BUY STOP FOR GBPUSD @ 1.4341. takeprofit at 1.4400 and stoploss at 1.4300
BUY STOP FOR EURJPY @ 131.08. Takeprofit at 131.80 and stoploss at 130.55
SELL STOP FOR CADCHF @ 0.9083. Takeprofit at 0.9024 and stoploss at 0.9125
FOREX DAILY TRADING SIGNALS
FOREX DAILY TRADING SIGNALS
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Tuesday, March 31, 2009
FOREX TRADE SIGNAL FOR USDCAD, 31ST MARCH, 2009
SELL USDCAD or put stop sell order for USDCAD from 1.2526. Take profit at +50pips (1.1476) and stoploss to -50pips
Sunday, March 29, 2009
FOREX RESULT ON USDCAD, USDCHF OF LAST WEEK FRIDAY
Yes, we earlier predicted that the USDCAD had formed a double bottom on the 4hour chart and the trend is likely to be bullish. It was so and happily, we were able to make a total of +50 pips on the USDCAD pair and another total of +50 pips on the USDCHF pair. All these were courtesy of our trading system that indicated the trades and signals for us. Thursday, March 26, 2009
Buy signal For USDJPY, AUDUSD, 26TH MARCH, 2009
BUY SIGNAL FOR AUDUSD put buy stop or buy from 0.7050. Take profit at 0.8020 and stoploss at 0.6968
BUY SIGNAL FOR USDJPY put buy stop or buy from 98.50. Take profit at +65 pips and stoploss at -57 pips
Wednesday, March 25, 2009
FOREX SELL SIGNAL FOR GBPCHF, WEDNESDAY, 25TH MARCH, 2009
We are going to be selling GBPCHF it had broken downwards under the support of a major triangle formation after being in a consolidation for several days/hours. Secondly, the RSI in both the daily chart and the 4hour chart are all below 50HAPPY TRADING
SELL CADJPY @ 1.6304 and take profit at 1.6221, stoploss is -70pips
HOW I BECAME A PROFITABLE TRADER
Hello Traders,
Here is an article recieved from a trader in the UK it is worth Reading.
What I learnt losing GBP 60,000 my first year as a full-time trader During my first year as a local (independent trader) on the floor of LIFFE, I bought and sold 8804 FTSE futures contracts, about 40 contracts per day on average. The result was a loss of ?61,620 or -?267 per trading day. I was profitable on 55% of days with an average gain of ?1009, my average loosing day was -?1780. My biggest one day gain was ?7730 and my biggest loss -?12,426. As you can probably imagine, this was a difficult time for me. I was trying to work out how to make money consistently. It was the consistency that seemed so hard to find. As you can see I was having a regular experience of making money, what was killing me were my losses. It seemed that every time I got ahead by ?5-6000 over a period of a week or two, I would lose it all and a few thousand more in the space of a couple of days. At the time I was too unhappy with my performance to be willing to spend any time analyzing my results. If I had I would have discovered that during this period all I needed to do to go from a loss of ?61,620 to a small profit would have been to avoid just 10 trading days. Those 10 days cost me a total of ?69,169! At the end of this period I was so frustrated, fed up and stuck that I decided to quit trading and return to a more secure career. It only took me a few weeks to abandon this plan and return to trading. I felt sure that I had the raw talent to become a consistently successful trader, what I needed, I reasoned, was some support. Support to stop me having the huge losing days that were crippling me financially. I approached a firm I knew that backed traders on the floor and they agreed to back me with ?20,000 of trading capital. We would split profits 60:40 and I was set an initial daily loss limit of ?500. If I hit my ?500 limit the firm's floor manager would come and tell me to go home. The third day trading I lost about ?3500 and nothing happened, no one came to ask me to stop trading. I felt very foolish, but continued to trade for the remainder of the week while avoiding any contact with the floor manager. The following Monday (the week's losses had totaled about ?5000) I got a message to meet with the director with whom I had made the agreement (it transpired he had been away the previous week). I was sure that he was going to say that the deal was off. Instead, to my surprise, he told me how important it was that he could trust me, he needed to know that when the market was volatile he could trust me not to be racking up big losses. He suggested that I start afresh. Needless to say I was both relieved and grateful. So I went back to the trading pit that morning with the determined intention to not loose more that ?500. The next two weeks turned out to be one of the toughest periods of my trading career and one of the most rewarding. Stopping when I was down was hard. I realized that what had been at the root of my large losses was my inability to accept loosing at all. To me loosing was unacceptable. Such was my intolerance for loss that I lost for ten consecutive days. But as the days progressed, even though I continued to loose ?500 a day, I found my mood lifting. I actually started to feel OK about loosing as long as it was within my limit. At the end of this 10-day period of losses a seeming miracle happened; I started to make money. My target was to get to +?1000 and then not give back more than 20% of my gain. So when I had a profitable day I was making between ?800 and ?2000, for an average of about ?1200. Not only did I start to make money, I did so for 15 days in a row, three entire weeks without a loss. This marked the beginning of a new era of trading for me. In retrospect, I believe that I had been trading scared, scared that I was really a looser. The two weeks of rigidly sticking to my loss limit caused me to revaluate myself. I started to feel good about myself for sticking to my limit. Before it was bad if I lost money, now it was only bad if I lost more than my limit. Before, I never knew whether I was going to make ?1000 or loose ?5000; now I knew that the worst case was a loss of ?500 and that was OK. I started to see that sticking to my trading limits was a sign of strengthand my confidence started to rise. Looking back at my first year's loosing streak, if I had restricted my losing days to -?500 my loss of ?61,620 would have turned into a profit of ?83,525. Not only that, I think that had I been sticking to a loss limit during that period, my confidence would have been that much greater and my percentage of profitable days would also have been higher. Scared money never wins, as the saying goes. If we are scared what are we scared of? "Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves: "Who am I to be brilliant, gorgeous, talented, fabulous?" Actually, who are we not to be? You are a child of God. Your playing small doesn't serve the world. There's nothing enlightening about shrinking so that other people won't feel insecure around you. We are all meant to shine, as children do. We were born to make manifest the glory of God that is within us. It's not just in s om e of us; it's in everyone. And as we let our own light shine, we unconsciously give other people permission to do the same. As we're liberated from our own fear, our presence automatically liberates others." Nelson Mandela Whatever is at the root of our