Money Management

Forex Analyzing Losses
I was searching for a books on money management some days ago on Google and I found this e-book called "Money Management Report" written by Van Tharp. I read through some of the pages but unable to read them all because there quite a lot for me to read them all.
However I managed to find a piece of information from the book which I think is very important. It is outlined in a table how much percentage of losses you should afford to lose in a trade in order to be able recover them quickly.

As you can see the able Excel table which I have reconstructed based on the Van Tharp book. According to the table you should be losing more than 25% of your account in a single trade otherwise it takes so much pain to recover them back. As you can see on the table if losing 40 percent or more you will have to suffer more. Losing at 90% of the account is almost impossible to recover back as it takes around 900 percent gain in order to breakeven again. I have little idea how he calculates the percentage but this is already well presented information as a good guides.

Chat Patterns

How Double Top And Double Bottom Exist?

One of the most popular chart patterns that you probably encounter in your daily trading is the double top double bottom formation. You can find this pattern almost in all time frames view ranging from 5 minutes to monthly. Before we go through deeper analysis on this, let's take a look what exactly are they?

What is double top chart formation?

Double top formation is simply a of chart pattern which resemble the letter M shape see picture below.

How it is formed is due to the market power trying to test the previous resistance level if it can breaks it. As the market fail to break the resistance in the second movement resulting in complete reversal of the market to create the M shape patterns. Even though you may not find this patterns all the time, but it is a worthwhile knowledge where you can keep in mind for future reference.

What is double bottom chart formation?

Double bottom formation is a chart pattern that resemble the letter W shape see picture below.

Even though their opposite shape, the caused of formation of the double bottom is exactly the same as double top. Where the market fail to break second resistance and then make a complete reversal.

Forex Day Trading

Over the years there has been a lot of talk about day trading, swing trading, and position trading.
What is the difference?
Day trading is putting on a trade and only being in it for a few minutes to a few hours but all of your trades will be closed at the end of your trading day.
Swing trading is being in a trade from a few hours to a few days maybe even a week or two.
Position trading is putting on a trade and being in the trade for months to years.
Each of these styles requires a different set of skills.  For this article we will only talk about the forex day trading.
To be a day trader you need to be in front of your computer to manage the trades.  A day trader will make many trades in a day of trading but they do not have to think about the market overnight.   They only have to think about the market and their trades the next day when they open some new trades.
The day trader usually likes a lot of action; they make decisions quickly and have to get in and out quickly.  They usually have several losses and several profits each day.  The goal is to have more profits than losses.  It is possible for the day trader to have more losing trades than winning trades and still make money because they let their winning trades run and cut their losing trades off early.
Day traders need a trading strategy and a system.  They also need to have a set of signals that allow them to make quick decisions.  Not all indicators or time frames are good for day trading.
You would not want to look at the 1 hr time frame for day trading.  Many day traders like the one and five minute charts.  We find the one minute chart to be too fast for us.  For our day trading strategy we like to look for the trend on the 15 minute chart then look at the 5 minute chart to enter and exit the trade.  We only take trades in the direction of the trend on the 15 minute chart when we are day trading.
Day trading is not for everyone.  Try it and see if it is for you.  If you have the time and like the excitement then you might have found your trading niche.

Forex Training

Forex online trading is the fastest and simplest way to trade.  It is better than calling your broker and having to wait a few minutes to get your order placed.  First it takes time to dial the phone number, time to ring, time to place your request, and the time for the broker to get the order placed.  In the forex market, the market can move so fast that you could have missed thirty or even up to one hundred pips or more before your order could be filled.
When you trade online you have the opportunity to be in and out of the market in 5 to 10 minute trades.  It almost takes that long to place one order when you have to call your broker, let alone calling back and closing the order.  You also have the ability to trade twenty four hours a day when the market is open.  You can manage the trade by moving the stop loss to protect profits without calling your broker.  In the event your internet service is down you can call your broker and get the trade placed or closed, so you do have some protection from total loss.
Before you can trade online you should know how to trade.  There are some great courses out there.  Check out our free strategy at the top of your screen.  You can learn how to use indicators, control your emotions, control your greed, and manage trades for maximum profit.  You can learn how to control risk, add on to a positive position, and learn when to exit a negative or positive trade.  You can also find the most important thing about trading online and that is training from a coach. Forex online training can be the fastest and most reliable way to learn how to trade because you can view charts from your coach and he can see your charts.  You can receive trading material on line and look at it any place you have an internet connection.
Once you have learned how to trade, you of course want to make money.  The only way you will ever make money as a forex trader is to treat your trading as a business.  If you think you will have a nice little hobby then you will lose money and it will be a very expensive hobby.  You need to have a trading plan just like a business has a business plan.  The big advantage is you do not have to put a lot of money into many other things other than your computer and internet connection to start your trading business.  This business can be part time but you need to be serious about it to be successful.

