THE TRADE DECISION 1. Never add to a losing position. Always determine a stop and a profit objective before entering a trade. Place stops based on market information, not your account balance. If a "proper" stop is too expensive, don't do the trade. Remember the "power of a position. Your decision to exit a trade means you perceive changing circumstances. Don't suddenly think you can pick a price, exit at the market.
THE MARKET HAS CHARACTER 5. In a Bull market, never sell a dull market, in Bear market, never buy a dull market. There are times, because of lack of liquidity, or excessive volatility, when you should not trade. Trading systems that work in an up market may not work in a down market. There are at least three types of markets: Have different trading strategies for each.
Up market and down market patterns are ALWAYS present, merely one is more dominant. In an up market, for example, it is very easy to take sell signal after sell signal, only to be stopped out time and again. Select trades with the trend. A buy signal that fails is a sell signal. A sell signal that fails is a buy signal. It's always easier to enter a losing trade. In the "blowout" stage of the market, up or down, risk managers are issuing margin call position liquidation orders.
They don't check the screen for overbought or oversold, they just keep issuing liquidation orders. Don't stand in front of a runaway freight train. You are superstitious; don't trade if something bothers you. Buy the rumor, sell the news. News is only important when the market doesn't react in the direction of the news.
Read today's paper tomorrow. When you read yesterday's paper each day with the knowledge of what the market already did, you will affirm that this mornings paper with yesterday's news has nothing to do with today's market. A TIME TO TRADE On the open, never enter a new trade in the direction of a gap. Never let the market make you make a trade. Closing an existing position is obviously ok.
The first and last tick are the most expensive. Get in late and out early. When everyone is in, it's time to get out. Never trade when you are sick. TRACKING YOUR TRADES Only change your unit of trading under a plan of attained goals. Also, have a plan for reducing size when your trading is cold or market volume is down. Remember, you really don't know anything. Respect the market every second of every day. Always know your position and exit your trade immediately whenever you feel uneasy.
Measure yourself by profitable "days in a row," not by individual trades. The best way to break a streak of "losing days in a row" is to not trade for a day. Don't stop trading when your on a winning streak. Three strikes and your out! Don't turn three losing trades in a row into six in a row. Scalpers reduce the number of variables effecting market risk by being in a position only for seconds. Day traders reduce market risk by being in trades for a matter of minutes.
If you convert a scalp or day trade into a position trade, by definition you did not consider the risks of the trade. Don't ever fret about a missed opportunity. There is always another one just around the corner. Besides, several just happened that you didn't even know about. If you look for market secrets you will only find things that no one cares about. Use the conventional tools. Never ask for someone else's opinion, they probably did not do as much homework as you.
When the market is going up, say "the market is going up. This is a reality check, you'll be amazed at how hard it is to say what is literally going on in front of you when your mind is full of preconceived opinions. I've never had an opinion I didn't like, however, successful day trading requires flexibility. Do your homework not to develop a market opinion, but rather to understand the potential for both sides of the market.
This will allow you to make your trades based on what the market is doing at the time of the trade. Here is a quote to remember: When you make a mistake of discipline, whine like a fool to anyone that will listen.
Professional in discipline are mistakes you will keep on making for many years. Wearing ashes and sack cloth may help extend the time before you do it again. If you squirmed and moaned while you read this list, then you share two obvious characteristics with many of us: You have traded long enough to recognize that you not the market make mistakes, and you trader to overcome them.
Now this is ugly, you have become part of the market and you can never leave. No matter where life takes you, you will always check the market and always want to continue being a part of it. It's like that first true love, it will always be there no matter what the distance, no matter whether they are alive or dead.
There are lot's of Forex signals providers out there. New Forex traders might be thinking of looking for a reliable Forex signals provider. Is there any reliable Forex signals providers available? Personally, I will say do not pay for Forex signals. Think about it - if a Forex signals provider sells Forex signals for living, you can doubt their Forex trading skills? Or else if they are pretty good in Forex trading and making lot's of profit, I am wondering why do they still bother to sell Forex signals for money.
Thus, what would be the value of such Forex signals providers? The answer is ZERO. There are Forex traders who have been relying on Forex signals arguing those Forex signals providers really help them making money in Forex trading. These Forex traders can even show their Forex trading logs as evidence. After some though, I came out with the assumption that assuming I am the owner of a Forex signals provider, in order for my business to be in black, obviously I need some satisfying customers.
