Forex Education for Your Future

Here's a statistic that may shock you.

Of the 77 million Baby Boomers in the United States planning for retirement in the next 10 to 15 years, 75% are hurtling towards unexpected financial difficulties, including having to go back to work. Unfortunately may people won't realize how ill-prepared they are for retirement until it is to late...

Here is my recommendation. Get you financial education now!

And while you're at it, a Forex Education with Forex Journey is the way to go.

Now let's fast forward a few years and you have taken he time to invest in your Forex education, which is truly an investment in yourself. You have learned to control your risk. You have built up your account where it alone can support your retirement needs.

Plus, you can continue to grow your account trading just a few hours per week. Your skills are easily transferable to the stock and futures market. In fact, why even wait until you're retirement age start building your life now and perhaps your dreams are closer than your think!

This is all possible if you take a proactive approach and get educated!

Happy Trading!!

Pips or Pairs ?

Iam writing this funny blog just because my beautiful daughter wants to learn how to write blog and get a little money. Anyway I wasted my time because of this blog but I need to encourage her how to start business and not just rely on other people. That's why I even "throw away" all my holy grail ( my holy grail and not yours, don't misunderstand). Rubbish for others might be gold for me if I use correctly. He.....he..he....

Let's get to the above phrase " Pips or Pairs ". Some traders are sticked to one or two pairs in their trading as if no more other profitable pairs outhere. The problem is that how can you trade if your loving pairs can not give you signal or your pairs range only 30-50 pips on a particular day ? Are you going to stay with them or you get other pairs which might be unusual for you but give a good signal. A kot of new traders lose their trading because of just waiting their loving pairs to give signal but when it can not give it they just take and gamble.

Remenber..we want to make pips and not to love the pairs. I don't care about the pairs and I don't need to know them deeply. Iam not a banker. For beginners we can understand that one or two are better choices during their journey to the winning pips. But foe thore who has started to trade in real account, we should avoid it.

Right or wrong, my country...that's true..but BRIT/USD or USD/CAN..I don't care..I need only Big wave and big pips. That's all.




Look at the chart..it's trending and we make profit..That's what we like.

Once you need to trade what I suggest is to look for the trending pairs and not your favourite pairs. Once you find it, use your indicators and finally get the pips.


Happy trading

Krisman

The Power of Expectation

One of the most powerful emotional triggers we can bring into our trading is the power of expectation. Expectations are the fuel that makes our trading goals seem to rush towrds us. Therefore, setting postive expectations is a critical component of our emotional mindset, especially when we are trading.

Here are some thoughts to help you set profitable expectations before beginning your trading session:

• Trade to be great! Enter every trade with the expectation of making profit and not losing money.
• Embrace the challenge of the market. It is through these challenges were growth lies.
• Don't focus on the results. Instead focus on the process and the results will take care of themselves.
• Believe in yourself.
• Commit that nothing will take you off of your "A" game while trading
• Be decisive and except full responsibility for the outcome.
• Have positive self-talk. Negative talk will lead to negative results.

Expect to be profitable even in the face of obstacles. You have a choice. You can move forward in action or backwards in fear. Positive expectations will promote the positive results and positive results in our business always leads to profit!

This is a sample of the trading methodology at Forex Journey. We go way beyond trendlines and chart patterns!

Happy Trading!!

ONE Indicator to make pips

Iam still trading now at 16:GMT May 22.2007. And Iam very happy.
I don't need to tell you why Iam happy...because the screenshot
of my chart will tell you...he...he...he....

Iam sure that most of you will be happy to see that chart if the
trading belongs to you, right ? You don't need to be a genius
to make pips...believe me. Never trust Signal provider !!! They
will rob your money.

Trading is simple....but your mind also should be simple..that's
all. Do not assume that you are writing a thesis for your Master
Program where you should write longer to show that you are an
educated student. Many people think so "the longer the better"
but not me...in trading...the shorter..the better.

You don't trust me.....look at the popular forex forum, there are
so many good and free strategy there..but most of the traders are
still looking for 'holy grail'. Do you think they find it ? No..they
lost their money just like in gambling table.

They never control their mind but just think like a master who needs
longer strategy. They don't like to use the simple strategy because it
can not give them satisfaction. Their mind is complicated.
I think that's all.

Let's get to the point.

Chart : I Hr
Indicator : Download here

Signal

Go LONG if you see BLUE DOT
Go SHORT if you see RED DOT

Exit

Pls get out of trading when you the NEXT DOT.

Note :

When you have downloaded the indicator, copy it to your
directory of Metatrader :

C:/Program Files/Metatrader 4/Experts/Indicators

Once you have placed the files in the relevant directory
depending on your setup), restart the trading software
and look for the indicator under "Custom Indicators".
Drag it to the relevant charts and enjoy better profits
from that indicator.




Happy trading

Krisman

Detecting trend reversal on Forex

I know that: "How to detect trend reversal?" maybe a thought question with very complex answer but I will try to make my take on it, and keep it very simple and understandable.

So let’s get started, obviously when trying to detect trend reversal on Forex you have to use tools that were designed for it. You can’t predict it with MACD or RSI because they are trend following indicators. Indicators designed to predict trend reversal are … candles. Japanese always traded reversal strategies, European and US traders are almost always trend following traders.

If you don’t know how to interpret forex candles then do a search on web and find some info, reading correctly candles is easy and you have to know it. Although keep in mind I do not recommend using them on charts smaller then 4H.

Of course … relying only on Japanese techniques can be quiet deceptive so we need something more reliable, we need to have an angel. Trend reversal candles can happen anywhere on the chart, will they always mean end of the trend? … No, the really important candles are those which can be found near support and resistance levels. We want to know if this particular level will be broken or not.

Let’s pretend we have reverse candle near support, is it time to buy some lots? Again the answer is NO. Take your time, the next candle should be white which is confirmation that trend was reversed, there can also be consolidation period near resistance level, which is usually another sign that trend is reversing, in this case I would put long order at the resistance of consolidation block.

Where to put stop loss? I put it about 100 – 200 pips below my order depending on situation. I mean if important resistance or support line is broken and price move fast in opposite direction (eg. 100 pips) then there is really no point in holding this position any longer, trend wasn’t reversed.

Well, I hope this helps some of you, but if you are going to use this techniques then keep in mind they apply to longer timeframes! I use it with 1D charts, if you will use it with 15M chart you are going to blow yourself out.

Taking a Cue from the Past

Last night I was doing some much needed spring cleaning in the office. I was going through that box in the closet. You know the one? The one that has been sitting there for years and you say every year you are going to get to it!

I was going through this box and it was like going down memory lane, but one of the items I came across just floored me. Back in my early days of trading the Forex market I use to write out cue cards of areas I was struggling with adjusting to the new market. Prior to driving into currencies I traded the stocks and options entirely on end-of-day trading, and jumping into the hustle and bustle of the Forex market brought a new level of emotional intelligence.

I thought you might enjoy excerpts from my cue cards. I still use them, now they are just internalized!

Cue Card #1: Daily Check List, Set up charts, review economic calendar and news, review the big picture, are the charts reversing or retracing, acceptable reward -risk ratio, why not take the trade, pull the@#$% trigger! An finally, journal results

Cue Card #2

#1 - ALWAYS REVIEW AND PREPARE

#2 - ENTRY DECISIONS ON COMPLETED CANDLES ONLY!!

#3 - SET STOPS CAREFULLY

#4 - DO NOT TRADE AGAINST THE TREND

#5 – RISK LESS IF SECOND RETRACEMENT OF MOVE

On another note…

I am getting a lot of questions about Forex Journey training. Mainly around how and where we teach. To the latter, we do daily live online training in our trading room. This room is a live, online interactive room where we are both training live at the beginning of the New York session. Your membership gives you access to this room every morning.

In the room we follow trading rules based on the Forex Journey principals of integrating candlestick and chart patterns, as well as our comprehensive approach to Fibonacci studies. While training in the room buy and sell opportunities are set up, but during the moment of truth, the decision are left to the individual traders. . Money management techniques demonstrated and trading psychology is always on the menu.

Trading in our room is the perfect way to learn to trade the Forex market. Our techniques are potable to any liquid financial market, and will lead confident and discipline trading.

Click here to begin your Forex Journey!

Happy Trading!

