TRADERS FRIEND

THE 5 DEADLIEST WORDS IN TRADING

2012-01-06T10:23:00.005-06:00

AH, IT WILL COME BACK, these are the five deadliest words in trading..........

They are the words used by traders to comfort themselves as trades move against them, depleting their wealth. If You find Yourself using these 5 deadly words, then that is a trade that You should have already cut.

Many times we used these words fully confident that the market is going to come back in our favor, but these are the words used by every broker trader before they go bust. NEVER TAKE A CHANCE ON SOMEONE PULLING THE FINANCIAL RUG FROM UNDER YOUR FEET!!!!!!!!

As a trader You have 2 jobs everyday
Job #1
PRESERVE WEALTH

Job #2
BUILD WEALTH

There are crazy market days when it is NOT WHAT YOU EARN, IT IS WHAT YOU KEEP, that's more important to Your bottom line.

If Your account balance is $50,000.00 USD and You have a trade going against You at -$45,000.00 USD, then You only have $5,000.00 USD. The $50,000.00 balance gives traders a false sense of security. PLEASE PAY MORE ATTENTION TO THE EQUITY IN YOUR ACCOUNT THAN TO THE ACCOUNT BALANCE. Your equity is where Your TRUE WEALTH lies. If You are comforting Yourself by looking at the $50,000.00 balance instead of the -$45,000.00 that's devouring Your account; You are deluding Yourself. YOUR EQUITY IS WHAT COUNTS, SO PROTECT YOUR EQUITY!!!!

SUMMARY
The three most important lessons of this blog post are:

If You are telling Yourself, 'Ah it will come back", that is a trade You should have already cut. These are the 5 deadliest words in trading.

Your #1 job in trading is to preserve Your wealth!

Your #2 job is to build Your wealth!

YOU CAN DO THIS (^_^)!

GOLF AND FOREX

2012-01-02T01:07:00.004-06:00

Forex for most traders is like a very expensive golf addiction. Everyday they play their little hearts out, but never make it out of the sand trap. The more they play the deeper in debt they get.....

WHY????????

Why is it that You have a handful of traders that truly become forex masters while the rest remain amateurs???????

It's simple really........Losing traders hold on to losses, while talking themselves out of following profitable trades. It is a vicious cycle, holding losses because of fear, blowing up another account, adding money to your account with your credit card, saying this time will be different while struggling to pay bills and climbing deeper in debt. Sound familiar????????????

This is not the way this game is suppose to be played, yet for MOST traders this is the harsh frustrating reality. The brokers who trade against You count on You holding losses so that they can send their children to Ivy League colleges, drive fancy cars and send their wives to those swank salons. The more traders hold losses the better lifestyles brokers enjoy.

Forex is suppose to pay You, not be a continual vacuum hose draining Your families wealth. THE #1 CAUSE OF FAILURE IN FOREX IS LACK OF DISCIPLINE!!!

Any forex master will tell You that forex is not hard, it is the discipline to consistently trade a winning strategy even through a series of losses that is hard. Forex is psychological warfare, it creates a kind of prisoner of war mentality for the losing trader, whipsawing him around back and forth, stopping him out until he is so confused that he doesn't know which way to go. When the real trading opportunity presents itself, he is too scared to enter and if he does enter he exits too soon because he is always on pins and needles waiting for them to trick him, so instead of riding the trade for the full profit, he jumps off while he has a little safe profit.

The #1 predictor of forex failure is the inability to cut a bad trade. IF YOU CAN NOT CUT A BAD TRADE, IT IS IMPOSSIBLE TO WIN HERE. There are a ton of systems teaching You tricks and strategies; but few tell You a critical truth that if YOU CAN NOT CUT A BAD TRADE, then eventually You WILL SURELY LOSE no matter how big Your starting balance may be.

A healthy prosperous trader is different in that he sees a good set-up and enters, if he sees that the advantage is lost, then he recognizes it for the trap that it is and quickly gets out, preserving as much capital as possible for the better trade. A trading star realizes that he can always earn back whatever was lost and even more.

If You take a hit, don't consume Yourself with the amount loss, CONGRATULATE YOURSELF for being smart enough to save your wealth to take advantage of the trading opportunity that will allow You to increase wealth.

It is an old but very true saying, especially in forex, 'A STITCH IN TIME SAVES NINE!' In other words cutting that bad trade will save you from digging a deeper hole in the sand trap of debt and allow You to begin to build instead of deplete Your family's wealth.

All successful traders trade with superior discipline. LACK OF DISCIPLINE IS THE KILLER IN THIS GAME.

The best thing about forex is that You don't even have to be that smart to do it. Any man of normal intelligence with the patience to wait for a good trade set-up, the strength to cut a bad trade and the patience to ride profit to fruition can do well here.

EXPECT TO SUCCEED IN FOREX. IF ANYONE ELSE CAN EXPERIENCE SUCCESS HERE, YOU CAN TOO!

YOU CAN ABSOLUTELY DO THIS (^_^)

HAPPY PROSPEROUS TRADING 2012!

TIPS FOR FINDING GOOD TRADES ON A SMALLER TIME FRAME

2011-11-19T18:34:00.005-06:00

People find many ways to be successful in the market, some use price action, some use trend lines, some use moving averages and other indicator, some use the news and some use support/resistance, etc. Whichever method You use to bring You success, supreme discipline will make it even more successful. REMEMBER: Your biggest opponent to market success stares back at You from Your own mirror.

Since you never know what the market is going to do, always be prepared to cut a trade that has moved against You. If You are telling yourself, it will come back that is a trade You should have cut.

With a good signal, You are only likely to get 2-6 trades per 24 hour day that yield 30 pips or more on the EUR/USD.

Since the market doesn't trend most of the time, it is a good idea to master other forms of trading.

Let's talk about ways to increase your odds of getting some of those trade set-ups.

Know Your candlestick reversal patterns.

Understand support and resistance.

Understand trend lines, moving averages or any other indicator that you are using.

The more things You have confirming Your analysis the more likely You are to have entered a successful trade.

Example:
A hammer at a point of previous support that closes above a major moving average, at a Fibonacci retracement, with a MACD cross and an oversold Stochastic. That is a pretty extreme example, but more confirmations You have to Your advantage the better.

Always be sure that your flagship candle closes prior to entering the market, because like the hammer in the paragraph candles can drastically change form in the last minutes or seconds of a candle's closing.

Considering that You have so few really great trades in a day, You need to put as many odds in Your favor as possible.

Try to trade the more active liquid markets

If You are in a range bound market be sure to identify resistance and support. Only counter-trend off of resistance or support with proper candlestick confirmation.

Trade in harmony with an established trend.

Swing trade swing highs and swing lows in a swinging market.

Wait for a candlestick candle to close confirming a signal.

Have 2 or more things confirming Your analysis.

Take good candlestick reversals within a trend and against the trend. In an established trend You will have corrections and retracements, getting a strong reversal signal in harmony with the established trend usually makes for a good entry.

No trend goes on forever, at some point trends take hard dips and reversals. Candlestick reversals make valuable entry signals in these situations. The more confirmation to that signal the better.
If the next candle engulfs Your entry candle, GET OUT!

Often times reversals at the beginning of a trend is a trap. The more established Your trend; the more likely it is to reverse with proper reversal confirmation.

Trend lines and moving averages are good temperature gauges, they help identify a trend that has already started or they can show market strength or weakness. A price break and close above usually indicates strength and a break and close below shows market weakness, but these can also be market shake outs.

KNOW THAT UNLESS YOU ARE A GREAT SCALPER, YOU DO NOT NEED TO BE IN THE MARKET ALL DAY. AFTER A GOOD RUN, YOUR TRADE IS LIKELY TO RUN OUT OF GAS. Use this time to rest and wait for the next trade. YOU USUALLY DON'T GET GREAT TRADES BACK TO BACK. THERE IS USUALLY A WAITING PERIOD IN BETWEEN GOODTRADES. LIKE A BUS SCHEDULE INCLUDES WAITING PERIODS BETWEEN BUSES, SO DOES THE MARKET BEEN PROFITABLE TRADES. THERE IS A WAITING PERIOD, SO WAIT; OTHERWISE THE MARKET WILL TAKE BACK THE PROFIT IT GAVE YOU!!!!

THE VERY BEST SET-UP CAN FAIL. THE MOST IMPORTANT TOOL IN A SUCCESSFUL TRADERS TOOL BOX IS THE CUT SCISSORS TO CUT A BAD TRADE QUICKLY!!!!!!

THE DIFFERENCE BETWEEN A SUCCESSFUL TRADER AND THE UNSUCCESSFUL TRADER IS DISCIPLINE!

If You get tricked, CUT THAT TRADE SHORT AND TRY AGAIN LATER!

DISCIPLINE WILL DO FOR YOUR FAMILY WHAT DESIRE WON'T!!!

YOU CAN DO THIS (^_^)!

THINK PERCENTAGES AND MONEY MANAGEMENT

2011-11-03T13:19:00.005-05:00

This was the Email Response I got from the $236 video challenge and I loved it so much that I had to share it!

People don't realize that it's not how much you have in your account that determines success. Whether you win or lose, its all based on percentages. Its still the same percentage of the account gained or lost on an account with $100 as it is with $10,000 or even $1,000,000. 5% gained is $5 on the $100, $500 on the $10,000 and $50,000 on the $1,000,000. The actual returns, money wise is different.. but the percentage gained is the same. People who say success isn't possible with a small account, don't know their percentages well.

You can successfully grow a very small account with proper knowledge and discipline. In fact, its smarter to start with a small live account until you can trade with discipline and confidence; that way you don't lose as much initially. A small live account is training grounds to build a larger account.

What's the point in adding funds to your account if you can't build the little you have in your account already?? If you're losing and not gaining consistently.. putting more funds into your account is just going to ensure that you lose more! It is the consistency of applying a good strategy, not the account balance that gives a trader the advantage.Hopefully traders understand the value of thinking 'percentages', instead of account balances.

If you think in percentages, you also understand the value of money management so much better.

For example, if a trader loses 50% of their account, it requires a 100% gain (double!) to get to break even. Whereas, a 25% loss requires only a 30% gain (a mere 5% over the loss) to break even.

A good trading system combined with strict disciple, and good money management will lead to success for any trader, no matter what their account size!
HAPPY TRADING!!!

Thanks Steve!!!
LOVED IT!!!!!!!!!!!!!!!!(^_^)!

A FOREX TRADERS LIFE

2011-10-09T17:25:00.014-05:00

THE DISCIPLINED FOREX TRADER

THE UNDISCIPLINED FOREX TRADE

ANY QUESTIONS????????

FOREX IS RANDOM

2011-09-27T11:11:00.005-05:00

Have You ever had the perfect trade set-up, the perfect time and the perfect indicator reading and the market still went against You? What most traders don't understand is that forex is a random game of chance where You are constantly seeking an edge. The edge when your set-up fails is to CUT!

The same trade set-up that bought You the fancy car and the great house the last time may move sharply against You this time. Pros cut bad trades all of the time, because they understand that this is a game of chance. In order for my trade to work out just right, I have to have some bigger players agree with my analysis or loads of other people to see the opportunity that I see and jump aboard with their hard earned cash. If the majority of the money doesn't agree, the market will move against me; that is why it is so important to protect your profits when your set-up fails because it will.

The advantage of the pro is the discipline it takes to be consistently profitable. I might see a set-up and think I have reached the bottom and buy, but the bank with $700,000,000,000 may think, the market can drop another 70 pips. Who do you think the market is going to respond to??????????

In a situation like the one above, most traders will try to re-analysis the set-up, go to higher, lower time frames, and find reasons why they are right, while the market continues to move against them. Before the day's end they have a margin call or they are so far down they don't dare cut; then that sickening uneasy feeling creeps in. That feeling that says, 'I can't afford to lose this money, I have to pay my mortgage'. The wise trader says 'Oh hell, this ship in sinking fast, I'd better jump and swim ashore and wait for the next ship" At the end of the day the bank that started out with $700,000,000,000 ends the day with $700,067,893,972, because so many traders refused to except the fact that THERE ARE NO ABSOLUTES IN TRADING! The people in the bank end the week with fat paychecks, take nice trips, and live the lives most only dream about. They live these lavish lifestyles because so many traders 'who have to be right all of the time' are constantly contributing into their wealth pool. It is true that the rich keep getting richer, and it is especially true in forex. QUIT CONTRIBUTING TO THEIR FAT, FANCY LIFESTYLES AND START CONTRIBUTING TO YOUR OWN!!!!!

Imagine if You will that at the top You have big banks and mega traders who have the power to influence the market in ways that You and I can't imagine doing. Now imagine that these same people have vacuum cleaners in the average traders pockets. They lead traders like sheep to the slaughter with what seem to be good trade set-ups, then they turn the vacuum on and that's it. The traders who didn't cut the bad trades are now broke and miserable, while the banks and mega traders are fat, rich and happy.

Trading is not a right and wrong game, it is a shopping game. You have to spend money to find the best deals. If the deal fails, stop your money flow into it and look to buy a better deal. No man in his right mind would continue to send someone $100.00 every month to get the grass cut, when the grass man never shows up, yet traders pay good money for positions that are not serving them.
QUIT PAYING TO BE WRONG AND BROKE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Your positions should be making You fat, rich and happy!

All You can really do in forex is look for the odds that give You an advantage and grab'em. If You grab and find that Your hand is full of air instead of paper, You'd better cut that trade and follow the money trail. The discipline to follow good trading rules will give You the advantage in forex!

YOU CAN DO THIS (^_^)!!!!!

ALGORITHMIC TRADING (GUEST BLOG)

2011-09-13T20:17:00.003-05:00

What is algorithmic trading?

Trading with an algorithm is where traders take their trading strategy and put it into code, allowing a computer to execute that code 24 hours a day while the market is open. By default, trading manually is restricted to waking hours (often aided by the use of Red Bull, in my case), and is limited to the number of charts and currencies the trader can watch.

Naturally, the amount a single person can watch, monitor and trade is quite finite. But by utilizing an algorithm traders can have computers do in microseconds what would take humans hours to manually, thereby opening up a new supply of trading opportunities (not all of them being good opportunities, mind you).

Meta4 trading platform allows traders to create their own automated forex trading programs in what is called an “Expert Advisor.” The use of the software is free for all traders - demo and live.

The rise of the algorithm

According to my research, in 2004 a whopping 98% of trading in the foreign exchange market (or forex for short) was manual trading; but by 2010 only 55% of trading volume came from a human. The forex market is a fast moving market that is open 24 hours a day, and I think this huge influx in algorithmic trading is traders trying to capitalize on these factors.

Some exchanges here in the States have tried to embrace algorithmic trading, but have met resistance. My research concluded that forex has been more friendly to algorithms simply because the market has no central exchange to regulate where a trade comes from.

The Pros and Cons

One of the benefits of algorithmic trading in any market is the increase of liquidity. Algorithmic trading typically places more trades than a human naturally would, which opens up more liquidity for everyone: human and machine alike. But with this comes a change in volatility. An increase in volume naturally leads to increased volatility. But some suggest algorithmic trading might actually lower market volatility as algorithms aim for optimal execution at minimum cost.

What’s on the horizon?

One very important lesson from my college years is this: the more we learn, the more we learn we don’t know. My research into algorithmic trading has answered some questions, but seems to have opened up even more. For instance, what is the future of algorithmic trading, and how will it impact my trading? I’m currently researching this topic, and plan on releasing another infographic soon with my findings. Stay tuned: more good stuff is on the way!

For more information on Algorithmic trading, Here is a programming link: http://www.ibfx.com/Education/Programming, or You may contact Adam at <adam.evans@interbankfx.com>

FOREX AND DISCIPLINE

2011-06-03T13:47:00.004-05:00

Besides skill, there is really only one thing that separated the pro from the amateur in forex and that is DISCIPLINE!

The DISCIPLINE to do what You need to do when it needs to be done. In order to succeed in forex, You need a game plan. A set of rules that You must adhere to in order to enjoy any real measure of success. Forex is a master game that isn't hard; it is just tricky and not playing with discipline is a very costly venture. The #1 No-No in forex is holding on to bad trades. It is the thing that will break You faster than anything else.

Let me simplify this for You:

Superior DISCIPLINE = Superior Success and eventually a lavish lifestyle

Great DISCIPLINE = Great Success and eventually a very lucrative lifestyle.

Good DISCIPLINE = Measured Success and a nice/decent living.

