Forex Trading System» ForexGuy

Forex Trading Strategy and Identifying Trends For Fun & Profit

ForexGuy — Thu, 14 Jul 2011 19:56:12 +0000

It is crucial that Forex (FX) Traders formulate a good trading strategy, before starting to trade. The best way to ensure the minimizing of losses and maximizing of profits would be to stick to a good, firm trading plan. It is also important to have a balanced attitude towards trading.

There are two general and recognized forms of analyses in forex trading when formulating strategy: fundamental analysis and technical analysis.

Fundamental analysis is a way of observing the external environment, i.e. economic, social and political forces that may affect the demand and supply when currency trading. For example, if the US economy would take an upturn, with rising employment and high interest rates to control inflation, then the US Dollar would increase in value. A trader would take this information and buy the US Dollar against as EUR. In fact the EUR/USD is the most popular traded currency pair on the Forex market. This action is an example of using fundamental analysis.

Technical analysis is when forex charts and historical price trends are used to study and determine future price movements. Traders are often encouraged to trade in the same direction as a trend, based on technical analysis. In addition to charts, this analysis includes utilising a sophisticated range of oscillators and indicators. This study is a complex skill and can take several months of study; however the very basics can take only a matter of weeks to understand.

Dedicated traders will often use a mix of fundamental and technical analysis to make the best decisions.

Identifying trends is largely what Forex trading is all about; the ability to do so and exploit them can result in significant profits. If a trader correctly judges an uptrend, buying the currency pair will increase their chances of gaining profits. If they recognize a downtrend, selling the pair will likely be profitable.

Trends can be identified through distinct patterns of price movements. When a currency is trending, peaks and valleys can begin to form. In an uptrend, a trader will see what is known as higher highs and higher low. This is when a series of peaks and valleys are generally moving upwards.

It is generally best to trade with the trend, rather than relying on the trend going in the opposite direction.

Please visit our site where information on Forex Trading Platform’s along with help and advice on forex trading systems can be found.

How to Set Up a Trailing Stop in MetaTrader 4

ForexGuy — Thu, 02 Jun 2011 14:56:19 +0000

A trailing stop is one way of managing your trades in Forex which allows you to stay in a winning trade and reduce your risk as you go. One way of managing your trade exits is simply to exit your trade when you hit a certain target profit—but if you’re already in a winning trade, you might want to consider staying in if you don’t get any clear indication that it’s time to get out. After all, what if your hourly trade is the beginning of a trend which will last for days or weeks?

If you do choose to stay in a trade for a long time though, you want to reduce your risk as you go. The way to do this is to use trailing stops which follow your trade as price moves in the direction of your trade.

You can “trail” a stop manually or automatically. To trail a stop manually, you simply move your stop order yourself as your trade advances. For example, if you hit your original target, you could move your stop to halfway and then wait. That way you’ve protected half your profits in case of a reversal. At that point you’re in a “risk-free trade” with a guaranteed profit. Once your trade moves along, you could then move the stop up further toward your target profit. If success continues, you would move the stop past your original target and so on until you finally decide to exit or get stopped out.

Some people don’t like doing this manually and want the stop to move along with the trade a certain distance behind price. FX trading brokerage allows most platforms to do this for you. You can also set MetaTrader 4 up to do this automatically.

To create a MetaTrader 4 trailing stop, keep these guidelines in mind. The stop should not begin trailing until you are at a point where you are going to profit or breakeven if a reversal occurs. The stop must trail in the direction of your trade and the buffer space it creates should be constant.

In MetaTrader 4, right click on the order you want to set the trailing stop for in your Terminal window and navigate to the Trailing Stop submenu. You can either use a preset pip value from the list or you enter a custom number.

One drawback of MetaTrader 4’s system is that it doesn’t work properly with the extended quotes (extra decimal points) offered as a function of some FX trading brokerage. You also can’t set a stop lower than 15 pips, which is a problem for scalpers. To get around this, you can search online and download a trailing stop expert advisor which you can then load into MetaTrader and use as needed.

Don’t forget that you can still do this manually if you want. It does keep you involved, though it can be inconvenient if you are unable to be near your computer or mobile device. What you can do is look for support and resistance levels and set alerts when price reaches those levels. That’s often a good time to move your stop forward. Plus, while you can’t set an automated trailing stop to vary in buffer space in a logical manner, you can do it yourself as a discretionary trader and be perfectly rational about it. Whatever method you choose to set your trailing stops, do a few demo tests to make sure that it’s the best method for you, since whatever you choose will have some kind of measurable effect on your profits and losses.

Forex Indicators – Using Bollinger Bands

ForexGuy — Thu, 26 May 2011 16:02:39 +0000

Forex Indicators – Using Bollinger Bands

One of the most commonly used indicators in the Forex market is the Bollinger Band. Bollinger bands are a tool that you can find on the popular Metatrader platform and they can help you determine the volatility of the market. Here are the basics of Bollinger bands and how they can be used to trade the foreign exchange market.

