Jun 3

This is a theory that was created by a smart man named Ralph Nelson Elliott. Basically when the average person and trader look at the market, they see just chaotic trading. Sometimes it goes up and sometimes it goes down. Obviously there is reaction to specific stimuli, but if there is no stimuli, than it’s really hard to predict directions. Ralph noticed that there was some patterns to it and that the behaviors of the market were actually predictable.

Basically he noticed that there would be stimuli that would inevitably lead the market in an upward or downward direction. But you could also break down these movements into waves. When you look at an upward movement, it never goes straight up. It goes up and down a little and back up. It’s much more rigid, but there appears to be a pattern to this.

5-wave

Take a look at the wave. This is what I mean. But let’s break it down…

1: This is basically the first initial rise on some sort of stimuli. Let’s say it is announcement in the news that is a good thing for whatever currency we are looking at.

2: People that have already had a trade before the initial rise decide that things have gone up far enough to get out and make their profit, so there is a slight sell off.

3: This is the longest part of the wave, but this is when the trading gets picked up by the mainstream and they start getting it. This is the case where your friend tells you there is a good buy in whatever.

4: Again, people sell off to get some of their profits. It’s just that old savings; profits today are better then maybe more profits tomorrow.

5: This is the last part of the movement up where some people try to get in before it’s too late.

This is basically the Elliot Wave Theory in a nutshell. You should be able to take the theory by Ralph Nelson Elliott and apply it to a downward trend too. This is very typical behavior for currencies trades, so start paying attention to it.

May 29

support-resistance

I’m often asked about forex support and resistance, when I talk to them about various things. I think this is a very important concept to understand, but a lot of people really don’t fully understand what it is. But I think you can get a very basic understanding of it by looking at the graphic above.

Resistance is a level at the top of a price that prevents it from going higher.
Support is a level at the bottom of a price that prevents it from going lower.

It’s important to note that forex support and resistance levels are not set in stone (not a universal concept). They’re a good indication of what is happening in the market, but they’re not going to always be nice to you. Sometimes a support will give out and a resistance will be broken through. That is life as a trader and you just need to accept that as an inevitability of the market.

zones-s

Here is a more detailed picture that is a little more realistic of what you’ll see in the market. You’re probably wondering why you need to know this. Trading and prices are a very odd thing, but you’d be surprised how trades will stick between support and resistance. I’m sure you’ve watch stock market commentary lately and you’ll hear an expert say “If the S&P goes below 800, we could see a sell off.” What that means is that if the support is broken, you could see a sell off.

This has nothing to do with actual market conditions. It’s completely an emotion of traders that naturally strive to keep things within the support and resistance levels.

I hope this has been enlightening for you and you understand a little more about forex support and resistance.

May 12

forex1
I thought I’d do a different kind of post today to help push you toward more profitable futures. Sometimes you just need to practice a few things over a 30 day period to help you become a much better trader. I can’t promise that they’ll necessarily make you more profitable because it is up to you and how hard you work.

Break When You’re Getting Upset

We all get heated and pissed off at times. Nothing is more annoying than losing money and it is frustrating. Unfortunately these emotions are very detrimental to a trader and can actually be very unprofitable. I know when I lose money, I always want to get in a trade to get it all back. This is the emotion of a desperate gambler and it’s not a state you want to be in.

When you feel your emotions taking over, take a break. Go have a cup of coffee or go for a walk. Get the emotions out and come back to trade with the logical part of your brain.

Brush Up On The Fundamentals

I think if you’re trading forex, you should have a pretty decent grasp of the fundamentals. When you get into a routine after a while, you’ll often forget about the fundamentals. It’s not to say that you’re trading poorly, but you just don’t have the fundamentals in the front of your mind.

Take some time to brush up on the fundamentals of sound forex trading. It should be a very simple review and you may even have an epiphany or two.

Try Out New Strategies

New strategies are always a risk, but I think they’re important to try out. You can always use the demo software provided by your broker to test it. That’s not a guarantee that it will work, but it can help you a little. If the strategy fails in the demo, you probably know it won’t work in real trading.

If you need to, there are plenty of cheap cheap currencies to test strategies against. You shouldn’t have to risk much in this case.

Jul 17

I wanted to show you some of my currency trading made easy guide. It has been in development for a while now as I was trying to learn how to properly trade in this market. If you haven’t been doing this long, than you know that it is almost like a roller coaster. You think you got it and understand, but than the roller coaster goes down and you experience some losses. I guess that is all part of the learning process, but I’ll share a little of what I learned along the way to make it a much more stable ride.