Let's Catch BIG PIPS

A few weeks ago my friend send me avery simple strategy
And I want to share with you the strategy. Please read on.
This system will have you miss many opportunities. You might
still say to yourself "I shouldn't have closed that position"
or "I should have gone the other way," then odds are that
you will try to modify the system for better entries and exits
and eventually you will make it either far too complex to be
practical, or a loser. If you want to modify it, please make a
new website about it so that the beginning traders don't get
confused when they try to apply what they just learned to their
trading.

I expect many of you to brush off the system as bad once you
get to the chart setup section. Why? Because you probably have
tried something very similar when you first started and gave up
after the first few losses. This is what happened to me when I
started as well... But enough of this, let's get to the system.

The System:
The system is based on what I mentioned previously, all
commonly accepted principles of successful trading: go with
the trend, cut your losses short, let your profits run.

Currency Pair:
First we need a currency pair that trends. Most crosses
accomplish that rather well so we'll pick EUR/JPY.

Timeframe:
As we mentioned before, small time frames are ideal for whipsaws,
so for the sake of our profits and for practicality purposes
we'll stick with a middleweight time frame: H4. That way, we'll
only have to look at the market for a few minutes 6 times a day.
Only place your orders and limits right before the open of the
new H4 bar.

Fundamentals:
We won't bother with fundamental trading here, this is for
the advanced traders who are able to handle high stress situations.
The system will force us to protect our position against any
adverse fundamental movement anyway.

Chart Setup / Indicators:
This is where I expect most of you to roll your eyes. We'll
use two indicators for this system: one for entry and one for
exit.Open your 4 hour chart and place a Simple Moving Average (SMA)
with a value of 39. This will be used for entry. Now add an
Exponential Moving Average of 13. This will be used for exits.
That's it, nothing more, nothing less. These two indicators in
themselves will get us in with the trend and let us ride our
profits.

Trading Rules
Entry: Go long when the price crosses the 39 SMA up from below.
Go short when the price crosses the 39 SMA down from above. The
best way to make sure you get your entry at the right price is
to put a limit order. If you don't have a position open, simple
put a limit order to buy or sell at the 39 SMA level.

Stop Loss & Reverse:
In the spirit of keeping the system as simple as possible we'll
use a fixed 50 pip SL&R. The point of the reverse order is to
make sure you are back in the right direction if the trend were
to change direction before you could take profit. Your reverse
order should also be protected with another SL&R.

Exit / Taking Profit:
We will trail our profits with the 13 EMA. In a long position,
when the price closes below the 13 EMA, exit the position for
a profit. In a short, when the price closes above the 13 EMA,
exit the position for a profit. Do not revere your position
once it's closed.

If the price closes below or above the EMA while in a loss,
don't close your position, let it run to the stop loss. This
will keep you from getting whipsawed too many times.

Money Allocation:
I like to open 1 lot per $10,000 I have in the account. As
the account goes up, increase the number of lots proportionally,
as it goes down, decrease the number of lots proportionally.
After a 50 pip loss, if you see a 50+ pip profit, you can
protect this position or even close it and start over on the
next trade.





There were two trades last week. The first one was a short
when the price crossed below the 39 SMA from above (red circle,
stop loss and reverse is the red line). We exited that trade when
the price closed above the 13EMA (black circle). We placed a
Buy Limit at the 39 SMA. This was triggered within 4 hours and
now we had a buy (blue circle) with a 50 pip SL&R (blue line).
The trade is still going. It will be closed once the price closes
below the 13 EMA.

Behind the numbers:
13 EMA: Thirteen is Fibonacci number that many traders like
to use. I simply chose it because it trails the trends of
EUR/JPY nicely.

39 SMA: This is three times thirteen. Plotted for longer
term trend.

50 pips: I used this number on the first page to explain the
idea behind the SL&R technique. I kept it in the system for
good measure.

I need only Big PIPS

You might frequently win small pips ( 5,8,10,13 pips) when you are
trading some pairs. I don't like to have such small pips. They are
'peanuts" and make me suffer. As I expained many times there are
some good free strategies out there to choose. It's you to familiarize
with some of them in your trading.

The above statement may sound stupid for all of you, but to me 'not at all"
because Iam a passive trader but with active money. I could not imagine
how someone to sitting still in front of their desktop just for 8, 12, 0r 14
pips. It's a terrible way of making money in forex trading. I'd better put two
trades per day and get 200pips rather than win 10 tradings but only maing
100 pips. The more you trades teh more you loose.

What's the strategy I use ?
Lets look at your directory, you might have this one :

In order to create a trend line, it is necessary to locate the two
points to create the trend line. In this example we will be talking
about a demand trend line (uptrend). An uptrend is created when
demand exceeds supply; this is where the name demand line is derived
from.When choosing the points to create a demand line we are focusing
on points of support. True points of support are only those which
low has two candles to the left of it and two candles to the right of
it which lows do not exceed the low you are using. See the examples
below for reference of true support points.




In the chart above, I have marked the two points that will be used to
create the demand line, remember only two points are used to create
our trend lines. Notice how I refer to the most recent point of support
on the chart as the 1st point, remember we trade the most dynamic
market in the world, right to left is the key. To find the second point
of the demand line we look for the very next point of support that has
two candles to the left and two to the right that do not exceed the low
of the support point.



Once we have created of trend line, our next step is to use this trend line to
create a downside price projection once the market opens a candle on the
four hour chart below the demand line. Note I only say once the market
opens a candle, mentioned nothing about close because only the open of
a candle is necessary to create the price projection. The price projection
is created this way; you take the highest high created above the demand
line and mark it with a vertical line. As pictured in the example below:




Next you need to take a horizontal line and mark the point where the
vertical line coming from the highest high recorded above the trend line
intersect with the trend line. What seems complicated at first will be
much easier observed and understood in the example below




Note the two values listed on the chart. In the next step we take the
difference between the highest high recorded above the demand line
and the point where the demand line is intersected by the vertical line.

Highest High 1.9146
-
Point of intersection 1.8960
0.0186

We get a difference of 186 pips. This number becomes our price
projection. The final step in the process is the point of application
of the price projection. The price projection will be 186 pips to the
downside once a four hour candle has opened below the demand line.
It is key to become accustomed to this technique because price usually
reacts quickly to the downside once a candle has opened beneath the
demand line. Valuable pips will be lost if the trader does not react
quickly in many cases.



The price projection is made at the open of the first candle to open
below the demand line. For visual reasons above the candle has closed
also, but the price projection should be projected immediately following
the open of the candle. Remember, we don’t need the candle to open
and close below the demand line in order to make our price projection,
only the open is needed. Above in the example, we have an open value
of the first candle below the demand line at 1.9010. From this value we
will subtract the 186 pip difference we got from step 2.

Open below demand line 1.9010 -
Difference from Step #2 0.0186
1.8824

1.8824 becomes our price projection to the downside from the open
of 1.9010. This is a 186 pip potential trade.




Notice the price projection marked at the bottom of the page. The
line was place 186 pips below the open of the first candle below the
demand line. Let’s see the trade just one candle after entry




Note the rapid decline in the value of the currency once it breaks the demand
line. Let’s see if it reaches the full price projection




Notice how price fulfilled the 186 pip price projection. What may seem at
first to be a complicated task, once reviewed and practiced by traders
becomes a very easy and profitable way to trade. Trend line projections
give the trader the best overall view of where the market will be going. In
the above examples we have discussed demand lines and the downside
price projections once the demand line is broken. In the next section we
will discuss supply lines and the upside projections that are created from
supply line breaks. The same technique is used in both instances except
you are using know a supply line instead of a demand line and you will be
projecting a upside breakout instead of a downside breakout

----------------------------------------------------------------------------
In order to create a supply line, it is necessary to locate the two points that
create the supply line. Remember that a supply line is the same thing as a
down trend line. A supply is created when supply exceeds demand; this is
where the name supply line is derived from. When choosing the points to
create a supply line we are focusing on points of resistance. True points
of resistance are only those which high has two candles to the left of it and
two candles to the right of it which highs do not exceed the high you are
using as your point of resistance. See the examples below for reference
of true resistance points.




Notice how both points of resistance have two candles to the left and
two candles to the right that do not exceed the high of the resistance
point being used. Next we connect these two points of true resistance
to create our supply line.



Once we have created the supply line we want to draw a vertical line
through the candle that has the lowest recorded low below the supply
line. From this line we want to record the value where the vertical line
intersects the supply line and also the value of the lowest recorded low
beneath the supply line.



