FOREX Trading 101 – Novice to Professional Trader in Just 14 Days

Is it really possible to become a professional FOREX trader and make money in just 14 days?

The answer is yes, and here we are going to show you how to do this in simple steps.

One of the most inspiring stories I ever read was when veteran trader Richard Dennis took a group of people with no trading experience and taught them to trade in just 2 weeks.

The result was a group of trader nicknamed “the turtles” who went on to become some of the most successful traders of all time.

Richard Dennis taught 3 key principles to his students:

1. A simple technical method, they could easily understand and therefore have confidence in to trade.

2. Rigid money management techniques to preserve equity.

3. The mindset to follow the method through losing periods with total discipline.

Working smart

The emphasis was on working smart not hard, to achieve trading success with no filler.

So lets look at how you can do the same taking the above 3 points and look at what you have to learn.

1. Method

Just like “the turtles” you should learn a simple trading method and it should be technically based.

While there are many ways of making money, you should start with a similar method to the turtles.

Learn about technical analysis and how to use support and resistance in relation to breakouts.

Trading breakouts is simple to understand, simple to apply and it works as well today as it ever has.

You then need to add in some momentum indicators to indicate price strength or weakness.

Look up stochastics and use them.

There is no better momentum indicator to start with.

2. Preserving equity

You need to play great defense and preserve equity.

Trading breakouts sets your stops for you (behind the breakout point) if you only trade valid breakouts you will have the odds on your side for big gains and small losses should the trade go wrong.

3. Trading with discipline

This comes from having a simple method you understand.

If you understand why it works and why it will continue to work, you will have the confidence to trade it through losing periods.

Discipline comes from confidence and that’s why using a simple technical breakout method is best.

Many traders think they should use more complicated methods, but the fact is there is no correlation between how complicated a method is and how successful it is, in fact the opposite is true:

Complicated methods tend to break easier than simple ones in the face of brutal ever changing market conditions.

If you learn a breakout system and acquire mental discipline you can make money and all the information you need is freely available on the net.

You can do it!

Most novice traders don’t believe they can learn to trade on their own, but it really is the best way to do it as you are the only person who can give yourself success no one else can.

Forget the gurus trying to sell you $100 e-book and promising you instant riches – you wont make money that way, Take responsibility for your destiny.

So put in some effort and you will be richly rewarded for your work.

Does Moving From Stock Trading To Futures Trading Make Sense For You?

Futures trading has grown in popularity tremendously over the last 10 years. It is done so with good reason. Traders are in and investors are seeking higher rates of return than they normally obtained using stocks as a trading vehicle. Since the decline of the emotional exuberance and sky high stock prices and volatility in the early 2000's traders and investors have been trying to find a way to obtain greater returns.

As with any method of trading or investment futures has its advantages and disadvantages. Whether a particular facet of futures trading is an advantage or disadvantage depends on whether it is working for you or against you at the time. For instance, futures are inherently volatile. This volatility can make for tremendous price moves in which incredible profits can be gained. Conversely, if you happen to be on the wrong side of a volatile futures trading move in large losses can be the result.

One notable difference between futures in stock, is that it is highly unlikely that if any one company goes bankrupt and belly-up that any of the futures markets would go to zero. In the stock market, if a particular company that you've invested in those bankrupt or belly-up, here is a high likelihood that you are going to lose money, and in a case like this, a lot of it.

Both stock trading and futures trading have risks associated with them. Futures trading is viewed as more risky, because of the great amount of leverage involved when using futures contracts. This tremendous amount of leverage is one of the biggest reasons that traders become involved in trading futures. It is this leverage which allows some futures traders the opportunity to amass impressive gains even when starting with a modest amount of capital.

If you have not traded futures before and you have an interest in getting involved please make sure that you do your homework first. And remember that the fantastic amount of leverage is a double-edged sword that can work against you as easily as it could work for you.

FOREX Day Trading - A Great Way To Wipe Out Your Equity Quickly

There is no better way to wipe out your equity quickly than FOREX day trading.

I read all the time about how great FOREX day trading is, but never seen anyone able to give me a real time long term track record.

The reason of course is:

FOREX day trading is based upon logic that is simply ridiculous and dooms it to failure.

So why do day traders lose?

Consider this:

Day traders think they can predict movements in short time frames, but all short term moves are random and volatility can (and does) take prices anywhere.

