plan will enable you to work methodically toward your stock market trading goals while reviewing on a regular basis what is working and what is not. It will act as a roadmap for your trading journey. It will enable you to respond positively and constructively no matter what happens with your individual trades. And, most importantly, it will help you control the only thing a trader can control: his or her own actions.

Finally, stock market trading is a business. It can be a fascinating and sometimes thrilling business, but in the end it is a business. A trading plan helps you treat it as a business.

Here are some important elements of a trading plan.

1. Why am I trading? What are my goals?

The answers to these questions might seem obvious, but they usually are not. Take some time to ask them of yourself, and seriously consider the answers. You may be surprised by what you learn. And whatever the answers, you will have a clearer picture going forward of what this enterprise means to you, and that will help you survive any rough patches.

2. What markets am I going to trade and why?

It is often best to specialize, especially for beginning stock market traders. Many pros make a great living trading the same stock day every single day for years. Choose a market that is appropriate for your experience level and trading style. Consider other factors such as available margin, volatility and liquidity.

3. What is the concept or philosophy behind your trading methodology?

Your trading system must have a concept behind it. Whether you are a value investor like Warren Buffet or a trend trader like George Soros, you should understand why you are doing what you are doing, how your beliefs about the markets define what you will do as a trader.

4. What will be your specific method?

In other words, specifically how will you execute your trading ideas? Will you buy breakouts or pullbacks? Buy oversold or sell overbought? Or will you use specific technical setups such as moving-average crossovers or another indicator-based strategy? Under exactly what conditions will you enter? When will you know to exit?

5. How much money will you risk on any single trade? On trading in general?

This is critical. Of course, start small. But just as importantly, have a plan in place for how much you will risk, emotions don't cloud your judgment when the time comes. The key is to find an allocation that doesn't cause any stress but still makes the trade worthwhile financially. One of the biggest problems with newer traders is that they are trading way too big in relation to their account size. Like when you are forex trading. Trading forex at 100-1 leverage is like introducing your mistress to your wife. Yes, you can do it, but that doesn't make it a good idea. Normally they don't get along too well.

6. What will my trading rules be?

This is also critical. Your trading rules include entry and exit rules, rules governing maximum daily, weekly or monthly losses, maximum risk on any given trade, the maximum number of trades per week, etc., etc. These rules enforce discipline and keep you out of trouble. What stock price will enter at, what stock price will I will exit. Be discplined.

7. How will I record and evaluate my trading performance?

Allow me to repeat myself: This is critical. In fact, this might be the most important element of trading for new traders in the stock market. A new stock market trader who evaluates his trades, winners and losers, in an effort to learn what works and what does not, will make quantum leaps forward in terms of ability and profitability. If you have a working trading plan and evaluate every single one of your trades after you have closed it you have already beaten 95% of the competition.

8. What are my rules for managing profits?

What's the problem with profits? Well, believe it or not there is one, and it's a serious one. It's called euphoria, and it clouds the judgment perhaps more than any other emotion related to trading. Start piling up the profits for the first time and it won't be long before you are convinced you are king of the world. About 30 seconds later you'll be broke, following a series of unwise and exceedingly risky trades. So have a plan for protecting closed profits when you have reached your goals for the week or the month. Don't give them all back.

9. How will I reward myself for following my trading plan?

Don't leave this out. Following your trading plan will bring rewards in the form of profits, but you should also consciously reward yourself for doing so because it is such an important part of successful trading. So if you finish the week or the month (or even the day) without having broken any of your trading rules, find a way to reward yourself. You deserve it. You are in rare company.

If you follow your plan you are improving your chances of becoming successful stock market or forex trader.

Stock Market Trading- 3 Strategies to Make you a Millionaire

Stock Market Trading- Are you ready to become a millionaire. Here are 3 proven strategies to make you become a more successful trader and increase your wealth. They can be used if you are forex trader, stock market trader.


If you want to catch the serious profit in Forex Trading you need to trend watch Forex trends which are worse term. here we are going to give you a 3 step simple method which if you use it correctly, will help you catch every superior Forex trend and lead you to long-term term currency dealing success. This will add more money to your bottom line than most other strategies.

For you to become a successful Forex Trader, you must set rules and then follow them. Successful Forex Traders have discpline.

Most beginner Forex traders don't bother trying to trend following Forex lengthier term - instead they try Forex scalping or day trading. These methods focus the trader on small moves and they hope to catch small profit however as most short term moves are random, this leads to equity eliminate.


The other alternatives are swing trading and long term Forex trend following and this article is all about the latter method. If you look at any Forex chart, you will see long-term term trends that last for months or years. These moves can and do yield serious profit - present we will outline a simple method to get them.

Breakouts

By far the best way of catching the serious moves is to use a Forex Trading strategy based around breakouts. A breakout is simply a move on a Forex chart where a new high or low is made and resistance or support is broken.

It's a fact that most leading moves start from new highs or lows.

While it might appear that you are not buying or selling at the greatest level, you are in terms of the odds of the trend continuing. Most Forex traders make the mistake of waiting for the breakout to come back and get in at a better price but these traders never get on board. The grounds are if a breakout occurs, then you have a new strong trend and a pullback is not very likely to occur.

Most traders don't buy or sell breakouts and that's exactly why it's such a powerful method.

The only point to keep in mind is a support or resistance which is ruined, should be valid and that means at least 3 points in at least 2 different times frames. The more tests and the greater the spacing between the tests the more valid the level is.

Confirmation: Make sure it is confirmed

Of course not every breakout keeps and some reverse, these are false and can cause losses. You therefore need to confirm each move. All you need to do to achieve this is to put a few momentum indicators in your Forex trading system to confirm your dealing signal.

These indicators give you an estimation of the strength and velocity of price and there are many to choose from. We don't have time to discuss them here (simply look up our other articles) but two of the greatest are - the stochastic and Relative Strength Index RSI

Stops and Targets

Stop points are easy with breakouts - Simply behind the breakout point.

If you have a serious trend then you need to be careful you can milk it, so don't move your stop to soon and keep it outside of normal volatility. If it is a huge move, trailing stops should be held a long-term way back and the 40 day moving average is a good level to use.