If I have new customers this month, I send out buy signal for the 50 of my new customers while the another half with sell signal. At the end, I will able to have "some satisfying customers". Finally, free advertising and testimonial will be made available. If you are really new into Forex trading, it's better for you to sign up a demo Forex trading account from any Forex brokers and try some practice trades for a few months.
This will give you insight into how the forex market behaves. Then only deposit a small amount of money to get a real feel. There are great differences between demo trading and real trading due to personal trading psychology. Final words, if you really wish to buy Forex signals from a Forex signal provider, make sure they have got an audited results and do provide a free trial over a substantial period.
In the financial and business world, hedging is probably one of the most common terms we may encounter everyday. Although some may think that hedging is something confidential or highly classified, in truth, almost all Forex traders in Forex trading realm practice hedging. Actually, to make the term hedging to be more easily understood, we can relate Forex hedging to buying insurance in our everyday life. In the Forex market, hedging is a method practiced by Forex traders in order to minimize their losses.
Generally, hedging involves complicated financial instrument known as derivative, and the 2 most common types of derivatives are future and options. With these instruments used correctly, a loss in one of the investment can be offset by a gain in a derivative. In order to better understand how hedging works, let's take a car maker company in the US as an example.
After the car company is US manufactures the car, they intend to blog the car in the European market. Each time when they are selling the car, they need to convert the value of the car from the USD to GBP, however, due to the constant fluctuation of the currency exchange rate, the actual value of the car after converted to GBP may varies.
In order to protect the profit margin of the company from the fluctuation of the currency exchange, the car manufacturer company hedge and fix the conversion rate from USD to GBP at a specific value, thus eliminating the risk of losses due to fluctuation in the currency exchange. Hedging in Forex market works in a similar way mentioned above, however, there's a variety of way to hedge in the Forex market for an investor as there are numerous options and future contracts available in the Forex market.
Although hedging may sound like a foul proof technique, there are still some reasons why an investor may need to think carefully before considering to hedge in Forex market.
Firstly, hedging will be a very useful tool IF an investor suffers a loss in his investment due to the fact where by hedging, the amount of losses can be decreased and minimized to a smaller amount. However, hedging will only be a nuisance to the profit gain if the investor doesn't suffer any form of losses because the amount of potential profit would be greatly decreased due to hedging. Hedging precisely in an investment is a very complicated task and in most of the time, things may go wrong and not according to the way as planned.
For beginners in Forex trading, Forex hedging is always a very good tool to be utilized in order to avoid from suffering a huge amount of losses in their early stage of investment. Therefore, it is most advisable for all of the investors, regardless of what type of investment they are in, to understand more about hedging because this is considerably one of the most effective way in order to protect themselves in Forex trading.
The Malaysian government has decided to scrap a controversial bridge project to replace a causeway between Malaysia with Singapore. Artist's impression of the scenic bridge which would have replaced the year-old causeway.
For the full statement on the Prime Minister's Department website click here. For another perspective from The Straits Times, a partner of Asia News Network, click here. Here is my snapshot of forex trading between 20 february to 10 april Unfortunately, it was virtual trading.
With the right information and techniques, you can improve your chances for a long and successful trading career. Matt likes to keep it simple. Matt relies heavily on Fibonacci analysis and other related indicators. He believes that risk to reward ratios make the difference between successful and unsuccessful traders. He feels that poor analysis with excellent risk to reward ratios will outperform great analysis with poor risk to reward ratios.
I hear many people say that you have to remain completely detached from your emotions while trading. According to Matt, It is perfectly fine to feel emotions; it is the normal physiological response to price action when you have money on the line. Rather than subjugating that energy, where it can show up in other areas subconsciously, he likes to feel and express his emotions so trader can dismiss them as just that, and not let it affect his decision making ability.
On trading advice new traders: Learn how to cut your losses. This is something you can practice the moment you begin trading. You can be an expert in risk management the first day you begin trading. Your overall analysis will improve with time, but most traders never get to that point because they have not mastered the ability to cut their losses. A new trader, focusing on technical analysis, should strive to be a decent chart reader and an expert in risk management, rather than an expert chart reader with decent risk management skills.
It will take them much further in this business. Willie's trading methodology is based mainly on professional analysis and patience.
He says "the best system is a simple system". He believes that in order to be successful one needs to "stay patient and let the market come to you;" meaning that you must take advantage of opportunities that the market presents rather than trying to create opportunities that don't exist.
Obviously, study, practice, and follow your trading plan but in the end, I think it is emotions that will ruin a trader. When I see traders celebrate a winning trade like they just won the Super Bowl, I know that they will beat themselves up equally as much when they have a losing trade.