If all the moves in a day are random you have no chance of making money as support and resistance points are meaningless.

Trillions of dollars are traded daily by millions of participants and to try and predict where prices will go in short time frames is laughable.

Support and resistance levels are NOT valid

Day traders try and work off support and resistance levels and continually get stopped out as volatility can and does take prices anywhere.

So you have a high probability of being stopped out and day trader’s pile up a huge number of small losses.

Occasionally they get a winning trade (more by luck than judgement) but of course they snatch any profit they can get as running profits is totally alien to day traders.

The result is a wipe out of equity and it normally happens quickly.

What about all the day trading systems promising gains?

Most of these are sold by people who have never traded and rely on enticing copy to sell their systems, or failed brokers looking to appeal to the greed and ignorance of buyers.

These day trading systems NEVER come with real time track records they come with hypothetical track records.

If you don’t know a hypothetical track record is one those us done in hindsight knowing the closing prices!

Well that’s hard; my seven year old daughter could do that.

The fact is day trading is simply a great way to lose money quickly and it is surprising how many traders fall into the trap of trying to win at it

Don’t make the same mistake, unless you want to lose your account equity quickly.

Japanese Yen - Live Trading Opportunity

A few days ago we showed you how to take advantage of a trading opportunity in the British Pound with some simple tools and this yielded a great profit with low risk.

Here we are going to look at another live trading opportunity with the same tools in the Japanese Yen.

Let’s look at the opportunity.

The Dollar has been under pressure recently against the major currencies and the Yen has benefited, however its rise has been very little in comparison with the Pound and the euro

Pull up the weekly chart

We are using futuresource.com but you can use any of the free charting services.

The weekly trend in the dollar against the yen is up – this is the primary trend.

Now pull up the daily chart and add these indicators

Bollinger bands, stochastics and RSI (If you don’t know how the above indicators work consult our other articles)

The dollar has dipped to the middle band of the Bollinger band and is now looking to move higher.

Timing the move

To get the odds in your favor you want a change in momentum and this is indicated by the stochastic – Watch for the lines to cross and turn to the upside with bullish divergence this then puts the odds in favour of the bulls.

Wait for the lines to cross and look also for a rising RSI

When the bulls take charge support will be below Wednesdays close (on a closing basis) and then the double bottom.

Target for the bulls is the double top at 12000

The above is simple way of getting into trades with the price momentum and odds on your side and allows you to act on confirmation rather than trying to predict.

The above trading scenario is taking advantage of a dip in a bull market to re-establish positions with the primary trend.

Initiating A Rookie Into Forex Business

The question we first need to ask is what is the forex market?

The forex market acts as medium to trade different currencies against each other. It is used by banks, central banks, governments and big corporations to hedge their currency holdings in the event of either a devaluation or revaluation as this can have undesirable effects on their balance sheets.

Then we have currency speculators who are into the business to simply to make money, whether a currency goes up or down. In currency trading, speculators are involved in buying and selling of currencies in a market with a daily turnover of $1.9trillion.

Traders speculate on the dollar, euro, yen, British Pound and many other currencies and make their profits based on the pips or movements in the price.

The market operates 24hrs a day, 5 days a week and it is very liquid.

The beauty of forex trading is that you need only a little to start with as many have commenced trading with as little as $100. Profits in the business defy logic with traders able to quintuple their money within days!

Prior to the start of actual trading, many rely on a demo account from which hopefully they would have learnt the ropes of the business. It is advisable that demo trading is carried out for 30 - 60days. This is due to the high risk nature of forex trading and the technicalities involved.

Good tutorial trading is essential to succeed in the business. Many either go for seminars, or purchase e-books or tutorial videos on the subject. Many join forums to enable them mingle with other traders and get access to what they hope may be profitable tips to enable them strike a fortune.

The business of currency trading is primarily carried out online and a a trader can check his stats anytime. An internet connection is therefore a must whether at home, office or at a cafe.

The basic factor for success in the business is the ability of one to fully understand how to apply both the technical and fundamental analysis when trading forex.

Fundamental analysis is simply the ability to speculate how the market will move based on information provided. For instance, an increase in the interest rates by the apex bank usually leads to a strengthening of a currency.

Technical analysis is much more scientific which relies on computer models which are based on patterns or trends observed in the markets over a period of time.

The sensible fusion of these two methods can yield enormous profits. The author however believes that fundamental analysis is the superior of the two.

