Tag Archive | "Trade"
Posted on 25 September 2011
Tags: amount, amount of time, Avoid, candle, career, class, consistent source, crossovers, Day, day trader, Define, effective, entry, exit, False, first priority, forex, Frame, height, Identify, important, long time, Lose, MACD, Margin, market, mind, money, month, moving averages, New, new trend, new trends, order, part, patient, pen, practice, profit, profits, right time, risk, risk management, Role, RSI, Run, signal, step, stochastic, Stop, swing, swing trader, system, system doesn, tailor, Tailoring, take, target, time frame, Trade, Trading, trends, type, way, week, width, work
Tailoring an effective trading system must be your first priority while considering achieving a long lasting trading career. You should bear in mind that making a trading system doesn’t take long time, but testing the same system takes a good amount of time. You are advised to be patient because in the long run you are going to have a consistent source to generate real profits.
Important Steps in Tailoring Trading System
There are various important steps that you should take to tailor your trading system. These important steps are as follows:
Determining the Right Time Frame
The first step that you need to take is to find out what type of forex trader you are. Are you a swing trader or a day trader? How often do you go through your charts, everyday, every week, or every month? And how long you like holding on to your positions? All these things are very important to be answered in order to find out the right time frame for your trade.
Identify New Trends Through Indicators
Indicators play very important role when it comes to identify new trends. One of the most popular indicators includes moving averages. Most traders use moving averages to identify the new trends. Moving average crossovers are the fastest indicators to identify new trends and also the easiest. There are many other indicators available to spot the trend.
Avoid False Trends
Your next step in tailoring a trading system is to find those indicators that can help you avoiding false trends. It is actually done by ensuring that when you see a signal for a new trend, you use other indicators to confirm it.
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Posted on 24 September 2011
Tags: Alone, approach, area, Avoid, bad decision, Blind, center, chart, class, course, crossover, entrance, entry, fight, forex, good time, gun, height, Investment, knife, market, mean, mistake, movi, nothing, optimal, optimal time, patient, position, practice, problematic situation, right, right time, risk, road, street, style, technique, title, Trade, trades, Trading, trigger, understanding, Wait, way, width
Entry trigger alerts you about your entrance into potential trade. This trigger tells you when you should enter into a trade and when you should stay away from a trade. Entry trigger saves you from falling into a problematic situation which you are likely to face if you enter into trade randomly.
Specific Entry Technique
Entry trigger is actually your specific technique that you utilize for your entry. When once you know your position, now it’s time to find out when is the optimal time to enter the trade. The entry technique will help you to avoid trade that is not acting the way you would want them in your potential trading area.
Avoid Blind Entry
If you make blind entry then you must stop it. It is just like crossing the street while your eyes are closed. It is nothing but just to kill yourself. The best way to cross the road is off course to look both ways of the road to make sure it is safe to walk across. You should work with the same approach while deciding about the entry in the trade.
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Posted on 22 September 2011
Tags: accordance, Adjustment, amount, analysis, analyze this, Analyzing, analyzing data, asking the right questions, center, closing, currency, currency pairs, Data, Day, duty, environment, Environments, height, idea, important, improvements, introspect, journal, keen observation, loss, loss processes, market, Method, Multiple, News, number, Other, pair, process, Processes, profit, profits, question, record, Reduction, Review, right time, Setup, signal, Single, Stop, stop loss, strategy, style, system, take, time period, tool, Tools, Trade, trades, Trading, volatility, week, width, Yourself
Trading journal is an important tool for trading effectively. You can keep a regular record of your trading in your trading journal. After doing a considerable number of trades, you will be having a good amount of useful data and observations that you have collected by yourself and on the market. Now it’s the time to analyze this data.
Analyzing Data
You can easily analyze data by following two things, these include finding out what works best and keep using it, and finding out what does not work at all and stop doing it. The second strategy involves keen observation and asking the right questions at the right time. You can refine your trading results analysis by separating them into different smaller categories like specific currency pairs or day of the week.
Questions to Ask While Reviewing Your Journal
Following are important questions that you should ask yourself while reviewing your trading journal.
Patterns or Tools
You should ask yourself about which tools or patterns work out best when you trade and which are not feasible.
Adjustment of Indicators
You should ask yourself about how you can make adjustments for your indicators to get you in trades earlier, or help you to avoid fake outs and whipsaws.