fear, in order to become consistently successful traders, we have to overcome it by developing trust in ourselves, trust that we will always act in our own best interest. When we trade fearfully, we undermine ourselves and end up taking the very action that confirms our fear. The question is how to develop an unshakeable trust in ourselves? We develop trust in others through repeated experience of them acting in ways that inspire trust. In the same way we develop trust in ourselves as traders by building up a history of action that supports our goal to bec om e consistently successful traders. The more frequently we adhere to our own trading plan and limits the greater our self-trust. Now this sounds like a catch 22 situation, if you find like I did that you cannot help yourself, how do you start to develop self-trust through right action? In a way I was lucky, my back was against the wall, I knew that if I broke my limit I would be out. So I had to stick to my limit and in doing so I gave myself the opportunity to confront and finally reject my fear of being a loser. To go from being a net loosing trader to a consistently profitable one, we need to set ourselves achievable targets of behavior. My problem was allowing loosing days to turn into huge losing days, so to set myself the objective of stopping trading for the day when I was down ?500 was appropriate for me. For others the primary problem can be the resistance to taking a trade when a signal comes up, be it intuitive or mechanical. An appropriate exercise would be to take a simple mechanical trading system (it does not have to be much good, break even would do) and set the goal of taking the next 10 signals without hesitation, regardless of how you feel. We need to build up our trading skills one at a time, when we are confident we can cut our losses we can move onto execution, then we can work on holding on to profitable trades etc. Tennis stars don't become stars just through competition; they hone their skills one by one on the practice court and they continue to practice throughout their careers. As traders we need to identify the individual skills we need to develop and focus on them one by one. Som eone new to tennis does not expect to go out and win c om petitions straight away, they know they will have to spend a fair amount of time practicing and learning first. Short term trading, like tennis, is skill based, and those skills can be identified, practiced and mastered.
Here is an article recieved from a trader in the UK it is worth Reading.
What I learnt losing GBP 60,000 my first year as a full-time trader During my first year as a local (independent trader) on the floor of LIFFE, I bought and sold 8804 FTSE futures contracts, about 40 contracts per day on average. The result was a loss of ?61,620 or -?267 per trading day. I was profitable on 55% of days with an average gain of ?1009, my average loosing day was -?1780. My biggest one day gain was ?7730 and my biggest loss -?12,426. As you can probably imagine, this was a difficult time for me. I was trying to work out how to make money consistently. It was the consistency that seemed so hard to find. As you can see I was having a regular experience of making money, what was killing me were my losses. It seemed that every time I got ahead by ?5-6000 over a period of a week or two, I would lose it all and a few thousand more in the space of a couple of days. At the time I was too unhappy with my performance to be willing to spend any time analyzing my results. If I had I would have discovered that during this period all I needed to do to go from a loss of ?61,620 to a small profit would have been to avoid just 10 trading days. Those 10 days cost me a total of ?69,169! At the end of this period I was so frustrated, fed up and stuck that I decided to quit trading and return to a more secure career. It only took me a few weeks to abandon this plan and return to trading. I felt sure that I had the raw talent to become a consistently successful trader, what I needed, I reasoned, was some support. Support to stop me having the huge losing days that were crippling me financially. I approached a firm I knew that backed traders on the floor and they agreed to back me with ?20,000 of trading capital. We would split profits 60:40 and I was set an initial daily loss limit of ?500. If I hit my ?500 limit the firm's floor manager would come and tell me to go home. The third day trading I lost about ?3500 and nothing happened, no one came to ask me to stop trading. I felt very foolish, but continued to trade for the remainder of the week while avoiding any contact with the floor manager. The following Monday (the week's losses had totaled about ?5000) I got a message to meet with the director with whom I had made the agreement (it transpired he had been away the previous week). I was sure that he was going to say that the deal was off. Instead, to my surprise, he told me how important it was that he could trust me, he needed to know that when the market was volatile he could trust me not to be racking up big losses. He suggested that I start afresh. Needless to say I was both relieved and grateful. So I went back to the trading pit that morning with the determined intention to not loose more that ?500. The next two weeks turned out to be one of the toughest periods of my trading career and one of the most rewarding. Stopping when I was down was hard. I realized that what had been at the root of my large losses was my inability to accept loosing at all. To me loosing was unacceptable. Such was my intolerance for loss that I lost for ten consecutive days. But as the days progressed, even though I continued to loose ?500 a day, I found my mood lifting. I actually started to feel OK about loosing as long as it was within my limit. At the end of this 10-day period of losses a seeming miracle happened; I started to make money. My target was to get to +?1000 and then not give back more than 20% of my gain. So when I had a profitable day I was making between ?800 and ?2000, for an average of about ?1200. Not only did I start to make money, I did so for 15 days in a row, three entire weeks without a loss. This marked the beginning of a new era of trading for me. In retrospect, I believe that I had been trading scared, scared that I was really a looser. The two weeks of rigidly sticking to my loss limit caused me to revaluate myself. I started to feel good about myself for sticking to my limit. Before it was bad if I lost money, now it was only bad if I lost more than my limit. Before, I never knew whether I was going to make ?1000 or loose ?5000; now I knew that the worst case was a loss of ?500 and that was OK. I started to see that sticking to my trading limits was a sign of strengthand my confidence started to rise. Looking back at my first year's loosing streak, if I had restricted my losing days to -?500 my loss of ?61,620 would have turned into a profit of ?83,525. Not only that, I think that had I been sticking to a loss limit during that period, my confidence would have been that much greater and my percentage of profitable days would also have