Fair DISCIPLINE = Too much frustration and lots of struggling.

No DISCIPLINE = BROKE, busted, frustrated and disgusted

When I first started sharing strategies, I was asked was I afraid that the market might start to change because of my sharing. I know that any master trader can freely share any strategy/secret and the market doesn't have to worry, because most traders don't have the DISCIPLINE make the strategies work for them.

Everyday Traders are lead into traps by Master Tricksters and it happens to the best of Pros too, but the difference is that the Master Pro will spring the trap when Her/His rules say cut, while the amateur will hold on until the market cuts the trade for them. Never let the market cut Your trade, because it will always be at a point much worst than the point that You thought You couldn't afford the loss.

DISCIPLINE is the ultimate advantage for the Pro Trader. It is the secret forex weapon that the Amateur fails to use. Traders are always looking for the holy grail of trading, well the closest thing to the holy grail in trading that I know is discipline. The discipline to enter when Your rules show that You have the advantage and the discipline to exit when Your rules show that You don't have the advantage that You thought that You did.

A trader who follows a good set of rules with discipline will enjoy success and happiness, the trader who makes exception to good rules will be frustrated, full of self pity and BROKE.

REMEMBER THE CHOICE IS ALWAYS YOURS, YOU NEVER HAVE TO STAY IN A BAD TRADE. YOU ALWAYS HAVE THE POWER TO CUT!

YOU CAN BE SUCCESSFUL HERE, BUT ONLY IF YOU CHOSE TO BE!

YOU CAN DO THIS (^_^)!

THE 3 C's TO SUCCESSFUL TRADING

2011-05-26T14:40:00.008-05:00

Confidence

Consistency

Cut

Develop a system that You have confidence in and trade it boldly! Have confidence to ride winning trades until your rules say exit.

Be consistent with Your trading rules even when it hurts. Discipline in the market is what makes a long term successful trader.

Cut bad trades quickly! Always have a cutting point when You know that You no longer have the advantage. All long term successful traders use a Stop losses! Traders who refuse to cut bad trades go broke

It is better to ride the price train than to be hit by it **

YOU CAN DO THIS (^_^)!

HOW TO GET GOOD AT FOREX

2011-05-16T09:51:00.007-05:00

Many people are wondering how to get good at forex. Forex is very easy, the discipline to do what you need to do in forex when you need to do it is what is hard. I always talk about discipline in forex, today I want to talk about how You get good at forex.

The first thing I want to suggest is to STUDY!

Study and learn your candlesticks/bars, it doesn't matter which one, although your candlesticks provide more of a visual signal than your bars. This is the language of your charts, learn it well! Get to know the language of the charts like you get to know a lover. You can not be successful in forex without a deep understanding of chart language. Both the internet and your library provide some valuable inexpensive material on your candlesticks and bars. I picked up Steve Nison's Candlestick books at my local library.

You have to learn to be a chameleon. You have to have the ability to switch sometimes very quickly as price may change from it's course and choose a new course. Forget the "Trend is Your Friend", "You need to be the Friend of the Trend", when it changes, You'd better change too!!!!!

You can not be afraid.

You need to observe price movement and study past charts.

You have to take baby steps and keep going forward. Trade tiny amounts first; get your feet wet before jumping in the pool.

Open one position at a time until You are proficient and disciplined enough to handle more.

You have to be able to WAIT (for a proper trade set-up)

You have to be in the market, even if it is with a penny. You have to trade so that you can learn to deal effectively with your emotions.

You must learn to control your fear, and take risk on good trade set-ups.

You have to believe that you can trade successfully, I have made every mistake in forex that can be made, more times than I dare to think. I am no smarter than You. I have probably just gotten my butt kicked a lot more.....lol (^_^).

My success has come through GOD's grace and persistence on my part. A Trader is much like a Doctor or Lawyer. We are Practitioners always perfecting our craft.

The 5 things that are going to make You successful in forex are these
knowledge
discipline
patience
consistency
faith

YOU CAN DO THIS (^_^)

Learn the language of Your charts
Wait for a proper trade set-up
Cut bad trades quickly, then wait to see where the market is going and follow profit once the trend has revealed itself
NEVER LET THEM TRAP YOU! it is better to be tricked than to be broke

YOU CAN DO THIS (^_^)!

IF YOU FOLLOW GOOD TRADING RULES!

2011-02-18T18:32:00.002-06:00

If You follow good trading rules, You will come out ahead. The problem is Traders want instant gratification.

If You are 70 pips in the plus and You get stopped out, cut that bad trade. What we forget is that if we take a 15pip hit then we are still ahead by 55pips.

As a Traders, You will lose some battles. SO WHAT?!!!! The important question at the end of the day is; have You won the War! You must win the war here in order to succeed, and that is going to involve learning to cut trades that are eating away at Your hard earned capital.

As Traders if we play all day and come out ahead by 8 pips, all we focus on is the 30 pips we lost
WRONG!!!!!!!
Mourning the loss puts Your focus on what is wrong instead of what is right, which puts You at a huge handicap the next time You are up to play.
There are 2 things that I believe will help Your game...........

#1 Congratulate Yourself on a good day's play and the fact that You came out ahead!...

#2 Lastly never beat Yourself up for a bad trade, review Your missteps and see how You could have played better. After analyzing it, use the lesson to improve Your game.

Many traders will make 30 pips and see another good entry that ends up going against them and many times will give the market back that gain because they don't want to lose any money.

If You don't have the discipline to cut a loss, then You don't need to play this game! All You do when You hold a bad trade is make rich fat cats out of those who spend their lives tricking traders.

Listen to me, if You play by good, sound, solid rules then You will mostly come out ahead. You can take up to 4 hits a day and still come out ahead as long as You follow good sound rules with discipline.

http://tradersbud.blogspot.com/2009/10/discipline.html

Keep Your losses small and stick with Your trade until Your rules say cut it. Don't forget that the best traps look like legitimate trade set-ups; that's how they get us.

They lead us into traps deliberately, but it is up to us to spring these traps and free ourselves to follow profit. They only trick us to get us out of the way so that they can enjoy the real price move without our interference.

Too many of us will lose several hundred pips because we refuse to take another loss, when the simple, but not easy truth is: when We realize that price has gone against Us, We can cut that bad trade and make great money following profit, instead of rationalizing why that bad trade has to work out!

Many of Us will go so far as to call Our bad trading bad luck, but the truth is, it is bad trading that comes from a lack of a good set-up, a lack of discipline or refusal to follow good trading rules in the face of a loss.

No GOD is not punishing You, You are as smart as the next girl/ guy doing this, they have just learned the level of discipline that it takes to be successful and YOU CAN TOO!

Listen, I hate a loss worst than anybody and have lost more money than I have gained because of it. What I am discovering is that with patience and discipline, I can take much more from the market than I ever give!

Following good rules all of the time will put You in the winners circle and keep You there! It is possible and it is possible for Y-O-U!

You can absolutely do this. You can be successful at forex, with patience, discipline and a good trade set-up!

YOU CAN DO THIS (^_^)

4RunnerForex.com Affiliate Program

YOU CAN'T AFFORD NOT TO

2011-02-01T20:49:00.008-06:00

When most Traders are facing the possibility of taking a loss, they tell themselves that they can not afford to take that loss, I am saying, You can't afford not to take it. A running loss is like a poison that sucks the life out of our accounts until it is dry. The biggest gift that I would give to all trader if I could is how to take a loss and follow profit. I know that I am always taking about this, but it is the #1 thing that cause Traders heartache and financial ruin.

If You are giving Yourself pep talks about bad trades, like "It will come back" then You are already in trouble. I have learned to set my stop losses tightly; You may not be comfortable with that, but whatever Your stop loss is, You must honor it and not move it if price is approaching it. If You are stopped out, it means that Your opinion of the market's direction was wrong and the market did not do what You thought it would do.

So what, it is no big deal. I take losses and believe me it sucks, but the truth is, once You let the bad trade go, You are better prepared with more capital for the good trade. If You trade a good set-up, then You are eventually going to find the right trade, but it is an art that requires discipline. It is all timing, discipline and set-up my Friend.

Trading is not hard, every day the market does 3 things, moves up, moves down, moves sideways, that's all. We make this a hard process by holding on to bad trades. LET BAD TRADES GO AND NEVER LET THEM TRAP YOU!!!!!!!!!!!!

LET BAD TRADES GO, AND DON'T STOP UNTIL YOU ARE AHEAD OF THE GAME. YOU WILL NOT GET EVERY TRADE RIGHT, SO WHAT, SUCK IT UP AND MOVE ON. EITHER PLAY WITH DISCIPLINE OR DON'T PLAY! IF YOU LACK THE DISCIPLINE TO PLAY PROPERLY, YOU WILL ONLY BE ENRICHING YOUR OPPONENT WITH YOUR HARD EARNED MONEY. EVERYDAY SOMEONE HAS TO WIN THIS GAME AND AT THE END OF THE DAY I WANT THAT SOMEONE TO BE ME AND YOU SHOULD WANT THAT SOMEONE TO BE YOU. I CAN'T WIN ALL OF THE TIME, BUT I CAN SCORE BIG WHEN I DO WIN!!!

A loss is like putting a rattle snake in your pocket, it will eventually kill You!

YOU CAN DO THIS (^_^)!

BASKETBALL AND FOREX

2011-01-11T11:40:00.005-06:00

We can learn a lot about how we should strategize in forex from basketball. In basketball if a player misses a shot, the team doesn't sit down, close their eyes and ears, while the other team is still playing; hoping that the game is going to come back in their favor. If a coach told you that was his strategy, you'd say that was ludicrous. Yet in forex a trader will put in a bad trade, turn off the computer, leaving the mistake to grow bigger, hoping that things will come back in his/her favor.

Good trading doesn't work like that, you have to practice good defense, you have to protect yourself!!

Everyday in forex you have an opponent and you must use your defense if you are going to be consistently profitable.

In basketball if your point guard has an injury that is keeping him from scoring, you cut that player and use the back-up point guard. In forex You must do the same thing. When your primary plan fails, you MUST cut that position and use a back-up plan..

Many times as traders we take a hit and quit. If you have a good strategy, you can keep playing until you are ahead of the game.

Two things you must remember to get into the big leagues. #1 CUT BAD TRADES QUICKLY #2 DON'T OVER-TRADE YOUR ACCOUNT. When I say don't over-trade, I mean if you have $1000.00 account don't trade a half of a lot.

If you have a $100.00 account and you trade 1 micro lot (.10) you can grow that by $5.00/day. Everyday that You reach your goal you can add 2 more pennies, which will give you an extra dollar everyday on 50pips. At that end of the 1st week, you will have $35.00, $75.00 the 2nd, and if you stop at that (.30), you can make an additional $150.00 for the month, for a total of $260.00 the 1st month; which is more than double what you started out with. The 2nd month you'd have $300.00, that is an additional $3560.00 for the year if you add .02/day to .10 and stopped at .30 and stayed there the rest of the trading year.

Remember forex is a get rich slow game, so don't over-trade your account.

Use discipline with a good strategy. Most importantly CUT BAD TRADES QUICKLY, because the best strategy in the world is no match for a free running loss!

NEVER LET THEM TRAP YOU!!!!!!!!!!!!!!!!!!

CUT BAD TRADES QUICKLY!!!!!!!!!!!!!!!!!

If you take a hit, don't sit down and quit hoping the other team is going to have mercy and let you win. They are your opponent, they are not your babysitters, they are out to beat you. You have to stay in the game, practice good defense, and protect yourself if you are going to come out ahead!!!!!

You can do this(^_^)!!!

CONTROLLING RISK

2010-12-08T17:54:00.004-06:00

One of the most important things You can do as a trader is to control your risk. In other words pre-set a point that You have determined that You could possibly be wrong.

Remember, trading isn't hard, it is just tricky because everyday the market does the same thing, it moves up and down and sideways and gets choppy. It not only does this every day, but every week, every month and every year. Your job is to determine the primary direction of the market's movement and try to profit from that knowledge.

Sounds easy, but there are hidden traps in the market to snag You, and keep things interesting. Market Makers are always trying to to trick You before taking price strongly against You. They are attempting to trap You in a losing position. This happens everyday in the market, and it WILL eventually happen to You too.

You advantage is in keeping your losses small. Have a predetermined amount of pips the You are willing to lose. Once You have determined that amount, 'say 20 pips or so on a short term trade, MAKE NO EXCEPTIONS!!!!!!!

A FREE RUNNING LOSS can be a major game changer!

It should not take a -200 pips in short term trading before You realize that You have loss Your advantage. If You are telling yourself "Ah it will come back", chances are very good that You are already in trouble!

Being a pro traders does mean that you never take losses, being a Pro Trader means that You never let losses take You out of the game!!!

NEVER LET THEM TRAP YOU!!!!!!!

If You are telling yourself "Ah it will come back", chances are very good that You are already in trouble!

CUT BAD TRADES QUICKLY AND GO IN THE DIRECTION OF PROFIT!!!!!

YOU CAN DO THIS (^_^)!

SEASONS

2010-10-26T14:16:00.006-05:00

This was an amazing gift from a Friend this morning and I had to share it:

There was a man who had four sons. He wanted his sons to learn not to judge things too quickly. So he sent them each on a quest, in turn, to go and look at a pear tree that was a great distance away.

The first son went in the winter, the second in the spring, the third in summer, and the youngest son in the fall.

When they had all gone and come back, he called them together to describe what they had seen.

The first son said that the tree was ugly, bent, and twisted. The second son said no it was covered with green buds and full of promise.

The third son disagreed; he said it was laden with blossoms that smelled so sweet and looked so beautiful, it was the most graceful thing he had ever seen.

The last son disagreed with all of them; he said it was ripe and drooping with fruit, full of life and fulfillment.

The man then explained to his sons that they were all right, because they had each seen but only one season in the tree's life.

He told them that you cannot judge a tree, or a person, by only one season, and that the essence of who they are and the pleasure, joy, and love that come from that life can only be measured at the end, when all the seasons are up.

If you give up when it's winter, you will miss the promise of your spring, the beauty of your summer, fulfillment of your fall.

Moral :

Don't let the pain of one season destroy the joy of all the rest. Don't judge life by one difficult season. Persevere through the difficult patches and better times are sure to come some time or later.

Thanks Jonathan, it was a much needed lesson for life (^_^)

YOU CAN DO THIS (^_^)

A LOSS IS LIKE A RATTLE SNAKE

2010-10-12T19:27:00.003-05:00

A loss is like a rattle snake, DROP IT BEFORE IT KILLS YOU!!!!!!!

As of late, I have been getting emails from traders who have blown up their accounts. Believe me, I know first hand the pain, desperation and frustration that comes with that experience as I have had it many times. The first time I blew up an account I had to get two jobs 7 days a week to almost cover my bills and I was still struggling.

No matter how many accounts I have blown up, I have always managed to do it the same way every time 'holding on to a loss' that grew up to kill me because I refused to let it go, hoping and praying that the market would come back in my favor.

When I would read other traders info that said cut losses, I thought they were being negative and trying to make me lose my money. Had I listened to that wisdom, it would have saved me many heart-aches.

Let's deal with some hard facts about trading:

#1 YOU ARE GOING TO LOSE MONEY HERE!

This is a big girl's game, if You are afraid to lose money, You should be doing something else with your life, it will be much more profitable.

#2 THE MARKET IS VERY VERY GENEROUS AND WILL ALWAYS GIVE YOU OPPORTUNITIES TO MAKE MONEY!!!!!!

-CUT BAD TRADES QUICKLY AND GO IN THE DIRECTION OF PROFIT!!!!!!

Most of us got into forex with the idea that this is easy money, ignoring everything that told us that 95% of all 1st time traders go broke in the market. We ignored it because we decided that we would be part of the 5% who beat the odds. If You are like I was, You read every book YOU could get your hand on, every website and attended every webinar to make sure You were part of the 5% who were successful here.

FOREX IT NOT HARD. FOREX IS TRICKY AND WITH THE RIGHT EDUCATION AND DISCIPLINE ANYONE CAN DO IT (^_^)

What we fail to realize is that forex is like any other profession, it take most of us a while to be successful here.

NO ONE WHO IS TRULY GREAT DID IT OVERNIGHT, it took continuous education, practice, discipline and sometimes a little blood, sweat, and tears.

I don't care how brilliant a surgeon is, You don't want him to cut on you without PROPER TRAINING & PRACTICE. Notice how many high powered professions are always practicing, 'Practicing Physician', Practicing Attorney'. Other professionals are practicing to get better and so should You.