Forex Trading Courses - Learn The Knowledge And Skills To Be Successful In Forex Trading

In forex trading venture, preparation and foreknowledge are the keys to success. Without this sort of insight, the attempt to make a profitable financial decision can only end in disaster and failure, regardless of your level of motivation and determination or the amount of money you plan to invest. Those who were successful in the Forex trading market have went through a Forex trading course to get the knowledge and skills needed to successfully trade in this very liquid and very large financial market.

What you should look for in a Forex Trading Course?

Basic knowledge-

You will learn all the terminologies use in forex trading activities. The course will teach you basics on margins, types of orders and leveraging as these are essential in the forex market transactions. This include the introduction of various tools and techniques use for trading.

Market analysis-

This will be the vital part in forex trading course. Here, you will learn how to chart and monitor the movements and trend of the market. . As a trader, knowing how to analyze a chart is an essential skill that you should have. The course will explain a lot about the fundamental and technical analysis of the forex charts. It should also teach you how to analyze common mistakes and at the same time, the ways to avoid such mistakes. From here then you will know when you should buy or sell.

Values and Etiquette -

Appropriate values such as discipline, patience and commitment are very important and should be developed within the trader. The course should teach you how to take the ownership while conducting the transactions.

Another factor is stress management since stress plays a critical part in Forex traders. Knowing how to deal with stress is also a skill that you should develop. A good Forex trading course should teach you how to deal with stress and trade effectively and efficiently.

Practical approach-

A good forex trading courses allows you to have training with real quotes and data. You will be taught the proper skills in risk management, and how you will be able to preserve your capital. You will learn how to make your very own business plan, and your instructor's comments about your work will help you improve the next time you make another plan.

There are different Forex trading courses available, all you need to do is choose one that suits your needs as a trader. There are crash courses where all the basic things about forex will be taught to you in a short period of time, full time online courses, where you will learn all about forex through the internet and there are also full time real life classroom courses where you can learn the ropes about forex in a real classroom with a live professor.

Day Trading Systems – Try Using One and LOSE Your Money Quickly

Perhaps the biggest myth of FOREX Trading is you can make money with day trading systems.

Day trading systems make money only for the people selling them and the investors who use them, simply lose their money and lose it quickly.

If you want to know why read on.

The Logic

Day trading logic is based around the fact that you can make money by predicting where prices will go in a day, or even a few hours.

The reality is:

All short term volatility is random, which is of course common sense to everyone but day traders.

Think about it:

You have trillions of dollars traded each day, by millions of participants all with different investment objectives.

The major groups can be summarized as follows:

Central Banks – Trading at key levels to push currencies up or down.

Large speculators – Looking to make money for themselves or for their clients.

Hedgers – Interested in offsetting risk.

Small speculators – Everyone else, who does not fall into the above groups.

How many of these pay attention to daily levels or ranges?

A tiny minority of losing day traders.

As volatility is random in short time frames and prices can and do go anywhere, using daily support, resistance or pivot points is a futile exercise.

So why do people buy these day trading systems?

Basically, because they have good sales copy and appeal to the greed of investors.

The only people who win are the vendors selling the system and they are of course not stupid enough to trade it themselves.

Don’t believe me?

Then ask for a track record of profits made over the longer term by vendors trading the system and you won’t get one.

What you will get is:

Maybe, some testimonials from friends or people who have had a lucky trade, or the favourite of day traders:

The Hypothetical track record.

This of course shows great profits, but there is a major problem:

A simulated hypothetical track record is done knowing the closing prices and is constructed in hindsight.

Let’s see, if I knew tomorrow’s closing price today could I make a profit?

Umm hard question, think I might be a multi millionaire!

The myth that day trading systems make money is one that novice traders fall for all the time – don’t make the same mistake.

The British Pound – A Low Risk High Reward Trading Opportunity

The British Pound will present a trading opportunity next week.

Here we will look at it and how you can trade it for profit

The British Pound Is Testing Resistance

If you pull up a chart (we are using futuresource.com for this example) you will see that prices are trying to test January’s high on the daily chart.

Of course, this resistance will either hold or give way, either way a trading opportunity is presenting itself.

On the chart look at these two indicators:

The Relative Strength Index (RSI) and the stochastic.

Both are indicating price strength.

The key to this trade is to watch the above indicators as prices test the high.

