Forex Trade 24×5

The equation in this article is the equation that makes market price move and if you don’t understand its significance you are 100% guaranteed to lose and join the 95% of traders who lose their money, so here it is:

Fundamentals (Supply and demand news) + Investor Perception (the sum total of opinions = Price

IT MAY BE SIMPLE BUT:

Let’s looks at how people don’t stop to digest its significance when implementing their forex strategy.

We all have the facts – there for all to see but we all make subjective judgements based upon what we see (and we all see things differently) and the total mass of humans observing the facts is the price.

So what is the best way to trade?

Well first let’s look at what won’t work and a huge number of traders make the following mistakes and burn their equity.

- Any Method That Tries To Predict

If you try and predict you’re hoping and guessing and you can’t guess what a huge mass of traders is going to do in advance – you should only react to the price as it is.

Think of how many people try and predict by buying a dip to support and hoping it will hold – well if you rely on hope you lose.

- Any Method that Applies Science

Human nature is constant so markets so you can use scientific theories to accurately predict market movement – Wrong

Stand up anyone who follows Gann, Elliot wave or Fibonacci – they all claim they have scientific theories -but by definition a scientific theory should work all the time and none of the above do.

There is no scientific theory of market behaviour, because if the markets were scientific, we would all know the price in advance and there would be no market.

This is common sense! But many traders who show it in everyday life forget it when trading forex.

- Day Trading

So you can predict what millions of traders are going to do in the short space of a few hours – Really? Try it and lose, all short term volatility is random and you can’t win.

- Trade Breaking News

Sure you get it in a split second but so to does everyone else and the fundamentals are instantly discounted by the price, so it is impossible to trade.

SO HOW DO YOU MAKE MONEY?

The first point to keep in mind is that forex trading is a game of odds – NOT a game of certainties but if you play the odds you can make a lot of money.

The best way for a novice trader is to ignore the fundamentals (these facts discounted instantly) and simply follow their affect by looking at the reality of price on a forex chart.

A forex chart however gives you something more – it shows you how ALL The participants view the facts, so by following and trading price trends you can profit.

What you need to look for are trends and execute trading signals in line with price momentum to keep the odds in your favour.

For example, you see prices dip to support (which you expect to hold) but you don’t trade until you see prices turn away from support supported by price momentum

You then execute your trading signal based upon the reality of price.

Your not going to win every trade (remember were trading odds not certainties) but if you do it correctly you will win more trades than you lose and enjoy currency trading success.

A simple forex trading system is all you need.

Check support and resistance, execute on the reality of price momentum and use sound money management.

It may sound simple and it is – but you need to do your homework and be prepared to take losses as well as profits – but if you trade the odds you will enjoy long term currency trading success.

If you really want to learn forex and be profitable in the forex market, you will need to get the right forex education from the right mentor. Why would I say that? You can get lots of different course out there in the market, but who can really provide a good support for the members, and whenever they need help, the mentor will be always there for them? I have came across some people who can’t provide good online support once after they sold their online products. That is why I would want to help as many people as possible to become successful in forex trading. I understand that all of us have been beginners before, and everyone deserves to learn forex the right way. So let’s look at some of the 4 simple ways to start making money trading forex online. 1. You Must Depend on Yourself Because There is No Free Lunch If you think that someone can sell you a good forex trading system or product and make you filthy rich in trading, think again. If the products are very effective and can make you lots of money, then why are there selling you at such a cheap price? Most of them are less than $100. But that doesn’t mean expensive courses and products are worth the money, it maybe just a marketing gimmick. Although there are many good forex education around, you will need to think and can’t simply follow blindly. In order to have a profitable forex strategy, you must understand it , have confidence in it and practice it. Without the 3, it’s hard to convince yourself that you have mastered the strategy. If you don’t really understand how your forex trading techniques work, then you would not have confidence in it and therefore wouldn’t have the right mindset to practice it. Lastly, you won’t have the discipline to follow through your forex trading system if it loses trades. 2. Avoid the Common Pitfalls and Mistakes Many traders put in a lot of hard work and effort trying to learn forex, but what they learnt was the wrong forex education and those methods that they tried never seems to work. Below are the 2 more common mistakes that forex traders can make. 3. Think it’s easy like ABC Many newbies think that forex trading can be very easy and profitable in very quick period of time. Their mindset is already wrong and they do not treat forex as their business. It’s never going to be that easy in the beginning and all new traders should expect a steeper learning curve. 4. Predicting from hindsight We are human beings and we can’t guess anything right all the time. Many traders are just guessing or depend on feelings on where the prices are going. Once again, predicting is like gambling because you are not analyzing. I can be dead sure that no one can rely on guessing and make money in forex trading all the time. A lot of traders turn to scientific theory and say history repeats itself. It’s true that history repeat itself on the forex charts, but the past cannot guarantee the future. Those are just analysis that increases the winning probability and if we know everything in advance, then there will be no forex market at all.