Accessing Bollinger Bands

Gaining access to the Bollinger band indicator is simple. You simply need to open your Metatrader platform and open the chart that you want to analyze. Then go up to the “Insert” tab at the top of the screen. From there, click on “Trend” and then select “Bollinger Bands.” At that point, the indicator will appear on the chart that you opened.

Measuring Volatility

The main purpose of using Bollinger bands is to determine the volatility of a currency pair. When you look at Bollinger bands, you will see a set of two lines. One line is situated on either side of the price line. When the lines are close together and close to the price, it means that the market is not very volatile. It is not moving much and there is very little action at that time.

when the bands spread apart, this tells you that the market is very volatile. At this point, you know that a lot of people are trading the currency pair and the price of the pair is usually moving one way or another.

Support and Resistance

One of the basic concepts in Forex trading is that of support and resistance. Support levels tend to provide a floor for the market while resistance levels tend to provide a ceiling. Bollinger bands can also be used as a type of support and resistance indicator.

When you look at a Forex chart, you will notice that the price tends to bounce up and down between the Bollinger bands. Once the price gets up to the top band, it usually turns around and bounces back towards the bottom. On the other side, price usually moves back up after it touches the bottom band.

When trading the market, you can use this knowledge to help predict which way the price is about to go. You can also use these bands as a guide to help set your stop loss and take profit levels.

Putting it To Use

Bollinger bands can be useful when trading the market and they are often combined with other indicators to help make trading decisions. Play around with this indicator on a demo account until you feel comfortable with how it works. It could help you take the next step in becoming a profitable Forex trader over the long-term.

Technical Analysis 3 for the Professional Forex Trader 2010

ForexGuy — Fri, 20 May 2011 21:05:10 +0000

Learn the Technical Indication secrets the Forex pros use! Part 3 Technical Analysis offers many insights into how the Forex market works. You will benefit greatly from a good foundation in each type of insight and, perhaps, a specialty in one or two. This course is designed to teach you classic Technical Analysis and form a rock solid decision support program, the foundation for everyone when it comes to trading. In this continuing series of Technical Analysis the focus shifts to the mathematical derivatives of a price and volume over time. In this course, you will learn how to truly understand and use Indicators for what they were designed for. In Part 3, You will learn to use Technical Indicators for the trading of Forex. We will explore their proper use and evaluation and dispel many of the bad beliefs many have been given by the "guru's". We look at a variety of Oscillators (MACD, RSI, Stochastics) and Momentum Indicators (CCI, ROC), as well as a Volatility indication, such as Average True Range (ATR) and Bollinger Bands. We show you which are the right combo's as opposed to having your screen loaded with squiggly. We discuss in depth the true nature of the Indicators - how they work, why they work or do not, when to use them and when to lose them. There is plenty of use in Technical Indications, but too many do not "really" use them correctly. Come on - get on the right side of the trade. All of this is done in a clear, simple and concise manner to improve your FX trade entries and exits. Mike Mc Mahon will take you through the steps to creating high probability trades, using Chart Analysis, Technical Indication with Trend lines, Support & Resistance in combination so you have a clear picture of price, time, volume and the market expectations. The Technical Analysis 3 is part of the "Professional Forex Trader Library"-entire Forex education in one package!

High Probability Trading Strategies: Entry to Exit Tactics for the Forex, Futures, and Stock Markets (Wiley Trading)

ForexGuy — Thu, 19 May 2011 21:51:14 +0000

In High Probability Trading Strategies, author and well-known trading educator Robert Miner skillfully outlines every aspect of a practical trading plan–from entry to exit–that he has developed over the course of his distinguished twenty-plus-year career. The result is a complete approach to trading that will allow you to trade confidently in a variety of markets and time frames. Written with the serious trader in mind, this reliable resource details a proven approach to analyzing market behavior, identifying profitable trade setups, and executing and managing trades–from entry to exit.

Note: CD-ROM/DVD and other supplementary materials are not included as part of eBook file.

The Origins of International Economic Disorder: A Study of United States International Monetary Policy from World War II to the Present

ForexGuy — Thu, 19 May 2011 13:14:15 +0000

Beat the Forex Dealer: An insider’s look into trading today’s foreign exchange market (Wiley Trading)

ForexGuy — Thu, 19 May 2011 01:03:26 +0000

The foreign-exchange market is often referred to as the Slaughterhouse where novice traders go to get 'chopped up'. It is one of egos and money, where millions of dollars are won and lost every day and phones are routinely thrown across hectic trading desks. This palpable excitement has led to the explosion of the retail FX market, which has unfortunately spawned a new breed of authors and gurus more than happy to provide misleading and often downright fraudulent information by promising traders riches while making forex trading 'easy'.

Well I'll let you in on a little secret: there is nothing easy about trading currencies. If you don't believe me then stop by Warren Buffet's office and ask him how he could lose $850m betting on the dollar or ask George Soros why his short yen bets cost him $600m not once but twice in 1994. What's wrong with these guys, don't they read FX books?

