Bargain Hunting Along the Edge
This chapter contains the first of three trading methodologies that will
put the support and resistance tactics you learned in Chapter 3 to
good use. In this chapter you will learn a trading methodology I affectionately
refer to as the Sitcom System because it allowed me to trade on
my own schedule, often while I watched a favorite television sitcom. The
system combines what you have learned about support and resistance with
simple price action analysis. The Sitcom System focuses on daily charts,
and for the purposes of this discussion I define the end of the trading day
as 5:00 P.M. Eastern Time. This ensures that both the London and New York
trading days have closed before we begin to plan a trade, allowing us to see
the full range or price action for that trading day.
After each trading day there are two distinct boundaries formed by
support and resistance. The daily high is a boundary that buyers could not
overcome; the daily low is a boundary that sellers could not overcome. The
extreme edges of price action for a trading day mark the front lines in the
battle between buyers and sellers. Traders can use these clearly identified
support and resistance zones to their advantage with the help of simple
price action analysis.
To trade the Sitcom System, you need a trend, a bargain day, a support
or resistance zone, and a profit target. If you’re one of those traders who
believes that a daily chart requires 100 pip stops, you’re about to learn a
much better way to trade long-term charts.
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Foreign exchange market
Foreign exchange market
The primary purpose of the foreign exchange is to assist international trade and investment, by allowing businesses to convert one currency to another currency. For example, it permits a US business to import British goods and pay Pound Sterling, even though the business's income is in US dollars. It also supports speculation, and facilitates the carry trade, in which investors borrow low-yielding currencies and lend (invest in) high-yielding currencies, and which (it has been claimed) may lead to loss of competitiveness in some countries.
In a typical foreign exchange transaction, a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market began forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.
USA Forex
When looking at USA Forex, this is a wide open financial market and doesn’t require a trader to have many tools to trade in the market. All you need is a computer, high speed internet and the knowledge to do the trading. There is a profit potential here as well as risk. There are at least 8 different currencies traded and these are American Dollar, New Zealand Dollar, Canadian Dollar, Australian Dollar, Great Britain Pound, Swiss Franc, Japanese Yen, and the Euro. The market is open 24 hours a day, 7 days a week. No one can corner this particular market.
See More Article about Forex USA
USA Forex Dollar US
USA Forex Dollar US
CFOS/FX was established to provide clients with forex trading and forex brokerage services in over-the-counter (OTC) foreign currency markets, and offers state-of-the-art online forex trading platforms for both forex spot and forex options markets.
CFOS/FX offers a variety of account plans, investment products, and services to choose from when creating or re-adjusting a portfolio, and the professionals at CFOS/FX can tailor a commodity investment portfolio based on an individual customer's short and long-term investment objectives.
See More Article about Forex USA :
U.S. dollar an essential factor in the face of risk events coming days,
Forex for Beginners part 6
Forex Brokerage
Every Forex trader like any other professional needs tools to trade. One of these tools, which is vital to be in market, is a Forex broker and specifically for Internet - on-line Forex broker - a company which will provide real-time market information to trader and bring his orders to Forex market. While choosing a right Forex broker things to look for are the following:
- Being a professional company you can trust
- Provide you with real-time quotes
- Execute your orders fast and accurately
- Don't take a lot of commissions
- Support the withdraw/deposit methods that you can use
For beginning Forex traders I recommend these four brokerage companies that are probably the best Forex brokers to start with:
- FXOpen — one of the most popular and progressive brokers with MetaTrader platform and comfortable trading conditions for all kind of traders.
- InstaForex — a reputable MetaTrader 4 brokers, allows Islamic Forex trading accounts, while you can deposit and withdraw money via WebMoney.
- FXcast — good because you can start trading Forex with as little as 10$, use MetaTrader 4 platform and the dozen of various deposit and withdraw methods, including WebMoney, Moneybookers and wire transfer.
- LiteForex — broker that supports MetaTrader 4 Forex trading platform and doesn't require a lot of money to start with.
- See more article :
Forex for Beginners part 5
Forex for Beginners part 5
Forex Trading Psychology
While learning a lot about market analysis and money management is an obvious and necessary step to be a successful Forex trader, you also need to master your emotions to keep your trading performance under strict control of mind and intuition. Controlling your emotions in Forex trading is often a balancing between greed and cautiousness. Almost any known psychology practices and techniques can work for Forex traders to help them keep to their trading strategies rather to their spontaneous emotions. Problems you'll have to deal while being a professional Forex trader:
- Your greed
- Overtrading
- Lack of discipline
- Lack of confidence
- Blind following others' forecasts
These are very professional books on psychology written specially for financial traders:
- Calming The Mind So That Body Can Perform
- 25 Rules Of Forex Trading Discipline
-The Miracle of Discipline.
Forex for Beginners part 4
Money Management in Forex
Even if you master every possible method of market analysis and will make very accurate predictions for future Forex market behavior, you won't make any money without a proper money management strategy. Money management in Forex (as well as in other financial markets) is a complex set of rules which you develop to fit your own trading style and amount of money you have for trading. Money management plays very important role in getting profits out of Forex; do not underestimate it. To get more information on money management you can read these books:
- Risk Control and Money Management
- Money Management (A chapter from The Mathematics of Gambling).
Forex for Beginners part 3
Forex Technical Analysis
Technical analysis is the process of market analysis that relies only on market data numbers - quotes, charts, simple and complex indicators, volume of supply and demand, past market data, etc. The main idea behind Forex technical analysis is the postulate of functional dependence of the future market technical data on the past market technical data. As well as with fundamental analysis, technical analysis is believed to be self-sufficient and you can use only it to successfully trade Forex. In practice, both analysis methods are used. Recommended e-books on Forex technical analysis are:
- Chart Patterns and Technical Indicators
- Candlesticks For Support And Resistance
- Trend Determination