By calculating the difference of these two values we arrive at the price
projection pip value. In this example we want to perform the following
equation:

Value of trend line a lowest low intersection 141.75
-
Lowest recorded low beneath supply line 139.72
203 pips

We have now arrived at a projection point of 203 pips to the upside from
the open of the first candle above the supply line.





We are now waiting for the first candle to open above the supply line
so we can add 203 pips to that to arrive at our exact price projection.



The first candle has opened above the supply line so it is possible to
calculate the price projection by adding 203 pips to the open price.




Price projection of 203 pips targeted. This concludes the section on
supply and demand line breaks and price projections. Attached are
several power point examples to help you better understand this
technique.


Happy trading

Choosing a Profitable Strategy

Profitable Strategy
How to choose a Profitable Strategy
Amazing Forex Strategy can be found alot now in internet. And we
become confused which one to choose because most of the owners
published they have the best one and they make profit, they make
pips.....and bla..bla.....bla..... Some of traders believe and
used it. You might also has tried to use some strategies event-
hough you never feel 100% happy, right ?

I think you have also tried a lot of them but still kept on
searching for the "holy grail". Don't do it ! We are not learning
phisics or mathematic, and you willl never find it because the real
fact we are facing the human behaviour who run their money in the
world markets. What can affect the markets now, tomorrow might be
different. What I can share you here is the way how you start
choosing a strategy ;

Simple

The strategy must be simple and could be used or practiced in a
very short time after you install into your chart. We can not
spend much time just to insatall the strategy everytime we start
trading. It will disturb your mind.

Validity

If you use a strategy, can it give you a valid signal or just a
wrong signal. We can check it by dragging your cursor back to
the previous time. Does the strategy release Signal ? You can
directly check out the performance since last year,week,day or
hour. You don’t have to use backtesting software to do it for you.
The strategy will tell you a good signal in the chart if it is
really profitable.

Intraday

Some writers said intraday trading could not be profitable because
economis situation or fundamental can not be changed only in a day.
And they bring us to the long trading (weeks ). To me..it’s funny…
how can you determine your stop loose in a week if the currency
goes against your direction. Can you spare your Stop Lose for 300
or 500 pips if the chart /currency goes against your direction and
wait until it reversal ? You can’t do that. The best one is
intraday and just make 100 -200 pips per day. That’s enough, you can
continue the next day. Don’t sacrifice your healthy life in fron of
your PC. It will destroy your emotion, attitude. Trading is simple
and don’t make it difficult.

Can you tell me one Simple Strategy here ? Why not.. this is a very
simple one but profitable and easy to follow . And Iam sure that it
has been widespread in many forums but most traders tend to search
a complicated one;

- 1H (of 30MIN, but you wil get wore whipsaws) candlesticks/bar charts
- 18 EMA & 28 EMA (put them in red)
- 5 WMA (in blue) & 12 WMA (in yellow)
- RSI = 21

The 18 EMA & 28 EMA are two red lines who form a tunnel, these will
help you to determine the start of a trend and the end of a trend.
Long term

The WMA & 12 WMA will show you when to enter a trend, they will also
help you to see the strenght of the trends. Short term

Entry Signals
You should only open a position, when the red tunnel is extremely
narrow or crossed !

LONG: 5 WMA & 12 WMA cross the red tunnel upwards.
If the 5 WMA also crosses the 12 WMA upwards, then the signal is
extra strong.
RSI >50

SHORT: 5 WMA & 12 WMA cross the red tunnel downwards.
If the 5 WMA also crosses the 12 WMA downwards, then the signal
is extra strong.
RSI<50

Exit Signals

Signals that show the end of the chosen trend
- Long: The price has reached a top and 5 WMA dives under 12 WMA
Close position

- Short: The price has reached a bottom and 5 WMA jumps above 12 WMA
Close position

Always close your position when boundry’s of the red tunnel cross
eachother or when they become so narrow that they are one! This is
a clear sign of a trend reversal. After you see this, close your
osition and open a new postion in the other way (If you were long,
close, open a short postion)

When in a trade and the 5 WMA & 12 WMA cross the red tunnel ->
Pay attention! As long as the red tunnel boundy’s doesn’t cross
eachother there is no problem, but often this is a sign that they will!.


Look at the chart,









You can observe now how easy to use the simple strategy. Try to practice it now and get profit.

Happy trading.
Krisman Situmorang

How many System for trading ?

Iam sure that you have at least one strategy now for trading, and you
might loose or make money from it. But one strategy is enough ?
Many traders stick only to one strategy for his trading. Is it effective ?
The answer is NO.

Let's see the consequences; Normaly passive or active traders will start
to trade at once when they are in front of their desktop eventhough their
strategy did not give the signal. And at the end they will quess or gamble.
One strategy might not give you a signal everyday and you might not be
in front of your desktop when the signal released. Tha'ts why you must
needs more than one strategy. If one can not give the signal,the other one
could give you or even all can give you at the same time.

The most impostant things is that all the strategies have their own sensitivity
toward the price direction especially when the price not trending.

This is the most difficult situation that strategy catch..but sometimes if the
strategy can catch the signal, it will be powerfull and making a very big profit.

And now..it's your choice to stick to only one or get some other new. One
strategy will force you to gamble or to guess when it can not give you a
signal at the time you are ready to trade. You must avoid this critical situation.

Last time I have a good strategy which I purchased in internet, but it did not give
me signal everyday I could not wait...for a long time not to trade..and fimally
quess or gamble...and as a matter of fact I lost my trade. When the strategy or
system gave the signal, I was not in front of my PC. It can also happen to you.

Trading will involve your emotions your reaction, attitude, the difference is only
their level. This is the reason to choose more than one strategy to satisfy your
emotions . He...he.....he....

Happy trading

Krisman

Simple Winning Method

Introduction.

I first started trading when I was 15. I was fond of the stockmarket, but due to my limited capital I could only buy one share. When I eventually choose the stock I wanted, It didn’t go up or down. It just kept bouncing around. In the end, I sold the stock with a 5% loss.

I was still following the stockmarket, but I decided for myself I needed something more volatile with more leverage. I discovered options, futures an CfD’s. But they still were to unpredictable.
Eventually, I found my holy grail: Forex. I read all what I could read about it and made some first profits.

I discovered the power of something as simple as the BGX system or Vegas.
I started studying these methods more closely and realized that these simple models could make you very profitable in the long run.

Over time, I started to adapt the systems with my onw rules. The biggest advantage of the Sidus Method is that it is not necessary for adding extra filters. Whipsaws will occor, but less frequent. This system made my trading very profitable as it easy to understand, easy to implement and easy to find the right entry-points.


SIDUS

What do you need?

- 1H (of 30MIN, but you wil get wore whipsaws) candlesticks/bar charts
- 18 EMA & 28 EMA (put them in red)
- 5 WMA (in blue) & 8 WMA (in yellow)

The 18 EMA & 28 EMA are two red lines who form a tunnel, these will help you to determine the start of a trend and the end of a trend. Long term

The WMA & 8 WMA will show you when to enter a trend, they will also help you to see the strenght of the trends. Short term

Entry Signals

- You should only open a position, when the red tunnel is extremly narrow or crossed !

LONG: 5 WMA & 8 WMA cross the red tunnel upwards.
If the 5 WMA also crosses the 8 WMA upwards, then the signal is extra strong.

SHORT: 5 WMA & 8 WMA cross the red tunnel downwards.
If the 5 WMA also crosses the 8 WMA downwards, then the signal is extra strong.









Exit Signals

Signals that show the end of the chosen trend:
- Long: The price has reached a top and 5 WMA dives under 8 WMA Close position
- Short: The price has reached a bottom and 5 WMA jumps above 8 WMA Close position

Always close your position when boundry’s of the red tunnel cross eachother or when they become so narrow that they are one! This is a clear sign of a trend reversal. After you see this, close your position and open a new postion in the other way (If you were long, close, open a short postion)

When in a trade and the 5 WMA & 8 WMA cross the red tunnel -> Pay attention! As long as the red tunnel boundy’s doesn’t cross eachother there is no problem, but often this is a sign that they will!


Happy trading,

Krisman

No reason to lose money in Forex

There is no reason to loose money in Forex


Most of the writers / traders said that only few traders can make money from trading. Is that true ? How can you loose money while there are so tool which can help you beat the trading !.

If you are still newbie there is still new chance for you to make a lot of money after reading this article. I’ll try to help you as long sa you follow the rule. That’s all. Simple.