In reality, the average client's trading approach combined with the unscrupulous practices of some brokers make spot FX trading more akin to the games found on the Vegas strip than to anything seen on Wall St. The FX market is littered with the remains of day traders and genius 'systems,' and to survive in the long-run traders have to realize that they are playing a game where the cards are clearly stacked against them.

Have you ever had your stop hit at a price that turned out to be the low/high for the day? Bad luck perhaps? Maybe. What if it happens more than once? Do you ever feel like the market is out to get you? Well guess what, in this Zero Sum game it absolutely is.

Covering the day-to-day mechanics of the FX market and the unsavoury dealings going on, Beat the Forex Dealer offers traders the market-proven trading techniques needed to side-step dealer traps and develop winning trading methods. Learn from an industry insider the truth behind dirty dealer practices including: stop-hunting, price shading, trading against clients and 'no dealing desk' realities.

Detailing the dealer-inspired trading techniques developed by MIGFX Inc, consistently ranked among the world's leading currency trading firms, the book helps turn average traders into winning traders; and in a market with a 90% loss rate winning traders are in fact quite rare! More than just a simple manual, Beat the Forex Dealer brings to life the excitement of the FX market by delivering insights into some of the greatest trading triumphs and highlighting legendary disasters; all written in an easy to read style.

Make no mistake about it there is a lot of money to be made in currency trading, you just have to know where to look. Sidestepping simple dealer traps is one way of improving your daily p&l, but it is surely not the only one. Successful trading comes down to taking care of the details, which means skipping the theoretical stuff and providing only up-to-date, real-life examples while sharing the FX trading tips that have proved so profitable over the years. By stripping away the theory and getting down to the core of trading, you too will find yourself on the way to beating the forex dealer!

Attacking Currency Trends: How to Anticipate and Trade Big Moves in the Forex Market (Wiley Trading)

ForexGuy — Wed, 18 May 2011 12:11:35 +0000

The guide for reading long-term trends in the foreign currency market

To thrive in the marketplace traders must anticipate, enter, and stay with trends in the foreign exchange market.

In this much-needed guide top forex, expert Greg Michalowski clearly explains the attributes of successful traders, and shows how traders can set themselves up for success by drafting an explicit mission statement and game plan. The book also contains the tools and techniques traders need to read the markets and identify when a market is in a trend. Michalowski shows traders how to enter an emerging trend, how to manage the position, and how to exit the position most effectively.

Includes the technical tools needed to invest in the foreign exchange market: moving averages, trendlines, and Fibonacci levels
Shows how to identify a trend and stick with the trend through its duration
Written by Greg Michalowski who was cited by SmartMoney magazine as a "go to" source for making money moves

With this book, Michalowski offers an important resource for identifying and riding out long-term trends in the volatile foreign currency.

The Forex Trading Course: A Self-Study Guide To Becoming a Successful Currency Trader (Wiley Trading)

ForexGuy — Wed, 18 May 2011 11:05:29 +0000

A pioneer in currency trading shares his vast knowledge

The Forex Trading Course is a practical, hands-on guide to mastering currency trading. This book is designed to build an aspiring trader's knowledge base in a step-by-step manner-with each major section followed by a thorough question-and-answer section to ensure mastery of the material. Written in a straightforward and accessible style, The Forex Trading Course outlines a practical way to integrate fundamental and technical analysis to identify high probability patterns and trades; and reveals how to develop a trading plan and appropriate strategies for different size trading accounts; how to control emotions and use emotional intelligence to improve trading performance; and much more. Filled with in-depth insight and practical advice, The Forex Trading Course will prepare readers for the realities of currency trading, and help them evolve and achieve success in this dynamic market.

Abe Cofnas (Orlando, FL) has been the forex trading columnist for Futures magazine since 2001. He formed Learn4x.com-one of the first Web-based interactive training sites devoted to forex trading in 2001 as well.

Making Money in Forex: Trade Like a Pro Without Giving Up Your Day Job (Wiley Trading)

ForexGuy — Mon, 16 May 2011 19:29:52 +0000

A practical guide to trading around the commitments of career and family

Making Money in Forex will help aspiring traders successfully enter this field while maintaining a job. With this book, author Ryan O'Keefe explains his own personal journey to becoming a trader and shows you how to follow a similar path.

O'Keefe describes his approach to trading and reveals his bargain hunting trading style, which is designed to capitalize on market trends. Throughout the book, O'Keefe pays a great deal of attention to trading psychology, learning to read price instead of indicators, and emphasizes that aspiring traders must find a strategy they are comfortable with and can implement with confidence.

Addresses how you can successfully trade around the demands of your job and personal life
Reveals the author's "bargain hunting" style which can be used to reduce risk and maximize profit
Discusses how common trade management techniques may impact overall performance
Provides insights into structuring trading to minimize stress

Written in a straightforward and accessible style, Making Money in Forex utilizes a conservative approach to trading that will help you build your trading competency over time.