Time of Closing Winning Trades
You should find out if you are closing your winning trades too early. If you are doing it then is it necessary to adjust your potential profits or you are doing it just because you are afraid of losing unrealized profits?
Stop-Loss Processes
You should find out if you hold onto losing your trades for a longer time period than you should. You should also find out how you can make improvements in your stop-loss process.
Trading Plans
It is another important question that you must ask yourself and it is if you are religiously following your trading plans or not.
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Posted on 21 September 2011
Tags: account, amount, amount of money, Backtesting, basis, candle, capital, case, chart, class, confirmation, Creating, demo, demo account, demo trading, Design, Designing, direction, entry, exit, generating, goals, height, help, idea, identification, important, Investment, Live, long time, main goals, market, plethora, practice, problem, profit, profits, result, right time, risk, rule, Run, step, strategy, system, system doesn, Test, time frame, title, Trade, trader, trend, work
There is a plethora of trading systems that work best for different traders, but the main problem is that many traders don’t follow trading system strictly. As a result they lose money. It is very important to you as a trader to strictly follow your trading system.
2 Important Goals of Trading System
Your trading system helps you achieving various goals in trading. But there are two main goals which your trading system must be able to accomplish. These two goals include:
- Identification of a trend as soon as possible
- Confirmation of good trend to avoid whipsaws
Demo Trading Account
If you think you are working with the right trading system, then you should first test it on a demo trading account for at least 2 months. A Demo account can provide you great help regarding your trading system. You can figure out how trade system would work when the market is showing movements. Once you have tested your trading system on a demo account and you have found out that you are still making profits, now it’s the time to trade your system live with real capital. However, never forget to follow your rules strictly.
Six Important Steps to Design a Trading System
There are six important steps that you must follow to develop an effective trading system. These steps include following:
- Finding the right time frame
- Finding the indicators that help you spotting trends early
- Finding indicators that help you confirming good trends and avoiding whipsaws
- Defining your risk that how much amount of money you are willing to lose in a trade
- Defining your entry and exit in a trade
- Writing down the rules of your trading system and strictly follow these rules
The most important step is to strictly follow the rules because you are not going to make profits if you don’t follow your trading system rules.
Test Your Trading System
Creating a trading system doesn’t take a long time, but testing it takes a long time. It is very important to test your trading system before you put it live.
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Posted on 19 September 2011
Tags: Actions, American, Avoid, best time, break, Business, cannot, career, careful studies, center, chance, closing, closing session, Day, days of the week, directional, entertainment, EST, event, everyone, evidences, family, first priority, forex, Fridays, generating, half, half days, health, healthy lifestyle, healthy sleep, height, hotshot, Idol, important things, Learn, liquidity, London, management, market, Mid, middle, money, movement, necessary knowledge, News, profitable time, remarkable decline, rest, result, sheet, show, spending, spicy, success, Sufficient, Superbowl, time management, Times, Trade, trader, Trading, trading markets, trading session, trading sessions, true fact, U.S., volatility, whipsaw, Wise
If you are starting your trading career and want to achieve a long lasting career in trading business, then there are various important things that you should be familiar with. One of these things includes necessary knowledge of the best time for trading in forex trading market. You may already be aware of the fact that the London session is the busiest trading session out of all the other trading sessions. However, there are still certain days in a week during these days all the trading markets are apt to show more movement.
Mid Week Days When More Actions Happen
According to careful studies and trading evidences about the best time to trade, the middle days of the week have shown more actions than other days of the week. As a result, one can say that mid days of the week are probably the best days for trading due to the most actions that happen during these days. Fridays are recorded to be the busy trading session until 12.00 pm EST and after this time a remarkable decline can be seen until the closing session that is 5.00 pm EST. It simply shows that on Fridays traders only work half-days. It is important to note that the busiest time of the trading market is indeed the best and most profitable time to trade, as this time gives you a greater chance of success. So it is advised to you to trade during the middle of the week when trading markets show the most actions.
Wise Time Management
It is obvious that you cannot trade all sessions because you cannot remain awake 24/7. Even if you could remain awake 24/7, then why would you trade all sessions when trading market doesn’t show actions all the time? As a trader, trading might be your first priority but you should also not overlook your health. Healthy sleep ensures healthy lifestyle and if you are not fine mentally then you can’t perform trade well. It is a true fact that forex market remains active 24 hours a day but it is also a fact that actions don’t happen all the time. You should consider about time management so you can spend healthy time with your family and friends. Sufficient rest is very important if you want to be a hotshot trader.