Online Forex Trading

Forex online trading is the fastest and simplest way to trade.  It is better than calling your broker and having to wait a few minutes to get your order placed.  First it takes time to dial the phone number, time to ring, time to place your request, and the time for the broker to get the order placed.  In the forex market, the market can move so fast that you could have missed thirty or even up to one hundred pips or more before your order could be filled.
When you trade online you have the opportunity to be in and out of the market in 5 to 10 minute trades.  It almost takes that long to place one order when you have to call your broker, let alone calling back and closing the order.  You also have the ability to trade twenty four hours a day when the market is open.  You can manage the trade by moving the stop loss to protect profits without calling your broker.  In the event your internet service is down you can call your broker and get the trade placed or closed, so you do have some protection from total loss.
Before you can trade online you should know how to trade.  There are some great courses out there.  Check out our free strategy at the top of your screen.  You can learn how to use indicators, control your emotions, control your greed, and manage trades for maximum profit.  You can learn how to control risk, add on to a positive position, and learn when to exit a negative or positive trade.  You can also find the most important thing about trading online and that is training from a coach. Forex online training can be the fastest and most reliable way to learn how to trade because you can view charts from your coach and he can see your charts.  You can receive trading material on line and look at it any place you have an internet connection.
Once you have learned how to trade, you of course want to make money.  The only way you will ever make money as a forex trader is to treat your trading as a business.  If you think you will have a nice little hobby then you will lose money and it will be a very expensive hobby.  You need to have a trading plan just like a business has a business plan.  The big advantage is you do not have to put a lot of money into many other things other than your computer and internet connection to start your trading business.  This business can be part time but you need to be serious about it to be successful.

Automated Trading

What is automated trading?  Automated trading can also be known as expert advisors (EA’s), or Robots.  EA’s are most commonly thought of as a system that once turned on will open and close trades by itself and make a fortune in the currency market.  Ideally, the EA would work 24/7 and require little or no trading knowledge to run it.  The idea is exciting but the EA’s that do all of the work usually only work part of the time.  At least in all my years of Forex market experience, I have not seen or heard of an EA that works all the time if it is making all the trading decisions.
Allow me to explain: EA’s are written to work when the market is moving in a certain way.  When the market is moving the way the EA is written then it can make some money.  Here is the problem: The market does not always move in the same way!  When the market changes then the EA will start to lose on the trades and in many cases wipe out the trading account… Not such a good thought huh?
There are EA’s that are written for when the market is trending; others are written when the market is in a channel, and still others work on break out situations.  For them to work, a person would need to be awake all the time and turn the EA on or off depending on which way the market is moving.  If that is the case the trader would need to be a good trader to be able to determine what the market is going to do.  This defeats the purpose of a fully automated trading system.
Am I totally against using an EA? No. There are a few types of EA’s that work and by no means have I seen all the EA’s because there are thousands of them.  So which ones work? The EA’s I see that work or those that require you to be involved in the process.  For example, an EA that will find a closing point once you turn it on at the appropriate time.  This requires that you know how to trade and when to set the EA so you do not have to be in front of the computer to close the trade or set a take profit for your best guess as to where the best place is to close a trade.  The EA can be set to close the trade when the market indicates that it is changing directions.
Another example is an EA that will alert you when the market is setting up to make some kind of a move.  The trader will still have to make the decision to take the trade or not.  The main advantage of this type of EA is that a trader does not have to always be in front of the computer.  More currencies and time frames can be monitored at one time with less effort.
In summary the only EA’s I have seen that work are those where the trader has to be involved in part of the trading process.

Forex Trading Platform

Some would say a platform is a platform is a platform. What is a trading platform? The trading platform should help you to analyze the market so you can determine places to enter and exit trades into the market.  Some trading platforms are divided into different modules.  Other platforms combine all the modules into one location. All platforms should contain some basic items. For example: an area for some charts, some tools to customize your charts, an area to place trades, an area to manage open trades, an area to review your closed trades, and an area to manage multiple accounts. 
If you stop to think about it, you would realize that if you don’t have a trading platform then it would be very difficult to trade online.  There was a time when you had to pay for the trading platform and the data feed.  This would run into hundreds of dollars a month.  That was just to get started.  You would have to pay that expense while you learned how to trade.  Then after many months of losing or just breaking even you finally would be able to start paying for the trading platform and data feed. 
Today you can still buy trading platforms and pay for data feeds but you do not have to.  Most foreign currency brokers offer free trading platforms and data feeds.
Many brokers have more than one trading platform.  This is because they added different trading platforms as the demands and needs of their clients changed.  There are multiple trading platforms because technology has improved and made it easier to offer more to the end user. 
Many traders take their forex trading platform for granted.  If it were not for the trading platform then most of the retail market traders could not trade the foreign currency market. 
We feel that the ability to use the trading platform with some skill greatly enhances a trader’s ability to be successful at trading.  We find that if a trader does not know how to use the platform then they are always frustrated in their trading.  They are worrying about what button to click on the platform to do what they need to do to trade well.  If they slow down and learn how to use the trading platform then they can concentrate on their trading strategy. 
Learn the trading platform first then learn a trading strategy second.  This sequence in the education process will greatly accelerate the learning process and shorten the time to become successful.
Another advantage of the forex trading platform is that you can use a demo account to learn how to trade and in most cases it is free.  There is no need to pay for these great tools. 