You have to keep in mind that when the trend does eventually turn you are going to give some profit back. You don't know when the trend is going to end, so don't predict.

It's ok to give a serious back, as that's the nature of trading Forex. Keep in mind if you got 50% of all leading trend you would be very rich. When you are long-term term trend following you have accept giving a bit back and taking dips in open equity as the trend develops - this is noise and does not affect the long term trend.

The above is a simple way to trend watch Forex and catch the high odds moves that yield the serious profit. If you are learning Forex dealing and want a simple method that is robust and will help you get every major move, then you should base your dealing on the above method.

Now that you have all the winning strategies, you now need to have a winning broker, recently the CFD FX REPORT has reviewed these brokers and have come up with Best Forex Broker to find out this visit the website.

Retail forex

In financial markets, the retail forex (retail off-exchange currency trading or retail FX) market is a subset of the larger foreign exchange market. This "market has long been plagued by swindlers preying on the gullible," according to The New York Times. Whilst there may be a number of fully regulated, reputable international companies that provide a highly transparent and honest service, it's commonly thought that about 90% of all retail FX traders lose money.

It is now possible to trade cash FX, or forex (short for Foreign Exchange (FX)) or currencies around the clock with hundreds of foreign exchange brokers through trading platforms. The reason that the business is so profitable is because in many cases brokers are taking the opposite side of the trade, and therefore turning client capital directly into broker profit as the average account loses money. Some brokers provide a matching service, charging a commission instead of taking the opposite site of the trade and "netting the spread", as it is referred to within the forex "industry."

Recently forex brokers have become increasingly regulated. Minimum capital requirements of US$20m now apply in the US, as well as stringent requirements now in Germany and the United Kingdom. Switzlerand now requires forex brokers to become a bank before conducting fx brokerage business from Switzerland.

Algorythmic or machine based formula trading has become increasingly popular in the FX market,with a number of popular packages allowing the customer to program his own studies.

The most traded of the "major" currencies is the pair known as the EUR/USD, due to its size, median volatility and relatively low "spread", referring to the difference between the bid and the ask price. This is usually measured in "pips", normally 1/100 of a full point.[citation needed]

According to the October 2008 issue of e-Forex Magazine, the retail FX market is seeing continued explosive growth despite, and perhaps because of, losses in other markets like global equities in 2008.
Key Concepts Behind a Retail Forex Trade


Currency Pairs

Currency prices can only fluctuate relative to another currency, so they are traded in pairs. Two of the most common currency pairs are the EUR/USD (the price of US dollars quoted in euros) and the GBP/USD (the price of US dollars quoted in British pounds).


High Leverage

The idea of margin (leverage) and floating loss is another important trading concept and is perhaps best understood using an example. Most retail Forex market makers permit 100:1 leverage, but also, crucially, require you to have a certain amount of money in your account to protect against a critical loss point. For example, if a $100,000 position is held in EUR/USD on 100:1 leverage, the trader has to put up $1,000 to control the position. However, in the event of a declining value of your positions, Forex market makers, mindful of the fast nature of forex price swings and the amplifying effect of leverage, typically do not allow their traders to go negative and make up the difference at a later date. In order to make sure the trader does not lose more money than is held in the account, forex market makers typically employ automatic systems to close out positions when clients run out of margin (the amount of money in their account not tied to a position). If the trader has $2,000 in his account, and he is buying a $100,000 lot of EUR/USD, he has $1,000 of his $2,000 tied up in margin, with $1,000 left to allow his position to fluctuate downward without being closed out.

Typically a trader's retail forex platform will show him three important numbers associated with his account: his balance, his equity, and his margin remaining. If trader X has two positions: $100,000 long (buy) in EUR/USD, and $100,000 short (sell) in GBP/USD, and he has $10,000 in his account, his positions would look as follows: Because of the 100:1 leverage, it took him $1,000 to control each position. This means that he has used up $2,000 in his margin, out of a $10,000 account, and thus he has $8,000 of margin still available. With this margin, he can either take more positions or keep the margin relatively high to allow his current positions to be maintained in the event of downturns. If the client chooses to open a new position of $100,000, this will again take another $1,000 of his margin, leaving $7,000. He will have used up $3,000 inmargin among the three positions. The other way margin will decrease is if the positions he currently has open lose money. If one of his 3 positions of $100,000 decrease by $5,000 in value (which is fairly common), he now has, of his original $7,000 in margin, only $2,000 left.

If you have a $10,000 account and only open one $100,000 position, this has committed only $1,000 of your money plus you must maintain $1,000 in margin. While this leaves $9,000 free in your account, it is possible to lose almost all of it if the speculation loses money.


Transaction Costs and Market Makers

Market makers are compensated for allowing clients to enter the market. They take part or all of the spread in all currency pairs traded. In a common example, EUR/USD, the spread is typically 3 pips (percentage in point) or 3/100 of a cent in this example. Thus prices are quoted with both bid and offer prices (e.g., Buy EUR/USD 1.4900, Sell EUR/USD 1.4903).

That difference of 3 pips is the spread and can amount to a significant amount of money. Because the typical standard lot is 100,000 units of the base currency, those 3 pips on EUR/USD translate to $30 paid by the client to the market maker. However, a pip is not always $10. A pip is 1/100th of a cent (or whatever), and the currency pairs are always purchased by buying 100,000 of the base currency.

For the pair EUR/USD, the quote currency is USD; thus, 1/100th of a cent on a pair with USD as the quote currency will always have a pip of $10. If, on the other hand, your currency pair has Swiss francs (CHF) as a quote instead of USD, then 1/100th of a cent is now worth around $9, because you are buying 100,000 of whatever in Swiss francs.


Financial Instruments

There are several types of financial instruments commonly used.

Forwards

One way to deal with the Forex risk is to engage in a forward transaction. In this transaction, money does not actually change hands until some agreed upon future date. A buyer and seller agree on an exchange rate for any date in the future, and the transaction occurs on that date, regardless of what the market rates are then. The duration of the trade can be a few days, months or years.

