I've been trading for 25 years now, starting out in the 30 year bond pits at the Chicago Board of Trade. So you could say my methods have stood the test of time. The CBOT was the school of hard knocks, and you were either good or they showed you the door.
If you're not familiar with forex trading, you're probably wondering how it's different from stock trading. But if you really want to know, both forex trading and stock trading are both risky investments that is NOT for everyone. Also, both types of investments do NOT involve any real loss unless if you convert your investment into cash. However, this is where the similarity ends.
All forex traders make mistakes, but the successful traders learn for the mistake they and others make. It is important that you know about some of the common mistakes made by traders so you can learn to avoid them. One you know what these common mistakes are you will be able to trade around them and lose less when you are trading.
There's a reason we're up 28% for the 4th quarter. Its primarily because of my proprietary pivot system developed during my years as a member at the Chicago Board of Trade.
Here's how it works: My algorithm finds exact prices where there is an 85% chance of a useful move.....30-75 pips on day trades; 150-600 pips on swing and long term trades. Importantly, since they are exact price points, you can take 3-4 pips risk on a day trade and 10-15 pips risk on a swing or longer term trade.
The regular movement of the forex rate affects everyone regardless of whether you are travelling to a foreign country or buying an item online. Every commodity is affected by the economic law of supply and demand and the forex rate is not any different. The demand and supply of a country’s currency is reflected in its foreign exchange rate.
If you are considering currency trading in the Forex market, or you are already involved in Forex currency trading, here's a money-making lesson that we can borrow from investors who use technical analysis to help them make investment decisions in the stock market.
The goal of performing technical analysis when currency trading is to predict profitable currency pair movements by analyzing price trends. The principles of technical analysis in the equity markets are the same...
As FX traders we are always trying to optimize our trading plan to improve overall profitability and consistency. We gain an edge when we put the odds in our favor by increasing our batting average (win loss %) and increasing our average pips on a winning trade while decreasing our average pips on a losing trade.
It’s been said by many professional FX Traders that where you get out of a trade is more important than where you get in. Obviously the entry point is critical,
A very important concept that we @ Global FX Trading continue to stress is why you want to maintain a 2-3:1 reward: risk ratio. If you can achieve that ratio consistently, it will help you become more profitable over time, reduce the stress of believing that you have to “win every trade” and allow you to concentrate on proper risk management, relative strength and weakness, position sizing and an objective exit strategy that lets the market take you out.
In FX trading as well as in equities, bonds and commodities trading, we are used to reports being released to the market that we know the date and time but not the impact. They are called known, unknown events . We know that a Central Bank, for example, is releasing their Monetary Policy Statement on a certain date and specific time. But what we don’t know is what the report says and more importantly, how the market will react to it. Again a known, unknown event is quite common.
Sz. Daniela