This is why forex trading is hard and 95% of traders fail to win.

So how do you do it and make your forex trading strategy a success?

Here are some tips.

1. Use forex technical analysis as a basis for your forex trading strategy.

Technical analysis and looking at forex charts gives you a distinct edge in that it takes into account both the fundamentals and investor psychology.

Technical analysis simply assumes that all known fundamentals will immediately show up in the market price (and in today’s world of instant communications this is truer than ever before) but it also takes into account human psychology which always pushes prices to far in either direction.

These price spikes are easy to spot on forex charts and repeat ( as human nature is constant ) and can be traded for profit.

If you are trading forex NEVER do the following:

1. Trade fundamental news stories volatility is high and your playing catch up as the news is instantly discounted.

2. Never mix fundamentals and technical analysis as there separate disciplines.

3. While technical analysis is a great way to trade, be aware its an odds game and NOT a science.

Humans are unpredictable and while you can get the odds in your favour nothing is certain.

Ignore people who try and sell you scientific theories or tools such as cycles, Elliot wave or Fibonacci based systems – they don’t work.

If prices could be predicted with scientific accuracy we would all know the price in advance and there would be no market. Its different opinions that cause prices to move.

Trading The Odds For Big Profits

So you are playing the odds and with a simple forex trading system based upon technical analysis you can make a lot of money. One final point:

If trading via forex technical analysis and using forex charts, keep in mind you need to use valid data – this means trading the longer term trends.

Avoid day trading as the time period is to short and the data is meaningless and you will lose.

If you understand the above points you will know how and why prices move and be able to trade them for profit and avoid the mistakes of the losing majority.

How to devise a forex trading system for profit based upon technical analysis will be covered in part 2 of this article series.

Beginners in the Forex market need all the help they can get. You can’t possibly make it big in the Forex market if you don’t know much about Forex trading. There are lots of online tools that you can make use in order to learn more about this fast-changing market. You can find software programs, trading systems, trend indicators, signal generators, trading courses, and even Forex trading eBooks. Perhaps you’ve already tried all the other online tools expect eBook; the reason may be because you’re not very much interested in reading. You’re probably unaware that you can learn a lot of things from reading. Did you know that there are effective Forex eBooks online which you can get for free? When reading eBooks, you should also understand the things that you’re reading and that is called comprehension.

The problem with most traders is that they tend to read blindly; they lack comprehension. The Forex market has lots of unforgiving paths where you can lose huge investments. If you don’t want to end up with the 90% unsuccessful Forex traders in the world, you need to read good trading eBooks now.

Trading eBooks are usually written by experienced and knowledgeable Forex traders who are willing to share their secrets to beginners. New traders tend to have lots of questions like how much should they invest, where they should start investing, when they should get out of the trade, etc. Some online Forex trading tools charge fees but why should you even pay fees when you can get free trading eBooks?

Investing in the Forex market involves a lot of risks. If you want to be prepared for this kind of situation, you will need a trading eBook. Through these eBooks, you can handle various kinds of situations suitably. By getting the right eBook, you will be given an opportunity to understand everything you need to know about the Forex market.

What are the things that you can learn from these trading eBooks? Well, there are so many things to learn like Forex quotes, currency pairs, pips, execution, bids, dealing desk, and many other things.

Once you’ve read and understood the trading eBook, you will know that the trading sessions start after an order is placed. Basic orders can include market order, limit entry, stop entry, etc. These orders are used in various applications and you need to learn when to use them. eBooks can provide you with simple introductions about these orders so that you won’t have any difficulty in trading.

Aside from the Forex trading info mentioned earlier, you will also learn about trading types. These are the strategies being used by traders such as short and long positions. You will also learn about carry trading, scalping, swing and trend trading, and many others. These types of trading can be used depending on the conditions in the Forex market.