You can be successful at forex, but not if You are not willing to do what it takes to succeed.

SUCCESS LIST FOR FOREX:

WAIT for a proper trade set-up before entering the market!

LET GO of bad trades quickly!

ALWAYS TAKE MORE than You give!

YOU CAN DO THIS (^_^)

SAVE YOURSELF!!!!!

2010-09-27T13:33:00.004-05:00

Last week we got a huge surprise in the market when the bank of Japan intervened to devalue the yen against other major pairs. Most traders were caught on the wrong side of the trade. Many took huge losses and some of them let their account be blown up.

Guys when bank volume starts to move price, You may not get a pullback to take a smaller hit. If You don't have volume on your platform, You can recognize bank action by price that moves one way almost continually without much retracement. Price will get to a resting plateau and rest before exploding again in the direction of the previous price action.

Many of us will sit at our screens, cursing, praying, begging, but the best thing to do is to save yourself, by cutting bad trades quickly. DON'T DEPEND ON THE MERCY OF THE BANKS TO DO IT!!!!!! THEY ARE OUT TO EAT YOUR LUNCH ALWAYS ! THEY ARE YOUR ENEMY, AND THEY ARE RUTHLESS WITHOUT MERCY!!!!!

What happened last week was nothing more than a market shake out, it happens to traders about 3-4 times a year. The last big one in May 2010 saw a drop of up to 1000 pips in 24 hours.

What can You do to save yourself from this kind of adverse action.?????????????

#1. DON'T LEAVE OPEN POSITIONS! Trade what You can see. When You are not in the market take your money out with You. That way You can save on all of those foul words to Your broker when he tries to explain the price slippage that caused price to go beyond Your stop loss.

#2. If You must leave trades opened, put in a physical stop losses..

#GRANDDADDY OF THEM ALL!!!!!!!!!

NEVER LET LOSSES RUN !!!!!!

NEVER LET LOSSES RUN !!!!!!

NEVER LET LOSSES RUN !!!!!!

CUT THE LEGS FROM UNDER THAT BEAST AS SOON AS POSSIBLE!!!!!!!!!!

Two things are essential if You are going to enjoy a very successful and lucrative trading career.

#1 Wait for a proper trade set-up

#2 Learn to save yourself. CUT BAD TRADES QUICKLY!!!!!! So what if it comes back in your favor, many times it will, but it only takes one good shakeout to leave your lifestyle in jeopardy.

Cut bad trades to leave the most capital possible for a more profitable trade set-up. THE MARKET IS VERY VERY GENEROUS, IT WILL ALWAYS GIVE YOU ANOTHER OPPORTUNITY TO MAKE SOME PAPER, BUT YOU HAVE TO CUT YOUR LOSSES QUICKLY SO THAT YOU HAVE THE MAXIMUM CAPITAL TO TAKE ADVANTAGE OF THE RIGHT OPPORTUNITY WHEN IT PRESENTS ITSELF!!!

The market is swim, float or sink. Don't let them sink You. SAVE YOURSELF!

YOU CAN DO THIS (^_^)

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DANCING WITH THE MARKET

2010-08-31T11:40:00.001-05:00

Dancing with the market can often be a frustrating experience because it is constantly attempting to trip You up on the dance floor.

To make Your dance experience a little more pleasant, You must develop the discipline of a Master Trader.

You must be willing to severe trades that are working against You.

You must be willing to wait for proper trade set-ups.

You must continue to educate yourself.

The market is fickle and temperamental, some might even call it bipolar. Sometimes it is up, sometimes it is down. As a trader You must tread lightly and follow the varies moods of the market until You can see an advantage.

As a trader You only have two jobs when You engage the market in dance.

#1 Keep from being tricked........

#2 Try to put a little money in your pocket...............

That is it!!!!!!! It is as simple as that (^_^)

YOU CAN DO THIS (^_^)

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EVERY BROKE TRADER DOES IT THE SAME WAY

2010-08-10T04:07:00.005-05:00

Every trader who ever goes broke does it the same way.

I have heard it said that Traders go broke because they are under capitalized, that isn't true. If You can lose $100.00, you can lose $1,000,000.00. The problem is the same in both traders, the refusal to let go of losses. The difference between the pro and the amateur isn't necessarily his/her trading ability. Trading is easy!

The difference is in how he/she takes a loss. A disciplined pro will say, " I will stop the bleeding here if I am wrong." The amateur says, " I am right and eventually the market will come back in my favor." If You are thinking that, You have lost Your advantage.

While a pro will let 10 profitable trade kill 1 loss, an amateur will let one loss eat the profits of ten profitable trades. Both traders had the same number of trades but one will end the month in profit and the other will end the month in stress and pain.
Cutting a loss quickly soon ends your attachment to that trade and allows You to pursue a more profitable trade set-up. Part of the reason it is so hard to cut a trade is because You waited forever for that trade set-up and now You not only have to admit that You did not have the advantage that You thought that You did, but now You have to start the process all over again and with a loss.

DON'T MARRY ANY POSITION; THE MARKET CAN CHANGE IN AN INSTANT!!!!!!!!
IT IS ESSENTIAL THAT YOU HAVE AN EXIT STRATEGY (ONE THAT WILL CAUSE YOU THE LEAST AMOUNT OF PAIN)IF THINGS DON'T GO AS YOU PLAN!

ANY TRADE CAN TURN INTO A LOSS!

If You play this game long enough, You will eventually meet with disappointment. It happens, cut and move on. The market will give You another chance to make profit.

Never allow yourself to become wounded beyond repair in the market, either financially or emotionally. Cutting a loss means that You love Yourself enough to save yourself.

If You are going to win at this game, You have to have the capital to play and cutting trades that have lost the edge is one way to thrive here.

Gotta learn to save yourself! If You are getting stopped out frequently, You have gotta to rethink your strategy because something is wrong.

Free Your mind to find good trade set-ups by cutting trades that are not working in your favor. Holding on to diseased trades only punishes You and eventually it can break You

The biggest discipline that a great trader learns is how to cut a loss

YOU CAN DO THIS (^_^)

HOW I TELL I AM LOSING MY ADVANTAGE

2010-08-02T12:02:00.007-05:00

When trading the 1 min time frame it is essential for You to be able to recognize when You have lost Your trading advantage.

These are ways that I can tell that I no longer have the advantage that I believed that I did:

If price moves above/below the previous candle even though it may not close there, I don't have the advantage.

A good trade should run in your favor almost immediately !

If you are not in a decent profit in 7-10 mins , then You may want to consider getting out with a tiny profit or at break even, because chances are high that price is going reverse on You.

Wacky MA's- Pay attention to the order of Your MA's, it is very important, they will tell You if You are in a good trade or trade hell. If your moving averages are 1, 2, 3, 4, 5, then they should be in order 5, 4, 3, 2, 1, or 1, 2, 3, 4, 5, not 4, 2, 3, 1, 5.

Lastly a flat 50 period strongly suggest that You may not have the advantage that You thought.

YOU CAN DO THIS (^_^)

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KEEPING RISK SMALL

2010-07-27T04:38:00.006-05:00

Keeping risk small and rewards big is what a good trader is always attempting to do.

How can we do that???

How can we gain that kind of advantage??????

One way I have discovered is by trading off of the 1 minute time frame.

Why is that an advantage??????
It keeps your risk small when you find yourself on the right side of the trade and within a matter of minutes, you will see that you can secure a very nice profit.

The advantage that it has over larger time frames is that you are able to get in on a move quicker, giving you access to more profit with a smaller risk. Many times when you are trading off of the larger time frames by the time you get your confirmation, the move is almost over, the reward is smaller and the risk bigger, especially if you day trade.

One of the problems that comes as a result is that you find yourself in a nice profit briefly before price reverses strongly on you again, then you find yourself hoping and waiting for price to come back in your favor, kicking yourself all of the time, thinking 'I should have got out when I had a profit.'

Now I do need to mention that while you get many more trading opportunities off of the 1 min time frame, You also get many more false trading signals.............

Let's put the odds in your favor a little more. I don't use a trend line on the 1 min chart, just on my longer time frames, so there is always a trend line available, but it comes off a larger time frame. On your 1 min chart, you may want to consider a moving average, right now I am experimenting with the 8, 10, 14/15, 20 and the 50 period SMA.

Though your SMA is a lagging indicator, it can still give you some clear trading advantages by showing you the times that the odds are the most in your favor.......

The real sweet spot.......

TIME, time is the magic ingredient to pulling off a successful and profitable trade. There are market sweet spots, times when your pair is the most active. Those are the times that give you the biggest opportunity for profit. You want to capitalize on these times. Two good trades at these sweet spots will make your trading day.

Here is a chart that will give you an idea when your pairs are the most active:
http://www.mataf.net/en/tools/02-01-volatility.

The most important thing to remember about the 1 min chart is to get in, get your profit and get out. You can not ride a 1 min trade all day.................On the 1 min chart it iS imperative that you cut your profits when things are no longer going in your favor, because price can soon engulf your profits if you don't.

So in closing the things you want to keep your risk small are:
The sweet spot in time:
A proper trade set-up
Speed of execution.

YOU CAN DO THIS (^_^)

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WHY DO WE HOLD ON TO LOSSES ???

2010-07-14T11:47:00.008-05:00

Why do we as traders hold on to our losses???????

Hope,
Fear,
Anger,
Apathy,
Confusion,

When we see ourselves on the wrong side of a trade, we hold on with the thought that the market will soon come back in our favor, because most of the time it does. Hope, one of the greatest gift's GOD has given us, can get you killed in the market.

The fear that when we let go of that loss, price is going to come back in our favor and we would have taken that hit for nothing.

The thought that we can't take this loss, because we don't want to give back some of our profits. Then the loss becomes so large that we really can't afford to take it, so we leave it in the hands on the market hoping for mercy. In that situation, believe me the market is going to run over You every chance it gets, and will wipe You out as many times as possible. As generous as it is on the right side of the trade, it is a ravenous beast with no mercy on the other.

You have done all of Your analysis right, You have waited for a proper trade set-up and everything says that You have the advantage, You get in the market and the trade goes against you, and You are madder than hell because You were right, so You refuse to cut the loss. Let me say that the market loves that, because Your anger is only giving them more of your hard earned money. Your analysis can be 100% perfect and the market can still go against You, because the market will do as it pleases. It leads and You follow, but make no mistake, the same market that lines your pockets so fully can also turn on you like a mad dog.

Another thing that happens when a loss becomes too large is that thought that "I should have cut it at $100.00, now it is $1,000.00". Then the apathy sets in and You just don't care what happens any more. 'If it comes around fine', or 'if I get wiped out so what', 'whatever', then You turn off your screen and You do something else, but You can't stop worrying about that loss that is looming over You larger than life. It is so much better for you to cut a loss than to have the market cut it for You.

The other thing is the confusion about when to cut a loss, it can get to be hard, but having a predefined stop before your entry or soon after or a physical SL, will make taking a hit much easier. I never like to try to define people's SL's because it is a matter of risk tolerance. You know how much You can afford to loss, and Zero is not an option, while none of us want to lose anything, it is just not realistic in this game. There are people who were prosperous for years in the market and got wiped out in single day or week because they could not stand to take a loss. As long as You have money, you have money to make more money, but when your money is gone, you have to get up from the table.

These things are easy to say in theory but hard to do practically, it is I think the hardest discipline that a trader learns, but we must learn to cut losses quickly. The heartache and money I could have saved by cutting my losses quickly and going in the direction that price was moving would be enough for that new Camaro that I love.

That is the great thing about the market, if You survive to play another day, You eventually get it.

CUT YOUR LOSSES QUICKLY (^_^)!!!!!!!!!!!

A failed long usually makes a good short, and a failed short usually means a good long (^_^). There is always good money to be made in the market, just don't be the one because of your false hope, or stubbornness, that the market is making money off of. Don't allow the market to feed on your families hard earned money cut losses quickly!!!!!!!!!!

YOU CAN DO THIS (^_^)

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FINDING THE PERFECT ENTRY

2010-06-21T14:07:00.010-05:00

While finding the perfect entry is the fantasy of every trader. There is no such thing. It is pure myth. If you get an exact top/bottom it is more luck than science. We have many indicators to help us to do this, but finding a good entry point can still be a challenge.

While there are no perfect entries; there have to be entries that put the odds of success in our favor

I think the secret to getting a good entry is the waiting. I get more profitable trades than losses because I am willing to allow the trade to come to me. As a trader I do more waiting than trading. Many people don't get that, but the secret to getting your best market entry is in the waiting.

Here are some things that might help. Mark Yesterdays support and resistance , if you are near yesterdays support when you enter the market and price is moving in a bullish fashion, there is a high percentage that you can take your trade long for a good ride. If you exceed yesterdays high and you get a reversal, then you are probably in for a sweet ride to the down side.

If you are at a midpoint, you might want to wait for a pullback or bounce for a better entry. If you have enough distance from your support or resistance, then most of the time you are safe to follow that short term trend. This works best on a non trending or slightly trending market. In a trending bull market, sometimes you will dip down to just below the high of the previous day all the way down to the low of the previous day before price continues on in it's bullish pursuits. In a trending bear market, price might rally above the previous day's close and in rarer occasions all the way to the high of the previous day before reversing.

Never buy near yesterday's top or sell near the bottom unless you are in steps. If You sell near the previous days top or buy near yesterdays bottom, you are much more likely to get a break even trade if the market doesn't do what you expect.

Here is a great link that will show you roughly what your pair is going to do hourly and daily. It also shows you the times that your pair is most active:

http://www.mataf.net/en/tools/02-01-volatility

This is only a guide, compare it to your charts to see how accurate it is overall.

Guys, you can do this and play with the big dogs, but you must educate yourself and employ the kind of discipline that puts you in the winners circle.

YOU CAN DO THIS (^_^)

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BEFORE YOU TAKE THAT TRADE

2010-06-16T09:17:00.005-05:00

STOP!!!!!!!!!!!! before you enter that trade:

Did You see how far it was from yesterdays support or resistance?

Is it ascending or descending steps?

Did You draw Yourself a trend line?

Did You wait for a proper trade set-up?

Are You going in harmony with Your current trend?

If You are going against the trend, did You ask Yourself,
"How far am I from the trend line?"
"Is this signal strong enough to make it worth the risk?"
"How far along is this trend?"

"What is an appropriate stop if I am wrong?"

These are a few questions You may want to ask Yourself prior to entering a trade (^_^)

YOU CAN DO THIS (^_^)

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DEMO ACCOUNT

2010-06-14T09:43:00.005-05:00

I am always telling new traders to practice on their demo account until they become consistently profitable.

WHY?????

Because I have found that it is a way to program a success pattern in your mind. Your mind doesn't distinguish between a live and a demo account, however we do. Sometimes we allow emotions to interfere with the successful program that our mind is running once we get a live account.

We want trading to be so ingrained in us that it is almost instinct. Your demo gives you the opportunity to train your mind toward automatic success.

Your brain begins to recognize patterns of success as you practice on your live or demo account, it doesn't matter which one?.

As a trader, every time you enter the market, you take a risk.

YOU CAN NOT BE BE AFRAID OF RISK!

But you must make SMART, CALCULATED RISK in the market. Risk no more than 2% of your capital in a trade. 2% on the right side of the trade is more than enough to provide your with a very comfortable life style. 2% on the wrong side of the trade can also take you out. That is why smart calculated risk give you the biggest advantage in the market. When you don't over trade your account it gives you more control over your exit as opposed to being forced out of the trade by the market.

ENTER THE MARKET WHEN YOU CAN SEE A CLEAR ADVANTAGE!

Use your demo up, blow it up several times if that is what is necessary for you to gain an understanding of what is going on in the market.

Take your demo seriously. Practice your successes and it will help your mind begin to eliminate those habits that are counter productive to good trading. Practicing success in your demo translates into success in your live account.

YOU CAN DO THIS (^_^)

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RUNNING PRICE

2010-06-10T09:13:00.006-05:00

Many times when price is running like a mad train on steroids, it is very unsettling because all of your emotions are screaming for you to jump aboard. The problem with that is many time that same train that seduced you aboard will often abandon you at the station leaving you wondering what happened??????