Futures

Foreign currency futures are forward transactions with standard contract sizes and maturity dates — for example, 500,000 British pounds for next November at an agreed rate. Futures are standardized and are usually traded on an exchange created for this purpose. The average contract length is roughly 3 months. Futures contracts are usually inclusive of any interest amounts.

Swaps

The most common type of forward transaction is the currency swap. In a swap, two parties exchange currencies for a certain length of time and agree to reverse the transaction at a later date. These are not contracts and are not traded through an exchange.

Spot

A spot transaction is a two-day delivery transaction for most currency pairs (but one-day for USD/CAD and some others), as opposed to the futures contracts, which are usually three months. This trade represents a “direct exchange” between two currencies, has the shortest time frame, involves cash rather than a contract; and interest is not included in the agreed-upon transaction. The data for this study come from the Spot market.

Market participants

 Unlike a stock market, where all participants have access to the same prices, the foreign exchange market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest investment banking firms. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle. The difference between the bid and ask prices widens (from 0-1 pip to 1-2 pips for some currencies such as the EUR). This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to as a better spread. The levels of access that make up the foreign exchange market are determined by the size of the “line” (the amount of money with which they are trading). The top-tier inter-bank market accounts for 53% of all transactions. After that there are usually smaller investment banks, followed by large multi-national corporations (which need to hedge risk and pay employees in different countries), large hedge funds, and even some of the retail FX-metal market makers. According to Galati and Melvin, “Pension funds, insurance companies, mutual funds, and other institutional investors have played an increasingly important role in financial markets in general, and in FX markets in particular, since the early 2000s.” (2004) In addition, he notes, “Hedge funds have grown markedly over the 2001–2004 period in terms of both number and overall size” Central banks also participate in the foreign exchange market to align currencies to their economic needs.

japan Gold Mraket

Japan has evolved as a major market for gold for fabrication and investment since trading was liberalised in 1974. But the gold business in Japan has much earlier origins. Gold mines in Japan in the 17th century exported through the Dutch East India Company to East Asian countries. Tokuriki Honten, still an important refiner and fabricator, traces its history back to 1727. Tanaka Kikinzoku Kogyo, the leading precious metal refiner and trader, was established in 1885.

Actual mine production is limited. The only significant mine is Sumitomo Metal Mining's Hishikari on Kyushu island, opened in 1985, with output between seven and eight tonnes (0.25-0.26 million oz) annually. The Japanese market is supplied, therefore, both by imports of bullion and by-product gold from imported concentrates.
Total gold demand in Japan ranges between 200 and 275 tonnes (6.4 – 8.8 million oz), embracing jewellery fabrication, electronic and industrial uses, dental applications and physical bar investment . Japan is the world's foremost user in electronics, using over 100 tonnes (3.21 million oz) in 2000 according to GFMS (although this fell sharply, to around 70 tonnes or 2.25 million oz, in 2001 on the back of the slowdown in global demand). Japan's use of dental gold in 2001 was around 21 tonnes (675,000 oz) according to GFMS. Physical bar hoarding is also much higher than in other industrial countries, and is an anonymous way of holding wealth outside of the banking sector. GFMS estimate that it averaged just under 60 tonnes (1.9 million oz) over the past decade and exceeding 100 tonnes (13.2 million oz) in 1999. The first few months of 2002 saw a surge in Japanese hoarding demand due to fears about the health of the banking system.

It is also the custom in Japan for companies to give gifts of 24 carat ornaments such as teapots, saki cups, vases and chopsticks. The gold tea ceremony room at the Moa Art Museum in Shizuoka Province used 50 kilos (1,607 oz) for teapots and cups, plus gold leaf for its walls.

Indicators For Forex Trading

Some people find Forex trading very difficult. The reason behind this is because they did not spend adequate time in studying the market trends and they did not conduct thorough technical analysis. Forex charts are very important and you need to know how these charts are developed. As you probably know by now, the Forex market is a fast-paced environment and you need to keep up with it if you want to earn good profits. Technical analysis can definitely help you and so can market indicators.

Indicators are quite helpful especially when you’re about to make a transaction in the Forex market. Most of the time, these indicators provide you with market’s probability behavior but it can’t exactly tell the certainty of currency prices.

Technical indicators are very important in Forex trading. You can combine the indicators to create your very own trading strategy in order to recognize the market trends. As an effective trader, you must be able to identify the current or major trends, the short-trends, and intermediate trends; if you can do this, you will be able to hold a good position in the Forex market where you can earn great profits.

Since the Forex market is changing constantly, you need set a criterion for using the technical indicators. If you want to get the highest probability and accurate predictions, you must be able to combine required indicators. By doing so, you can determine the price behaviors of the currencies you would like to invest on.

Supposing that your judgment is correct, you should still consider other factors in order to gain maximum profits from your trades. If you’re having a bad day in the Forex market, take your profits and stop trading for the moment. This is a smart decision because if you stay longer (hoping to regain your lost money), you might lose more of your investment. When the prices of the currencies are moving within a so-called narrow range and isn’t going anywhere, there is no need to anticipate for a big movement. Find another currency to trade with better profit potentials.

With so many technical indicators to use, you will surely find combinations that will work best for you. Don’t be discouraged if ever you encounter some downfalls in Forex trading because that’s natural. When using technical indicators, you must give yourself enough time in doing the analysis and studies. There are so many things to consider and you can’t just do it in minutes. However, make sure that you don’t take too long in making your trading decisions because the Forex market will not slow down just to work for you. You’re the one who needs to adjust to its fast-paced environment. Keep in mind that there are also lots of traders out there who want to earn profits. You need to keep up with the competition.

Technical analysis is not very easy to do and so you will need all the help you can get. You can consult a broker or some online Forex trading tools if you want to learn more about this kind of trade. The internet is widely available and you can use it to your advantage. Educate yourself about these various technical indicators so that you can use them in identifying the market trends. For successful Forex trading, you must learn about these technical indicators.