been higher. Scared money never wins, as the saying goes. If we are scared what are we scared of? "Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves: "Who am I to be brilliant, gorgeous, talented, fabulous?" Actually, who are we not to be? You are a child of God. Your playing small doesn't serve the world. There's nothing enlightening about shrinking so that other people won't feel insecure around you. We are all meant to shine, as children do. We were born to make manifest the glory of God that is within us. It's not just in s om e of us; it's in everyone. And as we let our own light shine, we unconsciously give other people permission to do the same. As we're liberated from our own fear, our presence automatically liberates others." Nelson Mandela Whatever is at the root of our fear, in order to become consistently successful traders, we have to overcome it by developing trust in ourselves, trust that we will always act in our own best interest. When we trade fearfully, we undermine ourselves and end up taking the very action that confirms our fear. The question is how to develop an unshakeable trust in ourselves? We develop trust in others through repeated experience of them acting in ways that inspire trust. In the same way we develop trust in ourselves as traders by building up a history of action that supports our goal to bec om e consistently successful traders. The more frequently we adhere to our own trading plan and limits the greater our self-trust. Now this sounds like a catch 22 situation, if you find like I did that you cannot help yourself, how do you start to develop self-trust through right action? In a way I was lucky, my back was against the wall, I knew that if I broke my limit I would be out. So I had to stick to my limit and in doing so I gave myself the opportunity to confront and finally reject my fear of being a loser. To go from being a net loosing trader to a consistently profitable one, we need to set ourselves achievable targets of behavior. My problem was allowing loosing days to turn into huge losing days, so to set myself the objective of stopping trading for the day when I was down ?500 was appropriate for me. For others the primary problem can be the resistance to taking a trade when a signal comes up, be it intuitive or mechanical. An appropriate exercise would be to take a simple mechanical trading system (it does not have to be much good, break even would do) and set the goal of taking the next 10 signals without hesitation, regardless of how you feel. We need to build up our trading skills one at a time, when we are confident we can cut our losses we can move onto execution, then we can work on holding on to profitable trades etc. Tennis stars don't become stars just through competition; they hone their skills one by one on the practice court and they continue to practice throughout their careers. As traders we need to identify the individual skills we need to develop and focus on them one by one. Som eone new to tennis does not expect to go out and win c om petitions straight away, they know they will have to spend a fair amount of time practicing and learning first. Short term trading, like tennis, is skill based, and those skills can be identified, practiced and mastered.
Tuesday, March 24, 2009
FOREX ANALYSIS FOR EURGBP
EURGBP is currently in a free for all fall from a height 0.9511. Our trading system was able to detect this on time and so far, we've made a total of 211 pips from this free for all fall from the 4hour chart since yesterday. We hope to close the trade anything our trading software gives us an exit signal.FOREX ANALYSIS FOR USDCAD, TUESDAY, 24TH MARCH, 2009
FOREX ANALYSIS FOR USDCADIf you’ve been a USDCAD (a 4hour chart of which is shown) chart bear since last week, pay closer attention to whatever happens at this currency from today. This is because we may be seeing a bullish trend reversal of USDCAD since prices seem to have formed a double bottom on the 4hour chart of this pair. Also, prices had hit a major support in the daily chart.
What happens is that prices are in consolidation on the 4hour chart. A break above the resistance point of this consolidation would signal a bullish reversal phase but if the resistance can hold and prices breaks down further, we may be seeing more of bearish scenario. But for now, we remain neutral with this pair and sees out what happens.
But should prices here rises up, it should meet immediate resistance from the daily chart at 1.2297 and 1.2352
BUY SIGNAL FOR EURUSD, 24TH MARCH 2009
EURUSD is in a consolidation on the 4hour chart. We seriously hope that this pair should go up any time from now. If the price of EURUSD goes up and breaks the resistance of our trading chartpattern formation that had formed an expanding triangle formation, we hope to go long/buy for this pair from 1.3750.We believe to buy this pair once it breaks the resistance of our trading chartpattern that is currently in a consolidation state because both the RSI of the daily chart and the 4hour chart are above 50
SUMMARY; BUY EURUSD from 1.3750 or put buy sell order 1.3750
Takeprofit is +70 pips and stoploss is -55pips
HAPPY TRADING
SELL SIGNAL FOR USDCHF, 24TH MARCH 2009
USDCHF is in a consolidation on the 4hour chart. We seriously hope that this pair should go down any time from now. If the price of USDCHF goes down and breaks the support of our trading chartpattern formation that had formed a descending triangle formation, we hope to go short for this pair from 1.1150.We believe to sell this pair once it breaks the support of our trading chartpattern that is currently in a consolidation state because both the RSI of the daily chart and the 4hour chart are below 50
SUMMARY; SELL USDCHF from 1.1150 or put stop sell order 1.1150
Takeprofit is +70 pips and stoploss is -55pips
HAPPY TRADING
Saturday, March 21, 2009
FOREX SIGNAL FOR USDCAD FOR SUNDAY, 22ND MARCH 2009
USDCAD is in a consolidation on the 1hour chart. We seriously hope that this pair should go down as trading begins on Sunday. If the price of USDCAD goes down and breaks the support of our trading chartpattern formation that had formed a descending triangle formation, we hope to go short for this pair from 1.2309.
We believe to sell this pair once it breaks the support of our trading chartpattern that is currently in a consolidation state because both the RSI of the daily chart and the 4hour chart are below 50
SUMMARY; SELL USDCAD from 1.2309 or put stop sell order for USDCAD at 1.2309
Takeprofit is +70 pips and stoploss is -55pips
SEE YOU NEXT WEEK
FOREX WEEKLY ANALYSIS FOR AUDUSD, EURUSD, CHFJPY, AUDJPY, ETC
Just as we predicted that EURUSD is to go up this week, it really did a 750 upwards movement for last week as noted by our trading software.
For this week, AUDUSD seems to be forming a double bottom from the weekly chart analysis. This is a bullish formation and we hope that the pair should continue its bullish/Long trend next week. The second reason is that the pair from the weekly chart had broken a resistance barrier and had moved upwards outside our trading chartpattern formation (triangular pattern).