How To Choose a Forex Broker ?

How To Choose a Forex Broker 


When choosing a forex broker there are many factors to take into account.
Trust
Experience
References from past clients
Level of success
Amount of advice to be given
Convenience
Amount of margin offered
Speed

All of the above are of course important. In any financial transaction it is important to trust the broker you work with. This trust is garnered by the experience level the broker has. Of course there are some new brokers starting out who are quite trustworthy, but most people would rather work with an experienced broker. For that reason most new brokers attach themselves to a firm where they can be mentored and gain experience.

References from past clients are important. If your broker has helped someone else is successful in the past and that person is willing to speak up for him that says a lot. You can gage the level of success your broker has had by speaking with past clients and seeing how well they did working with this broker. Next, take a look at the amount of advice your broker is willing to give you. Of course, you make your own decisions and will never take another person’s word for everything, but it is good to have knowledge to work with, and advice from an experienced broker is key information to factor in. Convenience is also impotent. If you live in California then an Ohio broker might not be the best choice. But in the age of the internet that factor has become less relevant. With fax and email where you and your broker live has become less important.

The amount of margin offered is important. Margin is used to leverage your money. A broker who gives you a 50 to one margin is more valuable than one who gives you 20 to one. And of course speed. Is your broker quick? Does he return phone calls and emails promptly? If so, perhaps you can work with him.

Your broker will b a trusted advisor and someone that you may be working with for years to come so choose the relationship carefully. Ask friends and acquaintances who are active in forex trading what broker they use and how they met. It is quite possible that you can get a referral from a friend or acquaintance you trust and acquire a good forex broker that way.

Digital Solution

Digital Solution:

Forex Trading is the greatest home-based business imaginable on hand nowadays, and it could be even in narration. Let me show you why.We just want to be see-through about who this object is human being in print for. Anyone looking to start a home based business, or occupation, without a lot of greenbacks, but who is helpful to put in the time needed to accomplish his or her goals. Forex Trading vs. Real EstateOne of the more widely held home business is real assets. Let's take a look at some of the more unpleasant parts of the real lands business.Real Estate:Amount of Money Needed to Begin:Regardless of what the infomercials have to say, it expenses a terrific deal of earnings to get into the real park business. Even the "No Money Down" systems bring to light you to an amazing quantity of risk. Whether you put bucks down or not, you are reliable to pay for the "product" you are . If you are incapable to find a way to products revenue from your capital spending quickly, you will be paying a mortgage payment. It only takes a few months of mortgage payments to turn "No Money Down", to "Some Money Down", to "No Money Left".Amount of Time Needed to Begin:Another lie recurring on infomercial after infomercial is that it only takes a few a week to get underway making means in the real housing estate business. We don't want to lecture for a person else, but whom do they ruminate they are kidding. So, let me get this direct...? looking for a home online? spoken language to a realtor? powerful around your vicinity? spoken communication to a mortgage specialist? and all of the other things you have to do on EACH AND EVERY HOUSEAll of these, combined, will only take me a few hours a week?We ponder we are starting to see why such a heavy majority of home based businesses fail. It's misleading to believe a halfhearted attempt will lead to success.Amount of Knowledge Needed to Begin:In neatness to succeed in the real development business you have to obtain a large quantity of realization. How do you fair and square value a home? How long will it take to fix, and sell, a home? How much have a duty to logs cost? How long does it take to settle down a sink? Those are the unadorned questions. Zoning laws, pact laws, and tax laws are just some of the more complicated that you'll need to cotton on. The fact is, we can maintain writing about the learning you need for days. Obviously, in lodge for you to succeed in real zone you need a material goods of data.Amount of People Needed to Begin:Unless you are completely friendly with all aspects of the real fortune business already, you will run into one of a few complications:1. The volume of time it would take you to become at home with with all sides of real holdings. 2. The sum of assets it would cost you to FAIL at the real wealth business. 3. Most likely, the aggregate of dosh it would cost you to build a team of people who are set to "share" their data with you.Experts don't come cheap, and without them you are powerless. In our opinion, this is one of the greatest shortcomings of the real plantation business. Your realization, at last, lies in the hands of others. We can't strain this enough...you financial future is dependant on the enactment of a complete guest. Forex Trading;Amount of Money Needed to Begin:Nothing. Zero. Zilch. Nada. $0.If done right, you would not risk any dough when education to line of work the Forex. Again, we deduction it's only fair for us to rationalize. Without too technical, we want you to empathize one very crucial thrust. Whether you are trading with $1,000,000 or $0, the gen and technology obtainable to you is identical. You can obtain the skills and facts essential free. Not only is this uncommon in relationship to other home business, it's also sole in kin to other exchange (There will be an complete piece of writing the assistance of the Forex markets vs. any of the other ). Amount of Time Needed to Begin:Before diving into the answer, specifically, we cogitate it's imperative that you be familiar with extra concept one-off to the Forex. Twenty-four a day swapping. That's right, Forex markets are tradeoff 24 hours a day, from Sunday after lunch to Friday afternoon.How does this help in answering the doubt at hand, how much time is needed to start in on Forex swap? As we've prior, in sect to lunch break into the real domain business requires a major commitment of time. Most of which has to go down between 9 AM and 5 PM. The fact is, you can't preach to a at 3 AM. Everything you do has to be around superstar else's schedule. That measures that 40 hours of work take you 4 weeks.Those same 40 , while book learning Forex Trading, strength only take you 2