Auto and Truck Sales

# Importance (A-F): This release merits a C-.
# Source: Individual auto manufacturers, seasonal factors by the Commerce Department.
# Release Time: Varies by auto maker from the first business day to the third business day of the month (data for month prior).
In Brief

Auto and Truck Sales measure the monthly sales of all domestically produced vehicles. They are considered an important indicator of consumer demand, accounting for roughly 25% of total retail sales. Demand for big ticket items such as autos and trucks tends to be interest rate sensitive, making the motor vehicle sector a leading indicator of business cycles.

Each auto maker reports sales individually. The reports are typically released over the course of the first three business days of the month. Using the individual reports, a total annual sales pace can be calculated after applying Commerce Department seasonal factors. It is this annual sales pace that the market refers to when discussing auto and truck sales for the month.
In Depth

Vehicle sales figures rarely grab the attention of the market probably for two reasons. First, though the specifics of the data are not terribly difficult to understand, their implications are a little hard to trace. Second, unlike many economic releases, vehicle sales are not released all at once and at the same time every month. This makes it difficult for the market to quickly interpret what the numbers mean for the overall consumption picture and to react accordingly.

This is what happens in terms of vehicle sales during the course of any given month:

1. The individual vehicle manufacturers report their sales results during the first three or four days of the month.
2. A day after the last manufacturer reports the Bureau of Economic Analysis releases its estimate of unit auto sales.
3. About a week after that the BEA releases its estimate of unit truck sales.
4. The Census Bureau releases its retail sales report, including a measure of sales at automotive dealers, usually around the 13th of the month.
5. Roughly two weeks after that the BEA releases its personal income and outlays release, including a measure of spending on motor vehicles and parts.

Each item in this list warrants a more detailed discussion.

Manufacturers

Most vehicle manufacturers usually always report sales results on the first business day of the month; Ford does not report until the third business day. As these individual results trickle out over the news wires throughout the day, diligent economists and market analysts are busy calculating running totals and applying seasonal factors to them--the BEA supplies factors for the coming six months in advance--in order to come up with approximations for auto and truck sales rates. These figures are some of the first hard spending data for any given month; comparing these derived rates to those from months and years prior is a big help when it comes to formulating a consumption forecast for the month.

Unit Sales

Once economists and analysts have translated individual sales results into annual rates, they turn to the BEA to provide "official" unit sales rates. Unfortunately, though the BEA is using the same seasonal factors as the rest of us, more often than not it produces unit rates that are modestly different than the ones that market previously had in mind. Thankfully, however, these differences usually pop up in the individual sales categories--domestic car sales, import car sales, domestic truck sales, and import truck sales--but wash out when all the vehicle types are aggregated.

Retail Sales

With unit sales rates in hand we can proceed to forecast the auto sales contribution to the retail sales figure. And this link is important. In fact, autos often prove to be such a significant swing factor that retail sales are scrutinised on both a total and an excluding-autos basis. It is also worth remembering that the auto term in the retail report is notoriously difficult to estimate; it is not at all rare to see it decline (increase) during a month when unit auto sales rise (fall). Still, by the time the retail sales report rolls around, a few other preliminary spending gauges can be used in conjunction with the unit auto data to get a pretty good read on whether retail consumption rose or fell for the month.

Personal Consumption Expenditure

With unit sales rates and retail auto spending data in hand analysts can hone their estimates for the auto category in the personal consumption release. Many analysts place relatively more emphasis on the retail auto figures to sharpen their PCE estimates, but the unit auto numbers typically have better predictive power for that series. Besides, it is not commonly known that the BEA does not rely at all on the the retail sales data to produce its consumption estimates. Thus, as an important component of the monthly consumption figures that go directly into the quarterly GDP calculation, the PCE auto data are most important to economic forecasters.

Tips to Make Money Fast in Forex

This is all about making a fortune with Forex. Most traders just go with the flow and make average gains, with this article you will learn what makes some traders stand out and a lot richer than others!

We are going to assume that you know how to trade, and has quite an experience in trading.

With simple changes in your trade selection, money and risk management, and mindset, you can change that average gains into larger ones!

Fast money is in Forex, it is a lifestyle. here is it how its done.

Tip 1 . Embrace Changeability and Risk With a Smile

Forex systems have instability.

If you cannot manage and calculate your risk, then don't ever think about trading in Forex. Many traders back away from forex because of this ( why do you even traded in the first place?). But taking manageable risks has its rewards.

It's just simple, you know what your losing if ever it doesn't work out, yet what you gain is unpredictable but sure is high! That is what I call excitement, my friend.

To a well-educated Forex trader, this is something you shouldn't be afraid of, might as well embrace it.

Tip 2. Trade Less, gain more

Most traders think that if they don't trade, another door has closed, or miss some move. The tendency, they trade frequently. Most of the trades that come big come a few times in a year. Focus on the trades that make the really big gains. Be alert, and informed.

Tip 3. Diversify is a no-no

Most Investors accept the fact that diversification can make money fast - in reality it does exactly the opposite.

Tip 4. Money and Risk Management

This article has been concentrating on the Big gains, because this is your money, so every penny should be controlled, this is where money management kicks in.

Control your risks, but increase your chances of success:

- Give yourself staying power by buying options at or in the money, this prevents you from getting stopped out. Many traders lose not by the market direction, but because they were stopped out by a instable move, and options will give you staying power.

- Keep your stop in its original position - until the move is well in profit, before moving it up.

- Trading fast and selectively - have the courage to trade when you feel it is good. and enjoy the cash.

Tip 5. Compound growth has its benefits

The way to make money fast in forex, is to understand the power of compound growth. For example, if you target 50% a year in your trading, you can grow an initial $20,000 account, to over a million dollars, in under 10 years.

Break the norm, and gain more. Follow some of these tips and make your way into the big gains!

by Ryan Joseph Ferrer.