Technical Analysisis the biggest aspects that influences the trader’s mind and decision when start trading. Thousands of indicators even strategies and tricks can be easely found in many forex forums but only few make money ? Right. Why do you fail using technical indicators ? The answer is because technical indicators can not beat NEWS or Fundamental Analysis.

It means that fundamental news will destroy all your technical indicator or strategy, this is what so many traders forget when begin trading. They use technical indicators by not knoming fundamental analysis..
Herewith I will try to take a take a look at fundamental / news affects to your trading. So if you feel that you always loose your money , try just to follow this methode.
Every week there are some NEWS that will affect the price that you must know. They are :

1. NON FARM PAYROLL
2. TRADE BALANCE
3. INTEREST RATE STATEMENTS
4. DURABLE GOOD
5. PRODUCER PRICE INDEX
6. PPI excl. FOOD AND ENERGY
7. CONSUMER PRICE INDEX
8. CPI excl. FOOD AND ENERGY
9. TRICHET, BERNANKE, & FUKUI SPEAKS
10.UNEMPLOYMENT RATE

1.NON FARM PAYROLL
Remarks :
# Pip : 100 – 200 pips
# Country : USA
# Currencies : all USD pair

2. TRADE BALANCE
Remarks :
# Pip : 70 – 120 pips
# Country : USA
# Currencies : all USD pair

3. INTEREST RATE STATEMENTS
Remarks :
# Pip : >100 pips
# Country : ALL
# Currencies : all pair

4. DURABLE GOOD
Remarks :
# Pip : 50 - 100 pips
# Country : ALL
# Currencies : all pair

5. PRODUCER PRICE INDEX
Remarks :
# Pip : 50 - 60 pips
# Country : ALL
# Currencies : all pair

6.PPI excl. FOOD AND ENERGY
Remarks :
# Pip : 50 - 100 pips
# Country : ALL
# Currencies : all pair

7.CONSUMER PRICE INDEX
Remarks :
# Pip : 50 - 100 pips
# Country : ALL
# Currencies : all pair

8.CPI excl. FOOD AND ENERGY
Remarks
# Pip : 50 - 100 pips
# Country : ALL
# Currencies : all pair

9.TRICHET, BERNANKE, & FUKUI SPEAKS
Remarks
# Pip : 30 - 100 pips
# Country : E-12, USA, & JPN
# Currencies : EURO, USD, & JPY

10.UNEMPLOYMENT RATE
Remarks
# Pip : 30 - 50 pips
# Country : ALL
# Currencies : all pair


All the above news can be seen in this following site, It is clearly explained what news to be reased in the week and we have to bookmark this page to make us easier to look at the News everyday.

http://forexfactory.com/index.php?page=calendar


How can we start trading the news ?

TIPS 1 : NON FARM PAYROLL (NFP)
The Great in Forex Tradding

Check your calendar news this month , you don’t have to take care of what news to be released. Just remember that Every Friday of each month the avove news will be released at 12.30 GMT .

The effect of this news is really big (100 -200 pis) only in a few minutes. So lets try to put the TRAP against the price direction.

Strategy

- Before the news realesed, do not trade, but just
be prepared to trade on Brit / USD.

- 30 minutes before the news, open your
Metatrader ( Your chart station) with 30
minuts chart.
- Look at current price .
- BUY STOP at 30 pips above current price,
(example current price is 1.9050, so you put BUY STOP at 1.9080)

- At the same time SELL STOP at 30 pips below
current price, , (example current price is 1.9050, so you put
SELL STOP at 1.9020)

- Cancel one of them it the price starts touching the
charts.

- Set Take profit 100 pips
- Set trailing stop 15.

Trading on this news once a month will make you profit at least 100 pips without technical analysis. What yoy want to see is the schedule for that news on every month of the firs Friday.

For the other news you can do the same thing, and I am sure that every week you will make good profit whithout technical analysis that usually make traders confused and finally loose the trade.


Happy trading.

Note :
If you want to start your own business for free
Pls download the ebooks HERE
It takes only two minutes.

What is the best Strategy ?

The best Forex Strategy is one of the things you are searching for
in internet if you are a trader, right ?Have you found the best one
that can make you rich and produce a lot of money ? I don't think so,
WHY ? The reason is simple; there is no best strategy all over the
internet. One strategy might be working for you but can not work for me .

There are a lot of Free Forex Strategy that you can find and they can
work for you as long as they are "suitable" for your attitude,discipline
and emotions.

Lets take examples ; Simple Strategy ( consistig of 3 indicators) and
Complex Strategy( consistingt.of 8 indicators)

A simple one is the one that takes only a few second to decide or to
read the signal, and a complex one is the strategy that need you to
compare one indicators with other indicators and takes time to decide.

If you are kind of trader that can not sit in front of your desktop
for a long time,why you should you use a complex one ? You'd better
choose a simple strategy;quick and straight forward. And on the other
hand, if you are a trader that can observe your monitor all the
time you'd better choose a complex one.

I have used a lot of Forex Strategies; free and paid ones but only
few of them suits me. I really know that most of them work as
publishers advertised but not to all traders.

Six month ago I purchased one strategy and many traders said in
various forum that they can make money from the strategy but one
I used in demo platform I feel that I was just like studying
mathematics at High Scool, because I had to compare and look at
many indicators that used by the strategy. I could not do it and
Iam too old to do that like a school boys. But the funny things is
that I can still see my name in their testimonial.He...he...he...
And I know that the strategy is good but If I continue using it
with the real money I will loose. I could not follow that type.

As a guideline to you; you can try as many strategies as possible
but in demo version, and observe it whether you can relax using
the strategy or just a handicap for your trading.

You should learn how to choose and fit to your attitude. I believe
you will get the best one but for you.

In the next article I would like to write how to choose a good
strategy that can give you money.He..he...he...

Happy trading

Krisman

Note :
If you want to start your own business for free
Pls download the ebooks HERE
It takes only two minutes.

Which time period I use ?

Amazing Forex Strategy allways attcah timeframes of the data in
the chart, i.e, hourly,daily,weekly,monthly,etc as the basic princiles
of technical analysis. And now when you are about to trade which
one do you use to determine trend ? Winning opportunities exist

in any time frame but we must customize settings of technical
analysis for each time period.

On weekly chart, the scale interval on the time axis is one week.
On the monthly chart, corresponingly every bar shows price action
for one complete month.

It is obvious that in order to cover a longer period of time and to be
able to analyze long-term trends, we have to compress the price
behavior.

Weekly chart, for example, can determine a period of five years and
more, the monthly chart can determine twenty years or more. This is
how we can manage to see far ahead of her-/himself and that is how
she/he can assess the market in terms of the long-term opportunities,
which are really valuable while using or applying technical analysis.

Studying price chart very important for deep analysis and It is wise
to start by analyzing long-term charts and then move slowly to
short-term charts. There is less "noise" on the long periods, that is
why graphic models, basic trend lines
and different levels of support or resistance are seen more clearly.

If we start studying short-term market, later on, as the volume of
analyzed data expands, we will have to reconsider the conclusions
several times at least. In the long run, short-term results may even
change completely after long-term charts have been studied.

If we want to analyze longer periods first, we can establish where
the market is in terms of a long-term perspective. After that,
we could then turn to chart studies which cover shorter periods
of time. That is how profesional traders go from "macro" to "micro"
analysis. At the final stage of the analysis, we determine the point
of "entry into the market", i.e., the point of opening a position.

The shorter the last analysis stage is, the more precisely one can
determine this entrance point.

Note :
If you want to start your own business for free
Pls download the ebooks HERE
It takes only two minutes.

Strategy + Discipline = More Pips

This Strategy try to teach you that you don’t have to take a pill in order to be a great trader. You just need to focus on some simple tools.

What Is a PIP ?

You know what a pip is already. For purposes of this article,
we’re drawing it as a yellow cube. Do you know that most forex traders spend their careers chasing after pips.

Have you ever watched the market and wondered why the harder you tried, the more quickly the pips distanced themselves from you? I remember when I first started trading that the market would move away from me and I would begin to think: it’s moving.

Why is it moving away from me? Couldn’t it just as easily move in my direction? For a while, I made money on gut decisions. I’d make some progress, a few pips or more a day, but never really understand the signals. For instance, I’d make a profit just barely, and watch in horror /relief as the market swung the opposite way right after I exited the trade. Or I’d enter a trade, lose a bunch of pips, and then exit the position at a loss – only to watch the market swing back in my favor.

Only, of course, the position was closed and all I could do was sit there and watch.

