Archive for the ‘currency trading charts’ Category

Many trader use intra day charts to try and time the market for maximum profits and keep losses small and make big profits overtime.

But how can you do this? Let’s find out.

Intra day charts sound like a great way to maximize profits and keep losses small but all you will do is end up losing money quickly.

Why?

Consider what the FOREX market actually is and you will see why using intro day charts is simply a good way to put the odds firmly against you.

The FOREX markets are huge and trillions of dollars are traded everyday and you cannot predict what will happen in such a short time frame as a few hours or minutes.

It’s a ridiculous way to trade.

There is insufficient data and volatility in such short time frames is unpredictable.

Trade with the odds

Currency markets trade longer term and reflect the underlying health of the economy (which of course is long term) and intra day movements are random.

You cannot set stops intra day, as daily resistance and support points are meaningless.

The scenario that dooms you to lose.

You can keep your losses small, but your chances of being stopped out are also high.

As for running profits, intra day traders simply want to get out in the day with a profit.

They can do this sometimes (by luck more than anything else) but their profits are never big enough to cover their inevitable losses.

Ever heard the phrase

“Run your profits and cut your losses?

Its sound advice.

You can’t do this trading intra day.

All you will end up doing is keeping your losses small, have higher odds of being stopped out and never be able to run your profits to cover your inevitable losses.

The net result – You lose all your money over the longer term.

Intra day trading is mostly promoted by system sellers or vendors who simply make money selling to you.

They don’t trade themselves and if you ask them, can NEVER Produce a real time track record of consistent gains.

You may get a few testimonials or a hypothetical track record in hindsight.

We can all make money in hindsight, but trading intra day in the market real time is far harder and you will lose.

Don’t fall for this method of trading you will simply lose as the odds are firmly against you.

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i'm a newbie of forex (foreign exchange currency), i wonder why most of trader using multiple monitor to see their chart, if you and experience trader please help me, tell me what are they looking on first monitor and the second one.

what are the most important of being a forex trader?
does it need a specific time to do a trading?

thank you..

Hi,

There's actually no need to use multiple monitors when trading Forex.

Although multiple monitors do help a trader to better visualise relative price movements (i.e. compare movements between currencies and time frames), you can already do that using multiple "windows" in one single monitor.

Multiple monitors are honestly more a luxury than a necessity, at least at the retail trading level.

Now, to answer your other questions…

The most important thing about being a Forex trader is money management. There are many free resources available on the internet where you can learn from.

About your last question…
There is no specific (or compulsory) time to trade, although there are better times to trade than others. The better times to trade typically coincide with the London and U.S. trading hours because of the high liquidity.

Hope I've been of help to you. If you want more information, you may like to get a free copy of my Forex trading report at http://forexsystemprofits.com

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If you want to take advantage of currency price movements and predict where prices might go you need to know what moves prices and why they occur.

This may sound obvious but many traders simply don’t know and lose.

Lets find out exactly what moves prices and why and how you can take advantage.

Understand the following equation

Supply and Demand Fundamentals + Trader Psychology = Price movement

Prices are not simply a tug of war between supply and demand. As humans we put a value on the market and this is the unpredictable part of the equation.

When considering trader psychology keep in mind that it is humans that determine the price of anything, based upon how they see the facts.

Why is this important?

It’s important because its humans that drive prices, with the emotions of greed and fear to the fore. It is the human element that you need to consider when trading the markets.

So how do you do it?

The obvious answer in FOREX trading is to use a system based upon technical analysis, simply follow charts and let them tell you which way prices will go.

As with today’s fundamentals are instantly discounted in the price the news and data wont help you – understanding trader psychology will.

Technical analysis acts as a way of studying the fundamentals, as it assumes that all the fundamentals are discounted by the market and will show up instantly in price action.

Charts do something much more – they show up the long term repetitiveness of human nature.

Unpredictable in the short term, but over the longer term certain reliable chart patterns can be spotted that are a reflection of repetitive human psychology.

Now consider this:

Each trillions of dollars are traded in the markets, by numerous participants and while in the short term these participants can be unpredictable, in the longer term human nature is constant and chart patterns repeat.

How to trade

When trading don’t fall for the day trading story.

All short term moves are random and you can prove this by asking any day trader for a long term track record of REAL profits made in trading.

Ask for one and you won’t get one.

Many new traders try and trade short term but as you can see above its why they lose.

You need to trade longer term and we would suggest using the weekly chart to spot the long term trend ( currency trends tend to last for months or even years) and then time your entry on the daily chart.

If you understand what we have just discussed you will see that a long term technical approach to trading is the best way to make long term profits from Forex trading.

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