U.S. Forex Market Commentary EURO

The euro extended recent gains vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.4115 level and was supported around the $1.3980 level. The common currency has been well-bid from the $1.3890 level during yesterday’s North American session and was higher again today on China’s latest call to lessen its reliance on the U.S. dollar by advocating a new supranational currency. Data released in the U.S. today saw May personal income rise 1.4% while May personal spending up 0.3%. These data suggest U.S. consumers have raised their marginal savings rate substantially, to the detriment of countries like China that export heavily into the U.S. Despite China’s latest calls for a new global currency and despite the unprecedented level of debt being sold by the U.S., recent Treasury auctions have performed very well with a high percentage of indirect bidders – suggesting China may still be recycling its massive current account surplus back into U.S. assets. The May PCE deflation was up 0.1% and final June University of Michigan consumer sentiment printed at 70.8, up from 68.7 in May. The improvement in consumer sentiment took confidence levels to their highest level since September. In eurozone news, German consumer prices were unexpectedly higher in June, up 0.4% m/m and 0.1% y/y. Bank of Italy reported the eurozone’s economic contraction eased in June with the EuroCoin indicator falling to -0.61 from -0.89 in May – the fourth consecutive increase. France’s finance ministry reported it expects more joblessness over the next several quarters. Euro bids are cited around the US$ 1.3435 level.

STERLING

The British pound appreciated sharply vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.6560 level and was supported around the $1.6365 level. Cable came within 60 pips this week of establishing a multi-month high dating to November 2008. Cable bids are cited around the US$ 1.6125 level. The euro moved lower vis-à-vis the British pound as the single currency tested bids around the £0.8505 level and was capped around the £0.8570 level.

SWISS

The Swiss franc appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the CHF 1.0795 level and was capped around the CHF 1.0945 level. Data released in Switzerland saw the June KOF leading indicator climb to -1.65 from -1.85 in May. U.S. dollar offers are cited around the CHF 1.1165 level. The euro and British pound came off vis-à-vis the Swiss franc as the crosses tested bids around the CHF 1.5210 and CHF 1.7850 levels, respectively.

Time Marches On (Lanie Hill)

eurcad closed on stop at BE, took +52 on eurgbp

Results for March 2009 +609 pips on closed trades

Results so far for 2009 +942 pips on closed trades.

results live on this blog since Oct 23 2008 +4873 on closed trades

ANNOUNCEMENT

I'm sorry folks, but the recent tosser attack has forced me to question my motives for posting here again and since then i've taken trades without posting here on time because i've lost the motivation to. Ive had another eurgbp trade today and havent posted it which is long by the way from 9312 sl now at 9332.

It's just been one more attack from one more tosser wannabe jealous trader.

Over the years i've had lots of them. In the past they kept to the forums and attacked me there, and now theyre coming to the blog - I even get emails from the wankers.

I understand how hard it is to get a foothold in this business so i've given them lots of slack. But I now find that I just can't be bothered even with this blog anymore.

I have nothing to prove anymore. I'm still here after 7 years and i do what i do and do it as well as i'm able. the proof is in these pages which document much of my trading career.

I will continue to trade my way and make my money. But i'm going to take a holiday from the blog and for how long I have no idea. I may never return or i could just be away a short while.

I just can't find a reason to post here anymore nor a motivation. Through the years i've trained a lot of people and very few of them are left around who trade. I do have some close friends who are still in the game but they, like me don't bother with the internet thing anymore either.

The whole reason i started the longer swing game was because i've taken up a new challenge which consumes my days and i very much enjoy that. My long days of screen staring are over and they did pay off but I no longer want to do that, I have better things in my life now which actually make a difference in the world.

Keep checking back if you like, at this moment I feel like just deleting the whole thing but then i guess it can stand here as some lessons to a select few who can read between the lines.

I hope that some of you make it in trading and make some serious money.

As a closing bit of advice i'd suggest that you don't study too hard - indicators really are bollocks, systems don't work for long enough to matter and risk management is all there is left.

If you win then it's luck, there is no skill in this game - it's how your capitalise on that luck that matters - get on the horse and dont get off till it's stopped running you way. but only get on the horse when it's close enough to the start so that you know when it's running the other way.

basically short stops, long profits and newtons law - a body in motion tends to remain in motion until acted upon by an opposing force. Go with the flow.

Stay Lucky.

Bye for now.

Soultrader 26 March 2009

end of the week

not done much trading today apart from Grail which finished up +17

not too good a week but +ve anyway at +78 for the week

got lots of work to do next week and as its summer ive decided that im going to trade grail only probarbly till september - as this is a long period ill be trading it on 3 pairs - eddy, swissy and cable

Hopefully next week will turn grail around for the month - it's up on a 3 pair trade but still down 106 pips on cable alone.

then again its not a mega pips strategy and nor is it designed to be - thats why you have to have a sizeable account to trade it to potential. Happy to say that that is now the case so off we go on 3 pairs - still going to take it steady for a bit tho trading probarbly 2 lots on each pair.

anyway, have a great weekend - and if you are bored try this brilliant Pool game that BB Mac introduced me to - very addictive - you have been warned!!

http://www.superarcade.com/minipool.htm

backtest data

if anyone is interested i have bought a lot of backtest data for the four major pairs

happy to share for a donation of $10 per pair

have data in various formats

lemme know

backtest data

if anyone is interested i have bought a lot of backtest data for the four major pairs

happy to share for a donation of $10 per pair

have data in various formats

lemme know

change of plan

well Monday began with a change of plan following a conversation on saturday

decided to continue grail on cable only which has ended up another poor trade closed for -60 - grail is now -165 for the month - still has a chance to catch up but its doubtful at this stage. time will tell

so anyway, decided to concentarate on the scalping strat again - been brain picking off bbmac and duckfu all day today - pinched a bit from here and a bit from there.

Morning results were ok but i dont really think i have the constitution for scalping - its too much like hard work!! and gives me a headache.

Ive reverted to a triple screen method this afternoon and just trying some ideas of my own again based around the Hilda Baker model - funny isnt it that no matter what someone else makes on a method if it doesnt sit well with you it just wont work.

For those asking about hilda it just isnt ready yet - i want to make sure this is easy to follow and understand before i even think about releasing it.

so, this morning i made +12, -10, +9, +1 and -11 with that scalping thingy - all that screenwatching for 1 pip! - gotta be a better way to earn a living!!

this afternoon has fared a little better since the changes - a +5 and currently long on cable +18 as we speak - this one may stay open overnight but ill check back later to see.

Once again folks thatnk for reading this - keeps me focussed on record keeping if nothing else!!