Until you’re no longer impressed with pips – no longer frightened by them, nor infatuated by them, not in love with them, no longer simply hating them – they won’t give you the time of day. The acquisition of pips is your only goal in the currency market.

But pips are fickle and if you pursue them full of emotion, you’re going to get burned. You must be able to calmly make a plan, stick to it. But I could do none of those things.

My emotions took hold of me and turned me into an idiot.


It’s the same for pips. We all want them. We all want as many of them as we can get. But some of us are willing to risk everything for just a few of them. We’ll chase after them like a 12-year old boy. And you know what? They don’t give a damn about you and me.

This strategy will present a plan for learning about pips, where they’re going, what they’re about to do, and then arm you with a strategy that once implemented, can take a lot of the emotion out of trading.

Your goal will be to:

1. Enter positions as soon as a particular signal is given.
2. Exit the position as soon as a particular signal is given.


The payoff will be:

1. The emotion should be gone from the trading. You will enter and exit trades with discipline and focus.

2. You’ll get about 20 pips on the good trades. There will be many more good trades than bad ones.

Attitude is 99% of Trading

Developing the right attitude about your trading is most of the work. Once you get your attitude (your discipline) under control, you’re going to have more pips than you know what to do with.

So much has been written about this that you’d think that you’ve already heard enough about it. I’ve written about it elsewhere, too1, but I’ve got to stress that no technique or strategy is worth more than the discipline you have to implement it.

The 5/13/62 strategy requires discipline. This is the most powerful personal characteristic you can acquire. Period. It will earn you more money and success than any other attitude or personality trait. If you’re low on discipline, please take the time to consider what I’m saying:


In trading, discipline simply means two things:

1. Enter a position as soon as a particular signal is given.

2. Exit the position as soon as a particular signal is given.

If you do not acquire discipline, this system will not work for you. No trading system will work for you. But this isn’t a book about discipline. In fact, this book assumes that you have discipline, or you’re willing to acquire in order to implement a profitable trading system.

So, for the purpose of this discussion, and for the testing of this strategy, please be disciplined – even as you practice.

EMAs are the core of the 5/13/62 Strategy

Exponential Moving Averages (described in more detail below) are at the core of tis strategy. From the beginning you should understand that I didn’t invent the 5/13/62 strategy. At least I don’t think I did.

There are some extras that I add in, but essentially, all of this information is available elsewhere. That said, I believe that most of the people that write about forex have a way of putting you and I to sleep.

So maybe this is the first time you’ve heard about it, but in any event, I’ll try to keep it interesting.


If the chart above doesn’t make any sense to you, even with the legend, then here’s a brief explanation:


1. When the 5 crosses below the 13, and both of them cross below the 62, it’s possibly a good sell signal.

2. Inversely, we can assume that the opposite is true: when the 5 crosses above the 13, and both cross above the 62, it’s a buy signal.

What is EMA ?

Moving averages are the average value of the price of a currency pair, over a certain period of time. A 5-day moving average for the EUR/USD would be the average price of the EUR/USD over a 5 day period.

You can base the average on the closing, opening, or other price. Each time the MA is calculated, the earliest period is dropped and the latest period is added. In this way, the average price fluctuates according to the fixed time period.

The exponential moving average (EMA) puts the emphasis on the most recent prices, and less emphasis on the older prices. Sometimes you won’t see much difference between the EMA and the Simple Moving Average, which does not weigh any price
more than another.


Do I just look for the
crosses?

I have backtested (and so have many, many others) simply buying when the signals cross above and selling when the signals cross below.

There are even companies that build trading robots that will
automatically buy and sell when these signals are given. But, as much as I’d like to say differently, it’s not that easy.

There are all types of false signals (crosses that happen but that don’t turn profitable).

Here are some other principles of this strategy, divided in three sections: entering the trade, staying in the trade, exiting the trade. The principles of each section will help you maximize your gains and minimize your losses.

But first, a quick look at the tools you’ll need.


Charting

You can use the free charting software that comes with your
account – but I’ve not been impressed with anyone’s offerings. Some dealers don’t allow you to show more than 2 EMAs on a single screen.

Some do, but the process of charting them is difficult or unreliable.



The 30 minute chart

I have used the 15 minute, 30 minute, 1hr, 4hr, daily … even the weekly chart. You can really use anything longer than 15 minutes. I recommend starting with the 15 minute or the 30 minute, so you will see more opportunities in a shorter period of time.


The 5 and the 13 alone

Chart the 5, the 13, and the 62 period Exponential Moving Averages.



Part I: Making the Trade

Below you’ll find the principles behind making good trades. And avoiding the bad ones. These are guidelines. Good trades based on these guidelines are the result of applying them enough times that you begin to get a feel for the market.

I want to emphasize that you can change these rules. You can manipulate them. You will be most successful when you make this “your own,” by adjusting so that you feel most comfortable.

Holidays and other bad days

Try not to trade on holidays, especially U.S. holidays. It’s best to stay out of the market on those days and catch up on time with your family, see a movie, adjust the metal rod that was placed in your back, insert a metal rod in your back, or fire up the barbie-q and roast some weenies. Or you can back test your strategies. It’s also best to never,
ever, ever, enter a trade past 14:00 GMT on a Friday.

On holidays and late on Fridays, the market is unpredictable and might not move enough to give you any profit. Or it might move 50 points in one direction just for the heck of it, and then move back. Of course it might move a zillion pips, but that’s the exception rather than the rule. Then you’re stuck in what might become a losing position, but meanwhile, you’re losing money to premiums/interest paid to your

broker. This is a good time to shove a metal rod into your spine.

Please take my advice and just stay out of the market, with this system, at these times. You may lose some opportunities, but you will lose (also) the chance of getting trapped in a motionless or unpredictable market.

Other systems, long term systems in particular, can work okay late on Fridays and on holidays. But that is the subject of another ebook. One, incidentally, that I have not written yet.

Trading on the 5 and the 13

You should be prepared to buy anytime the 5 crosses above the 13. You should also be prepared to sell anytime the 5 crosses below the 13.

You should be prepared to do this even if they do not simultaneously cross the 62.
This does not mean that you take the trade immediately. It means that you are aware that a trade might be coming.


Is the 13 crossing the 62?

The next part of the system is to watch for the 13 to cross the 62.Whether above or below (long or short positions), you’re in good territory. At these times, it might be a very, very good opportunity.

I want you to also focus on the fact that the pair, after this crossover occurs at the pink circle, return to hit the 62 EMA again – and this is an excellent time to sell the pair all over again. This means that if you miss the original trade, it’s totally acceptable to enter the trade when the pair
rises up and hits the 62.

This works for long and short trades – the 62 EMA will act as a dynamic level of support and resistance.

Stops and limits

Last of all, do the following:

1. Set a stop-loss at 20 pips beyond the 62 EMA.
2. Trail the trade by 20 pips (using a trailing stop loss), or:

3. Set a profit target at a recent high or low (something that creates a double top or double bottom).









During the Trade

Lots can happen during the trade. Here are some things to consider and remember during the trade.

Set it and forget it?

believe that anyone that tells you to “Set it and forget it” is appealing to your desire for quick, easy profits without any work.

Right now, I would like to appeal to your desire for quick and easy profits without any work. I will do this by telling you that if
you choose a recent high/low as your profit target, or a trailing stop, then you can walk away.

Initial volatility


At the beginning of the trade, you might see some initial volatility.

This means that after the candle closes, you might see the next candle go opposite from where you want it to be. Don’t get overly concerned about this. You need at least 20 pips of free room to let the trade gather momentum.

And remember what I said (not about the rock band): the pair might rise up or fall down and hit the 62 EMA. This is just another opportunity to get in the trade if you did not already (or add to your position).


Part III: Exiting the Trade

We already covered this, because you set the limit at a recent high or low, or you set a 20 pip trailing stop.
Let the system exit the trade for you, based on your stops and limits.

Most forex dealers will guarantee stops and limits, so you’ve got little to worry about.

That’s it!

Note :
If you want to start your own business for free
Pls download the ebooks HERE
It takes only two minutes.

Guess the price movement ?

If you are an active trading you must have "lovely pairs" where
you know their charecteristics and movement. And that's why a
professional traders suggested to trade one or two pairs for new
traders. We need to know deeply aboy the pairs so that we feel
familiar with them.

I brought up this item because I have one lovely pair - Brit/USD.
On a certain time I don't need to use any technical strategy
in order to trade Brit/US. Normally I will make big pips when I
found that condition but the trading might be taking 3 days until
10 days. Therefore, I will make more than 200 pips.