One of the most difficult temptation to resist in trading is the urge and beckoning to follow running price. Running price will often leave you stuck at the top or abandoned at the bottom. When your eyes see price running, all of your emotions are screaming for you to jump aboard. DON'T DO IT! Many times it is a trap that will leave you licking your wounds. When you get off of the ground all scraped up, you still aren't sure what happened because you were in harmony with your trend. Many times price will speed up just before the critical end of that run.

Now if you are aboard a trend and price starts on super steroids x 20 then you might want to begin looking for the nearest exit point. It doesn't always happen like that, but I have seen it often enough that I never jump into running price, even though my emotions are still screaming for me to.

While I am looking at price accelerate, I am thinking "look at all of that money you missed, and you knew it was going to keep going" or thoughts like "crap you should have gotten in, you missed your chance." My Friend the market will give you another chance!

I would rather miss out on an iffy trade for a sure one any day. When things settle and I can see a clear advantage then I can enter the market with logic instead of emotions....

Study Your charts and learn the price rhythm of your currency pair or pairs

YOU CAN DO THIS (^_^)

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LIKE FINE WINE

2010-06-04T08:52:00.006-05:00

Like a fine wine the surety of a trend reversal gets better with time. The more a trend has aged, the more likely you are to get a valid reversal.

The older a trend gets the more ripe it is for falling off, and the more likely a new more robust trend will take over. A trend that is young and vigorous maybe side tracked briefly, but is not very likely to be defeated. The end of the uptrend says that the last of the big buyers are gone and the end of a down trend says that the last of the big sellers are gone and that trend has now become ripe for a take over.

Think of a trend like a young lion protecting his pride, another lion is not likely to usurp his authority. As he gets older, he is much more likely to lose his pride in defeat to a younger more energetic lion. The same is true with a trend as it gets older it becomes much more likely to be taken over. When considering whether or not to take a reversal (especially in the short term) gauge the age of the trend first. If the trend has just begin then you are not likely to have a legitimate reversal on your hand. If the trend is still very close to the trend line then it is not likely to be a valid reversal.

There are no absolutes in the market, but you do need to keep an eye out for things that put the odds the most in your favor.

YOU CAN DO THIS (^_^)

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FEAR

2010-06-03T09:29:00.005-05:00

How many times have you let the perfect trade pass you by? The trade that was screaming for you to take it, but fear kept you from pulling the trigger; then once you saw what a 'fat trade' it turned out to be; you beat yourself up.

Most of us have heard that classic acronym for Fear:

F-False
E-Evidence
A-Appearing
R-Real

There are a million ways to be successful in this market, but most people defeat their own success with fear. Fear is that paralyzing emotion that happens when you feel certain that you should pull the trigger, but can't.

As a trader, Fear can be an almost constant companion.........
How do you tame this beast??? What can be done about this monster that creeps into your psyche and holds you hostage????????

If you find yourself victim to this dreadful enemy. Stop trading your real money and paper/demo trade for a while. Make note of every trade and write down what is working most of the time. When you miss it, write down what happened and what you can do to improve your odds. This will take the discipline that most people lack, but it can be a big help. Also feed yourself new messages about your ability to succeed in this market. Read about others who are doing it and how they are getting this done.

A solid education will also help tweak and perfect your skills. The Market is an arena that is always offering you an opportunity to sharpen your skills. Learn, Learn, Learn.

Practice pulling the trigger on trades that are showing you a clear advantage and practice letting them ride into glorious profit. "Remember the shorter your time frame, the shorter your profit run will be...........

You have got to talk to yourself about who you are, (ex: "I am a super forex trader, making more money in the market than I can spend.") Don't keep feeding that demon that's telling you 'this won't work for you'. The one that keeps telling you when you take a hit, 'you can't do this', or 'GOD helps everyone else but you', or any of that other nonsense......

I would say that your mental ability to play this game is even more essential to your success than your education. You can not be afraid of good smart calculated risk if you are going to win at this game.

You are looking for trades that stack the odds in your favor. Trades that are showing you a clear advantage. Trades that are begging you to come and partake of the sweetness.

Every time you enter the market you take a risk, but you want to find the lowest risk entry trades. There will be times that despite your best efforts, you will still miss it. So what, cut the legs off of that monster, save your capital and thrive to trade another day. The market is very generous and will give you the opportunity to make your loss back and so much more. If you took a hit yesterday, so what; that no longer exists. Today is a new trading day filled with new trading opportunities.

When I take a hit, I just wait for another good entry and usually I will get all of the money back that I lost in the hit and then some. THE MARKET IS VERY GENEROUS AND WILL GIVE YOU MANY OPPORTUNITIES FOR PROFITS.

1. Exceptional Trading requires discipline, patience, education, good money management and the ability to pull the trigger on a good entry in spite of any present fear.

Demo trade, Demo trade, Demo trade, and fill your head with good positive things about your ability and who you are as a trader until you are consistently profitable and until you can pull the trigger on trades with confidence.

YOU CAN DO THIS (^_^)

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WHAT ARE MARKET MAKERS

2010-05-25T10:22:00.009-05:00

In the financial markets, we often hear the term Market Makers, but who are the Market Makers and what do they do????????????

Market Makers are the people who insure that your orders get filled, they keep the market liquid. If you want to move 3,000,000 shares of xyz and there is no buyer waiting for those shares; the Market Makers will buy those shares from you even if though there is no buyer on the other end of the transaction.

Won't the Market Maker go broke doing this???????????

No the Market Makers are Banks and very large financial institution that make their money off of the the difference between the Bid/Ask price which is referred to as the spread. The spread acts to offset the risk of their buying your xyz with no seller lined up in case something goes wrong. Though the spread is often very little, millions of transactions a day creates a very lucrative profit for the Market Maker.

The Market Maker makes money by buying your xzy at 25.5 and reselling it at 25.8. The Market Marker buys low and sells high or sell high and buy low. The Market Maker takes advantages of both the buy/sell, making money in both directions as the market goes up and as the market comes down.

Can a Maker Maker lose money??????????

Sure, if the Market Maker misjudges the market sentiment thinking that the market is going to go up when it comes down. If he bought your xyz at 25.5 and it falls to 13.3, the Market Maker is in trouble if unable to get rid of those shares before price plummets .

Market Makers also get rebates from ECN's (electronic communication networks) for each share that is sold to you at the bid price. On the other hand, the trader who buys the bid of an ECN (your trading platform) is charged a fee. The Market Maker will profit regardless of what kind of order you place whether buy/sell.

In short the market maker makes it possible for you to buy/sell whether there is an existing counterpart to your trade or not for a small fee as long as there is a bid/ask price available.

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YOU CAN DO THIS (^_^)

RESISTANCE, DROP

2010-05-10T13:08:00.010-05:00

Resistance is a powerful word, but in the market it can mean the end of a long climb up the latter of a successful bullish run. Points of resistance aren't necessarily concrete, think of them more as a tightened rubber band that if you push into it to hard, it can send you plummeting very quickly.

Resistance is what it implies, a possible push against current price action. There are two correct responses you can have at a resistance, turn back (with a proper candlestick confirmation), or wait to see if the resistance is overcome, You never want to go head on into resistance because chances are you will get your butt handed to you. The other thing you don't want to do is automatically turn back without a little push. YOU DON'T ALWAYS WANT OR HAVE TO BE IN THE MARKET. There are times when you need to be on the sidelines in observation mode; at a point near resistance is one of those times. Trying to break resistance is like trying to run over a locomotive on a bicycle. You can't do it!! Your best option at resistance is to rest to see either the strength or weakness of your price action. Whether price is successful at demolishing or chipping away resistance or does a turnabout, wait until it makes a concrete decision before following. NOTE: wherever price leads, follow until you get a signal that it is no longer safe to do so, or until you have had your fill of a nice fat profit.

Let other traders jump in front of the locomotive to slow it down; DON'T YOU DO IT! Save yourself and wait until it is safe. Resistance points can either be safety zones put in place to help you protect your profits or the force and authority to crush you if you try to cross the line. When you come to a resistance point it means STOP!!!!, DO NOT PROCEED WITH CAUTION it is a RED LIGHT, when it is green, proceed with caution because there are times when price will break resistance only to fall back limp under the weight of the break through triumph.

This is not rocket science.

YES, YOU CAN DO THIS (^_^)

PRACTICE, DRILL, and REHEARSE ON YOUR DEMO!!!!!!!!!!!!
EDUCATION, EDUCATION, EDUCATION

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TAMING A HOSTILE MARKET

2010-05-03T12:41:00.005-05:00

Every day you get up to face a hostile market where the odds are stacked against you.......

How do you Win in the face of such odds ??????????..........

You educate yourself, you practice, you practice and you practice more on your demo and never quit until all of the nonsense and backwardness of the market makes sense enough to where you are consistently profitable........

The Financial Markets are the Biggest most advanced Chess Game in the world, with some of the Richest and Savvy people on the planet as it's players.

When you are first introduced to the financial markets what you see is all of the money you can make quickly, and all of the luxuries attached to conquest.........

What you don't see is the education and hours of dedication and study that the Pros put into making this look effortless. It is by no means effortless, but is put on like a very well rehearsed play and in many instance the Actor before you has gone broke many times, but just never gave up, or the smarter Actors got a good education from the ones who went broke first.

If you find a Pro who is willing to spill her/his guts, learn everything that person has to teach even when it is repetitive, because there is a reason that teacher is stressing that point. Trading is simple with the right tools, foundation and education. You can not build a Major Highway with a hammer and nails, YOU MUST have the right tools to accomplish this. If you get a Bull Dozier, some Dump Trucks, some engineered plans etc......., then your chance of success is much greater than it would be with a hammer, nails and an idea.

With the vision, YOU MUST possess the RIGHT TOOLS. What is absolutely essential for your success is constant education and your charts are the best, most accurate teachers and they will shower you with a wealth of information if only you spend time with them listening to their wisdom........

A good start to success in the market is to understand Price action; what price has done in the past, what it is doing now and where it may be headed. You can begin this journey by picking up Steve Nison's Candlestick book at your local library, master your trend line, master your knowledge of support and resistance. If after mastering these great market jewels, you feel that you need more, then you can then add additional tools with confidence........

The market is like a treasure hunt and the one who has the best map will possess the Treasure.......Education, Education and Education!!!!!!!!!!!!

Education is the Highway out of poverty, and a MASTER KEY to success!!!!!!!!

YOU CAN DO THIS (^_^)

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DON'T HUNT TRADES !!!!!!

2010-04-28T12:07:00.005-05:00

You don't have to hunt profitable trades, if you will wait, they will come to you. LET PROFITABLE TRADES FIND THEIR WAY TO YOU!!!!!!!!!

The difference between the consistently profitable trader and the trader who is struggling is that the profitable trader has learned to let profitable trades come to her/him. The profitable trader waits for a proper trade set-up and is anticipating it, the most important thing about a consistently profitable trader is that she/he is willing to forgo a trade that does not show a clear advantage.

Great trading is more about waiting for proper trade set-ups and opportunities than it is about being smart. If you wait, proper trades will seek you out, begging you to come in and enjoy and partake of the profits. That is the master discipline that MUST be developed if you are to enjoy a good living trading.

It is hard if you feel the need to constantly be in the market. The more you are in the market the more you are exposed to risk and the more you expose yourself to risk the more likely you are to be bitten and bitten hard. You have got to develop 'THE ART OF WAITING', it is one of the master trading arts along with confidence and disciple.

YOU CAN DO THIS (^_^). Start with learning your candlestick psychology and force yourself not to trade unless you can see a clear trading advantage. Use your demo to help develop this discipline if necessary. Your charts will tell you more truth than any other source learn to read it like you read your favorite book.

Lastly WAIT for profitable trades to COME TO YOU!!!!!!!!

YOU CAN DO THIS (^_^)

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ANTICIPATE

2010-04-20T15:38:00.003-05:00

One of the biggest mistakes traders make is jumping in at the end of a price move. Once price has a direction, we expect for price to move that way forever, and either fail to secure our profits, or try to keep riding a profit train that has come to the end of the line.........

This is a costly error. Price does not continue on forever; at some point it is going to turn against the current trend. Believe me, I love to ride a good profit train and hate to get off of it, but price is only going to go to it's next destination before returning to the station or moving to a totally different one.

Your current trend will not go on forever no matter how good the news or the economy is, at some point trends like rivers develop bend and curbs and ultimately reversals. It helps if you know where the river banks are. That is where your support and resistance come in, price may turn at a resistance/support point or it may simply move sideways before finding a way to follow the current trend. These are areas that you want to pay particular attention to price action.

Most of the time, your candlesticks will show you the direction you must take at these areas. Learn to anticipate where your price is going to move. That is how your trend line, candlesticks and support and resistance work together to help show you the most profitable trades. If you are trending, buy pullback/sell rallies in harmony with that trend. If you hit a resistance, then look for a validate candlestick reversal before shorting that resistance, if you are at support begin to look for a valid candlestick reversal pattern to bounce off of that support area. If you don't get these patterns and price keeps going then it is time for a new strategy, but following your trend is going to yield your most profitable trades.

Follow where your price leads, but your trading tools help you to predict where price maybe headed. Anticipations makes for some very lucrative and profitable trades.........

YOU CAN DO THIS (^_^)

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LISTEN TO THE WISDOM OF THE CANDLES

2010-04-07T12:43:00.006-05:00

Your candles always have a tale to tell and you would be very wise to listen as they whisper hints about what is going on in the market. In order to trade your very best, it is very very important for you to learn to properly interpret the language of your chart. Now you can use either the bar or candlestick chart to do this, there is really no real difference in the information between the two, but the candles give you a clear immediate visual advantage over your bars. Whether you use bars or candles isn't as important as being able to understand what they are saying to you.

Learning to properly interpret this language will save you hundreds to several thousands of dollars. The trader who has taken the time and patience to learn this language heaps huge rewards as a benefit, but those who don't suffer the wrath of the market time and time again.

Now it is possible to have a perfect understanding of the market and still miss it. All the proper interpretation does is give you an advantage that will put profits in your pocket most of the time.

Your charts are always telling a story and if you can properly interpret that story the market will pay you big dividends for that knowledge.

Here is one of my favorite beginner candlestick video:

Also pick up Steve Nison's candlestick book at your local library: THE KNOWLEDGE IS THE POWER IN TRADING, and having it is the difference between going broke and thriving.

YOU CAN DO THIS (^_^)

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DUMP THAT LOSER

2010-03-31T13:41:00.006-05:00

One of the biggest mistakes that traders make is holding on to losers too long. The reason we do this is because we can't stand to lose that money. We can't stand to see our bottom line shrink. We can't take the fact that we were wrong in the trade set up. We don't want to mess up a good winning streak. We got stopped out too many times, only to soon see price reverse in our favor. We got angry because we got tricked and now refuse to budge, but keeping the loss only hurts us, while another trader is getting our money. We got tricked it happens, it is time to cut our losses and move on to another better trade set-up.

Whatever the reason, holding on to losing trades IS A BAD IDEA, that only cripples you.

There are other ways you lose besides losing your money??????

By refusing to take a legitimate loss, (not when price moves against you a few pips in a well established trend, but holding for days, weeks and months), you rob yourself of many more profits. When you lock yourself in a losing trade, you can't take any profitable trades in that pair. Say you are short on the USD/JPY and the pair moves against you, now you have practiced good money management so you can afford to hold on to it until in comes back in your favor, it has now been 6 months. With FIFO (first in, first out) that is 6 months that you could not make money on that pair because you were nursing a loss. If you traded on the pair twice a day that is 318 trades(taking out Saturday) that you have cheated yourself out of over six month, and even if you got just 5 pips per trader, that is 1590 pips that you have missed, but say that you couldn't get every trade, you only got half that is 795 pips that you have missed...........ok, but even that is a struggle, so let's say a third, that is 265 pips, that you have cheated yourself out of, and if you are really a great trader, you know that you have missed so much more, say you were able to average ten pips per trade over the 6 months, then that is 3,180 pips that you have kept yourself from. Let's translate pips into dollars that is $265.00, enough for a nice Christmas present. $790.00, enough for that nice gadget that will impress your Friends. $1590.00 enough for that great TV you want. $3,180.00 enough for a great down payment on your teenagers first car.

You could have traded that multiple times both long and short, instead you threw it all away because you refused to take that loss.

Then the loss gets too big and you feel like you can't take it, because you can't afford to take it now. If you cut the legs off of that monster while it is manageable, it won't grow up to eat you.