Other bullish pairs to watch for this week are EURUSD, AUDJPY, EURJPY, NZDUSD, CHFJPY
HAPPY TRADING
Click here to learn about how to generate these signals by yourself
Thursday, March 19, 2009
SELL CADJPY NOW, 19TH MARCH, 2009
We are going to be selling CADJPY since it had broken downwards outside the support of a major triangle formation after being in a consolidation for several days/hours. Secondly, the RSI in both the daily chart and the 4hour chart are all below 50HAPPY TRADING
SELL CADJPY @ 76.39 and take profit at 75.39, stoploss is -60
Click here to learn about how to generate these signals by yourself
SELL CADJPY @ 76.39 and take profit at 75.39, stoploss is -60
Click here to learn about how to generate these signals by yourself
BUY NZDCAD, 19TH MARCH, 2009
We are going to be buying NZDCAD since it had broken upwards outside the resistance of a major triangle formation after being in a consolidation for several days/hours. Secondly, the RSI in both the daily chart and the 4hour chart are all above 50HAPPY TRADING
BUY @ 0.6859 AND take profit at 0.6903, stoploss is -60
Wednesday, March 18, 2009
FOREX TRADING SIGNALS FOR 18TH MARCH, 2009
SELL OR BUY ANY OF THE UNDERLISTED CURRENCIES FROM 3PM/14GMT
TIMEFRAME IS 4HOUR
FOREX SIGNALS:
SELL USDCHF
SELL GBPUSD
BUY EURAUD
SELL CADCHF
SELL AUDCHF
SELL GBPAUD
Take Profit is from +100pips upwards and fix stoploss at -80pips
Or leave position open for several days till RSI of the 4hour chart of the particular currency crosses back to above or below 50
We are going to be selling the above currencies since they have broken under the support of a major triangle formation after being in a consolidation for several days/hours. Secondly, the RSI in both the daily chart and the 4hour chart are all below 50
We are going to be buying the above currencies since they have broken upwards outside the resistance of a major triangle formation after being in a consolidation for several days/hours. Secondly, the RSI in both the daily chart and the 4hour chart are all above 50
BUY SIGNAL FOR CADCHF, 18TH MARCH, 2009
Trade Summary: Buy CADCHF @ 0.9282 and Take profit @0.9305
HAPPY TRADING
Click here to learn about how to generate these signals by yourself
TRADING RESULT FOR EURUSD,
Target for EURUSD was met successfully. Keep on with us as we await the next signal
Tuesday, March 17, 2009
BUY EURUSD NOW, 17TH MARCH 2009
EURUSD is to bought now after breaking out from a consolidation channel. It's bullish.Buy EURUSD @ 1.3000 and take profit at 1.3065, place stoploss @ -55 pips
CLOSED GBPUSD
Our Open Position in GBPUSD has been closed.
REASON: RSI in the 4hour chart and 1hour chart have moved to below 50 and to below a major support 80EMA on the 4hour chart.
TIME TO BUY EURUSD, 17TH MARCH, 2009
GET READY TO BUY EURUSD AND CONTINUE BUYING GBPUSD
Summary: Buy EURUSD and continue to buy GBPUSD
HAPPY TRADING
Click here to learn about how to generate these signals by yourself
Monday, March 16, 2009
FOREX SIGNAL FOR 17TH MARCH 2009, BUY STOP FOR GBPUSD
GET READY TO BUY GBPUSD
The GBPUSD pair is currently trading inside a consolidated triangle pattern in the 30 minutes chart. Luckily for us, this type of triangle is an ascending one showing that the price of GBPUSD is going to move up once prices broke outside the triangle upwards. As a matter of fact, we hope to be buying this pair once prices broke outside this triangle from above. But if prices broke downwards, the signal is no more effective and we will forget about trading for now. You can set a buy stop order to buy above the current price at 1.4100. Take profit at 1.4200
Summary: place a buy stop order for GBPUSD at 1.4100 and set take profit at 1.4200. stoploss is -60 pips
HAPPY TRADING
Click here to learn about how to generate these signals by yourself
ORDER TYPES
ORDER TYPES
BASIC ORDER TYPES
There are some basic order types that all brokers provide and some others that sound weird. The basic ones are:
· MARKET ORDER
A market order is an order to buy or sell at the current market price. For example, EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon.com, it's (kinda) like using their 1-Click ordering. You like the current price, you click once and it's yours! The only difference is you are buying or selling one currency against another currency.
· LIMIT ORDER
A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go short if the price reaches 1.2070. You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a sell market order), or you can set a sell limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class). If the price goes up to 1.2070, your trading platform will automatically execute a buy order at that exact price. In limit order therefore, we have LIMIT BUY where one sets his platform to buy below the current price. If you wish to sell above the current price, you will use LIMIT SELL. To by above the current price, use a STOP BUY order and if you wish to sell below the current price, use a STOP SELL order.
· STOP-LOSS ORDER
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. For example, you went long (buy) EUR/USD at 1.2230. To limit your maximum loss, you set a stop-loss order at 1.2200. This means if you were dead wrong and EUR/USD drops to 1.2200 instead of moving up, your trading platform would automatically execute a sell order at 1.2200 and close out your position for a 30 pip loss (eww!). Stop-losses are extremely useful if you don't want to sit in front of your monitor all day worried that you will lose all your money. You can simply set a stop-loss order on any open positions so you won't miss your basket weaving class.
Weird Sounding Order Types
· GTC (Good ‘til canceled)
A GTC order remains active in the market until you decide to cancel it. Your broker will not cancel the order at any time. Therefore it's your responsibility to remember that you have the order scheduled.
· GFD (Good for the day)
A GFD order remains active in the market until the end of the trading day. Because foreign exchange is a 24-hour market, this usually means 5pm EST since that that's U.S.
· OCO (Order cancels other)
An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are placed above and below the current price. When one of the orders is executed the other order is canceled. Example: The price of EUR/USD is 1.2040. You want to either buy at 1.2095 over the resistance level in anticipation of a breakout or initiate a selling position if the price falls below 1.1985. The understanding is that if 1.2095 is reached, you will buy order will be triggered and the 1.1985 sell order will be automatically canceled.
Always check with your broker for specific order information and to see if any rollover fees will be applied if a position is held longer than one day. Keeping your ordering rules simple is the best strategy.
A market order is an order to buy or sell at the current market price. For example, EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon.com, it's (kinda) like using their 1-Click ordering. You like the current price, you click once and it's yours! The only difference is you are buying or selling one currency against another currency.