What is the condition to focus ?
It's very simple; Whenever Bri/USD in at the extreem highest or
lowest I would go LONG or SHORT. Three days ago when
Bri/USD at 2.0125, It's already at extreem area ( you can see
the daily chart).Then I took SHORT position, with Stop Loss =
100 pips.

Now on April 21.2007 Brit/USD is at 2.0021 and next few days
It might be going down and down . Now I've profited 100 pips right ?
What you have to remember is that Stop Loss must be higher to
anticipate the price. Just like three days ago I saw that the price
was at 2.0125 and if the price went up again up to 50 pips higher,
we were still save because the Stop Loss is 100 pips.

Don't panic if you put higher Stop Loss, you can reduce your lot
size when you trade on this lucky condition, so that you will not
lose much money if the price go against your direction.

I always trade on this condition. Do you still remember last Month
when Bri/USD was at 1.9200 level ? Can you imagine your winning
percentage if you trade at the time ? You must have got a big fish !!.

I hope you can get what I am trying to explain here. I never studied
Forex at the university and I never know how to create a program or
excellent strategy but I can find a lot of free amazing strategies out
there and I can profit from them.

You don't have to know a lot of theory.....you re not going to be a
lecturer or teacher but just to make
pips and pips and pips..that's all. Never try to search for holy grail..
but you can adjust any strategy to be your holy grail.


Happy trading,

Krisman

Note :
If you want to start your own business for free
Pls download the ebooks HERE
It takes only two minutes.

Do you make Profit ?

So far did you make profit in your trading, I hope
you did If you haven’t make any profit during your
trading I can conclude that you hadn’t found the one
that suits you.

As I always say that there is no “holy grail” for all
traders But one simple strategy can be a real holy grail
for somebody. The difficult thing is only to choose
which one suits you among thousands of system / strategy.

Therefor, I still want to give you a time to choose
and practice some of them. In this short writing I give
you also A very simple strategy that I assume you can
make profit.

Let’s practice :

10 Minute Chart Day Trading Method

Please note: If you wish to trade this method on 5 minute
charts, you will need to double all of the indicators.
The (5 period WMA would be charted as 10, the RSI would
be set at 28 etc...)

Description: An intraday trend following trading method,
using the following indicators:

• 5 period WMA
• 10 period SMA
• Slow Stochastic (5,3,3)
• RSI (14)
• MACD (default)

Rules: Add the above indicators to your 10 minute chart.
Only take trades between 8AM-12PM EST and/or 2AM-4AM EST.


BUY the exchange rate when the 5 WMA crosses up past
the 10 SMA and the Stochastic is signalling up, RSI > 50
and the MACD histogram >0 and MACD averages crossed up.

SELL the exchange rate when the 5 WMA crosses down past
the 10 SMA and the Stochastic is signalling down, RSI<50
and the MACD histogram <0 and MACD averages crossed down.

Stop-Loss Level: 20 pips









Happy trading

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Forex Strategy - F

Point : 69
Beware of holiday situations like the long July 4th weekend. Trading tends to be thin, and it is difficult to produce meaningful pivot points. Best to just go golfing, and forget about it. There's nothing that says you have to trade every day. Get a life.

Point : 70
If you are having trouble with your entry points, I suggest you try waiting until you see a hammer or a spinning top, and then pull the trigger. You may wait a long time, but at least you will be sure of getting a good entry point, as these particular candles are powerful precursors to a shift in price direction. Have a look at any chart and see how many of these candlesticks you can pick out. You might be surprised at how many there are. For more information on these bar formations, please read my August, 2003 edition of my newsletter: www.tradingsmarts.com/newsletter0803.htm Obviously, if you click on that link after August 1, 2003 the newsletter will be there. Before then, it won't.

Point : 71
I just returned from a meeting with a group of young traders who have been at the forex for the past two and a half months. They are making steady progress, and I am extremely proud of them. I thought I would pass along their observations that may prove helpful to your own trading. They have backed off short-term trading, and are more into position trading the forex – using a longer timeframe – taking cues from the 1 hour chart. They also believe that signals that occur on that chart are more powerful than those on the 15 min. For example, a signal on the 1 hour would have more weight than an indication on the 15 min.

Basically, what they are saying is that you should wait on a trade for confirmation on the 1 hour chart before pulling the trigger, unless of course you see an ironclad setup on the 15 min chart. Trading is shades of gray ladies and gentlemen. These ideas are working for them. That doesn't mean to say you can't experiment on your own. If you do and find something that works for you, please let me know, and I'll share it with the rest of the gang.

Point : 72:
Clarification re Aug. 22/03 chart, thanks to Bill: Bill quite rightly pointed out in the chart for August 22/03 that there were hammers at 3:01 and between 5:01 and 6:01 that didn't take. My answer to him was that such a candle should be complemented by some other indication of a shift in price direction. For example, in the cases he cited above, price did not break the down trendlines - so, in effect, the hammers' supposed effect was nullified. To conclude, bar formations that should signal a change in price direction should be accompanied by other signals, including pivot points. In other words, what happens to price around a pivot point when you see a hammer? Does the pivot point support what the candle is saying? Thanks Bill for this.

Point : 73
I was recently asked where one could find volume figures for a currency. None of the popular sites carry it. Nor is it necessary as the Forex is a very liquid market. Volume is somewhat redundant anyway in that regard. You just need to use technical analysis to trade the Forex.

Point : 74
Pay attention to that news. I had been calling for an advance in the euro and Swiss franc and, sure enough, they both popped on bad unemployment news in the U.S. September 5, 2003. News is not noise in the Forex.

Point : 75
There are “talking” bulls and bears and there are “real” bulls and bears. The real ones are reflected in volume and open interest. But, these numbers are not available for inter-bank currency trading. However, they are reported for futures markets, which represent a good proxy for sentiment because they are primarily a vehicle for speculation.

Turning points in currency markets often coincide with extremes in open interest levels, which represent extremes in speculation. The key here is to watch for extreme levels and extreme changes in both open interest and volume to signal a possible change in trend.

Open interest numbers are of little use intraday. However, knowledge of a change in trend or extreme speculation in a particular currency based on open interest and volume can be valuable information for any trader in any time frame. That’s where an understanding of how COT works can improve your chances of detecting the underlying bias to a particular FX currency based on its futures counterpart, and anticipating its next move.

As at September 2/03, the commercial traders were extremely long with their net futures positions on the euro FX and the Swiss franc FX, versus the funds, which were extremely short. When you see such extreme divergence between these two camps, you know that price will probably follow the commercial traders’ lead.

The euro FX and Swiss franc FX represented good position trades to the long side at that time. A good buy-and-hold situation for position traders. Sure enough on September 5/03 we had bad unemployment numbers coming out of the U.S., and both currencies popped. Who could have guessed?

Point : 76
I think there is a misconception out there that you have to trade only the 15 min chart. You can also trade off the 1 hr and daily charts. It just lengthens the cycle. For example, when I called the euro and Swiss franc to rise, you could have taken a position on the daily chart and rode it up. That's all I'm saying. Likewise, you can wait to take a position until you see a valid entry point on the 1 hr chart. Etc.

Point : 77
For newbie traders, it is probably best to steer clear of Mondays, the day after a holiday weekend and end-of-quarters where there is a lot of position squaring going on.

Of course, there’s more to be learned about currency trading strategy in my original book on trading and the two e-books on trading the forex – available only at currency trading strategy You automatically get all three when you order at that link. If you are reading this page, you probably already have these books, and are reaping the benefits.


Happy trading

Forex Strategy - E

Point : 56
I have people asking me all the time why I don't post my trades in real time, or why they can't call me while I am involved in my own trading activities. The answer is quite simple. This page is dedicated to my belief in the old adage: "Give a man a fish, and feed him for a day - teach him how to fish, and feed him for a lifetime!"

Plus, it would be very stressful and time consuming for me to take time away from my own work (and quiet time) to interact with a discussion forum. I am sure you will understand my position on this. I have customers in over 30 countries, and it would be a nightmare for me to react to each and every nuance that came along. A chat room is in our business plan, but at this writing, I don't have any idea of when that might happen. When it does, I will certainly give you lots of advance warning.