Winning and losing are part of the game. And while that might seem like pedestrian advice, let me add this distinction: Even when you have a losing trade, if you followed your plan and you got stopped out according to your plan, then that is a successful trade. The worst trade you could ever have is the one where you break your rules and still profit. Look at the graph before open trade. Open short if the current rate is high, and Open Long if the current rate is low.
Do not trade if you are not sure with the market heading on. Do not be greedy and do not be afraid. Do not ever ever open long at the current high rate forex Short at current low rate. Be patient, be patient, be patient. Think smart, think wise, be smart!
Read as much as you can about forex psychology. Follow the trend at orderly timeline, first: Lastly, be happy, be healthy, be smart You can refer customers to Marketiva through your web site or by sending them coupons in e-mail. For each position a customer you refer closes on a live trading desk, you will receive commission in value of 1 point.
Considering that we have customers who sometimes close about positions per day, you can earn a lot by simply referring customers to Marketiva!
Get a private chat channel for customers you refer! If you refer or more customers and these customers actively trade on our live trading desks, we will establish a separate chat channel that you will be able to use to communicate with them and exchange trading ideas.
Because we fully support Unicode, that chat channel can be in any language of your choice. You can apply for Marketiva Affiliate program by filling out the application form at our website after you completed your registration.
When we receive your application, our affiliate program specialist will review it and verify information submitted. If your application meets our requirements, described in the Affiliate Agreementyou will receive an blog with detailed information on our affiliate program, including your affiliate group identifier, links and banners you can place on your web site, and a number of coupons you can deliver to potential customers by e-mail.
If you have any inquiries, please contact us by visiting the following contact page: Affiliate program provided by Marketiva prohibits the practice commonly known as "churning". GCI Trading Many traders have made the switch from currency futures to spot foreign exchange "forex" trading. Spot foreign exchange offers better liquidity and generally a lower cost of trading than currency futures.
Banks and brokers in spot foreign exchange can quote markets 24 hours a day. Furthermore, the spot foreign exchange market is not burdened by exchange and NFA "National Futures Association" fees, which are generally passed on to the customer in the form of higher commissions. For these reasons, virtually all professional traders and institutions conduct most blog their foreign exchange dealing in the spot forex market, not in currency futures.
The mechanics of trading spot forex are similar to those of currency futures. The most important initial difference is the way in which currency pairs are quoted. Currency trader are always quoted as the currency versus the US dollar. In Spot forex, some currencies are quoted this way, while others are quoted as the US dollar versus the currency.
For example, in spot forex, EURUSD is quoted the same way as Euro futures. In other words, if the Euro is strengthening, EURUSD will rise professional as Euro futures will rise.
On the other hand, USDCHF is quoted as US dollars with respect to Swiss Francs, the opposite of Swiss Franc futures. So if the Swiss Franc strengthens with respect to the US dollar, USDCHF will fall, while Swiss Franc futures will rise.
The rule in spot forex is that the first currency shown is the currency that is being quoted in terms of direction. For example, "EUR" in EURUSD and "USD" in USDCHF is the currency that is being quoted. The global marketplace has changed dramatically over the past several years. New investment strategies are becoming more important in order to minimize risk, as well as to maintain high portfolio returns.
Among the most rewarding of the markets opening up to traders is the Foreign Exchange market. Identifiable trading patterns, as well as comparatively low margin forex, have rewarding trading opportunities for many.
Transactions are instead conducted via telephone or online. With this transaction structure as its foundation, the Foreign Exchange Market has become by far the largest marketplace in the world.
This high volume is advantageous from a trading standpoint because transactions can be executed quickly and with low transaction costs i.
As a result, foreign exchange trading has long been recognized as a superior investment opportunity by major banks, multinational corporations and other institutions. Today, this market is more widely available to the individual trader than ever before.
Spot foreign exchange is always traded as one currency in relation to another. So a trader who believes that the dollar will rise in relation to the Euro, would sell EURUSD. That is, sell Euros and buy US dollars. Check this blog for my daily FOREX trading performance. Join me at MARKETIVA: Click image above or click here to join. View my complete profile. Sunday, April 16, Trading Tips. Malaysia scraps bridge project to replace causeway with Singapore.
My forex trading performance. Learn to trade the forex market properly. Online Forex Marketiva Affiliates. Spot Forex versus Currency Futures. Many traders have made the switch from currency futures to spot foreign exchange "forex" trading. Professional Online Forex Trader Since About Me Name: Kota Belud, Sabah, Malaysia View my complete profile. Ask a question about our affiliate program.