Not cutting a loss, increased your stress level, making you harder to live with. Makes you feel sorry for yourself, 'because GOD will help everybody else but you'. You are too worried to sleep, so you stay up and watch the market. You also limit the amount of money you can trade with, because a portion of it is locked in that losing trade, resulting in smaller profits.

You are going bald, your blood pressure is up and you are stressed to hell. Just cut the loss while it is manageable. I know you don't want to give the market your money, but that is part of the price of playing the game. Don't trap yourself into a corner that you can't make money in, it is sooooooooooo much worst than giving the market a few dollars, because you are still able to trade and make more money. What if it takes a whole week to recover, it is still better than that panicky feeling that comes from watching the market go against you day after day after day and feeling helpless to do anything about it.

The right way is to ride the winners and DUMP THE LOSERS, because they cripple you, they pull you down emotionally, they steal your trading confidence and lastly they drain your account as they get greedier and greedier the larger they become.

IS IT WORTH IT??????????!!!!!!!!

DON'T LET YOUR LOSERS RUN WILD, Because many times they will run until they drain you dry.

YOU CAN DO THIS (^_^)

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The Price Yo-Yo

2010-03-23T13:27:00.007-05:00

What is the Price Yo-Yo???????

It is the price dance that keeps traders confused and keeps them off guard. Every hour, every day, every week and every month you have a natural price movement like the flow of musical notes. It flows up and it flows down sometimes like smooth rolling hills and sometimes like sharp cliffs and canyons.

The Price Yo-Yo is one of the hardest things for traders to get use to, as is seems so random and without any logic. When you are sitting at your computer all day watching price move up, down and sideways it is easy to get confused about the true direction of the market. That is why it is always best to get a view of the bigger picture before you begin trading in smaller time frames.

By looking at the bigger picture you can plan a strategy that will help you to keep sight of your trading objective and give you an advantage that you would not have if you just jumped in on a smaller time frame and started to trade without that bigger time frame reference.

If you see that your market is mostly bullish on a four hour chart, then it may be wise for you to take trades in the bullish direction on the 15min time frame. If you have a predictable range bound market, then you want to look for opportunities to sell near resistance and buy near support on your 15 min time frame. Remember you only want to buy/sell at these point with proper candlestick reversal pattern at/near an established support/resistance. Waiting for proper entry/exit signals will put you on the right side of the trade most of the time (^_^)

Keeping an eye on the bigger time frame picture, will give you an advantage and help keep you from getting confused and losing your way while trading in smaller time frames. If you have been trading any time, you know that you can use every advantage you can get (^_^).

YOU CAN DO THIS (^_^)

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PRICE ACTION AND FRIENDS

2010-03-16T14:04:00.005-05:00

Why do so many traders go broke???????
The house advantage!!!!
What is the house advantage???????

The house has all of the money and knows and makes the rules. The thing about the rules is that they seem random as if they are being made up as we are going along. That is why the proper interpretation of the language of the charts is so essential to your trading success. Your indicators and oscillators are only following where the price lead. How much better is it to be able to interpret what is going on in the market long before your indicator does? It can be done and is done skillfully everyday by people who understand and know the language the charts speak. What is this secret, strange, mysterious, language that the charts speak???

PRICE ACTION!!!!!!!! What price is doing and has done, along with the natural rhythm of the market.

By the time your indicators tell you what your price is doing, you are already behind those who interpreted price action long before your indicator/oscillator clued you in. Have you ever waited for your indicator/oscillator to tell you to get in only to discover that you have missed a great deal of the move already. Becoming fluent in the language of price will help you to avoid much of that.

THERE IS NO PERFECT FOREX SYSTEM, it doesn't exist, but studying and learning the language of your charts will put the odds in your favor, and help you to glean a sweet little profit in the process.

There are no short cuts here. You can learn the language and get an advantage, or you can rely on the news, support/resistance, trend lines or other indicators/oscillators. I am a huge fan of support/resistance and trend lines, but gaining an understanding of price action will give you a clear advantage.

I am not bashing indicators, but you need to understand what they are. They are merely assistants and interns to the PRESIDENT OF PRICE ACTION.

Is PRICE ACTION ENOUGH??????

NO!!!!!!!

Like the president, your Price action needs a cabinet that can support it. That is where your indicators and oscillators come on. They are your support staff. Once you master PRICE ACTION, the other things become natural assistants.

Price action will not tell you everything, it will not tell you how far price is headed, and how long the destination might be. That is where support/resistance, and long term trend line comes in.

At the end of the month, always see where your price is headed, then plan your strategy accordingly, knowing that most of the time you will have a bounce on your weekly candle. DO NOT SHORT OFF OF THE LOW OF THAT LAST MONTHLY CANDLE, BECAUSE MOST OF THE TIME, YOU WILL END UP ON THE WRONG SIDE OF THE TRADE.

THAT IS WHY LEARNING YOUR MARKET RHYTHM IS SO IMPORTANT!!!

PRICE ACTION ALONG WITH FRIENDS CAN TAKE YOU WHERE YOU WANT TO BE.

You may use any indicator/oscillator that your are comfortable with. Just remember that they are the cabinet to the PRESIDENT OF PRICE ACTION!!!!!!!!!!!

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YOU CAN DO THIS (^_^)

THE GUESSING OF TRADING

2010-03-09T11:52:00.004-06:00

Trading is based on our hypothesis. In other words trading amounts to our educated guesses, which means the more you invest in your education, the more likely you are to find yourself on the right side of the trade. One of the most widely overlooked parts of trading education by traders is the study of past charts. I make personal videos, so that like a football team I can review my plays and create better strategies.

Your chart will tell you almost every thing you need to know to get on the right side of the trade. The one thing it doesn't tell you is what is going on behind the scenes and it will even give you a hint to that most of the time. Your bullish/bearish ENGULFING patterns are evidence that there are some secrets that the market keeps to itself.

Mastering your candlestick psychology, your support/resistance, and your trendlines are things that you want to major on and learn well. You may not win every trade, but having a firm foundation on these simple techniques can greatly increase your odds of a successful trade. I think the more simple your charts, the better and easier it is for you to enter a good trade.

Sometimes you will have the perfect trade set up and all of your analysis will be right and you will find yourself on the wrong side of the trade. No big deal, it happens to all of us, review that trade and see if you can identify the error. When you have reviewed it, look for the next trading opportunity. There is NO PERFECT TRADING STRATEGY!!!!!!! This is only a guessing game for those of us who like to play the odds. The better your education, the better your odds will be against the house.

YOU CAN ABSOLUTELY DO THIS (^_^)

YOU CAN BE SUCCESSFUL AT FOREX!!!!!

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STRATEGY VIDEOS IN ONE PLACE

2010-03-04T11:05:00.008-06:00

My Friends, I am always honored to have you along. I am going to post some strategic videos here that you can book mark so that you can review them from time to time. Keep in mind that every market day is different. Your candlesticks are always telling a story. Look at the past story of the candles to help accurately interpret what your candles are telling you right now.

ALWAYS WAIT FOR PROPER TRADE SET-UPS. Great trading is mostly waiting to meet with great profit opportunity. No truly great trader is in the market all of the time. A truly great trader waits to pounce when she/he sees profit ripe on the horizon. However, I know some scalpers that make more than 200pips a day, but they wait for proper trade set-ups.

You have to choose the trading style that fits your personality, as there are many ways to successfully trade forex and no one has the monopoly on great trading. We have just found what works for us successfully. When you find good stuff, learn what you can, then tweak it to make it your own. Forex is a consistent building of knowledge.

YOU CAN DO THIS (^_^)

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YOUR MARKET OPPONENT

2010-02-23T11:52:00.007-06:00

Most traders are under the illusion that their greatest opponent in the market are the skilled pros out there who are waiting to gobble them up. While they are worthy opponents, there is an opponent even more worthy, if you go to the mirror, you will find them. The biggest enemy to trading successfully is YOU and your mindset.

The thing that usually demolishes traders besides getting into the game way too early (while they are still very, very green) is their lack of discipline and patience. The hardest thing in the market, especially if you are a natural Type A personality, is the waiting.

The natural type A makes the perfect forex victim, because we like to see things move and like to get things accomplished. While this is a very desirable trait in most other aspects of life, it can be to your determent in forex.

It is the incredible volatility and fast pace of forex that attracts us in the first place, but when the market is stagnant, it can make us nuts, often causing us to make premature ill-timed entries.

That is why it is essential to your long term success for you to perfect your WAIT!!!!!

What are you waiting???
For proper trade set-ups!

Trades in harmony with your trend will usually be the most profitable and give the most reliable signals.

LEARN YOUR CANDLESTICK PATTERNS!
LEARN YOUR TRENDS!!!
LEARN YOUR SUPPORT/RESISTANCE!!!!!
LEARN ABOUT MARKET RHYTHM!!!
LEARN MARKET PSYCHOLOGY!!!!!

AFTER LEARNING ALL OF THAT.

YOU MUST PERFECT THE ART OF WAITING !!!!!!!! (^_^)

YOU CAN DO THIS (^_^)

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QUESTIONS AFTER THE HIT

2010-02-19T18:08:00.003-06:00

When you take a hit, you have got to think your way through it logically.

Questions to ask yourself when you have taken a hit.

What is the lesson here???

What did I learn????

How can I avoid this next time????

What is my strategy the next time I encounter this situation????

Did I remember to pat myself on the back for the good trades this month?????

Did I remind myself that I have had many more successes this month??????

Did I remind myself that this is just an opportunity to do it better next time?????

Did I use proper discipline????????

Did I wait for a proper trade set-up??????

Did I follow my trading rules????????

How long am I going to wallow here???????

Did I remind myself that the market is very generous and will always give me plenty of opportunities for profit???????

Do I have more money now than I did at the beginning of the month????

If YES, you are ok.
You are out to win the war, though you may lose a few battles.
If you have gained 90 dollars for the month and you lose $8,
then you are ahead of the game by $82.

If the answer is NO and you are consistently taking hits,
then STOP and RETHINK your strategy, There is something WRONG!

No one can tell you how to trade; all they can do is share their experience and you will have to tweak it to fit your trading style. Thinking through your losses logically will give you the best advantage over reacting emotionally .

NEVER EVER USE A LOSS AS AN OPPORTUNITY TO BEAT YOURSELF UP. IT IS AN OPPORTUNITY TO GAIN AND INCREASE YOUR KNOWLEDGE

YOU CAN DO THIS (^_^)

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TRADING PREDICTABLE

2010-02-18T16:39:00.005-06:00

There are times when the market is murky, cloudy and choppy, but there are the sweet times when the market is crystal clear like a cool refreshing spring. That is when you want to be in it. Many traders try to swim in all market waters. This is a big mistakes. Dirty waters are full of sharks.

IF YOU DON'T CLEARLY SEE AN ADVANTAGE; DO NOT TRADE!!!!!

IF YOU CAN NOT SEE A TRADE SET-UP, IT IS PROBABLY BECAUSE THERE IS NOT ONE.

You may wait a whole day for a market set-up, never to get one. That is when traders get antsy and agitated and begin creating trades from thin air. Mostly ending up on the wrong side of the trade. WHY gamble with your capital like that?????????? THAT IS DUMB.

When the market is lost, let it wander, but you stay out. It is hard, I know, as all of your emotions are screaming at you not to miss out. Miss out on what??????

What you are missing out on is the set-up for the BIG KILL. SOMETIMES THERE IS NO TRADE and if you are wise, you except that and go find some other way to occupy your time. If you are no a pro, don't play the out-smart-the-market game, it will make road kill out of you fast. You may get away with it a time or two, but you can be sure that eventually it will catch up with you, because market strategies don't stay the same. It only takes that one 200-400 pip shake out day to change your world for the worst.

Trade when your trades are more predictable than not. Trade when the waters are cool, refreshing and crystal clear. Trade when the market is sending you a VERY CLEAR invitaion to jump in. If the water is murky, you can believe there are sharks. SWIM AT YOUR OWN RISK !!!!

YOU CAN DO THIS (^_^)

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TRADING EMOTIONS

2010-02-09T15:26:00.002-06:00

The hardest thing to master as a trader once you understand Market Rhythm is not the market, it is YOU. Emotional trading will break you fast.

Trading is not hard, it is mastering your emotions that is. Trading will teach you more about your human short coming than visiting a psychiatrist. As a trader, you must learn the discipline of waiting for proper market set-ups. That is hard!

Your EMOTIONS are screaming for you to jump in or you will miss out. NOT TRUE!! If you miss one trade set-up, the market is generous and will give you another. Learn to trade in harmony with your trend and with proper signals.

The emotions that are deadly to your trading success.

REVENGE, we all know it and have done it. It happens when you are tricked by the market and decide to take another trade before looking at the big picture, then BAM you are on the wrong side of the trade again. Pissed off and refusing to move while your money is going further down the drain. Scared to let go for fear that you are going to get tricked again.

PANIC, that is when you lack the confidence to enter or ride a profitable trade. This happens when you have taken some hits and now you lack the confidence to trade profitably.

IMPATIENCE, this happens when you can't wait for a proper trade set-up and jump on a price hiccup/retracement, often finding yourself on the wrong side of the trade.

ANGER, you know that feeling that comes over you when you have taken a hit or two and you want to kill your computer.

SELF PITY, when you come to the market hoping for crumbs and get none, and can't see why THEY won't let you have just a little bit.

DEPRESSION, something perhaps outside of the market has you at an extreme low point.

INDIFFERENCE, it happens when you have gotten hit so many times that you just don't care any more because no matter what you can't win any way.

All of these emotions work hard against you clouding your clarity and give other traders the advantage over you.

If you are experiencing any of these emotions when you enter your platform; abandon your trading until you have yourself under control and have the clarity of mind to trade. Not doing so greatly increases your chances of handing your money over to a trader who is more emotionally fit and controlled than you are.

We are all human and it happens to us all, but what weighs heavy in your mind will often weigh heavily in your pocket.

Come to your trading platform, well rested, focused and ready to trade. You may take an occasional hit; SO WHAT it is a LESSON. We all get them and if we learn the lesson that the loss has taught us; it will make us much better traders.

DO NOT TRADE YOUR EMOTIONS!!!!!----

TRADE WHAT YOU SEE ON YOUR CHART!!!!

YOU CAN DO THIS (^_^)

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CAN YOU BEAT THE SYSTEM ??

2010-02-07T13:01:00.006-06:00

Can you beat the system ??

NO!, but you can still make great money. There is no humanly way that you can beat the system, but you can make a very comfortable and profitable living from forex. Forex has a language of it's own and in order to have a glimpse of success, you have got to learn the language. The better you master and translate the language, the more successful you become.

What is this strange language????

It is the language of the charts. It doesn't matter whether you interpret candlesticks or bars ( I have a strong preference for candles), you must learn to properly interpret this secret chart language of price action. Your charts are the only indicator that is telling you the real right now truth.

The only disadvantage to the charts that you see is that you can not see what is going on behind the scenes; but many times if you are properly interpreting your charts, you will glean clues about the possible direction of the market.

Even with the knowledge of this secret mysterious chart language of price action, you can still get tricked. It happens.

Why ?????

Because the house always has and will keep the advantage. You can only hope that your interpretation of the language of the charts will be profitable for you most of the times. If you are properly interpreting this language most of the time, you will do very, very well as long as you don't allow your losses to run forever.

Even after some traders become fluent in this price action language, they allow their losses to run and cut their profits short. THIS IS BACKWARDS and WRONG. The profits are suppose to run and the losers are suppose to be cut short. As traders, we all know if we had cut that trade short when we saw the market turn against us, we would have come out with a small loss as opposed to the crippling monster we ended up with. Don't allow your losses to run free. It is up to you when you are comfortable cutting them, but don't allow them to take over.

LEARN YOUR CHART LANGUAGE!

Going to your local library and picking up Steve Nison's book is a great place to start.

YOU CAN DO THIS (^_^)

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SUPPORT BOUNCE

2010-02-04T17:00:00.007-06:00

Price will only fall so far before you get a bounce off of or near a support. Price WILL NOT fall indefinitely. Be extra careful when price makes a new low because one or two things are going to happen, it will either keep falling or it will bounce. More than likely, it will make a make a strong bounce.

Why????? because all of the sellers have gotten on board to sell. When there are no more sellers, the only logical thing to happen is for the buyers to come in and buy in force, creating a strong upwards bounce, trapping the sellers at the bottom.

Price falls strongly as long as there are sellers, but when the sellers are all gone BAM!!!!!! you have an upward explosion with nothing to slow the force of the powerful move upward. Now many of the traders trapped at the bottom are also forced to sell, creating more momentum for the upward move and prices continue to rise.