So you see, you can learn lots of things from reading trading eBooks. Take your time in reading a good eBook. Search the internet for helpful eBooks written by expert reputable Forex traders. You can even check reviews and ratings of various trading eBooks so that you can pick the best one. Reading may take some time especially if you try to understand the contents of the eBook but its really worthy. Get your free Forex trading eBooks now.

The internet is indeed a gift of today’s advanced technology. It has changed the communication industry and now it is being used for different kinds of tasks. It seems that everything is possible through the internet. Before, the only way to trade in the Forex market is to be there physically. But now, you can trade even in your own home or in the office as long as there is an internet connection.

If you think that only the intelligent individuals are involved Forex trading, you’re wrong because at present, average individuals can already trade in the market, provided they have adequate capital. The behavior of different currencies in the Forex market can be compared to the movements of regular stock. The economies of most countries around the globe are fluctuating. Some currencies are highly priced but there are also currencies which have very low values. The Forex market is alive twenty four hours each day and so you can do your transactions at any time of the day and night. If you have an internet connection at home, you can monitor the Forex market trends and other vital info. Don’t worry if you’re not very familiar with Forex trading because you can find loads of information on the internet. Gather all the possible information you can get about Forex trading; you must read, comprehend, and learn from the information sources because that’s one way to attain success. With the internet in your home or in the office, you can monitor all the real time market information without much difficulty.

Forex trading also have mechanics. For you to understand the trade’s mechanics, you will need some helpful tools. Before you invest in the Forex market, you have to ensure that you’ve already developed the right trading skills to prevent possible loses.

There are some Forex firms that help new traders in becoming more skilled in Forex trading by giving free demos, guidance, and helpful Forex news. You can even start investing in the Forex market with only $300. Starters often feel uncomfortable but as days and months pass, you can get the hang of it. With the aid of the internet, it’s much easier to learn about the current Forex market trends. You can also rely on a good Forex broker especially if you’re new in Forex trading. Brokers can help you in developing trading strategies or in finding efficient trading systems. Aside from that, a good broker can also help you with fundamental and technical analysis of relevant data.

You too can earn promising rewards if you’re willing to assume some risks in Forex trading. However, it is vital that you minimize such risks so as not to lose your investment. Make use of all the possible online tools so that you can make educated Forex decisions.

What are your needs? You must be able to identify your needs so that you can choose a god trading system or perhaps a reliable broker. Take your time when researching about the latest trading systems offered in the market. Don’t forget to check the background of the broker as well.

Forex trading online can be easily carried out and you can expect more profits to roll in once you properly use the tools mentioned earlier. As a trader, you need to be disciplined and you must be very careful with all your trading decisions; being hasty will not get you anywhere.

A lot of individuals are interested to know more about FOREX trading. Do you want to know why? Well, Forex trading can help you earn lots of money as long as you have the right strategies and trading information. However, with one false move, you can also lose huge money. To be a successful trader, you need to be serious with all your trading transactions.

Exchanges in the Forex market happen instantaneously. Even the expert traders and bankers are challenged to make very good and well-informed trades. A single Forex trade should be done after carefully considering some factors.

Before, only the world’s largest banks were allowed to trade openly. Things have changed greatly since the introduction of the internet. If you have an internet connection, you can already join in Forex trading. Many people are now actively involved in Forex trading because the market is very liquid.

According to the expert traders, it’s easy to trade in the Forex market but for the newbies, it may be a bit difficult. You see, there are some things that you need to consider.

Many traders lose their capital and according to statistics, these traders make up 90% of the total number of traders in the Forex market. The other 10% is still split into two wherein the 5% are the breakeven traders and other 5% are those traders that attain beneficial results. The percentage of successful Forex traders is indeed very small as compared to the unsuccessful ones; because of this fact, many individuals are scared to invest in the Forex market.

If you want to make huge profits, one way to do that is to join Forex trading. However, to consistently earn money, you have to improve the odds involved in trading.

Education is vital if you want to succeed as a Forex trader. You should have adequate knowledge about the market and every detail you can learn is very important. You can also learn many things in Forex trading. In fact, in every transaction you make, you’re bound to learn something that you can use in your future exchanges.

As a Forex trader, you should have your very own strategy or trading system. Many individuals find it difficult to follow rules and guidelines and if you’re like that, the Forex market is not the place for you. You must be very strict in following your devised strategies or trading system. This is the only way to earn more profits.