  • Exit Trading: You need to learn the real significance of exit trading. It makes up a big portion of my currency trading made easy guide, so listen and listen well; you don’t make any profit until you sell. That’s the whole rule. That means you need to be focused on what you can get for the sell price, when you’re looking for a buy. Don’t go after something that is cheap, there is no guarantee it’ll go up in value.
  • Software: The only real disadvantage an individual in the currency market has against a bank is a workforce. A bank has an army of them to work in this 24hr/day market. Hiring a team of workers can get expensive, especially for a new trader starting out, so the best thing you can do is get yourself a software package that can trade independently of yourself.

The 10 Minute Forex Wealth Builder is an independent trading software. It acts as a second employee that never sleeps. It just requires 10 minutes of your time to check up on it, and it will go out and make profitable trades on its own.

Check out the 10 Minute Forex Wealth Builder Review.

Jun 25

We all know that analyzing candlesticks is the key to profiting at forex, but how do you learn it? You can learn it at www.forexcandlesticksmadeeasy.com. It is a great new product that will teach you how to analyze efficiently and do it in an incredibly fast time frame.

Check out Forex Candlesticks Made Easy.

May 27

So you want to learn currency trading? Well, you can always feel free to sign up for my free forex training course. This is a great business to get into that gives you, the ordinary Joe, to be able to make a great income from the comfort of your own home. Think about never having to fill up your car with gas and sit in traffic to earn a living. Sounds sweet!

The best thing you can do with regards to trading, is having a plan. You should have an idea, step by step, what you’ll be doing throughout the day. For some reason people don’t like to have rigid plans, but I’m going to tell you exactly why you should. Thinking requires energy. The more energy you invest on thinking about day to day activities, the less you have for executing these activities. When you have a plan that is almost like a routine, you don’t have to invest any energy. You just act. Have a plan and follow it.

The news is another place you really need to be watching. It would be wise to set out in your plan to watch the news every morning. You’d be surprised how much information is presented there that will effect the currency market. The last thing you want to do is make a trade while a big announcement on the news is happening. You need to pay particular attention to the Federal Reserve bank. They set the interest rates and control the supply of money in the US economy. If they lower interest rates, that means there is more money. That boils down to lower prices on the market. Soon you’ll be able to watch the news and find out where the good buys are.

The next thing I’ll offer you is the need for software. Forex Killer is an excellent piece of software that will save you a lot of headaches. It automatically analyzes currency for profitable trends. When you have this information at your finger tips automatically, it puts you in a very profitable position.

May 19

This is my free currency trading guide, but if you’re looking for the real goodies of trading currency, you should check out my free forex training course. That is where we really get into the details of trading.

Finding the appropriate broker should be on your agenda. You just can’t grab the first one you see or the one that has a nice webpage. On todays world wide web, you don’t know if these sites are from Wall Street or a teenager living in moms basement. The best thing you can do is find a forex forum, where brokers are consistently talked about. You’ll get a very unbiased look at which ones are good and bad.

Also take advantage of your demo accounts. A free currency trading guide wouldn’t be great if you weren’t practicing trading for free. These demo accounts allow you to learn without having to use money for trades. It’s probably the most real experience you can get trading forex, without actually trading.

This was a short free currency trading guide, but that is because I keep all the goodies and techniques in my free course.

May 16

I wanted to share a little starters guide to forex trading. This should be able to help you get the proper learning skills that usually come from lost trades.

Take Advantage Of Your Demo Account

You’re most likely going to have one, if it be from your broker or software like Forex Killer. You’re going to have it. The last thing you want to do is empty out your bank account and learn to trade. Trust me, your money will disappear quickly and you still won’t feel like a confident trader. The only thing different from a regular account with your real money in it and a demo account is that when you buy and sell, nothing is technically bought and sold. It’s an as real as it gets simulator. It’s a great way to learn the software, practice strategies, learn about trends, etc.

Take Advantage of Margin Trading

Margin trading is a little difficult for the new forex trader to understand. Basically the way it works, is that you’re not putting money into your account, you’re placing a deposit. The deposit allows you to trade more money than you put in; in some cases more than 100 times. For example, if you put in $1000, you could trade $100,000. Listen though, this isn’t free money. It allows you to leverage your trading ability, so you can make more for your broker and yourself. BUT, and here’s the but, the broker will never take a loss. As soon as your losses get anywhere near your original deposit, the broker will cut you off and exit trades.

The broker in this case risks nothing. You get the chance to leverage more money, which makes you more money. It also makes losses larger as well. The best piece of advice I could give you in this scenario, is to not trade the entire amount money. If you have a $100,000 to trade with, you can burn away your $1000 deposit very fast. But if you use a percentage of the total, it is less likely. In this case, let’s say 20%, which is trading $20,000. You’re trading 20 times the amount you deposited, but you’re less likely to burn away the original $1000.

This is a good starters guide to forex trading. I hope it serves you well and allows you to take advantage of many profitable trades.