A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go short if the price reaches 1.2070. You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a sell market order), or you can set a sell limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class). If the price goes up to 1.2070, your trading platform will automatically execute a buy order at that exact price. In limit order therefore, we have LIMIT BUY where one sets his platform to buy below the current price. If you wish to sell above the current price, you will use LIMIT SELL. To by above the current price, use a STOP BUY order and if you wish to sell below the current price, use a STOP SELL order.
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. For example, you went long (buy) EUR/USD at 1.2230. To limit your maximum loss, you set a stop-loss order at 1.2200. This means if you were dead wrong and EUR/USD drops to 1.2200 instead of moving up, your trading platform would automatically execute a sell order at 1.2200 and close out your position for a 30 pip loss (eww!). Stop-losses are extremely useful if you don't want to sit in front of your monitor all day worried that you will lose all your money. You can simply set a stop-loss order on any open positions so you won't miss your basket weaving class.
A GTC order remains active in the market until you decide to cancel it. Your broker will not cancel the order at any time. Therefore it's your responsibility to remember that you have the order scheduled.
A GFD order remains active in the market until the end of the trading day. Because foreign exchange is a 24-hour market, this usually means 5pm EST since that that's
Sunday, March 15, 2009
16TH MARCH, 2009, TIME TO BUY THE EURUSD
IT'S TIME TO BUY THE EURUSD: WHY?
Reason why you may consider buying the EURUSD for now is that prices in the weekly chart seems to be forming a double bottom and the price is now heading up from the region of the double bottom in the weekly chart. If this is so, buy EURUSD from the weekly chart and aim for immediate support at 1.4000. If this is taken out, another support to expect here is the 1.6000
FOREX SIGNAL FOR EURUSD, 16TH MARCH 2009
What I hope now is that from the analysis available to me. The EURUSD pair is heading up for the moment.
Number one reason to this fact is that prices in the daily chart had broken outside, upwards the support of an expanding resistance triangle and the RSI here is trading above 50. If this single reason works out, buy EURUSD and aim for immediate support at 1.3000
My second reason for this fact is that prices in the weekly chart seems to be forming a double bottom and the price is now heading up from the region of the double bottom in the weekly chart. If this is so, buy EURUSD from the weekly chart and aim for immediate support at 1.4000. If this is taken out, another support to expect here is the 1.6000
The third reason for believing in a bulluish EURUSD is that the monthly chart is indicating a bullish divergence and this means that prices are supposed to be bullish/going up for the whole of this month. And then, the RSI in the 4 hour chart is trading above 50. Thus, aim for buy opportunities for this pair.
WHICH CURRENCY PAIR DO I TRADE?
Which Currency Pair(s) Should I Choose To Trade?
Which Currency Pair(s) Should I Choose To Trade?
There are many currency pairs to choose from but which pairs should you trade? In my opinion, the currency pair(s) you choose to trade should be based on your trading style and trading experience.
Three main types of currency pairs are:
• The Majors Pairs: (mostly traded) EUR/USD, USD/JPY, USD/CHF and GBP/USD.
• The Commodity Pairs: (associate with gold and oil) USD/CAD, AUD/USD and NZD/USD.
• The Currency Crosses: (non-USD pairs) most popular are EUR/GBP, EUR/JPY and EUR/CHF.
Here is the list of major currencies beginner traders should focus on:
Euro (EUR)
US Dollar (USD)
British Pound (GBP)
Swiss Franc (CHF)
Japanese Yen (JPY)
Australian Dollar (AUD)
Canadian Dollar (CAD)
Here are some tips on why you should choose certain pairs:
• Are you US dollar bullish or bearish? Choose a major currency pair to trade against the dollar.
• Trade a commodity pair if you like to focus on Gold or Oil prices.
• Are you new to Forex? Start trading a less volatile pair such as the EUR/USD or EUR/GBP.
• Focus on one currency pair only and try to learn everything about it. Become an expert!
• Avoid the GBP/USD and GBP/JPY when you are afraid to lose 100 pips in 15 min, learn how to trade them first.
What are the Best Currency Pairs to Trade?
If you're new to Forex trading, you'll know that there is a lot to learn, and one of the decisions you are faced with is knowing which currency pairs to trade. Should you concentrate on one or two or should you be prepared to trade any number of different currencies? Well, different traders will have different opinions on this and the truth is that there is no right or wrong answer. Every trader is different and will have their own style of trading, and this may incorporate focusing just on one currency, such as the EUR/USD for example, or may involve watching a number of pairs and waiting for a good set-up to occur on any one of them.
An alternative approach, and one favored by myself, is to only concentrate on one of the major currency pairs. This is because they are the most widely traded, which means that with so many traders and financial institutions watching and trading them, they conform even better to technical analysis, which after all is effectively a means of displaying human behavior. Another reason I favour only trading one of the major currencies is because they generally have the tightest spreads which is important because over time, these higher spreads can really make a dent in your profits, and if you're a short term trader or scalper, they can make trading extremely difficult.
For example if you trade the EUR/USD you will generally be looking at a 2 or 3 point spread whereas if you trade one of the minor pairs such as the EUR/CAD for instance, you could be looking at a 8 or 10 point spread.
You can be successful trading Just One Pair
Many Traders are successful trading just one pair. The advantages of trading one pair include getting to know how one currency pair moves better, less to concentrate on when trading, which in turn leads to less distraction. One great example of a trader who is successful trading only the GBP/JPY is NickB at the Forex 4 Noobs website. By only trading the GBP/JPY using his scalping strategy, he has averaged over 100 pips profit every week for a year. I really like his site and love to use his trading for newbies as a simplistic approach to becoming successful.
Many traders do not like to trade one pair because their trading style doesn’t get them into trades as frequently enough as they would like and they feel like they are missing out on the action. I call these people over traders and most of them will not be successful at all in the long run. I personally like to only trade one pair when I am trading with my system.
Also, a common mistake done by many beginner traders is that they try to monitor too many currency pairs at once. Not only it makes trading hectic and more difficult to manage, it also prevents deeper analysis of the currency pairs and actually learning their “behaviour” over the time. Currency pairs do have their unique ways to move, react to economical events or news, form trends etc. By studying one currency pair at the time, Forex traders have the ability to observe its behavior and learn the ways to trade the pair even more effectively.