I teach people how to fish. I don't give them the fish. I can remember when I first learned how to trade. I had my mentor sitting right by my side each and every step of the way. Then one day he upped and moved, and changed cities. He actually moved to a remote and secluded island to get away from city life. Nice move for him, but it left me in a state of panic. How could I possibly survive on my own? I can tell you, ladies and gentleman, that I really learned how to trade when I had to do it on my own, and those were real drops of sweat rolling down from my forehead all over my face.

This is about you and the market, and you mastering your innermost psyche. Anybody can learn to trade the forex my way. But, what will get you every time is that little inner voice doubting your every move. And, then there's fear and greed that will bite you real hard too. It's the psychology of your mind that you must master. You must become disciplined and patient to a fault. You must react only to bona fide signals, that I teach here. Otherwise, you would be better off heading out to your local casino, and taking your chances there.

The forex is not about gambling. It is about running a business, where there will be gains and losses. Your every effort and constant struggle should be to get a grip on those times when price goes against you. You are in charge. You can get the upper hand on price by trading "smartly," and using good money management techniques, that I also teach here. You won't win every time. But, with my system, you should come out ahead seven out of 10 times. The trick is to limit your losses to small ones, and let your profits soar.

Getting back to going solo without an instructor at your side during each and every step of the way, I recall a friend of mine telling me how he learned to fly. After several practice flights with his instructor in the cockpit with him, they landed back at the airfield, and the instructor turned to Pal and said, "Now, it's your turn to take it up. I'm getting out. You're on your own buddy." Talk about anxiety and stress.

Well, Pal took off and landed all by his little 'ole lonesome. But, he was pale and his knees were knocking when he got out of the plane back at home base. He has soloed ever since. It's his passion now. There's something about being able to do it yourself, without a partner holding your hand all the time. It's called "confidence boosting." If you can fly or trade by yourself successfully, there probably isn't anything else in life you couldn't do equally as well. Actually, Navy pilots who land on aircraft carriers make the best traders. But, that's another story for another time.

I can tell you my friend learned more about flying in that one solo session than he did all the times his instructor went up with him. Same with trading. You can do it. Just believe it so. Dedicate yourself to becoming a master at it. Analyze, read, study, think. Ask questions. There is no such thing as a stupid question. Become passionate about your trading. Don't think of it as a get-rich-quick scheme. Do it because you love it. Do it as if you would do it anyway, even if you weren't making money. There has to be an element of fun in it for you. If it's all work, and no play, well you know the answer to that one.

Don't get me wrong. I am here to answer your questions whenever you need my help. I am dedicated to your success, and your happy times with your family. Nothing would give me greater pleasure than to get an e-mail from you telling me how this has turned your life around, and that you are now happily making money trading the forex my way.

Point : 57
Don't get hung up on reading bars when you think you have caught the major trend. Once the trend is unfolding, you then look for a place to enter - around a pivot point. You look to reading bars to signal a change in the direction of the major trend.

A double top in a downtrend means nothing. A double bottom does. So, a price rejection bar or double bottom in a major downtrend would signal a short-term reversal, and that's all. But, once you see the major trend unfolding – say, on the short side – you pretend you don't know how to spell the word long. Stick with the overall major trend that is unfolding.

These comments relate specifically to the beginning hours of London trading, which is when the major trend reveals itself.

Point : 58
You need to get to the point where, when you look at a chart without any visual aids, you see indications as to where price is going. This has to become "second nature." At that point, you can trade with ease. And, your stress level will go down, because you will be in control of the market, not the other way around. This only comes with practice, day after day. This takes patience, and staying power. You must hang in there until you get it. Winners never quit; quitters never win.

Point : 59
At first, if you are fearful, don't trade until you see what you consider to be an ironclad set-up that you are familiar with – an easy one. That may mean waiting out a session or two, but that's okay. There's no rush. I find with some people they seem to have to prove something to themselves or someone else. Some people think they have to scalp all day long for some reason that is beyond me. After all, you are in control. Take your time.

Relax. Enjoy it. Sooner or later, you will see a bona fide set-up that you recognize, and bingo you're in. When in doubt, do nothing. When there is no doubt, do something, do anything – pull the trigger.

Point : 60
Unfortunately, you will not always get all the signals you need to pull the trigger. After all, this is as much an art as it is a science. You cannot always be 100% sure that you are doing the right thing. If you wait forever to get all your ducks lined up, you may wait a long time. My favorite analogy goes something like this: Pretend you are sitting in your garage at home wanting to go to work, but you are waiting for all the street lights along the way to turn green before you pull out of the driveway.

Guess what folks? You'll never get to work. Same with trading. Sometimes, you just have to make an educated guess (based on the currency trading strategy recommendations contained at this site) and go with it. You won't always be right, but this isn't about being right. It is about making a decision, sticking with it, and reversing course if you have to. Accept getting stopped out as God's way of kicking you to a higher level. Just one more step to success.

Point : 61
Thanks to Tom for this: There are two choices to be made – LONG or SHORT when a certain point in the session(M1, S1, R2, Pivot ... etc.) is reached. The BASIC rule is BUY (go long) below the pivot in the S1, S2, M1, M3 zone and SELL (go short) above the pivot in the Zone R1, R2, M2, M4. Obviously it isn’t as simple as this and other indicators such as MACD divergence, reading bars, trends, and patterns all add to the question LONG or SHORT. Bang on Tom! Way to go!

Point : 62
I have said previously that you should make your buy/sell decisions around pivot points. However, for example, if price is meandering in between pivot points and then does a double top, that would lead me to believe that price is going down. So, there are times when you would want to make your move before waiting for a pivot point to be hit. Of course, there's nothing wrong with waiting for price to do so and then reacting.

Point : 63
Thanks to Harry for this one: He indicated that I sometimes refer to "price rejection." And, what does that mean. It simply means that a price reversal bar has formed, causing the bar in the middle to have a higher high than the bars on either side of it. The price bar in the middle is essentially a key reversal bar. And, what you have is a "swing change." That is, price is reversing course, and heading south. The same holds true when price is reversing and heading north. You then have the bar in the middle of the three-bar pattern with a lower low than the two on either side, and the one in the middle is the key reversal bar.

Point : 64
Repetition is the key to success in any endeavor in life, including trading the forex. The more you practice trade, the more you trade real money, the better you get. You just have to keep at it - over and over and over again. Persistence is the key. You're bound to get better at something if you do in constantly and don't quit. Don't let the market psyche you out. When you have a down day, just treat it as experience. Lessons learned. But, try to learn from your mistakes. Keep those journals going. If it's not written, it doesn't exist.

Point : 65
I get the impression that some of you are not paying enough attention to trendlines. They are very powerful. Price WILL change direction when it breaks the trend, regardless of what other indicators may be telling you. So, draw them, and let them be your guide. REMINDER: In an uptrend, as we saw June 25/03, as long as the trendline holds, buy the dips. In a downtrend, sell the rallies. In an uptrend, don't look to go short EVER! In a downtrend, don't look to go long EVER! Plain and simple.

Point : 66
Thanks to Stu G. for this one. I have been harping on using MACD only for divergence. But, Stu is right. I do on occasion, as I did June 26th/03, use MACD to confirm the trend. If the price trend has been consistently down over a period of time, then it could very well be that when price tries to go counter-trend, it may just be a retracement or a temporary move in the opposite direction. I usually like to stick with the major trend. In a downtrend, sell the rallies; in an uptrend, buy the dips.

Point : 67
I was asked by some of my readership what happened Friday, June 27, with all the wide-range bars on the 15-min chart. That was a tough day to trade, even for seasoned professionals. Lots of whip-sawing. Lots of stops got taken out. Trading patterns were dominated by end-of-quarter positioning. A good day to stand clear. So, be prepared for the next end-of-quarter, and the one after that, and the one after that, etc. Mark those dates on your calendar. Trading is as much about being organized and prepared, as it is about being good at it.

Point : 68
Marathon runners have only one thing on their mind when they are running – to cross the finish line. They NEVER look back. Same too with trading. You should focus on surviving for the long haul. Sure, you will stumble and fall. But, just pick yourself up, just yourself off, and carry on. Winners never quit, and quitters never win.

Forex Strategy - D

Point : 43
May 23 was supposed to be an M2/M4 day, given the up-close for the last session. But, the actual range came in at Pivot Point/R2. Trading is "shades of gray" ladies and gentleman. Pivot points are not cast in stone. But, they are usually pretty close.