Aside from having your own trading system and strategies, you should be able to analyze and study the price behavior in the Forex market. Prices tend to change rather quickly and so you need to be prepared at all times. Surprises in the Forex market is natural and you should be prepared for them.

The buying or selling decisions of traders are often influenced by psychological issues. Not all traders are rationally thinking in every transaction they make and you can use this knowledge to your advantage. That way, you can easily decide when to enter or exit.

Successful traders know how to manage their money or investment. You have to ensure that the trading account is adequately funded and you should not enter into any transaction blindly.

Now that you know something about Forex trading, don’t you think it’s time that you also trade in the market? If you’re willing to take some risks, you can surely earn huge profits.

Forex Charts are based on the forex market action involving price. Charts are a major tool in forex trading. There are many kinds of charts, each will help to visually analyze the forex market conditions, assess and create better forecasting, and identify forex market patterns and behavior.
Forex charts and spreads weigh heavily on the return on your trading strategy (this can have a huge affect on your profit or loss). As a trader, you are solely interested in buying low and selling high (like futures and commodities trading on Wall Street). Wider Forex charts and spreads means buying higher and having to sell lower.
A half-pip lower spread does not necessarily sound like much, but it can easily mean the difference between a profitable trade and one that losses money. The tighter the spread is the better things are going to be for you (Happy Days).
Nevertheless, tight Forex charts and spreads are only meaningful when they pair up with good execution of a well laid out trading strategy. A good example of this is, as you analyze your forex chart it shows a tight spread, but your trade shows it has filled, or mysteriously rejected.
When this occurs repeatedly, it means that your broker is showing tight Forex charts and spreads but is effectively delivering wider Forex charts and spreads. Rejected forex trades, delayed execution, slipping, and stop-hunting are strategies that some brokers use to get rid of the promise of tight Forex charts and spreads (so be on the look out for this type of activity and run fast if you notice it).
Both the technical and fundamental forex analyst uses Forex charts. The technical analyst analyzes the “micro” movements, trying to match the actual occurrence with known patterns. The fundamental analyst on the other hand tries to find correlation between the trend seen on the chart and “macro” events occurring parallel to that like (political and other events).
As you can imagine, reading and understanding forex charts can get confusing for the inexperienced trader. You can get most charts now online, as part of a subscription service, and they most often include frequent updates. Because technical analysis is such a popular method of forecasting and predicting movements in the forex market, there are many services available online.
If you would like to become more proficient in Forex chart techniques (and I highly recommend you do), joining a service that provides charts via the Internet, and assistance in reading and analyzing the chart information, this can be very helpful and profitable in the end.
So let us not talk a little about the different types of Forex Charts Line Charts The simplest form, based upon the closing rates (in each time unit), forming a homogeneous line. (Such charts, on the 5 minutes scale, will show a line connecting all the actual rates every 5 minutes).
This forex chart does not show what happened during the time unit selected by the viewer, only closing rates for such a time. Line Charts are the best simple way to chart for support and resistance levels.
Point and figure charts
Point and Figure Charts are charts based on price without time. Unlike most investment charts, point and figure charts do not present a linear representation of time. Instead, they show trends in price. A rising stack of Xs represents increases, and a declining stack of Os represents decreases.
This type of chart used to filter out non-significant price movements, and enable you (the trader) to determine critical support and resistance levels quickly.
Bar Chart
This chart shows three rates for each time unit selected: the high, the low, the closing (HLC). There are also bar charts including four rates (OHLC, which includes the opening rate for the period). This chart provides clearly visible information about trading prices range during the time period (per unit) selected (very valuable information).
Candlestick Chart
Kind of chart based on an ancient Japanese method. The chart represents prices at their opening, high, low, and closing rates, in a form of candles, for each time unit selected. The empty (transparent) candles show increase, while the dark (full) candles represent decrease.
The length of the body shows the range between opening and closing, while the whole candle (including top and bottom wicks) show the whole range of trading prices for the selected time unit. Pattern recognition is a field within the area of “machine learning”.
Alternatively defined as the act of take in raw data and taking an action based on the category of that data. As such, it is a collection of methods for “supervised learning”.
A complete pattern recognition system consist of a sensor that gathers the observations to be classified or described; a feature extraction mechanism that computes numeric or symbolic information from the observations; and a classification or description scheme that does the actual job of classifying or describing observations, relying on the extracted features.
In general, the forex market uses the following patterns in candlestick forex charts:
Bullish Patterns – hammer, inverted hammer, engulfing, harami, harami cross, doji start, piercing line, morning star, morning doji star.
Bearish Patterns – shooting star, hanging man, engulfing, harami, harami cross, doji star, dark cloud cover, evening star, evening doji.
Note: Keep in mind these are just general and not all-inclusive as the forex market is huge and are so with the charts and techniques.
Let us now look at the 5 top errors made where forex charts are concerned and why you should stay away from them.
1. Predicting with Forex Charts
A common mistake made by inexperienced forex traders (and some more seasoned),is thinking they need to predict to get profitable results – but of course this is simply hoping or guessing and is destined to see you lose. If you use charts the correct way, you will trade using the price changes and trends, you will not need to predict.
There is a big industry in forex trading that says prices move to a scientific theory and you know what will happen next – but of course, if prices did move to science, we would all know the price in advance and there would be no market.
Do not set yourself up and believe the prediction nonsense – make all your trades using reality of price change i.e. if a price comes to support, don’t predict support will hold, wait for it to move the other way and trade based on the fact it has held.
Another great way to trade is to trade now breakouts to new highs or lows – it is a proven fact that most big moves start from these breakouts, so you should make breakouts a consistent part of your forex trading strategy.
2. The More Inputs the Better
You may think five or six indicators must be better than one or two – very wrong!
The more inputs the more….