As a method therefore, I will suggest you should be trading:
USDCAD if you live in Canada.
AUDUSD if you live in Australia
USDJPY if you live in East Asia
GBPUSD if you live in UK
EURUSD if you live in European Union
And then trade any of the USD pairs if you live in USA. (etc)
If you live in Nigeria, you should be trading the EURUSD pair
The reason why I’ve suggested the above is that trading the currency that you are familiar with has lots of advantages vs. trading currencies that you’ve never used. For instance, a person that lives in Canada remembers approximate range of CAD vs. USD during the past ten years or more and has much better understand of those currencies than average person from Japan.
Saturday, March 14, 2009
Which Timeframe Should I Trade?
Which Timeframe Should I Trade?
One of the main reasons traders don’t do well as they should is because they’re usually trading the wrong timeframe for their personality. New traders will want to learn how to get rich quick so they’ll start trading small timeframes like the 1-minute or 5-minute charts. Then they end up getting frustrated when they trade because it’s the wrong timeframe for their personality.
Let me begin here by telling you a story:
Finally after a long period of timeframe unfaithfulness, we felt we were most comfortable trading the 1-hour charts. This timeframe is longer, but not too long, and trade signals were fewer, but not too few. We now have more time to analyze the market and didn’t feel rushed anymore. On the other hand, we have a friend who could never, ever, trade in a 1-hour timeframe. It would be way too slow for him and he’d probably think he was going to rot and die before he could get in a trade. He prefers trading a 15-minute chart. It still gives him enough time (but not too much) to make decisions based on his trading plan. Another buddy of ours can’t figure out how we can trade a 1-hour chart because he thinks it’s too fast! He trades only daily, weekly, and monthly charts.
Okay, so you’re probably asking what the right timeframe is for you. Well, buddy, if you had been paying attention, it depends on your personality. You have to feel comfortable with the timeframe you’re trading in.
You’ll always feel some kind of pressure or sense of frustration when you’re in a trade because real money is involved. But you shouldn’t feel that the reason for the pressure is because things are happening so fast that you find it difficult to make decisions or so slowly that you get frustrated. When we first started trading, we couldn’t stick to a timeframe. We started with the 15-minute chart. Then the 5-minute chart. Then we tried the 1-hour chart, the daily chart, and 4-hour chart.
Trading Timeframes Are Usually Categorized Into Three Types:
1. Long-term
2. Medium-term or swing
3. Short-term or Intraday or Day-trading
Which one is better? It depends on You....
You have to decide what the correct timeframe is for YOU. You also have to consider the amount of capital you have to trade. Shorter timeframes allows you to make better use of margin and have tighter stop losses. Larger timeframes require a bigger account so you can handle the market swings without facing a margin call.
When you finally decide on your preferred timeframe is when the fun begins. This is when you start looking at multiple timeframes to help you analyze the market.
Long or Short?
If you ever look at a currency pair on different timeframes, you probably noticed that markets can move in different directions at the same time. A moving average may rise on a weekly chart, giving a buy signal, but fall on a daily chart, giving a sell signal. It may rally on an hourly chart, telling us to go long, but sink on a 15 minute chart, telling us to go short. What the hell is going on? All of the charts were showing the same date and time. They were just different timeframes.
We used to just trade off 15-minute charts and that was it. We could never understand why when everything looked good the market would suddenly stall or reverse. It never crossed our minds to take a look at a larger time frame to see what was happening. When the market did stall or reverse on my 15-minute chart, it was often because it had hit support or resistance on a larger time frame.
It took me a couple of hundred bucks to learn that the larger the timeframe, the more important support and resistance levels were. Do you see now the importance of looking at multiple timeframes? Trading using multiple time frames has probably made us more money than any other one thing alone. It will allow you to stay in a trade longer because you’re able to identify where you are relative to the big picture.
Most beginners look at only one timeframe. They grab a single timeframe, apply their indicators and ignore other timeframes. The problem is that a new trend, coming from another timeframe, often hurts traders who don’t look at the big picture.
The procedure is for you to select your preferred timeframe and then go up to the next higher timeframe. There you make a strategic decision to go long or short based on the direction of the trend. You would then return to your preferred timeframe to make tactical decisions about where to enter and exit (place stop and profit target). Adding the dimension of time to your analysis gives you an edge over the other tunnel vision traders who trade off on only one timeframe.
There is obviously a limit to how many timeframes you can study. You don’t want a screen full of charts telling you different things. Use at least two, but not more than three timeframes because adding more will just confuse the geewillikers out of you and you’ll suffer from paralysis analysis and go crazy.
We like to use three time frames. The largest time frame we consider our main trend, the next time frame down as my medium trend and the smallest time frame as the short-term trend and our trading chart.
You can use any time frame you like as long as there is enough time difference between them to see a difference in their movement. You might use:
• 1 minute, 5 minute, and 30 minute
• 5 minute, 30 minute, and 4 hour
• 15 minute, 1 hour, and 4 hour
• 1 hour, 4 hour, and daily
• 4 hour, daily, and weekly and so on.
When you’re trying to decide how much time in between charts, just make sure there is enough difference for the smaller time frame to move back and forth without every move reflecting in the larger time frame. If the timeframes are too close, you won’t be able to tell the difference, which would be pretty useless.
Friday, March 13, 2009
FOREX SIGNAL FOR USDCHF, 13TH MARCH, 2009
USDCHF just broke under the support expanding triangle after it had been a consolidation. Sell this currency now @ 1.852 and take profit at 1.1790
Good trading
Thursday, March 12, 2009
FOREX RESULT FOR USDCHF TRADE BY OUR SYSTEM
In a space of 5 minus, our trading system was able to make a totall of 200 pips in todays buy market of USDCHF after the breaking of price upwards of an ascending triangle. What a great day and system
DAILY FOREX FORECAST
GBPUSD
Daily Trade Direction : Down
Today’s Forecast : SELL
EURUSD
Daily Trade Direction : Down
Today’s Forecast : SELL
USDCHF
Daily Trade Direction : Up
Today’s Forecast : Buy
GBPJPY
Daily Trade Direction : Down
Today’s Forecast : SELL
Have a good trading day
FOREX TRADING SIGNAL FOR 12TH MARCH, 2009
The price of EURUSD which had been in a consolidated upwards triangle had finally broken support in the one hour chart and the stochastic is heading down. We also confirmed a bearish divergence on the 4 hour chart. All these point to the fact that the price of EURUSD is going to be falling for today. Effort should be made to confirm and sell this pair for today.