When you make an all new low and you get sideways action. Wait it out until you are sure you know where price is headed. If you get trapped, free yourself as soon as you can even if it means taking a small loss. It is better to be upset that you missed out on a great trade than to find yourself trapped in a trade that you wish you hadn't taken.

REMEMBER SUPPORT = BOUNCE, until price shows you differently. No matter what, wait for proper reversal/continuation signals near support before you enter the trade and please wait for your candle to close before making your trading decision. Those few pips that you think you will gain by beating out your competition are NOT WORTH IT.
All of the pros know to wait for an advantageous set-up and so should you (^_^)

YOU CAN DO THIS (^_^)

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TRICK CANDLES

2010-02-01T22:01:00.006-06:00

There are two very tricky candles that I must warn you about. Both are part of the umbrella group. The first is the shooting star. The shooting star comes at the top on an uptrend and has a shadow twice the size of the real body. The thing about the shooting star is that it opens near the bottom of the candle goes up to create the illustration of a strong bullish candle, quickly turns on you, and closes near it's open. It can be bullish or bearish, but a bearish shooting star is stronger and more likely to create a reversal than a bullish shooting star.

A shooting star happens when the bulls are running strong with the ball , and it looks like they are going to score when the bears come in and slam them at the last minute. Many times the bears take over then run the ball the other way. Sometimes there is a fight and there is a sideways standoff for a while.
The hammer is the other trick candle that you want to be aware of. A hammer come at the end of a downtrend and will mislead you with the idea that it is going to continue in a bearish fashion before price turns traitor on you. It is called a hammer because it looks like a hammer. A hammer opens near the top of the candle, falls strong before reversing on you, creating a lower shadow that is twice the size of it's real body . When you see a hammer form, it is a sign that you need to protect your profits.

The thing that is detrimental about the shooting star/hammer is that if you enter either before it closes, you will more than likely find yourself on the far end of the WRONG SIDE of the trade. If you are using candles as trading flagships, always let them close before you jump into a trade. Impatience in the face of either of these candles will break you fast.

YOU CAN DO THIS (^_^)

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PRACTICE, DRILL AND REHEARSE, CREATING GREATNESS

2010-01-20T09:58:00.004-06:00

If you have been with me for a while, you have heard me preach PRACTICE, DRILL, REHEARSE! Guys you are entering into the toughest, trickiest market in the world, and you can not jump in and expect to make a killing. Every superstar, every winning athlete, when you don't see them, are PRACTICING, DRILLING AND REHEARSING the perfection of their art. If you want to do this for a living. You have got to PRACTICE, DRILL AND REHEARSE on a demo account !!.

You are going to get bruised, so what, every great athlete or performer does, and yes you are going to get your feelings hurt from time to time. Falling down does not create greatness, getting up does, no matter how many times it takes.

There are two ways to learn this market. The hard way like most of us, or find a good mentor that is willing to tell you the truth about what is going on here. If you are really struggling with your trading, STOP NOW !!!!! and get a demo account until you perfect some things. If you are still losing on your demo regularly, then you are not ready for a live account.

YOU CAN DO THIS, but you must discipline yourself enough to develop winning strategies. There are no perfect strategies, you are just looking for some that will put you on the right side of the trade most of the time.

Will you take a hit? Sure. So what, there are still plenty of opportunities for profit. If you are going to shine like a star in Forex, you must PRACTICE, DRILL AND REHEARSE on your demo account. I know you don't want to do it because you'd rather be making money. The thing that gives champions an advantage over the rest, is what they are willing to invest in their art. Super champions, musicians, actors, and all achievers have one thing in common and that is their willingness to go the distance to become great.

When ever you begin to trade live again; start off small, building both your account balance and your confidence. Over trading no matter who you are can kill you fast, the market is to unpredictable to gamble your families hard earned cash. Forex is like any other profession, it is a get rich slow game. Ok (^_^), you can do it here much faster than other places, but you must start off slow and light, and always keep learning. Yes FOREX TRADING IS EASY, it is the game that can be hard. It is a winner take all sport

Winning Trading to you dear Friend (^_^).

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THE INVISIBLE SIDE OF FOREX

2010-01-18T14:07:00.007-06:00

THE FOREX MINDSET

There is nothing more important in forex than your mindset. It is the invisible magic that makes forex success possible. Most of us as Traders have been killed by the market, some of us over and over again.....lol. That was me (^_^).

The hardest thing to overcome when you have gone broke in forex is that broke mentality. That fear ghost from your past that holds you captive every time you are about to enter a trade. When the ghost has arrested you, his friends come to taunt you with horrible memories of what happened the last time. When price bounces and retraces, then a ghost jumps out of the closet and scares you to death. If you are still in the trade after all of that, then the doubt monster pays you a visit. Constantly talking to you, so you often end up abandoning a good trade. It is all a mind game designed to throw you. Price bounces and retracements happen to give the doubt monster time to play on your psyche.

The truth is price is going to go up and price is going to go down. If price has made a new low or high. Look to protect your profits, with proper confirmation. IT IS NOT THE TIME TO ENTER !!!! That is the time the market is most likely to make a hard bounce or retracement. Now you may enter as long as your candles confirm your move, but please wait for the candle to close before making your decision to jump in.

The market will lead traders like sheep to the slaughter, that is why if price is is running one way strong, (unless you have just come off of a bounce or retracement) you may want to wait. If you chose to jump in, you may only want to do so briefly. The most likely time for a strong turn in the market is when traders are all piled up on one side of the seesaw and the elephant comes and jumps on the other side and throws all of the traders off. In other words you are most likely to get trapped at new highs or new lows.

WHAT CAN YOU DO?????

Education - Education is the second most important factor to being successful in the forex market.

Your broker, I am sorry to say will give you enough information to get you killed. They only give you incomplete information which is the noose at the end of a short rope, then they let you lose and you hang yourself, and they collect big on your families hard earned money. You dust off, study harder, and go running off again, sure that you have learned your lessons from the past. Then it happens again, and you find yourself in this cycle of small success and big failure. It takes it's toll. It challenges everything you are, especially if you thought you were smart before entering this arena.

FOREX IS A PSYCHOLOGICAL MINEFIELD!!!!!!!!!! It is designed to mentally paralyze you until they have drained all of your resources from you.

Trading is not logical, in fact it goes against logic and wisdom. It is a trapping game run by professional trappers. The market never makes common sense to your mind or emotions, which keeps you thrown off. Wait until you can clearly see an opportunity where you truly have the odds in your favor and it happens less often than not. This is physiological warfare, a total minefield(mind game) in which you have to have nerves of steel and the ability to outwit those who make their living trying to cheat you.

THE REAL TRUTH IS THAT TRADING IS EASY, but of course they can't tell you that because then you would make too much money and they would never fatten themselves off of your blood, sweat and tears. They start you off with the most complicated stuff to deceive you into thinking that this is something close to physics or rocket science. That is the first mind trap, now you have convinced yourself that this is really hard because of the intense study and focus that you are giving to it. Even after all of that study (often times of the wrong material), you are still getting killed, so now you are convinced that it is rocket science.

You do need to educate yourself, but what you need is education in the things that are really going to make you a success at Forex.

The truth is Forex is simple. Now what is going to be hard is freeing your mind from those mental ghost that haunt you. What you may want to do to begin this process is to write down your fears and why you feel that way; then you are going to have to begin giving yourself a new message like "I am not that same scared trader who didn't know what she/he was doing, I am now a competent successful trader who understands what is going on in the market". You will have to do that fairly often in the beginning, but you stand and fight those ghost when they come to pester you and eventually they will go pester another trader.

THE BIGGEST THING TO BEING A SUCCESS AT FOREX IS BELIEF!!! THEN YOU HAVE TO ADD THE EDUCATION. NOT THE JUNK YOUR BROKER GIVES TO YOU, BUT THE GOOD STUFF FROM TRADERS WHO ARE MAKING IT HAPPEN.

I have no super forex secrets; I trade what I see, that is it. I only use candlesticks, trendlines, support and resistance. I do think that much of my past study aids in my trading. Learn the basics first, then add any other oscillator/indicator that you want. They go hand and hand, but you must understand how to use them properly. If you master the basics first, (candlesticks, trend, and support and resistance) then the other will make much more sense.

While you are fighting these ghost, it is wise to use your practice account until you perfect your strategy. Please go to your local library and pick up Steve Nison's book on Japanese Candlestick trading. I think it is a basic essential for successful trading. Once you have mastered your candlesticks and your candlestick patterns, then learn the other stuff. Also your practice account will help you learn and understand market rhythm. Every hour, every day, every week, every month...etc., price is going to go up and down, the trick is getting on the right side of the trade. Trading with the major trend with proper confirmation will give you the very best chance at success.

TRADING IS NOT HARD, but first YOU MUST BELIEVE that YOU CAN! Then with proper education, you must wait for the best time to enter a trade, that part will come with practice. The third biggest secret to successful trading is waiting. You can be a consistently profitable trader if you learn the art of waiting. Wait for proper trade set up. Be careful of new highs and new lows

Thank you my Friends (^_^)

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WAIT FOR PROPER CONFIRMATION SIGNALS

2010-01-11T10:47:00.005-06:00

The biggest challenge to being a successful trader is waiting for proper confirmation signals before entering a trade. Many traders play the guessing game with the market even when they understand that they should buy low and sell high. In a bull market when they think price has gone up far enough, they sell and when they feel it has gone low enough, they buy to get a jump on the market, for what they are hoping is a big pay check. This kind of thinking is often Market Suicide, and will get you killed.

Price in a trend is like a locomotive freight train, it will run you over and never even feel you. You have got to wait until the breaks are applied and the train does a u-turn before trying to sell tops or buy bottoms. YOU CAN NOT GET A JUMP ON THE MARKET unless you are psychic. The market has successfully tricked traders for hundreds of years and is very efficient at it.

YOU CAN NEVER OUT GUESS THE MARKET !!!!! You can only follow where it leads, hoping it doesn't turn on you like a mad dog.

Sometimes you will wait for a proper set-up and still get stopped out, but waiting for a proper set-up is going to give you the greatest chance for success and put the odds the most in your favor.

There is no perfect strategy, but you are looking for one that will put you on the right side of the trade most of the time. Remember everyday your market is different, so develop a strategy for every kind of trading market. (The bullish, the bearish, consolidation and choppy). As a trader you will take an occasional hit, but it is the end of the month profit that you are looking to, not the end of the day profit. It is ok to lose a battle every now and then as long as you win the war.

The most simple trading strategy is to follow the current trend until your candlesticks tell you differently. A good trader spends much more time waiting than trading. LEARN THE PSYCHOLOGY OF YOUR CANDLES AND YOUR CANDLESTICK PATTERNS !!!!!!!!

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Forex Trading Strategy: Steps Everywhere

2010-01-04T21:36:00.001-06:00

If you go back and check your chart on different time frames, you will find a wonderful treasure in plain sight. It is a low risk, easy to trade short term setup. The setups that I am referring to are your bullish and bearish steps. They are easy to spot as they resemble the steps you climb and descend on a daily basis.

The bullish steps:

Your bullish steps are steps in which each candle is higher up than the preceding candle. When you notice the beginning of steps building, you want to look for your entry opportunity. In a set of bullish steps, price will drop below the high and often below the close (and sometimes close to the open) of the previous candle before continuing upward. First note the high and the close of the previous candle. When you note that price has fallen below the high, then allow it to fall until you get a valid reversal confirmation in your candlesticks, going in the direction of your bullish steps. If you are trading a time frame that will allow you to do it, go to a smaller time frame and look for a valid reversal signal there so that you can have a tighter stop loss.

The bearish steps:

Your bearish steps are steps in which each candle is lower than the preceding candle. In your bearish steps price will climb above the previous day's lower and often time the close or even close to the open before resuming it's bearish pursuit. Allow price to trade above the low, then switch to a smaller time frame and begin to look for your entry point on your candlestick reversal in the direction of the bearish steps. Your stop loss should be placed the number of pips that you are comfortable with above the candlestick reversal pattern.

Please note that this is a short term strategy as your steps will eventually disappear, but they are a relatively profitable trade set up while they are in force.

WARNING: DO NOT TAKE THE TRADE IN THE DIRECTION OF THE STAIRS UNTIL YOU GET A VALID REVERSAL PATTERN!!!!!!

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You can trade profitably my FRIEND!
(^_^)

This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

30 MINUTE MASTER STRATEGY

2009-12-15T10:19:00.006-06:00

This great strategy is provided by Peterfibonacci:

Here is my strategy.

On a GBP/USD and EUR/USD M30 time frame:

Indicators:

8 EMA applied to Open
5 EMA applied to Close
Fibonnaci pivots to show the resistance and the supports.
Signal Line period of 45
2MA Crossover signal Indicator (to alert when a cross over has happened)

RSI 14
Stochastics (10,3,3)
MACD (5,15,9)

Long Entry:
Enter immediately when the MACD, Stochastics, RSI show a long position and the 5MA has crossed over the 8MA from below.

Place the stop loss a few points below the recent low with a take profit of 70 pips and a trailing stop of 30 pips.

Short Entry:
Enter immediately when the MACD, Stochastics, RSI show a short position and the 5MA has crossed over the 8MA from above.

Place the stop loss a few points above recent high with a take profit of 50 pips and a trailing stop of 30 pips.

This strategy seems to work best in a horizontal market. Sometimes one has to work with the resistance and support points to determine the proper Take Profit level, because it's not always 50 pips.

This strategy also works well with the H1 time frame. I personally like the H1 because the candlestick patterns are move evident and sometimes one can see entry and exit points before the alert(which is the EMA cross)!

Above and below a chart has been provided for your study, so that you can obtain a better grasp of this strategy. If you left click your mouse on the chart, you will have the options at the very top of that menu that says 'view image'. If you click 'view image', it will provide you with a larger, better view of the chart.

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NO MAN'S LAND. GUEST POST

2009-12-10T10:56:00.009-06:00

The No Man's Land Strategy is actually a very simple strategy.

It is based on Multiple Time Frames, Moving Averages (5 - 22 - 42) , and Pivot Points (for Support and Resistance), and I only run it on GBP.

The signal is generated from H4 Candle. I take the previous High + 10 pips ( you may use any number you like) + spread as a Buy Stop Order, while for the Sell Stop Order is previous Low - 10 pips.

Suppose I have a target 20 pips from my Buy Stop or Sell Stop Order. I then look to see whether there are some Support/Resistance or MA or Trendline Support/Resistance ahead to act as a barrier to the move I want to make. If there is, then I use the next S/R or MA or trendline S/R as a new point of calculation for my Buy Stop or Sell Stop Order. I repeat this step on the H4, H1, M30, M15 and M5.

Here is an example :
Prev High of H4 : 1.6300
Prev Low of H4 : 1.6250
Spread : 3 pips

Buy Stop order : 1.6300 + 10 + 3 = 1.6313 --> TP 20 pips = 1.6333
Sell Stop order : 1.6250 - 10 = 1.6240 --> TP 20 pips = 1.6220

I check my H4 Chart, to see if there is any resistance from 1.6313 to 1.6333, if not, then I go to my H1.
I continue repeating the above step. Suppose I find Resistance on 1.6320. I then recalculate making 1.6320 the new basis for calculating my Buy Stop Order.
So my new calculation is : 1.6320 + 10 + 3 = 1.6333 ---> TP 20 pips = 1.6353.
Then I recheck to see if there is any resistance that might prevent me from reaching my new target.

I do this until I get to M5.

This is why I called this strategy : No Man's Land.
Pivot's, S/R, MA, Trendline's S/R are things that I consider landowners.

For example:
There is Pivot Resistance at 1.6250 and Trendline's R on 1.6265. This 15 pips distance I consider as "Pivot's Land and Trendline's Land."
I don't want to fight either Land's owner, so I avoid them. I prefer to trade on "No Man's Land" where, there is no land owner who will be angry if I steal a few pips from the market.

I do the exact opposite for my Sell Stop Order. For the trendline I use the DeMark Indicator found at the Forex Factory.

The idea behind this strategy is to make a high percentage of winning trades. It works very nicely at the London open, around 6-7 GMT, depending on H4 cycle from the broker's chart we use to analyze. ( I like to use the ALPARI-UK, as I trade the London open).