Hidden Divergence

K, been asked exactly what hidden divergence is and for those of you who dont know please have a look at the chart above.

Just right click the picture and choose 'open in new window' to make it bigger.

The indicator i used for this was the OSMA or 'moving average of ocilator - basically the histogram on a good macd. The settings are 8,12,9

The chart shows the easiest type of hidden divergence to spot and the most lucrative - there are other harder to spot ones where the lows come in the same peak so to speak but lets get the basics right first.

basically this is my definition and how to use it:

Determine the trend with some kind of moving average or whatever else you fancy - the ones above are a 34 ema and a 50 ema showing the trend as up

you will then see higher highs on price and higher highs on osma - higher lows on price and higher lows on osma.

when you see a higher low on price but which shows a lower low on osma this is hidden divergence and is used for re-entry into the prevailing trend. the trade can be exited in many ways either an osma top or a pre-determined level of support. Or you may decide to stay in the trend until some kind of regular divergence is seen.

Entry is given on the close of the first bar that makes a single higher (lower) bar on the osma. Its important that you wait for the bar to close as until it is the osma bottom is not formed.

There are ways of optimising the entry point where you can enter before osma has given the signal that its bottomed out - either by identifying some kind of support zone with pivots, murray math etc or on some other significant support such as a price channel, trendline etc.

this is the prime hidden divergence setup when above the osma zero line you get 2 or more higher highs in succession followed by a lower low. There are other forms of hidden divergence but this one is the highest probability one. If you wait all day for these and take nothing else you will make money on them overall. Hidden divergences are seen on all timeframes

Lastnights cable closed at +30 as i moved the stop up watching coronation street :)

Please let me know if this was useful or if it needs more in depth.

great day

had a great day yesterday

grail made a total of 82 pips on 3 pairs and i took 46 on cable short from that 15 min hidden divergence at around 12 noon yesterday (bst) closed out at 5:17pm 1.8169

the cable part of the grail was +33 just to keep track alone for the month end

good day then all told :)

100+ day :)

Feelin' Good!

Had another storming day today as follows

Cable Trades +8, -10, +1, +114, +5

Grail trade (cable only) +56

Total +174 pips

Looks like im finding form again.

Ive turned down the scalping commission - for me trying to tune a scalping strategy is almost impossible - Im not a scalper - havent trained for it, dont want the stress. Im a trend trader and there is always a trend somewhere - today it was on the 5 min and 15 min - tomorrow it might be another timeframe and thats what i learned to do for over 3 years now.

lets see if i can add some logic to my rather erratic system trading of late ...

I was talking to a collegue in the last few weeks and we both agreed that 2005 has been a poor year as far as short term trend goes. We agreed to try and get our heads around scalping as a system that can be done in any market.

To be honest it was time well spent. I did get into it at one point but at the end of the day i was exhausted falling asleep for hours in front of the tv before bed.

Ive realised that to get to the standard that bb and duckfu have acheived may take me many years or re-training my psyche. Im not prepared to invest that time again when i have a perfectly good methodology that makes good money.

So, from now on im working purely on trending systems - although to be honest trends exist everywhere - even on a one minute chart - hilda works fine on a one min chart for example.

Heres the problem i had with scalping. Being a trend trader i had always learned to let your winners run. scalping on the other hand involves taking profits off the table when the market is showing strength at the target area.

this was causing a severe conflict with my brain which kept on saying "you cant close on strength - are you crazy?" - thats the way ive been programmed - to eek out the maximum possible from a trend when in place and not let the wiggle dance of the currency shake me out - its something that has served me well over the last 3 1/2 years.

So thats that - im back to form trading as always - those of you who know me of old will know what that means :)

Thursdays Trades

Started off really well today but been shaken about trading late afternnon by silly entries - tends to be my biggest problem is taking trades that arent there.

all cable trades today as follows

-10,+10,+1,+49,+20,-20,-20 = 30 pips

Grai +126 cable alone - eddy lost 46 and swissy lost 19 - makes me happy i only trade one pair with it really :)

this means that grail escaped its second losing month and actually ened up +49 pips on the month - not bad for such a crappy month and certainly better than a loss - so grail retains its 1 losing month in 3 years phew!

wont be around tomorrow as the wife is going into hospital for a proceedure at 9am - should have time to place my grail trades for the ay though but dont expect an update till mybe saturday morning.

Welcome!!

Welcome to my blog

I was inspired by Graemenash who started one of these so i thought i'd join in

expect insights into the world from a lunatic perspective (we traders are a lonely sad lot ya know) along wth thoughts as i take my trades for the day.

Just one day left before the bank holidays - tomorrow ive vowed to place a set and forget trade in the morning and then go somewhere nice like nearby chatsworth house for the day.

Be interesting to see if i can stick to it!!

Day off and out!!

Well, the sun is shining in happy Derbyshire UK today - to be honest its the first time weve seen some summer!

ive placed 3 set and forget trades as follows - got to be back late this afternoon to close any out so lets see how they do

these are all oco orders (one cancels other)

Cable
Long 8267, stop 8217, take profit 8487
OR short 8187, stop 8237, take profit 7967


euro
long 2568, stop 2518, tp 2758
OR short 2488, stop 2538, tp 2298


swissy
long 2387, stop 2337, tp 2587
OR short 2307, stop 2357, tp 2107

Development on The Hilda Baker System will be suspended until monday however as an update so far for May the system has produced 974 pips - ps, ignore the price on the website - it will be much less than that when ready. - see more details of the system here http://www.simpleforexsystems.com

Now lets see if i can avoid all the hype around the french eu consitution vote today. Who cares what the french think anyway??

murray notes

Just taking time out to make notes of graeme's suggestions on the use of murray math lines

Sell @7/8 close @4/8
buy@1/8 close @4/8
sell@8/8 close @6/8
buy @0/8 close @ 2/8

right - 12 noon here in the uk and no trades have triggered yet - going out soon but will report later on results of set and forget trades

there was a reasonable hilda trade today at around 8am for a long cable at 8227 - trade wouldve closed around 45 for +18 - remember to log this one soul.

im finding this new method of set and forget trading much better - im finding time to do things like this blog and also getting to grips with my other businesses.