Forex is the worlds largest financial market where exchanges reach up to trillions of dollars each day. It is also the most liquid market in the world where trades are done 24 hours a day, 365 days a year. Many people would really want to participate in this market. Who would’nt get attracted to trade in the largest financial market in the world?
If you are a regular person with a 9to5 job who is looking for a way to earn extra money, you should consider entering the Forex market and trade. However, it also has its risks and people who have traded in Forex without the proper knowledge and skill have lost large amounts of money. Some have suffered extreme financial losses. This is why it is crucial for you to have enough knowledge and skills when you trade in the Forex market.
But Forex trading have improved with technology, it is now possible for you to trade in the Forex market like a professional even without in-depth trading skills with a lot less risk with the use of the Forex robots. With an auto pilot program, it is easier for you to trade in the Forex market and earn that extra money you want. This software can run 24 hours a day and therefore, giving you the advantage of not missing any money making opportunities when the Forex market changes. You can trade every hour of every day even while your sleeping or at work. With this benefit, you will never miss another potential profitable day in the Forex market.
However, before you subscribe to any Forex Trading robot, you have to first decide if the software can really trade effectively and efficiently to your advantage. Here are a few of the features you consider:
* 24 hour a day operation – You want this feature in a Forex trading robot so you will never miss a money making opportunity.
* Minimum investment requirements – Investments in a Forex trading robot should be minimal in order for you to afford it.
* Trading automation technology – Since your money is at risk, you should choose a Forex trading robot with the latest trading technology existing in the market today.
There are hundreds of Forex Robot programs available online, all offering advance features and a promise of big profits overnight, but which one can really deliver? On a recent consumer survey, two Forex Robots stand out in the market. The choice is based on the following criteria: % of the success rate, easy to install and operate, good customer service, great features offered and affordable price for the program. They are FAP Turbo and Forex Maestro.
1) FAP Turbo : The Real Money Forex Robot – For the last 9 years, FAP Turbo has averaged 95% success rate in spotting the winning foreign exchange trend signals on a live account.
2) Forex Maestro – The Maestro system of picking and choosing profitable trades has an average success rate of 91.25%. This forex robot has never had a losing streak that lasted longer than 2 trades. This equates to a little over 9 Winners for every 10 trade it makes.
These Forex trading robots are perfect for someone who wants to get involved in the Forex market but don’t have the proper knowledge and skills to trade currencies. It is also great for people who are afraid to invest their money in Forex. You can also benefit from these Forex trading robot if you want to concentrate on your day job and still earn cash in the Forex market.
However, you should always remember that in Forex market, you need to invest money to earn money. You should only invest the money you can afford to lose. Although a great money-maker for lots of people, it also has equal risks that may cause you to lose money. With the use of a Forex robot, you will be able to minimize the risk of losing money and increase your chances on earning potential. You will never miss another trading day at the Forex market and can take advantage of great market trends.