That day, the combination of Pivot Point and R2 achieved better than the average daily range for the Euro, well within the confines of logic behind my pivot point definitions. The central Pivot Point becomes a buy point (read, support), when it is breached to the upside convincingly, and so it became a reasonable starting point for price to commence its "range-finding mission" for the session. Likewise, R2 is a sell point (read, resistance), and so it was a viable target for selling pressure, as the Euro exhausted its "search" for the end of its range for the session.

The main point in all of this is that the full range for the Euro was achieved within the parameters of the pivot point logic and rules, which is the most important point to get out of all of this. By that I mean that the four pivot points below the middle pivot point are all "buy" candidates, and the four pivot points above the middle pivot point (including R2) are all "sell" possibilities. Achieving the full range, or more than that as was the case May 23, is what it's all about, more so than strictly adhering to the M1/M3 or M2/M4 windows of "buying" and "selling" opportunity.

I hope you are beginning to see the power of pivot points in action. You only buy and sell in and around them – not in between, which is what we call "NO MAN'S LAND." Not the place to enter trades. The only caveat here is where price forms patterns like we saw that day above R2 with the double-top/railway tracks combination. Such a reversal phenomenon, especially with two distinct formations occurring at the same time, cannot be ignored.

But, what is significant here is the fact that this "double whammy" took place after price had penetrated R2 to the upside, which to me looked like an exhaustion area – considering the fact that the last point of resistance had been broken. Then, you look for convincing evidence that price is going to continue its trek north, or do a u-e, as it did in this case, and head south.

There are important lessons to be learned in all of the charts I post at this site. So, please study them carefully. There are parallels, as I am sure you can see, between one session’s price action and that of the previous one. In fact, given the nature of currencies trending well, every day pretty much looks the same, except for different actual ranges and different low and high points (read, iterations of the nine possible pivot point lows and highs).

Price will always determine which set of pivot points it is going to work with, and that is why you always follow price's lead. That's also why I call price the "fifth indicator," and perhaps the most important one of the five I work with. By now, you will have learned more about the other four indicators, as you studied the previous currency trading strategy tips.

Please study the charts I post at this site on a daily basis, as they offer important clues that occur each and every day! If you understand what you see in those charts, you can't help but prosper with your trading on a consistent basis.

Point : 44
Don’t be greedy. I heard it said recently by one of my clients that he walked away from a session with only 150 pips in his pocket, and left a lot on the table. Boy, for somebody coming from the stock world, as he did, he should been thankful for his catch of the day. The point is, if you start out as a newbie looking to carve out only 20 pips per session, then anything beyond that is gravy, and it will surely come over time.

But, don’t forget the old adage, “Nobody can argue over profits in the bank.” If you see a profit, and want to take it, then do so, and be happy. You’ll live to see another day, and take some more profits. Just don’t always grab for the brass ring. This isn't about always hitting home runs. This is about having staying power, and taking one base at a time. When you have good reason to exit a trade, make your move, and be done with it.

Point : 45:
Former Cleveland Brown's coach, the legendary Paul Brown, taught his football players a systematical/methodical procedure of understanding tasks to attain successful results in face of unforeseen, variable difficulties.

So too with foreign exchange trading. Forex trading requires adherence to a set of currency trading strategy rules, which I have set out at this site.

A wide body of research in behavioral finance shows that traders consider the loss of $1 twice as painful as the pleasure received from a gain of $1. That's why they take more risks to avoid losses than to realize gains. They end up buying high and selling low, contrary to conventional wisdom. Follow my currency trading strategy rules, and you'll avoid getting a closely cropped haircut when the forex tanks on you, as it did May 28.

Point : 46
I had somebody ask me why I waited until 03:00:00am New York time to make my move, in the mean time missing potential in advance of that timeframe. The answer is quite simple. That is when London trading kicks in, and that is generally the busiest session on the forex. You will notice that is when the Euro usually starts its major trend to find its average daily range of 76 pips. Those pips are usually put in within the first 12 hours of trading. Check it out for yourself. It happens each and every day, over and over again.

Point : 47
"Ascending Triangle": Price forms higher lows, and looks like somewhat of a horizontal line on top and a rising lower trend line. This formation is normally bullish. You take its height at its highest point, and measure that distance from the upper line to obtain the upside target.

Point : 48
By combining "pivot point readings" with other signals – like divergence, multi-tops, trendline breakouts, triangular patterns, etc. – you can pretty much tell where price is going next. Normally, I would say that you should only enter trades in and around pivot points. But, given the large distances that can sometimes happen between pivot point areas, you then have to be on the lookout for other evidence of future price direction.

Like I keep saying, trading is "shades of gray." Nothing is always black and white in this business. Trading is as much an art as it is a science. That all said and done, when price does encounter a pivot point, you can see that that point has a powerful influence over price. So, always be on the alert for that next point of interaction with the next pivot point, as it will have a distinct bearing on what happens next.

Point : 49
If you are trying to catch the major trend that unfolds during the London hours, but are afraid of getting your entry point figured out correctly, wait to catch the next entry point, as the Euro "reaches" for its average daily range of 76 pips. The next entry point will occur in and around the next pivot point that price passes through. Or, you may catch price as it tries to retest the pivot point it just went through. That way, you won't run the risk of getting in too early, when the trend tries to unfold in early trading. Sometimes, price fakes you out, and goes in one direction for a while, and then reverses course, before finally picking its direction. My favorite saying is, "He/she who procrastinates wins." What you are giving up, of course, are those initial pips of the trend, which may amount to, say 30 give or take, but you are more sure of capturing the remaining 46, as the major trend of the session matures.

Point : 50
I would like to remind you that the pivot points above the central "Pivot Point" have a "sell" bias, and the pivot points below the central "Pivot Point" have a buy bias. These biases hold true unless price action turns a pivot point's bias from sell to buy or buy to sell – i.e., from resistance to support or support to resistance.

On June 6, 2003, you would have observed from price action that M3 held its bias, but the pivot points below the central pivot points were turned from buy, or support, points into sell, or resistance, points. Of course, price action determined this.

The other important point to make is that when the major trend reveals itself, as it did on that day (and does every day, within 12 hours of the start of trading for the session), you should think along the lines of the bias. That day's bias in early trading was "short." Meaning, you should have forgotten how to spell the word "long." Scalpers want it both ways, but that doesn't work in the forex – unless, of course, you want a short haircut. I say this because currencies trend well. Don't second-guess the trend until it reverses itself with bona fide signals. In other words, don't sell to soon, and don't buy too soon.

Point : 51
Keep those trading journals going! If you always trade the way you always traded, you'll always get what you always got.

Point : 52
There is nothing that says you have to trade often, or even every day. In other markets, most professional traders catch only three to four really great trades a week, if that! Not so with the Forex. Here, the timeframe is more like a day. However, if you don't see any "ironclad" trades, then don't trade. Turn if off and go golfing.

Slow down, and drive the speed limit. This isn't a race. After all, you are in control of the market, not the other way around. Don't feel pressured into doing something you feel uncomfortable about. Wait for those "perfect set-ups" to make your move. Same goes for those "bad-hair days." If you are feeling out of it, sit on your hands, or go do something else. Take charge of your trading life, before it takes charge of you, and your money.

Point : 53
I often get asked what parameters I use for MACD. I use the standard default settings. They work just fine. After all, all you should be using MACD for is divergence.

Point : 54
I have said it before that you should only trade in and around pivot points. The only exception to that rule is if you see a trendline breakout or a bar pattern, like price rejection, that gives a clear signal that price is about to reverse course. If price is in between pivot points, and you are not sure what to do, don't do anything! If there's nothing to do, don't do it. Patience is the hardest thing to master in the forex, or any market for that matter.

Point : 55
The major trend for the Euro usually starts revealing itself as the London hours kick in. Up to that point, price may "bait and switch" you into thinking it is going one way, when in fact it is setting up to go the other way. It can easily fake you out, before the London hours start to unfold. So, be patient and wait. Look for clues coming out of the previous session as to where price might be going ultimately. Did you see a "head and shoulders" pattern?

Did you see a triangle pattern? Do you see price trending in any one direction over a period of time. Do you see any divergence in MACD (on the 1 hr and 15 min charts)? Do you see any channels, where price is looking to break either way? Play Sherlock Holmes. A little bit of detective work will go along way before you dive into the new session. Like the Boy Scouts say, "Be prepared!"

Be in charge of your trading. Put your emotions in your hip pocket, and save them for later. Run your trading as if you were running a "bricks and mortar" business. Same principles and rules apply. No different. This is not about betting and gambling. This is serious business. After all, your hard-earned money is at stake. Protect it at all costs.