Great thing is that capitalspreads.com is really doing well as i can set the trade in the morning and totally forget about it till later - mike is right when he says 'dont sweat the action' it so much less stressful than my usual trading style.

On saying that the system has had a stinking month up to press and this may well be the first ever losing month in 3 years of data trading it.

On saying that its actually -7 on the month as we speak but there are still 3 trading days left inc today so best not try to guess the final outcome for May :)

for those reading this blog youve not seen pervious resuls so dont take these small numbers as typical cos it isnt - normally its around the 1000 pips a month mark which when used with decent levels of trading is enough for anyone

later folks

trade placed on cable oco will post result later today

have fun all :)

come back franc and DM all is forgiven !!

end of day / week

Anyway - been out and come back to find that cable triggered and entry AND an exit on stop so minus 50 for the day - bummer :( none of the other trades triggered tho in the timeframe set for execution

still lots of fun out this afternoon so worth it - show me a system with no losses and ill show my backside in burtons window!!

Thats ya lot for me anyway -

hope you have a great holiday weekend
Hope the French Vote 'Non'
Hope I win the lottery
and finally hope i get my end away this weekend :)

catch you all Tuesday for more ramblings (bank holiday monday in the uk)

Ciao!!

Bank Holiday

morning all,

Bank holiday monday in the uk so not expecting much to happen today

Im haing the day off to pick my nose or whatever i feel like

I have placed 3 set and forget trades tho and will be taking notes of hilda trades later today

Day off - What day off!!

Well, so much for a day off!


Wife dragged me first to the wholesalers to buy a new vacum cleaner and other bits and bobs (total £230.00) and then off to the garden centre for plants (£45.00)

Of course now she's got plants then she needed a freshly dug piece of earth to put em into (3 hours hard graft)

Pleeze!! no more bank holidays for a while - im knackered!!

Anyway, got that sorted now and while she's planting ive done a bit of work.

The cable trade didnt kick in at all however swissy and eddy did today (swissy = USD/CHF, eddie = EUR/USD) - and took +21 on swissy and +14 on eddie so 35 for a day out - not bad :)

Also been working on the hilda system results and tidying them up for the Month of May - so far with one day left to play the results are astounding.

Total of 49 trades - 40 winners and 9 losers giving a pretty amazing 81% win / loss ratio for a total of +1075 pips

Of these pips just 37 pips were lost in the losing trades.

I think another month of actual results and some tidying up on making the method simpler to follow and it will be ready for launch.

PS, if you would like updates on when this blog is updated and when there is news of a change on http://www.simpleforexsystems.com just send an email to simpleforex@freeautobot.com

Catch you all tomorrow - i may only be trading the grail again tomorrow cos theres lotsof orders to process from my online businesses.

Take care y'all and Keep the faith.

Soul's Mad ForexTrading Diary

HIya, sorry the post is late today sir :) - two trades have already triggered but ive been far too busy to post - had lots of work to get done

also done a nice flash intro for the simple forex systems site - lemme know in the comments what you think of it.

Right then - trades open at the mo are as follows

cable long @8182
euro short @2329

swissy hasnt triggered yet so we will see if it does

im never 100% happy when cable and eiro are at opposites but thats the system so ya gotta play it :)

Im hoping to take some hilda trades later in the week when i have more time - just that having a holiday from my netbusinesses always results in a backlog of orders.

Soul's Mad ForexTrading Diary

yee haa - actually made some money today. cable closed for +40 and euro -6 so 34 pips in the bank to pay the bills with. Nothing to write home about but 34 pips is 34 pips - if it was $1000 a pip you'd be happy wouldnt you?

swissy didnt trigger by the way.

Heres looking forward to a good tomorrow too although with the dutch referendum things might just be slack again waiting for the result.

If its an expected no then maybe we will watch the euro tank on Thursday cos that will really be a strong nail ion the coffin of the EU.

Mind you - the doommongers are signalling that this might be the end of the EU as we know it - and even the currency!! - that would be a christmas present to me - i hate the euro cos there are too many players in it to make it volatile enough.

10 Tips for your success in Forex trading

1. Implement a trading plan.

“If you fail to plan, you plan to fail”. A trading plan is especially crucial in Forex trading to stay ‘in-control’ against the emotional stress in speculative situation.

Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized operation has to be predetermined and strictly followed.

2. Trade within your means

If you cannot afford to lose, you cannot afford to win. Losing is a not a must but it is the natural in any trading market. Trading should be always done using excess money in your savings.

Before you start to trade in Forex, we suggest you to put aside some of your income to set up your own investment funds and trade only using that funds.

3. Avoid emotion trading

If you do not have a trading plan, make one. If you have a trading plan, follows it strictly! Never ever attempt to hold your weakened position and hope the market will turn back in your favor direction. You might end up losing all your capital if you keep holding. Move on, stay within your trading plan, and admit your mistakes if things do not turn as you want.

4. Ride on a win and cut your losses

Forex trader should always ride till the market turns around whenever a profit is show; while during losing, never hesitate to admit your mistakes and exit the market. It is human nature to stay long on loses and satisfy with small profits – this is why as we mentioned earlier that a strictly followed trading plan is a must-have.

5. Love the trends

Trends are your friends. Although currency values fluctuate but from the big picture it normally goes in a steady direction. If you are not sure on certain moves, the long term trend is always your primary reference. In long run, trading with the trends improves your odds in the Forex market.

6. Stop looking for leading indicators

There aren't any in the Forex market. While some firms make a lot of money selling software that predicts the future, the reality is that if those products really worked, they wouldn't be giving the secret away.

7. Avoid trading in a thin market

Trade on popular currency pairs and avoid thin market. The lack of public participation will cause difficulties in liquidate your positions. If you are beginners, we suggest the big five: USD/EUR, USD/JPY, USD/GBD, USD/CHF, and EUR/JPY.

8. Avoid trading in too many markets

Do not confuse yourself by overtrading in too many markets especially if you are a beginner. Go for the major currency pairs and drill down your studies in it.