I usually look to gain 20 pips; but if I am constantly profitable with this strategy, I think I can be one of the few winner in the forex market. The BIG BOSS who drives the market, that come from the big financial institutions and old-fashioned people who use just candlestick pattern and support-resistance as their trading guide; I am trying not to fight them, but to align myself with them.

Thanks Eko and Aan

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STOP LOSSES ARE YOUR FRIENDS

2009-12-08T12:48:00.004-06:00

Many traders fear placing stop losses because they are afraid that they will get stopped out. This is the wrong mindset. A stop loss is a friend that helps you preserve your capital when you are on the wrong side of the trade.

A stop loss is simply what it says, it is a system that you put in place to stop the loss of your capital, just in case the trade goes against you strongly. Don't place stop losses with the idea that you are going to get stopped out, but place it with the idea that you are protected if a trade does something differently than you expect. It will give you the opportunity, if it is hit to step back and position yourself for a more profitable trade set-up and entry.

What happens when you ride a losing trade to long. It depresses your emotions. It keeps you locked in a losing mentality. It takes up margin that you can be using on a better more profitable trade. A stop loss gives you the freedom to move on, and be free from all of the negative things that comes from seeing that losing trade over and over.

Even if you have the capital to ride out a losing trade for months, then whenever you see a more profitable trade set-up in that same currency pair, you are not free to take advantage of that new opportunity because you are stuck in a losing trade waiting for it to turn back in your favor......one day 8^( .

Let's go back and look at that trade from day one. What if you had taken that hit the first day with a 60pip loss. That is quite a hit. You could have simply made 10 pips a day for the next 7 trading days, and you'd be a head 10pips. What that would have done is free up your capital as well as your mindset. There is an extra confidence that comes when you go to your platform with no losing trades staring you in the face. It is a feeling of power.

Instead you decided to hold that trade 7 trading days. Now you are in the hole 150 pips, plus you paid 7 days of rollover fees, but things have begin to turn in your favor like you knew they would. That is 7 days that you have locked yourself out of more profitable trades in that currency pair, and who knows when you are going to break even on that pair.

When you have losing trades on your platform, then you are fearful of taking other good trades that you see, because of your margin level, the new trade may go against you and wipe you out, or any number of negative messages that we hear in our heads when we are in losing trades.

Dearest traders stop losses are your Friends. Here is a video that can help you decide how you may want to place your stop losses.

Placing Stops, Traders Whiteboard #4 Click Here

I am certainly not encouraging you to take unnecessary losses, if you are in a situation where you are in harmony with your trend and you have a little retracement that has gone against you temporarily, by all means allow that trade to close profitable.

Just don't allow losses to run on and on and on and on, because it's like spiderwebs in the mind and pretty soon, they cloud your vision and your judgment until you are paralyzed and can not do anything until that position comes back into profit. It is better to be out of a good trade wishing that you were in, than to be held hostage in a bad trade that you wish you were out of. Lastly letting trades go to far against you is just breeding grounds for stress and anxiety.

Remember strong dips and rally punish traders who don't have proper stop losses in place.

Trade well, Live Well, Laugh a lot and have Loads of Fun (^_^)

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This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

4 KINDS OF MARKETS

2009-11-30T14:07:00.005-06:00

There are 4 kinds of markets in Forex. You have a range bound market. A bull market. A bear market and a choppy market.

Your range bound market is a market that trades between a set support and resistance.

A bull market (which can also be range bound within a trend channel) is a market that is moving toward higher prices.

A bear market (which can also be confined to a diagonal channel) is a market that is moving toward lower prices or value.

A choppy market is an incoherent market that has no particular direction and is too haphazard to follow.

HOW TO TRADE THESE MARKETS

The best way to trade a range bound market is to buy at support with proper confirmation signals, and to sell at resistance with proper confirmation signals.

The best what to trade a bullish market is to buy pull backs (when price take a dip, or goes lower for a while before continuing to move upward).

The best way to trade a bearish market is to sell peaks (When price goes up for a while before moving downward again).

Stay away from choppy market, they have no direction and make no sense, if you chose to trade in this kind of a market. Trade on a shorter term time frame off of proper signals. Long term trading in this type of market can wipe you out fast, because it has not established a real direction yet.

Have a super trading week.

LIVE WELL, LOVE HARD AND HAVE FUN!

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This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

New NFA Regulation

2009-11-19T14:25:00.005-06:00

What do the new NFA Regulations mean for you?

For those of you who have not fully grasp what it means for you, it means that you will have to have more money to hold the same size positions that you have been holding.

If you have an open position with a 200:1 margin, that requires $500.00 to keep the position opened; when the new rule goes into effect, that same position will require you to have $1,000 to keep it opened.

If you don't have the required margin, your position will be liquidated by your broker, unless they have told you otherwise.

PLEASE CHECK all of your open positions to be sure that you are not in danger of being liquidated. If you are unsure, please call your broker to be sure that your open positions are going to stay safe. Thank you

WHAT MAKES A MARKET WIZARD???

2009-11-17T08:18:00.003-06:00

How much do you think you could learn if you had a chance to sit down with over 15 of the most successful day, value, and long term investors of all time? Do you think you’d finally get that one piece of advice that takes your trading from OK to extraordinary? Today you have the chance to pick the brain of one man who has sat down with experts and got your top questions answered.

The key ingredient with ‘super-traders’ isn’t as complicated as you think, as most of them share the same traits and behavioral patterns, but it’s how they put them to work in the markets that sets them apart.

Visit the link to watch the seminar that brings the experts to you:
http://www.ino.com/info/36/CD4033/&dp=0&l=0&campaignid=9

Don’t delay and once you visit the seminar you’ll notice 3 other seminars…that’s a special bonus just for you, from me!

MarketClub BONUS, 2 FREE MONTHS! Click Here

Trade well, Live well (^_^)

Taking a loss

2009-11-16T11:17:00.008-06:00

This is a really important subject that I need to deal with because taking a loss paralyzes most traders and keep them for potential future profits.

Many traders equate losing a trade with being a loser, allowing that loss to paralyze them and cripple their judgment. This is the wrong attitude toward a loss.

A loss is only a lesson that you have paid for, learn from it. You pay for college and you pay for seminars, and you never beat yourself up for paying to increase your knowledge in those arenas. My Friend a loss is simply an opportunity that you have paid for to increase your knowledge.

When you pay thousands for college or a seminar, you never say, how could I have been so stupid, why did I do that. The truth is, a loss is just an opportunity to learn. STOP BEATING YOURSELF UP FOR WHAT IS ONLY A NATURAL PART OF TRADING. That attitude only puts you at a huge disadvantage to other traders.

The successful trader understands that the market is very generous and will give him/her plenty of opportunities for a profit.

One day, this is before I learned better, I lost about half of my account balance. I simply waited until price hit the lower trend line and went long. It only gave me the opportunity to recover a little more than half of what I loss, before continuing downward, but it was more than I would have gotten had I done nothing.

There are no absolutes in trading. Trading is more of an art of interpretation. Too many traders see losses as a flaw with themselves instead of seeing a loss for what it really is. A LOSS IS ONLY A LESSON TO HELP YOU TRADE MORE EFFICIENTLY. A LOSS GIVES YOU THE CHANCE TO IMPROVE AND PERFECT YOUR STRATEGY, IT SIMPLY TEACHES YOU WHAT DOESN'T WORK, SO THAT YOU CAN DISCOVER WHAT DOES WORK.

You can have a perfect analysis and still enter a losing trade, because the market sentiment can change, like with an engulfing pattern. It happens and it is OK.

When we set up a trade we have expectations of how that trade is going to play out. A loss is a great disappointment to that picture and a bruise to the ego. We have more trouble letting go of the dream of our glorious ideal trade, than we do taking the loss. The money is gone and it is over, but we still hang on, allowing that one hit to ruin our day and sometimes our week.

A loss allows you to build a new more profitable trading dream for yourself. LET GO of that old dream that no longer fits you and climb into a new successful dream that is more becoming of you.

STOP !!! LETTING LOSSES BE A REFLECTION OF WHO YOU ARE ! It is just part of the game. Learn it's lesson and move on.

A LOSS IS A LESSON (^_^). YOU PAID FOR IT. IT HAS SO MUCH WISDOM TO TEACH YOU, IF YOU'D ONLY LISTEN. THIS IS ONLY ANOTHER OPPORTUNITY TO PERFECT YOUR STRATEGY

Learn from your losses so that you can move on more quickly to capture more profitable trades.

TRADE WELL (^_^)

Traders Whiteboard #4 Click Here

This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

CONFIDENCE !

2009-11-09T15:09:00.006-06:00

Confidence, is a key ingredient in successful trading.

What do you need confidence in????? You need confident in your ability, and you need confidence in your strategy.

But I have gotten it wrong so much.

So what I went broke, it is ok. You can do this!!!! (^_^)

How do I start to rebuild??????

You start by taking a deep breathe, taking a break and investing in more education.

I have already gotten education till my head is going to fall off, and I still can't get it right. I JUST WANT TO QUIT!

That is exactly why you need to take a break, if you quit now, you will miss out on how good it feels to win.

Let me explain something, the market will give you plenty of opportunities to make profit. Every trader has losing trades. The successful traders have more winning trades. You just have to learn to take trades that are going to put the odds in your favor. You only have to win most of the times. If you lose, the market is generous and will give you another chance to try again

Trust me, you can do this. Part of your biggest challenge is overcoming the feeling of hopelessness that comes from the idea that you have failed.

YOU HAVE NOT FAILED, you didn't meet your goal, but it is ok. You just discovered how not to do things, and now you are ready to learn a better way (SMILE). I know it is hard now, but if you hang in here with me, I assure you that it will be ok.

Do you still have money in your account?

Yes, but it is just a little.......

Great, leave it alone. I want you to open up a demo or practice account, and practice on it.

I already did that 2 months before I opened my real account.

I went broke two times and almost three, so trust me here. Even though I am very profitable now, I still open a practice account to practice new strategies.

I want you to go to your library and pick up Steve Nison's books:
Beyond Candlesticks and/or Japanese Candlestick Charting Techniques.
Either book is a good place to start.

If you can't find it yet, go to my youtube channel and look at my favorites. I have uploaded lessons there on candlestick trading, it is a good place to start, but the books are better.

http://www.youtube.com/user/TRADERSFRIEND

Do you have an understanding of a lot of your indicators?

I understand them pretty well. I know you don't really use them, do I need to stop using them?

No, they are important for giving you an idea where price might go. Just don't over do it.

I want you to start where most traders should start and that is with the basics, it is so critical for traders to understand where price might reverse on them.

Yes, I can see now that is how I ended up with losing trades, because I would start out good many times and ended up losing and it would make me madder than hell.

We don't want you to be madder than hell, we want you to win at this game. Forex is a zero sum game, it has no mercy, winner take all. YOU CAN BE THAT WINNER!

Once you learn your patterns and understand more of the market psychology, then I want you to practice only on your demo account until you build your confidence back. Forex is like Poker, in that, it is a game where the ones with the confidence will go home with the pot!!!!!!!

I also want you to remind yourself often that you are not that same losing trader, and that you have grown. You have got to tell yourself that or those ghost (of your losing days) in your head will scare you to death. Those past fears will keep you out of good profitable trades which you end up kicking yourself for later.

Listen to me. YOU CAN GO LONG, YOU CAN GO SHORT!!! YOU ARE NOT JUST A BULL OR A BEAR, YOU ARE A CHAMELEON AND CAN CHANGE WHEN THE MARKET CHANGES!

YOU ARE NOT THAT SAME TRADER. YOU ARE BETTER AND MORE INFORMED. YOU CAN DO THIS!!!!!!!

Once you understand your reversal patterns, then you can combine them with what you already know. The practice on your demo account will only lend to your confidence.

When you are ready, you can start back on your real account; but make small short trades. Since you don't have much money left, trade mini if you can.

I only have a mini account.

Great, then we are in business!

Take small trades on reversal signals, but only in the direction of your trend. This will help your confidence, and help you realize that this game is not rocket science, though it can be tricky. YOU CAN DO THIS!!!

Finally come to your platform well rested, if you are fighting with your love, don't trade because a more well rested focused trader is going to take your money.

In order to trade successfully you must identify your trend, be able to read your chart, wait for proper market set-ups, recognize reversal patterns, have confidence in your ability to trade successfully and be focus. My dear Friend, never stop learning and growing the market is always teaching a new lesson

You know where to reach my if you have any questions and I will help you all that I can, I promise (^_^). It will be ok, we can do this together.

HANG IN THERE!

This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Guest Traders Syndicate

2009-11-03T10:56:00.009-06:00

ADVICE:

Hi, Gypsy here.... 8^)

Most of us who are successful traders went broke at one time or another; but if you're still trading, chances are, you have learned the valuable lesson of money management. One thing I want to point out that is just as important and goes hand in hand with money management is over trading!!!!!

Even if you have the best money management skills, and over trade chances are, you're still going to end up as broke as the day you were born....as time goes on....I will share more with this blog..for now institute good Money Management and don't Over Trading your account.. Have a wonderful evening, and good luck in your trades......

Strategy:

For the beginner day traders out there. One of my favorite most basic trades is when the market has an extreme move, it will almost always drift back towards the pivot point as we get near the end of the day.

For example, if the market rallies big, around 10:30 -12:30 I'll short the SP selling usually an hour before the close. Rarely the last 45 minutes as we almost never trade the last 45 minutes or the first 30 minutes of any session.
Crude O.

Advice:

Create a game plan and act accordingly. Preserve wealth, drill and rehearse on your demo account. Find a better way to trade, through continual education. Under no circumstances do you ever truly give up FOREX. If you need help, find it! There are advisers out there who are willing to help you be successful. NEVER GIVE UP!!!!!! NEVER SURRENDER!!!! REST IF YOU MUST!!!!!! PRACTICE DRILL AND REHEARSE ON A DEMO, BUT DON'T QUIT!!!!!!!!!!
Micheal C.

Free e-mail trading course:
http://www.ino.com/info/447/CD4033/&dp=0&l=0&campaignid=6

YOU CAN BE SUCCESSFUL AT FOREX!!!!!!

This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.

YOUR FOREX EDUCATION 8^)

2009-10-26T17:12:00.005-05:00

As a forex trader, you have entered one of the most difficult and tricky playgrounds in the world; with price hiccups and retracements often causing you to second guess your previous decision. In a market with so much panic and loss going on. Allow me to ask you; how much time have you invested in your Forex education today??????

Many highly competent professionals who are at the top in other fields come into Forex and get wiped out. The most important thing you can do to insure your success in Forex is to keep learning. When you are in the market live, you need this stuff to be automatic, because lots of time when you see price moving randomly, you forget your objective.

Everyday, take some time and invest in educating yourself in this market, if you don't, you will lose here. Once you learn what is going on, you will find that Forex is not hard, but it is no stroll in the park either. You must stay alert, develop patience and be ready when the opportunity for profit presents itself.

Keep a practice account, because it helps build market confidence and helps you overcome many of the fears that have been created from your losses.

When you have taken a loss in the market, it is an education you paid for. Learn from it!

Continual education gives you the advantage. Never stop learning!

Lastly you can be successful at Forex! While experience is a great teacher, it is not necessarily the best; pick the brain of a good trader when you can. When you learn something important from your chart studies, a book, a video or another trader; WRITE IT DOWN!

Discard what doesn't work, and review what does OFTEN!!!!!

Get 10 Trading Lessons FREE Click Here

Happy Trading!

This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.

Guest post: My forex trading

2009-10-20T15:50:00.004-05:00

HOW TO BEGIN LEARNING MY FOREX TRADING

- Forex isn't a place where you're gonna become rich over the night, it isn't made for this purpose.

1. I think that new traders shouldn't use leverage at all !!!(1:1)

2. They should a find pair that is fully up or down on a monthly basis.

3. If price is at an all time high, then they need to consider exactly where to sell!
If price is at an all time low, then they need to consider where to buy !
(Only with a proper candlestick reversal confirmation, on a smaller time frame like the weekly chart)

4. Learn the ABC's or 123's of trends to understand price behavior because price is the number one indicator !

Traders Whiteboard #4 Click Here Using Stop losses!

5. Learn to use moving averages (I use SMA 5,10,20,100)!

6. If you don't use leverage, you don't need money management!

7. When your position shows profit, put your stop loss order on break even!

8. When you are in profit, don't be greedy! Take little and repeat when you have a chance!

9. If you don't use leverage, you don't need to use STOPS

WHEN YOU BUY OR SELL CURRENCY, YOU NEED TO KNOW WHAT IS HAPPENING WITH THE ECONOMY IN THAT COUNTRY AND EVERY OTHER COUNTRY THAT IS RELATED TO IT.