Wednesday, March 11, 2009
FOREX SIGNAL FOR USDCHF, 11TH MARCH 2009
A bullish divergence is noticed on the 1 hour chart of USDCHF, buy this pair
Buy USDCHF @ 1.1590 and exit at 1.1650
Sell EURUSD @ 1.2785 and exit at 1.2650
FOREX SIGNAL, 11TH MARCH 2009
USDCHF is showing a bearish divergence in the One hour chart and the best of all, the pair just broke out from a consolidated triangle formation. Sell USDCHF @ 1.1622 and take profit at 1.1550 Buy EURUSD @ 1.2685 and take profit at 1.2740
FOREX SIGNAL FOR EURUSD, 11TH MARCH 2009
EXPECT THE EURUSD to trade bearish for the whole of today as we discovered a bearish divergence on the daily chart of EURUSD. On the other hand, the USDCHF is to go bullish today. Confirm these trades and make maximum use of this information for today for today alone
Tuesday, March 10, 2009
March 10, 2009 Daily FOREX Analysis
GBPUSD
Direction : Down
GBPUSD Daily Supports and Resistances:
S1= 1.3619
S2= 1.3466
S3= 1.3186
R1= 1.4052
R2= 1.4332
R3= 1.4485
EURUSD
Direction : Down
EURUSD Daily Supports and Resistances:
S1= 1.2529
S2= 1.2457
S3= 1.2359
R1= 1.2699
R2= 1.2797
R3= 1.2869
USDCHF
Direction : Down
USDCHF Daily Supports and Resistances:
S1= 1.1525
S2= 1.1456
S3= 1.1379
R1= 1.1671
R2= 1.1748
R3= 1.1817
USDJPY
Direction : Up
USDJPY Daily Supports and Resistances:
S1= 98.05
S2= 97.33
S3= 96.77
R1= 99.33
R2= 99.89
R3= 100.61
Have a good trading day
Direction : Down
GBPUSD Daily Supports and Resistances:
S1= 1.3619
S2= 1.3466
S3= 1.3186
R1= 1.4052
R2= 1.4332
R3= 1.4485
EURUSD
Direction : Down
EURUSD Daily Supports and Resistances:
S1= 1.2529
S2= 1.2457
S3= 1.2359
R1= 1.2699
R2= 1.2797
R3= 1.2869
USDCHF
Direction : Down
USDCHF Daily Supports and Resistances:
S1= 1.1525
S2= 1.1456
S3= 1.1379
R1= 1.1671
R2= 1.1748
R3= 1.1817
USDJPY
Direction : Up
USDJPY Daily Supports and Resistances:
S1= 98.05
S2= 97.33
S3= 96.77
R1= 99.33
R2= 99.89
R3= 100.61
Have a good trading day
Monday, March 9, 2009
THE BEST ADVICE FOR TRADE BEGINNERS
Hello Traders,
I received this letter from a friend I thought I would pass along to you.
Undertrading
When Jack Schwarger asked Bruce Kovner in "Market Wizards" what advice he would give novice traders, he said, "undertrade, undertrade, undertrade."
Although the adage, "You have to risk money to make money," is true of trading, if you risk too much money and risk significant amounts too often, you will more often than not see losing trades, and end up blowing out. And if you blow out, you won't be able to build up the necessary skills to trade the markets profitably. It's better to manage risk, and limit the number of trades you do make.
Bruce Kovner believed that novice traders traded three to five times too big. "Whatever you think your position ought to be, cut it in half," was his advice. But novice traders are often impatient. They want to make money fast. Behavioral economists Brad Barber and Terrance Odean showed that traders overtrade after a windfall. It's like playing with the "house's money" at a casino. When some traders have a big win, they tend to believe that they have nothing to lose by risking a large amount of capital. In addition, they may think they are on a hot streak and can take advantage of it to make huge profits. Unfortunately, novice traders are likely to face many more losing trades than winning trades, and will end up mounting significant losses if they don't control risk. In order to survive in the long term, it is vital to minimize risk.
For example, if you risk only 1-2% on a trade, you can make quite a few losing trades and still continue to learn how to trade. As a novice trader, your goal should be longevity rather than profits. Trading takes time, and the longer you can keep trading, the more likely you will be able to build solid trading skills, skills that will ensure that you end up making huge profits in the future.
Longevity is necessary to learn any skill. For example, if you break your leg during a skiing lesson, you will never learn how to ski. You must be careful to learn to ski slowly and avoid becoming disabled in order to learn how to master the slopes. It's the same with trading. You have to build up skills to learn to master the markets, but if you mount huge losses, you won't be able to survive the learning curve.
As a trader, you must learn the conditions under which you work best. By making small, practice trades, you can develop an intuitive feel for the markets. You can learn what it feels like to win and how you handle losses. You can learn about psychological conditions that are necessary to trade with a mental edge.
For example, you might find that you prefer to trade in the middle of the day after you are more alert. Or you may learn that you need extra sleep before you feel alert enough to trade at your best. You may also learn the number of trades you can make per day without feeling stressed out. There are a variety of things you can learn about you and your trading style by making small trades to get a feel for the markets. Don't think you need to be an overnight success.
Learning how to trade profitably can take years. Rather than blow out too soon, and feel like a failure, it's better to take your time, hone your skills, and build up your trading ability to the point that you can trade like a seasoned professional.
Casey Stubbs-- Winners Edge Trading
WinnersEdgeTrading.com
I received this letter from a friend I thought I would pass along to you.
Undertrading
When Jack Schwarger asked Bruce Kovner in "Market Wizards" what advice he would give novice traders, he said, "undertrade, undertrade, undertrade."