9. Implement a proper trading system

There is hundreds of trading systems available on line. Pick one that you are most comfortable with and stick with it. Stay organized in your trades and fully utilized stop-loss or limit functions in your trades.

10. Keep learning

The best investment is always the investment on your brain. Without a doubt, Forex trading needs much more than just a few guidelines or tips to be successful. Experience, knowledge, capital, fortitude, and even some help of luck are all crucial in one’s success in the FX market. if you lose in a trade, do not lose the experience in it. Learn from your mistakes and regain your position in the next trade.

13 Quick Tips for Forex Trading Success

At MarketClub we cover all major and minor Forex pairs in real-time, and their popularity is growing by the day. Traffic to our Forex pages is almost double what it was less then two years ago, and with all the great Forex material (including this post by Bill Poulos) I asked Jason Gospodarek fromFastPips.com to throw his knowledge into the mix and give us thirteen Forex tips that we ALL can use! Please enjoy the article and if you have any additional tips we want to hear them!

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At FastPips.com our goal is simple. We want to help you learn how to create a profitable trading business by executing low-risk, high-reward trades in the best market conditions possible.

#13: Back-test, but be logical. Back-testing a given strategy can prove priceless when done correctly, but remember to take the results with a grain of salt. Be especially wary of trade results shown on websites claiming astronomical gains since most of these results simply are not attainable under live market conditions for many reasons.

#12: Always analyze similar pairs in the forex market before placing any trade. Similar pairs can be defined as any tradable currency pair containing 1 of the 2 currencies you are about to trade. For example, by looking at no less than 4 US Dollar pairs before trading, one can determine if the pair will be moving based mostly on the US Dollar or the opposing currency. This can easily be done with the Japanese Yen and others as well.

#11: Be wary of trade ideas coming from other individuals or groups in the many online trading forums, blogs, or chat rooms. Only evaluate trade recommendations from trusted parties who have a proven track record of success. Remember this is your business, and to have a consistently profitable business, you need to execute reproducible trades based on your own strategies and ideals. Don’t build your house on sandy soil; lay a good foundation of continuing education and the rewards will come many times over.

#10: Longer-term charts (ie. monthly, weekly, daily) have logarithmically more importance upon technical analysis than shorter-term charts (ie. 1 minute, 5 minute, 15 minute). For example, a support or resistance level on a daily chart will hold much more importance than a similar line than a 5 minute chart. Most reputable traders will recommend trading on longer term charts, especially for those who are new to trading or have limited time to trade due to other commitments. Find your comfort zone and stick with it until you become consistent; even a slight edge in this market can set you free financially.

#9: Do not use any trading robots, expert advisors, or other “black box” automated trading software until you learn how to trade on your own first. Educating yourself is the key to success; deep roots will equal a tall tree that can weather any storm.

#8: Trade with a friend, group, partner, or mentor when you begin your journey of learning the forex market. Many of the glamorous ideologies of forex traders showered in riches come from high-risk, difficult to reproduce strategies. The way to often become most profitable in this market is to have consistency, be disciplined, and to repeat this over and over and over again. Forex trading, done properly, is not intended to be flashy.

#7: Be sure to use a forex broker with great service and support, along with low spreads. With the recent regulations we are much more protected against possible broker-related issues, but many traders are still paying much higher spreads than average when placing trades. Do your research on forex brokers to analyze not only the safe, financially sound companies, but also those that allow the lowest fees. Paying the bid/ask spread in the forex market is just one of the costs of doing business, but with the extreme level of competition in today’s marketplace there is no need to accept paying even 1 pip more than you should elsewhere.

#6: Have a backup power supply and internet access available at all times when you are trading. This can be as simple as a battery-powered laptop with a wireless access card. Don’t rely solely on the phone number of your broker as if there is a company-related trading issue; their lines will likely be slammed busy. Bottom line: be sure to have some redundancy incorporated into your trading plan; treat this like a true business and it will reward you like one.

#5: Break your trade order into 2 or 3 smaller orders to give yourself more control, both actual and psychological. As most forex brokers do not charge commissions to trade this market, they earn their fees through the bid/ask spread; you have no extra cost of placing 3 small orders rather than 1 single large one. Doing this allows you to place tighter stops on some orders, while adjusting the profit taking on others. Closing part of an order will give the same effect, but by having a few live at the same time, it is easier psychologically to set them and let them run.

#4: Trading profit comes from 1/3 psychology, 1/3 money management, and 1/3 trading strategy. It’s easy to get caught up in the “next best thing” or the potential of finding a “holy grail” system, but remember that most of your profits come from learning the things that are not quite as exciting. Trading psychology and money management are critical to any success in the forex market; without them you will be grouped with the 95% of those who lose their capital time and time again. Money management is the key to unleashing potential for compounding profits; it is an absolute necessity to learn. Do your research on the most highly coveted trading psychology texts and dig in ASAP.

#3: Be aware of world news releases. Even if you prefer to not trade news events, be certain to know when the major events are planned to take place. As a second line of asset protection to your business, a good live news feed is also recommended when you are trading. Knowing what is going on in the world is one of the most critical keys to forex trading success; without this knowledge, your chances of success are limited.

#2: Always use a well planned stop loss when placing any trade and never, ever, move it further from your entry point for any reason. Although it is a simple rule to put on paper, it’s often difficult to follow…always follow this rule.

#1: Always trade any new strategy in a demo account before going live in a real money account. Many traders simply become gamblers by placing trades live without the proper testing and education necessary to place the odds in their favor. It is also all too common for traders to have excellent results in a demo account or with paper trading, then lose all their capital once they go live in a real money account. Be realistic and treat your demo trades as real funds; that is the only way for a demo account to work over time. If you begin to have a winning pattern in the demo account, be 100% certain to follow all the rules exactly in your live account. Often, a good transition is to begin with a demo account, then go to a live mini or micro account where very little capital is risked before trading your regular sized account. Many times one can make the transition in trading psychology from demo to live when taking the added step of testing the proven system by trading very small lot sizes first.

Although these few trading “nuggets” are only the tip of the iceberg, I hope that they can pique your interest enough to warrant further research and attention. I wish you the best in your trading!