Bloomberg or CNN are excellent choices to work with.

NOW YOU CAN START STUDYING THE FOREX MARKET!!!

T. Forex

Market club info:
http://www.ino.com/info/447/CD4033/&dp=0&l=0&campaignid=6

This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.

Trading Strategy

2009-10-17T00:53:00.008-05:00

This is my contribution to an easy trading strategy for new traders. It is an effective strategy, that is easily traded. Please keep in mind that price can go as far as the previous day's high or low depending on the direction of your steps. Also be mindful that this is a short term strategy. Have a killer trading week, and make money!!!!!!!!!!

Here is a link to some more free lessons. Some of them are actually good!

http://www.ino.com/info/447/CD4033/&dp=0&l=0&campaignid=6

This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.

FOREX PAWN SHOP

2009-10-15T21:52:00.012-05:00

How to spot winning trades in 2009 Click Here

Forex is like a pawn shop where the big wigs want to buy from you below wholesale and resale to you at retail.

Many times at market tops, the news is good and the masses are buying, at the going retail rate while the big wigs are unloading what they bought at the bottom for below wholesale to make a nice profit. (You will usually notice smaller price movement during these periods)

Many times at market bottoms, (which are much harder to predict by the way) the news is usually grim. The public is usually selling cheaply out of panic, trying to save their hides and cover their butts. Then the big wigs who were smart enough not to be in that panic, come in and pick up the valuables at below wholesale prices. It is bargain basement shopping at it's best. Supply and demand, accumulation and distribution. That is the cycle of the market my Friend!

Sell
Buy
Unfortunate most investors get this wrong. They buy at market tops and sell at market bottoms. You don't want to buy when price has gone to far upward, because you are looking for a bargain, which can be a buy on a nice pullback. Of course only with proper confirmation to the upside. You only want to sell when you have a nice fat profit in your pocket; so you want to sell at the top as well. Again with a proper confirmation to the downside.

Never ever hold on to losing positions thinking you can out wait the big wigs, instead cut your losses when they are small, (not on market hiccups or retracements, you will learn the difference). Then wait for a valid market set-up to enter the market when it is in the best interest of your money . You too can be like the pawn brokers and buy cheaply and sell expensively! There are always opportunities to make money in the market as long as you have capital. Preserve your capital, so that you too can get in on these sweet deals.

Happy Trading My Friends

How to get rich slowly in forex. Click Here

This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.

Guest post #1 Money Management

2009-10-13T17:55:00.011-05:00

Since I only know what I know, I have invited some other seasoned traders to share some of what they have learned over the years as well. I hope that you will find these posting helpful. As always take it slow, be patient and exercise discipline.

Subject: Money management

Hi Traders Friend,

I'll focus this post on money management which is one of the most important parts of trading. The first rule of money management is to preserve your capital. Simply stated, be patient and wait for a good setup according to your own strategy.

Professional traders only risk between 1% to 3% per trade. I personally risk 2% per trade. So how can you determine your risk and keep it between 1% to 3%? I personally use a website calculator at:

http://www.facebook.com/l/a4c62;www.forexhit.com/calculators/aec/allocation-efficiency-calculator.htm

You can pay for a calculator that you can download but the good ones cost about $ 100. Or you can use a free one on a web page. The choice is yours.

You need to know how many PIPs you may have to loose in order for the trade to be invalidated. This depends on your level of tolerance, your trading style, and your trading system. That is another lesson in itself so let's just stick to the task on hand. :)

So let's say you have $ 2,500 in your account and your risk for the trade is 50 PIPs. If you risk 2% of your account for the trade you can only trade one mini lot for that trade. If your risk for the trade is 25 PIPs with the same amount of capital than you would be able to trade 2 mini lots.

If you only made 25 PIPs per week profit, in less than a year you will double your account. Just 25 PIPs per week. You don't have to hit "home runs" every time to grow your account in a substantial way. Nor do you need to risk a large amount for every trade to grow it substantially either.

By keeping your risk low, when you get on a loosing streak (also called a draw down) you can take quite a few hits in a row and not do severe damage to your account and to your trading psychology. Every person and every trading system has draw downs. George Soros and Warren Buffett have had plenty of draw downs, but they keep their risks low and are still Billionaires.

I hope this quick post helps you to start understanding the basic principles of money management.

Alexander.

Get 10 Trading Lessons FREE Click Here

This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.

TOOLS OF THE TRADE

2009-10-11T16:36:00.000-05:00

My Friends, as most of you know, I am not the biggest champion of indicators; however I do know how to use them. I am creating this post for my Friends who want more information about different technical tools. I hope you find this very useful. If you have any questions about anything you have seen here you know where to find me. Also you may check out my youtube page that has videos that I think are helpful for both newer and seasoned traders. http://www.youtube.com/user/TRADERSFRIEND.
Education will help you to do what you need to do with Forex. NEVER STOP LEARNING!!!!!

17 Moneymaking Candlestick Formations You Can Use Today Click Here

Fibonacci... it's a technical tool that can make you rich. Click Here

Double Tops and Pivot Points explained! Click Here

Traders Whiteboard #4 Click Here

For all of my Friends who were seeking to broaden your understanding, I hope this helps. Thank you for all of your kindness and support always.

Happy Trading My Friends!

If you have any questions, you may reach me
at TradersFriend@yahoo.com

This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.

Divergence in Apple????????

2009-10-07T00:14:00.000-05:00

Is a divergence building in Apple?

See the latest video post on Apple and what apple is up to:

This is for those of my friend who have other interest than Forex. This is in no way a solicitation to buy any product, it is posted for your information only!

Discipline

2009-10-05T11:57:00.002-05:00

What makes forex trading so hard????????? Is it Fibonacci, MACD, Elliott Wave, EMAs, Stochastic, or a host of other indicators???????

No, if it is not that, what is it? As traders we watch every webinar, read every available trading book, go to every seminar and attend expensive classes. We know all of the rules, so why is it that so many of us fail as traders?

I think the number one reason we fail as traders is lack of discipline.

If you are like me; you want price to hurry up and get there, so you can put in your trade.....Sound familiar?????

The market is always slower or faster than you want. Sometimes you wait for hours for the right set-up, get a phone call or go make a sandwich and by the time you get back to your screen your big move is all over. Then you know you will have to wait for a while before the next good set-up comes along.

I remember one day, I'd waited about two hours for price to hit the morning's resistance and I got distracted somehow. When I got back to the computer, I had missed my much anticipated scalping opportunity. You may as well have put me in a straight jacket. I was so angry I could have chewed nails. I was to upset to trade the rest of the day, so I was out.

As a person who was born Type A, I still struggle with waiting, so I had to make some changes in my overall approach to my trading and I want to share somethings that I hope will help you.

#1. Write it down. Always come to your platform with a written plan. You are a business professional in a very competitive market, so it behooves you to have a game plan. Your completion is ready. This is not flag football; it is full frontal tackle. Suit up and be ready to play!

#2. Follow your game plan!!!!!!! It helps to tame some of those nail biting emotions that you are likely to encounter when the market begin to fluctuate.

#3. Stay out of the market, unless you have identified a clear trend. SOMETIMES THERE IS NO TRADE!!!!!!!!!!!!!!!

This one is connected to the same thought as in #2, but it is important enough for a line of it's own: RETRACEMENTS WILL GIVE YOU THE ILLUSION THAT YOU HAVE MISSED OUT, OR THAT YOU ARE ON THE WRONG SIDE OF THE TRADE. Having a clear game plan will help you not to panic so when you see price hiccups and retraces. Every price hiccup is not a loss. Remember that price never moves straight up or down. It bounces all day long, that is why you have to identify the major trend. You can read more about that at my blog:
http://tradersbud.blogspot.com/2009/09/trend-lines.html.

#4. Don't try to trade distracted! Come to your platform with a clear head, if you do not, you will leave with your butt thoroughly handed to you.

Here a a few tidbits that I hope will help even further.

Identify the longer term trend, and then use a shorter time frame for a good entry in the direction of the trend. This may take some time, but in order to enjoy success as a trader, it is essential that you learn to wait. You don't have to sit in front of your screen all day, but you do have to wait for a good set up. If you trade longer term charts four hours or more, this is easier, because you can come and go checking the chart at intervals.

Find your support and resistance levels. Many times I just used my high and low from the previous day, or week or month depending on my trading and profit objective. You may want to use pivot points, and you should be able to get those from your broker on your trading platform.

You want to buy around your previous support level, with a proper confirmation, and sell around your previous resistance level with a proper confirmation. If you don't get a confirmation, DO NOT BUY/SELL!!!! You want to trade when the odds are mostly in your favor!!!!!!!!!!

Know your reversal signals!!!! Know your reversal signals!!! Know your reversal signals!!!!

If you use an MA it often time will confirm a change of a trend. This tool confirms best in a trending market

After a loss take a break. Revenge trading often kills new traders. If you take a loss, especially a big one, your confidence has been shaken. Step away, CLEAR YOUR HEAD, review your game plan, refine it if you need to. After you have worked through your emotions, come back fresh and ready to trade. The emotional train-wreck of a big loss, compromises you and you can not see things as clearly or objectively.

Stay out of consolidation/deliberation (when price is in a tight trading range) on a short term time frame. There is a time for the market to rest, you need to rest with it. You are not a fortune teller, you are a trader, allow the market to show you which direction it is going to move in.

Oh this is a biggie. LETTING YOUR WINNING TRADES RUN AND CUTTING YOUR LOSSES SHORT. If you have had trades that started out as winners and ended up as losers , it can chips away at your confidence, often causing you to close your winning trades as soon as they come into profit. On the other hand you will allow your losing trades to run wild, hoping, waiting and praying for a reversal, instead of cutting the legs off of that diseased monster.

Staying in losing trades for extended periods of time cost you not only potential capital, but it also keeps you from entering other profitable trades.

A properly placed SL (stop loss) is your Friend and will help you save your capital. There are traders who trade without SLs. I would advise you to use SLs on your practice accounts often so that you get comfortable with them. There will be times that you will miss it, there is no need to punish yourself by going broke. You missed it, suck it up and move on.

If you were a trader who once lost money to the market, you can change to become an informed profitable trader. You are no longer that scared trader who was always losing and it is time to develop and approach the market with a whole new confidence!

If your confidence has been shaken, use your practice account a lot. Look for trade set-ups on the short and long side of the trade and rebuild your confidence. When you start trading your live account again, then start off small with smaller margins.

Lastly, LEARN TO WAIT FOR PROPER SET-UPS AND NEVER STOP LEARNING!!!!!!! Patience and knowledge will be your best friends in the market!!!!

Happy trading My Friends!!

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This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.

Trading tips for new traders/ classic

2009-09-28T16:37:00.000-05:00

This is just an addition to my blog Forex tips for Newbies. (originally posted 5/9/08)

I want to tell you some addition things I am learning as I trade Forex.

First I want to say Forex is very hard work and please respect that, and start off small and slow, if you don't, unless you are a super genius, you will be humbled very fast; and like the rest of us that got our butts handed to us, you will either learn how to trade or quit. With that said here are some additional tips. Thanks for stopping in.

Forex is not Vegas, it is not a place to gamble, it is a place that you must have skills if you are going to enjoy any measure of success.

Unlike the stock market (unless you are a seasoned pro) this is not buy and hold game in the short term. Short term price bounces and retraces often. You can lose everything if you invest in Forex like you do in the stock market unless you are a longer term trader with the capital and patience to sustain you.

This is a tough game, Trader to Trader, winner takes all, it is not personal, it's forex.

If you feel like the trade is always going against you STOP, and take a LOOK at your strategy, and learn from other taders. Don't sweat it, we all felt that way in the beginning, except for the few gifted ones.

Keep in mind that whenever you open a position it will always put you in the negative, because you have purchased the right to hold a position. So don't panic

I just want to share what I feel are some pretty safe tips. REMEMBER!!!! ALL TRADES have the potential of being losing trades: and no strategy is fool proof, sometimes you will miss it. Now with that disclaimer in mind, here we go.

Come to your platform with a plan and a clear head. If you are pissed, stressed, panicked or in any other series of negative emotions, you will lose your money to the clear thinking, well seasoned, rested, calm trading pro who is ready to eat your lunch.

Look at your price chart on a longer term chart than you trade in. Tell yourself aloud which way the major trend is running, so that you can align yourself with that trend in your thinking and trade accordingly.

Draw your trend lines, if they are not already up, so that you won't forget your trend direction when you are bombarded by the noise of the market.

If potential corrections are fundamental to your trading, draw Fibonacci lines to determine possible pivot levels.

You may also check pivot levels. The forex strategist employed by your company can usually provide these for you. Use all tools and indicators along with your common sense, because tools DON'T ALWAYS WORK!!!!!!!! I no longer use these indicators as they are lagging data, but I am really simple in my trading approach. There are super pros who ace this stuff. Just learn common sense rules to these things if you are going to use them. If you do not, you will be squashed count on it!

I never listen to the news, it usually affects my trading decisions, so I just trade what the charts tell me. If you are a short term trader, Stay out of the market during major economic news on your currencies if you can.

Wait a while after major economic news, let price settle and determine a direction before jumping aboard. Please for the sake of your capital learn all of your major economic news on the currencies you trade, and know when it is released. You don't have to listen to it, but it is wise to know when it occurs so that you can stay out of the market during that time. This is critical. Being in the market at the wrong time can break you within a matter of minutes.

IT COULD COST YOU EVERYTHING!!!!!!!!!!!!

Just know that for every trade you make, there is another trader trying to out trade, and wait you out. Try not to panic, but it gets easier with time. Also know that price never, ever goes straight up or down, because you have traders fighting at every level. This is why it is a good idea to trade small initially, and PRACTICE, DRILL AND REHEARSE on a practice account, so that you can become comfortable with the price dance.

Take note of the highs/lows on a larger time frame than you are trading, so that you have an idea what trading strategy to employ. If the market is trending down, selling the highs is usually a good safe way to make profits. It doesn't always work, some news, speech or price spike/dip in oil or other important news things could effect your trade. If the market is trending up, then you want to buy dips. Your spikes or dips usually occur around your trend lines or MA(moving averages) when you see a reversal in your candlesticks formations. Don't try to pick top/bottoms yourself, this will also get you squashed. You need valid confirmations for tops/bottoms and the more confirmations the better.

Patience is paramount. It is hard to watch the market for a while to establish the ranges, without wanting to jump right in, but if you are going to be a safe trader, it is wise; also keep a practice account so that when you can't wait, you can get that itch out of your system by trading on your on your practice account.

I also don't buy near the highs or sell near the lows. I have been there and been burned there. It is dangerous.

Then there are times when price is going like a mad freight train and all you can do is jump on-board and enjoy the ride for a minute. Jump on during corrections if you can, otherwise, unless you have a good risk appetite, wait for a less risky time to trade.

This is also critical, have another source of income while you are learning to trade Forex, because the pressure to have to earn X number of dollars to pay your rent, utilities and other major bills will cause you to make critical trading errors, and lose a substantial amount of money. If you want to learn. ****** PLEASE, start slow and find a broker who will allow you to learn with pennies instead of dollars. I still trade pennies and use my practice account.

AS ALWAYS:---- IF YOU WANT TO BE GOOD, PRACTICE, DRILL AND REHEARSE!!!!!!!

PLEASE REMEMBER THAT THE MARKET IS NEW, AND FRESH EVERYDAY, BUT HAS HISTORY IN YESTERDAY!!!!!!!!!!!!

If you have lost in Forex, especially if it is a substantial amount. Take a break to conquer those fear ghost that might be housed in your head. Start reprogramming your mind to make this work for you. If any other human being can successfully trade, you can too!

LASTLY, NEVER, EVER, EVER, EVER TRY TO PREDICT A TOP OR BOTTOM ON A TREND; THIS IS THE BEST WAY TO BECOME ROAD KILL FAST! LET OTHERS STEP IN FRONT OF THAT VEHICLE. YOU STAY SAFELY ON THE SIDELINES, UNTIL YOU HAVE A PROVEN TOP OR BOTTOM!!!!!!!!!!!!*******************

Happy trading my FRIEND!!

This is not in any way intended to be a solicitation to trade in the forex market. I am only posting this for those who decide to trade and are looking for opinions of other traders!!!!!!

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.