How Does Currency Trading Work?

Currency Trading Work



The best way to demonstrate how currency trading makes money for the traders is to use an example.

Let's say the current rate on the British pound to euro forex market is this: GBP/EUR 1.1200. That means that to buy one British pound you will need 1.12 euros. If you believed that the value of the euro was going to rise compared to the value of the pound, you might sell 100,000 pounds, buy 100,000 euros, and wait. Then let's say a few days later, the exchange rate has moved to: GBP/EUR 1.0600. Sure enough, the pound is now worth only 1.06 euros. Now if you sell your euros and buy back 100,000 pounds, you will have made a profit of 6% of your investment, less any fees.

This sounds like a huge amount of money. Who has 100,000 pounds or even dollars lying around in the bank to trade with? Not me, and I guess not you either. But fortunately, you do not have to have all that money for real. You are buying and selling at the same time, so all you need to have is enough to cover any loss that might be made before you could exit the market if your prediction was wrong and the currency that you bought started to fall. Your broker loans you the rest.

This is called trading margins. On a $100,000 trade the margin is usually 1% or 2%, i.e. $1,000 or $2,000. This is the money that you must have in your forex brokerage account.

The amount you trade is determined by 'lots'. A lot may be worth $10,000 or more depending on the currency and the broker. So if you want to trade $20,000 you would trade 2 lots and so on.

There are now limited risk accounts, where you can only risk the amount of cash you have on account with the broker, thus avoiding margin calls. This is done by allowing smaller players to trade forex using 'mini lots' or fractions of a lot. So you can trade $1,000 by trading 0.10 of a lot. This reduces risk but may cost more to trade.

More and more ordinary people are getting into currency trading these days. It has certain advantages over the stock market and even if you know nothing about valuation of the different currencies you can set up a forex robot, a complex software program that will trade for you according to the settings you choose. Keep in mind that it is a risky business and money can be lost as well as gained. Knowing what is currency trading gives you an idea of whether you want to take the next step towards becoming a currency trader.

What Is Currency Trading (FOREX Market)?

FOREX Market
What is currency trading? Well, at its simplest it is exchanging one currency for another, just as you might do when going on vacation to another country. You trade your own currency for the currency of the country you are visiting.

However, when people talk about forex (foreign exchange) trading or currency trading on the forex market, they generally mean something very different. In this case traders are constantly exchanging one currency for another (buying currencies and selling others) with the aim of making a profit when the exchange rates change.

It is a little like trading in stocks on the stock market. Stock traders usually buy and sell stocks very quickly compared with the average personal investor who will take the advice of a broker but often keep stocks for years or even decades.

Digital Solution

Forex board is the digital solution

The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is the largest and most liquid financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions.

Forex board is the digital solution for trade parties to shows their latest trading information to their customers by using a normal LCD monitor or even large LED vision display. With this aesthetic looks as information gateway, the customers will have much convenient in accessing the latest currency exchange rate. Fully customization could be tailored made for each of the different operation environment and applications. Additional moving message can at the bottom portion of the FOREX board will further enhanced the information gateway for any latest events, promotion or news to be disseminated for the respective clients.