Learn When You Should Trade
It is very important to you as a trader to learn when you should trade. You can only trade effectively when you know about the optimal times of trading and the times when you should keep yourself away from trading.
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Posted on 18 September 2011
Tags: Analyzing, benefit, benefits, career, case, center, chance, class, community, consistent profits, entrance, facility, forex, forex traders, graphs, great source, habit, height, idea, important information, internet, Journaling, keeping a journal, kinds of statistics, Maintenance, market, MeetPips, motivation, online, online tools, performance, performance statistics, personality, plan, proper manner, range, recalculate, strong points, successful traders, tool, Trade, trades, Trading, Weak, width
Keeping a journal is one of the most important tasks that you should do to achieve a long standing career in forex market. If you don’t get enough time to write your journal in proper manner then there are more likely to miss any important information that you could potentially use later to assess your performance and also to find out where you need to improve.
What is MeetPips.com?
Internet is a great source to find out ready made tools that you can use in forex trading to make your trade more efficient. There are various online sources that are offering online tools where you can keep track of your trade and you can carry out required calculations. One of these great sources is MeetPips.com. It is an online trading journal that helps you to maintain a tidy and well organized online trading journal.
Benefits of MeetPips.com
MeetPips.com offer a wide range of benefits to its uisers. These benefits include following:
Online Trading Journal
You will be able to create an online trading journal easily on MeetPips.com. You will be able to join an online trade journaling community that is particularly for forex traders who want to become successful traders and want to produce consistent profits.
Maintenance of Trading Journal
For many traders it is difficult to maintain a trading journal, especially if you do it manually with lots of trades. Moreover, it is also difficult for traders to constantly calculate and recalculate their performance statistics. All these problems can be solved through the online trading journal of MeetPips.com.
Graphs Reviewing and Analyzing
MeetPips.com enables you to enter your trades into your own online trading journal.
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Posted on 17 September 2011
Tags: acceptance, amount, amp, Association, Basic, Bear, brochure, broker, Business, CFTC, class, closing, commission, commission merchant, commodities futures trading, commodities futures trading commission, Day, Distinguish, dodge, Dont, estate, fact, forex, Forex trading, fraud, futures commission, height, information, lot, manipulation, Merchant, mind, mistake, money, Multiply, National, National Futures Association, NFA, nfa member, percent, pips, public, Registration, Regulated, regulatory agencies, regulatory agency, rejection, Research, Role, scam, scammers, section, shocking truth, Sink, Spread, Stop-hunting, style, title, Trade, trade practices, United States, Unregulated, Verify Registration, way, website, width
You may not be aware of the shocking truth that some brokers are scammers too in the forex trading business. It is a matter above than your acceptance or rejection that there are some brokers who dodge their clients. There are various ways that are used by scam brokers to cheat ignorant or inexperienced clients.
Manipulation of bid/ask Spreads
This is one of the various ways by which scam brokers cheat their clients. True brokers have spreads between 2 to 3 pips, but scammers have about 7 to 8 pips. You can effortlessly ignore 7 pips, as 7 pips might not seem like a lot, but it is a lot in fact. Let suppose, each time when you trade you have to pay a spread that consists of 7 pips and if you take only few trades per day. Multiply that few trades with hundreds of other puzzled clients, you’d be making a great amount of profits.
Stop-hunting
It is another way that is used by the scam brokers to cheat their clients. Bear in mind, brokers are always aware of where their clients place their stops. Brokers can use this information to get those stops and cause closing out of the positions of their clients.
Rules & Regulations About Scam Brokers
The Commodities Futures Trading Commission and the National Futures Association, these regulatory agencies have proposed new rules. These new rules have destroyed all the old scammers. You should select a broker who is registered with a regulatory agency. Never make mistake of choosing a broker who is not registered with a regulatory agency.
Role of the CFTC and the NFA
In the United States, you can check out brokers registered as a Futures Commission Merchant with the CFTC and a NFA member.