If the RSI starts to fall (notice how previous moves into the over bought zone have indicated a top) and the stochastic momentum starts to weaken then resistance should hold and the odds favour price falls.

Watch specifically for the stochastic lines to cross to the downside with bearish divergence.

This will give the bears control, as it indicates a weakening of momentum.

The stochastic is simply the best timing tool for entering trades and if you don’t know how it works you should! Check out our other articles.

If prices however can close above the January high, then the bulls are in charge and we have a breakout to the upside.

WAIT FOR CONFIRMATION.

Don’t jump in and try and predict where prices are going to go – Wait for confirmation either of:

SA breakout and close above January’s high (on a close basis) or a weakening of stochastic momentum into the high.

By doing this you will be letting price action tell you which way prices are going to go.

This trade is at critical resistance and you need to let price action indicate which way prices will go and take action accordingly.

FOREX Education - Work Smart Not Hard To Succeed

I read a lot about FOREX education and how it is essential to succeed and of course this is true, but most people don’t really understand what they should learn and how to do it.

So here are some guidelines, on how to work smart and not hard to achieve FOREX trading success.

When you are looking for FOREX education you can get most of it for free on the net.

Don’t be tempted to buy e-books or “sure fire” trading methods from guru's.

Why?

Because the FOREX education they offer is normally going to cost you and it’s not worth the money.

Most of it is written by great salesman (with great copy) or failed brokers.

In most cases, if it was that good they wouldn’t be selling it; they would keep quite and make money for themselves.

Harsh but true!

If you do want to buy from a guru on the web make sure they have a real time track record that has made money and not a simulation.

The good news is:

There is a huge resource of information on the web you can tap into and it’s all free.

As a novice trader you can learn everything about technical analysis and indicators and see how they have performed in real time.

You can also find lots of material on the traits of successful traders and how you can acquire these traits to make money.

You can then build a trading system for free from this FOREX education and even learn how to apply it.

Paid education that is worth the money.

Look no further than an online bookstore.

There are many great books you can buy from traders who have made money.

Unlike the guru’s on the net who rely on hyped sales copy these guys don’t need to:

They have made real money and lots of it.

There are many books to choose from but here are some of my favourites after reading several hundred over the last 18 years:

1. Market Wizards – Jack Shwager ( Edit )

This book is interviews with some of the all time great traders and allows you to tap into and learn from the best.

Quite simply, inspiring and essential FOREX education.

2. Trader Vic – Victor Sperandeo

Perhaps my favourite book of all time.

EVERYTHING you need to know about devising a plan for profit is in this book.

From the essentials of a trading plan, to money management and how to acquire discipline to stick with your plan and achieve trading success.

Again, essential FOREX education.

Other authors to check out are:

John Murphy (for his writing’s on technical analysis) Max Günter (check him out for some un conventional money making tips!) Jake Bernstein (great insight into the mindset you need to win) and finally, William Gallagher’s excellent book Winner Takes All – A very entertaining read.

There are many more but the above will give you some great FOREX education.

My own view in terms of FOREX education is to get all the info for free of the net to construct and implement your plan.

Then round it off with some FOREX education from traders who have been their, done it and made money.

I hope you enjoyed my thoughts on FOREX education and wish you trading success.

Want to Trade FOREX? Then Ask Yourself This Simple Question

What's your edge?

If you want to win at FOREX trading you must have an edge remember this fact:

Around 95% of traders lose – so if you don’t know what your edge is you will join them.

Let’s look at the basis of having an edge and what you need to win.

FOREX Trading is HARD – and anyone who says it’s easy, is lying.

You need an edge that allows you to win while the vast bulk of traders lose, it really is that simple.

The basis of what you need to do to achieve an edge is outlined below:

1. You can’t buy success

If you think you can consult a guru or get anyone else to give you success you need to wake up and need to “smell the coffee”!

If guru’s made money in the vast majority of cases they wouldn’t need clients.

Some are good and genuine, but that’s probably less than 1%.

If you want to follow one, you need to understand what they are doing, have total confidence in their method and see a real time track record of success.

You then need the confidence to follow their method with discipline.

2. You need a method you understand and know why it makes money

This means in most cases means deriving your method on your own and trusting it.

You need to trade it through losses and know you will end up a winner longer term and remember, all methods have long periods where they lose.