Although the adage, "You have to risk money to make money," is true of trading, if you risk too much money and risk significant amounts too often, you will more often than not see losing trades, and end up blowing out. And if you blow out, you won't be able to build up the necessary skills to trade the markets profitably. It's better to manage risk, and limit the number of trades you do make.
Bruce Kovner believed that novice traders traded three to five times too big. "Whatever you think your position ought to be, cut it in half," was his advice. But novice traders are often impatient. They want to make money fast. Behavioral economists Brad Barber and Terrance Odean showed that traders overtrade after a windfall. It's like playing with the "house's money" at a casino. When some traders have a big win, they tend to believe that they have nothing to lose by risking a large amount of capital. In addition, they may think they are on a hot streak and can take advantage of it to make huge profits. Unfortunately, novice traders are likely to face many more losing trades than winning trades, and will end up mounting significant losses if they don't control risk. In order to survive in the long term, it is vital to minimize risk.
For example, if you risk only 1-2% on a trade, you can make quite a few losing trades and still continue to learn how to trade. As a novice trader, your goal should be longevity rather than profits. Trading takes time, and the longer you can keep trading, the more likely you will be able to build solid trading skills, skills that will ensure that you end up making huge profits in the future.
Longevity is necessary to learn any skill. For example, if you break your leg during a skiing lesson, you will never learn how to ski. You must be careful to learn to ski slowly and avoid becoming disabled in order to learn how to master the slopes. It's the same with trading. You have to build up skills to learn to master the markets, but if you mount huge losses, you won't be able to survive the learning curve.
As a trader, you must learn the conditions under which you work best. By making small, practice trades, you can develop an intuitive feel for the markets. You can learn what it feels like to win and how you handle losses. You can learn about psychological conditions that are necessary to trade with a mental edge.
For example, you might find that you prefer to trade in the middle of the day after you are more alert. Or you may learn that you need extra sleep before you feel alert enough to trade at your best. You may also learn the number of trades you can make per day without feeling stressed out. There are a variety of things you can learn about you and your trading style by making small trades to get a feel for the markets. Don't think you need to be an overnight success.
Learning how to trade profitably can take years. Rather than blow out too soon, and feel like a failure, it's better to take your time, hone your skills, and build up your trading ability to the point that you can trade like a seasoned professional.
Casey Stubbs-- Winners Edge Trading
WinnersEdgeTrading.com
Sunday, March 8, 2009
FOREX SIGNAL FOR 9TH MARCH, 2009
A bullish divergence is noticed on the CADJPY and GBPUSD Pairs and this shows that these pairs would be very bullish throughout today.
Other pairs to buy alone for the whole of today is GBPJPY, CHFJPY, EURJPY, AUDJPY, NZDJPY, GBPUSD, EURUSD, AUDUSD, NZDUSD,
SELL USDCAD, USDCHF
BUY GBPUSD @ 1.4132, Take profit at 1.4232 (+100pips)
Other pairs to buy alone for the whole of today is GBPJPY, CHFJPY, EURJPY, AUDJPY, NZDJPY, GBPUSD, EURUSD, AUDUSD, NZDUSD,
SELL USDCAD, USDCHF
BUY GBPUSD @ 1.4132, Take profit at 1.4232 (+100pips)
Forex Levels to Watch (Week of Mar 9-13, 2009)
Here are some forex support/resistance price levels to watch for (breaks/bounces) during the upcoming trading week of March 9-13, 2009:
EUR/USD - Support 1.2500 / Resistance 1.3060
USD/JPY - Support 96.00 / Resistance 100.00
GBP/USD - Support 1.4000 / Resistance 1.4350
USD/CHF - Support 1.1400/ Resistance 1.1830
EUR/USD - Support 1.2500 / Resistance 1.3060
USD/JPY - Support 96.00 / Resistance 100.00
GBP/USD - Support 1.4000 / Resistance 1.4350
USD/CHF - Support 1.1400/ Resistance 1.1830
Saturday, March 7, 2009
FOREX TRADING RESULT FOR THE DAY ENDED, 6TH MARCH, 2009
CURRENCY THAT WE TRADED TODAY
GBPUSD +100 PIPS
USDCHF +100 PIPS
EURUSD +100 PIPS
NZDUSD +60 PIPS
AUDUSD +60 PIPS
EURAUD -122 PIPS
GBPUSD +100 PIPS
USDCHF +100 PIPS
EURUSD +100 PIPS
NZDUSD +60 PIPS
AUDUSD +60 PIPS
EURAUD -122 PIPS
Friday, March 6, 2009
FOREX TRADING SIGNAL FOR EURUSD ON 6TH MARCH, 2007
A bullish divergence is noticed on EURUSD Pair. So, whatever that happens today, make sure that you go long for this pair throughout today. Don't ever sell this pair at all.
Buy @ 1.2530 and remember to leave your take profit after +100pips at 1.2630
Buy these other pairs also: GBPUSD, AUDUSD, EURJPY, AUDJPY, GBPJPY, CADJPY
And sell these other pairs for today: EURAUD, USDCHF
GOODLUCK
Buy @ 1.2530 and remember to leave your take profit after +100pips at 1.2630
Buy these other pairs also: GBPUSD, AUDUSD, EURJPY, AUDJPY, GBPJPY, CADJPY
And sell these other pairs for today: EURAUD, USDCHF
GOODLUCK
Thursday, March 5, 2009
FOREX TRADING RESULT FOR THE DAY ENDED, 5TH MARCH
GBPCHF +80 PIPS
EURCHF +20 PIPS
CADCHF -23 PIPS
NZDCHF -43 PIPS
AUDCAD -12 PIPS
NZDCAD -13 PIPS
EURCHF +20 PIPS
CADCHF -23 PIPS
NZDCHF -43 PIPS
AUDCAD -12 PIPS
NZDCAD -13 PIPS
Wednesday, March 4, 2009
FOREX TRADING SIGNAL FOR 5TH MARCH, 2009
Our trading signal just showed a bullish divergence on the pair of GBPCHF. what it then means is that this pair is going to be bullish for the whole of today. Buy @ 1.6601, and take profit at 1.6701. or you may close at the end of today's trading day. Stoploss is -130
Other pairs to buy are NZDCHF, CADCHF, EURCHF
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