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Posted on 11 September 2011
Tags: balanced manner, Business, Combinatorics, Day trading, divergence, graph, highs and lows, indicator graphs, Investing, Math, Nasdaq, new pair of glasses, price, tops and bottoms, Trade
If you want to spot the divergence in your trade, then you have to analyze the price and indicator graphs in a well-balanced manner. There are certain rules defined by some of the best traders, to help you out finding the potential Divergence. Here are the 9 simplest rules for finding the divergence in your trading:
1. Make your Glasses Clean
If you want divergence in your trading, then the prices should be Higher than the previous high and lower than the previous low. If nothing going to change in the prices then you don’t need to look for any indicator. The only thing you have to do is to be optimistic and get a new pair of glasses.
2. Draw Lines for Tops and Bottoms
You have to consider the four things only which are; a higher high, a flat high, a lower high or a flat low. Just consider the graph and draw a line from the recent low or high to the previous low or high. It will give you some successive tops and bottoms respectively. If you find a little bump between two lows or highs then do nothing and just ignore it.
3. Connect Tops and Bottoms only
While considering the graph, if you see two consecutive peaks then connect the Tops. On the other hand, if you see the two consecutive lows, then connect the Bottoms. If you draw a line at the bottom when there comes two consecutive highs, then you will get confused.
4. Keep an Eye on Prices
After connecting the respective highs and lows then look the preferred indicator and compare its price. While comparing, care should be taken that you only compare the Tops and Bottoms only for the indicator you choose.
5. Balance your Flight
If you draw a line between two highs on the price then use the same scenario for the indicator as well. Read the full story
Posted on 10 September 2011
Tags: attractiveness, business investor, central exchange, central location, counterpart, economy of united states, financial markets, foreign exchange, foreign exchange market, Forex Market, interbank, Interbank market, International Monetary Fund, international monetary fund imf, Investing, Mexico, new york stock, new york stock exchange, official foreign exchange reserve, oil, OTC market, physical location, purchase oil, reserve currency, Saudi Arabia, Spot Forex, Trade, United States, United States dollar
The forex spot market is different from other financial markets such as New York Stock Exchange in the sense that it has no physical location or a central exchange. The forex market is regarded as Over-the-Counter (OTC), or “Interbank”, market because the overall market is managed electronically, surrounded by a system of banks, constantly over a 24-hour period. This implies that the spot forex market is stretched all over the globe and has no central location.
Significance Of Forex OTC Market:
The forex OTC market is certainly the largest and most famous financial market in the world. It is traded worldwide by a big number of individuals and organizations. Participants take decisions in the OTC market regarding the selection of organizations they desire to trade with. This particular decision depends on trading conditions, reputation of the trading counterpart and the attractiveness of prices.
Most Actively Traded Currencies:
The dollar is sharing 84.9% of all transactions and is the largely trading currency. The euro is at the second place with 39.1% share and the yen is occupying the third place with a share of 19.0%. So, it can be seen that the major currencies are dominating the top spots in the list.
Importance Of Dollar In The Forex Market:
You have most likely observed that we frequently refer the U.S. dollar (USD). It would become peculiar to pay attention to the U.S. dollar, if the U.S. dollar is half in value of every main currency pair and the major currencies also share 75% of all trades. Read the full story
Posted on 09 September 2011
Tags: athlete, Business, Business_Finance, Commodities and Futures, extent, foreign exchange market, forex, Forex Market, forex trader, forex traders, habit, Human Interest, Investing, job, journals, keeping a journal, logs, religious trader, responsible forex trader, schoolgirls, scientists, Trade, Trader (finance), Trading Journal, transaction history, USDJPY
If you are thinking that schoolgirls keep journals then you are totally wrong because successful and wise forex traders also keep trading journals. Keeping journal is really an important task and every responsible forex trader should keep a trading journal.
Benefits of Keeping a Trading Journal
Keeping a journal is not only important for traders but also for anybody who is doing a performance based or goal oriented job. This habit offers a number of benefits. You can measure and track your performance with the help of a well-maintained trading journal. Moreover, you can improve your performance by finding out the points where think you are lacking in something.
Track Your Performance
A well-maintained trading journal helps you to keep a track of your trading performance. You can take the example of an athlete who maintains a journal to track his performance in the field. They find out the things that help them to stay stronger and faster, likewise scientists do the same to maintain their performances. For a trader, keeping a journal means becoming more disciplined and consistent. Tracking habit also helps you to stay profitable and it is the thing that every trader wants to achieve while trading in the forex market.
Starting a Trading Journal
It might sound easier to start a journal but in reality it can be very difficult to get started. Read the full story