To win longer term you need to have total confidence in what you are doing and stick with your method through good times and more importantly, the bad.

If you don’t have discipline, you will fall by the wayside like the vast majority of traders and won’t be able to execute your method.

If you don’t have discipline to trade your method, you have no method at all!

3. What sets you apart from others?

This is your “edge” the reason you will beat other traders.

If you don’t know what your edge over other traders you will lose.

When you trade in the market you trade against other traders.

It’s a brutal world where only the strong survive and you need to have an advantage and more importantly, know what it is.

An edge in trading can be a number of things, but one thing is for sure:

You need to know what it is and why it allows you to take on and beat the vast majority of other traders.

Common traits of traders with an edge are:

They understand everything about the market:

How it moves and why and they have built a method themselves that suits their personality.

They then have total confidence in their method and can apply it with discipline to preserve and make them money.

If you want to win you need to do the same.

In conclusion, if you don’t know what your edge is, forget FOREX trading and do something else with your money or you will lose it all.

Learn Different Forex Trading Strategies To Earn More Profit and Minimize Loses In Forex Market

If you're a potential investment player who'd like to make it big in the business and financial world, then you go for forex trading. The FOREX, also known as the foreign exchange market is one of the largest financial markets in the world with and estimate of $1.5 trillion turn-overs every day.

Here are few forex trading strategies on how to make it big in the forex market.

Know your market.

The best way to get advantage, earn profit and minimize losses is to familiarize yourself with the market and how the whole system works. In the forex market, the players are usually commercial banks, central banks and firms involved in foreign trade, investment funds, broker companies and other private individuals with large capital.

With the speed and high liquidity of asset, most companies engage in this business than in any other trading venture. Transactions are done in a jiffy; there are no membership fees and there is always the allure and promise of big, big profit.

Forex Trading is done in pairs. The most commonly traded currencies are usually the US Dollar, Japanese Yen, Euro, British Pound, Canadian Dollar, Australian Dollar and the Swiss Franc. The more commonly traded currency pairs are the US Dollar and the Japanese Yen, the Euro and the US Dollar, the Swiss Franc and the US Dollar. In Forex trading, everything is speculative and virtual. There is no actual product being sold or bought.

The activity mostly consists of computed entries made on the value of one currency against another. Say for example, you can buy Euros with US Dollar, hoping that the Euro will increase it value. Once its value rises, you can sell the Euro again, thus earning you profit.

Learn the language.

There are three concepts you need to know in the currency market. Pips refer to the increase of one hundredth of a percent of the value of the currency pair you are trading. Usually each pip has a value of $10 or $1. Volume is the quantity or amount of money being traded at one particular time in the market. Buying is the acquisition of a particular currency. A trader buys with the hopes that the price of the currency will increase. Selling is putting a currency up for grabs in the market because of a potential or possibility of a decrease in its value.

There are also two techniques of analysis usually used in this business - the fundamental and the technical analysis.

Technical analysis is usually used by small and medium players. Here, the primary point of analysis revolves on the price. Fundamental analysis, on the other hand, is used by bigger companies and players with higher capital as it involves looking at the other factors affecting the value of a particular currency. In this type of analysis, the player also looks at the situation of the country, particularly issues like political stability, inflation rate, unemployment rate, and tax policies as these are seen to have an effect on the currency's value.

Develop a Sound Trading Strategy.

Your forex trading strategy would depend on what kind of trader you are. The basic thing with developing a trading strategy is to identify what kind of forex trader you are. A good forex trading strategy should lessen, if not, eliminate losses. Plan also the size of your transactions. It is better to conduct many different trades than one huge transaction. Not only does it develop discipline, but it also lessens any possible loss as only a fraction of the capital is affected. Part of a trading strategy is developing the values of discipline and proper money management.

Practice.

Try start with paper trading which is a great way to practice your skills. Observe how the market works and get acquainted with the software and tools being used. There are online brokers who allow free paper trades, which allow practice and experience before doing it with real money.

Choose the Right Forex Dealer.

Make sure that they are regulated by the law. Take note of dealers with investment schemes that give out too-good-to-be-true-just-false-hopes promises. Look at investment offers before getting started.

Forex trading strategies may seem easy and manageable. But the emotional stress, the demands and challenges of being a forex trader requires more than just the knowledge of the market. It requires more than just a keen and sensible head for business. It's all about a game plan, a strategy.

Online Forex Trading - Treading a Cautious Step

Online Forex trading is has gained popularity for reasons like, it is available round the clock and five days a week. You can do this business from home. It is fast becoming a big opportunity for earning money relatively safely. Online currency trading can be profitable depending on how you play your cards. Yes, I mean there are potentials for loosing your hard earned money overnight, if you are not alert. Online Forex trading simply means buying and selling currency pairs such as US Dollar versus the Japanese Yen.

Word of Caution

A word of caution here may not be out of place. Online forex trading is being promoted as a get rich quick scheme that can be mastered overnight. Contrarily, however, most traders lose out. So before taking the dip, you must carefully study what online Forex trading is. Making money through online forex trading is pretty challenging but not impossible. So gather as much information regarding it before you take the plunge.

Primarily online forex trading is the purchase of a currency from a country by paying for it the currency of another country. However, the key lesson for online forex trading is to identify when to take profits and at the same time the placing of your stop loss orders. Secondly, the myths such as day trading works will only suck you to big black holes but nowhere. Plainly speaking it is nothing special than direct access trading through brokers.

What Is Margin Trade

Margin is the amount used for a trade. Brokers let you trade upto 4 times your collateral deposit you made with them. This allows you to take positions much larger than your collateral which wouldn't have been possible otherwise. When you make a profit, you get the margin which is the difference between selling amount and the sum of brokerage, taxes and the money the broker had extended to you. This obviously increases your buying power. Now, this margin/leverage you can enjoy depends on your account equity and other factors like the longevity of your account. Remember many speculative trades are made using margin trading.

In the worst case, you can't lose more than your margin which is your sole investment as it is is also known as minimum security in the market parlance. How ever, expect to draw up a margin agreement with the broker when you take the plunge.

When you are new or unsure don't risk by day trading. The popularity of online forex trading is drawing all types of investors no matter whether they are pure play speculators or seasoned players which is the root of many market fluctuations. However, an advantage of online forex trading is the absence of bulls and bears. But here is the bottom line: online forex trading is a very popular way to online income today.

Trend Following – A Simple Method For Catching The Big Moves

We all want to capture the big forex trends that yield the big profits.

It’s great to be in at the start and hold them for weeks and even months, but how do you do it?

Here is a simple method to help you.

The weekly chart

Start with the weekly chart and you will see the big picture and look for important areas of resistance that have been tested several times.

Now you have the big picture move to the daily chart.

See if you can see resistance in the same areas.

Make sure you only look for valid support with tests that have occurred several weeks or months apart.

You know then that these breaks if they occur will be significant and will trigger new buying.

Also these levels will see stop loss selling, as stops behind the resistance levels are hit.

This means that if a break occurs the odds of the price moving in the direction of the break are high.

Fact:

Most significant price breaks and trends develop from new market highs, not market lows.

What you are going to do is enter on the break and place your stop below resistance.

The important point here is to trade with price momentum - If the currency breaks to the upside.

Wait for the break and watch these indicators for an indication of the strength of the break.

The RSI

This should not be in overbought territory and the lower it is when the price breaks the better and it should be rising as the break occurs.

The stochastic

Watch on the break for both lines to be pointing up with bullish divergence.

This is simply the best momentum indicator you can use and if you don’t know how it works read our other articles.

Bollinger bands

Before the break it is best that they indicate low volatility.

You can see all the above indicators on free chart services on the net and one of the best is futuresource.com

Providing price momentum is with the break, go for a long trade at the close of US hours if it closes above the resistance your in.

Waiting for the close will help you filter out false breakouts.

Following the trend

As you have traded on a significant break of resistance and you have momentum in your favour odds are the trend will continue.

Why?

New buying will be triggered as resistance is significant and trend followers will move in and anyone holding shorts will have stops behind resistance and have to cover their positions, this will cause further price rises.

Do NOT

Move your stop or trail it in the first few days of the break.

Volatility could stop you out, you very often have a test of the breakout point after prices breakout.

Keep your stop behind the breakout point and be patient.

If a significant trend is developing it could last for weeks or months and you don’t want to be bumped out early.

The really big breakouts only occur a few times a year and you want to make sure you are in for the long term.

This may sound simple but.

Most traders cant do it.

Why?

They hate buying breaks – they want to buy the pullback i.e. “buy low sell high” and the fact they have missed a bit of the move means they are reluctant to get in.

They want to get a “better price” but on most big breakouts prices simply keep going with no pullback.

You may have missed a bit of the move (the initial break) but as the trend is odds on to move up quickly that won’t matter, as there is plenty of profit ahead.

If you wait for the pullback you will be waiting in vain as these breaks tend not to come back.

Do the above and keep in mind that most big trends develop from new market highs and they move quickly.

If you “buy high and sell higher” you can make a lot of money and you will never miss a major trend.

Swing Trading – A Profit Opportunity Shaping Up Right Now

If you are a regular reader of our articles, you will know that we like to demonstrate our theory with some live examples, so you can see the theory in a real market situation.

We did 3 live examples recently. We had a great profits in the yen and pound and a loss in the euro but a good profit overall – Now lets look at another example.

The British Pound V US Dollar

We hit this from the short side and took profit above the middle Bollinger band and prices are now moving up from this level to test resistance.

There is another opportunity on the short side that offers great risk to reward.

Lets look at why.

Pull up a chart of the British Pound.

A good free service to use is futuresource.com.

Prices are moving up to test the recent double top and we think this resistance will hold.

Only a close above January's high will change our view, we would in this instance have a breakout to the upside that would indicate further strength.

Watch prices into the double top and look for the bears to take control.

Keep your eye on a falling RSI into this level and a cross with bearish divergence on the stochastic.

At present price momentum is up and for shorts to get the nod we must see momentum turn bearish.

At present both stochastic lines are pointing up.

We want to see the lines cross to the downside near the double top with bearish divergence, then the odds favor a price drop.

The stochastic increases your odds of success, as it confirms price momentum is changing and you don’t have to guess ie you act on confirmation.

If you don’t know how to use this great timing indicator, see our other articles.

The target again is just above the center Bollinger band.

Important!

Do not try and predict.

Wait for the indicators to signal the bears are taking control, via the stochastic and RSI and remember the bulls only take charge above January's highs.

This trade has low risk good reward by selling the top of the range that has held for a long period of time.

This is a simple swing trading method but it works and uses price momentum to increase your chances of success.

Try swing trading with this method and you will soon be spotting some great high return low risk trades, with clearly defined stops and targets.

Forex Charting in Stock Market Exchange

Forex charting is popular. These charts provide investors with readings from the stock market progresses. Investors' odds in stocks improve, since the readings show them the changes in the high/low. The investors use these results to know when the best time is to bet/ask, trade/sell, etc.

You have a selection of Forex charts, which may include the Web and Java charts. With the Web charts, it supplies the investors with specs. Often they receive details from various stock markets streaming from different banks around the globe. These banks have a big institutional bank, which is located in New York. London banks, Irish banks, Hong Kong and other banks link to the headquarters in Stock or Forex marketing.

Charts will supply the investors with valuable tools. This technology arranged software programs would give accurate readings. Some of the programs will read out rate of changes, stochastic, (Random probabilities), Bollinger Bands, Common Deviations, and so on.

Some of the readings, such as Bollinger's are an indicator. This indicator enables the investors to evaluate volatility and prices on a timeline. Indicators make up bands that rotate, moving toward averages in the stock exchange to the center of Forex Charts. The bands at the crown of the charts deviate, the stands (SMA) to sum up, while the low bands will subtract these stock deviations. Clearly, investors must know how to read instabilities in the stock as well as learn how to read pricing. This will help investors at the buy/sell, trade, ask/bid, etc stages.

Change rates permit the investors to track all percentages. Sometimes the oscillator moves back and forward, fluctuating. This means that at the time the market reaches "subzero" additional changes may occur. At this time Forex, stock investors can read the results to see positive/negative results. Each result will display high/lows in the stock market and will show divergences within Forex. When the lines cross over the subzero mark, signals are sent that indicate to the investors when to bid.

You want to learn about these changes, charts and more when considering this stock market. Most starters must invest $10,000 to enter into the Forex market exchange. If you are new to this stock market, then be sure that you become well informed before opening an account.

The advantage that Forex stocks provide that stock market exchange do not is that when the markets are low you still have a chance at winning. This is because you are betting on currencies amidst countries, which these currencies may change at any given moment. Currencies pair, which may include EUR/USD, or JYP/USD, USD/JYP, and so on, which you need to has an understanding of these currencies to know when to bid/ask, trade/sell etc in Forex stock exchange.