Are you aware of the Forex Trading scams and garbage that abound on the internet? These piles of garbage affect the public perception of this business so that people ume Forex trading must be a pile of garbage. Fortunately, if you can see the diamond in the coal, the pearl in the oyster and the needle in the haystack you may discover that there actually is a legitimate path to success in Forex trading.

Duration : 4 min 40 sec

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The way the markets move and how to spot big trending moves is not as easy as it first appears and many traders simply have no idea of what really moves prices and how to take advantage.

Let’s look at this in more detail and show you how to spot the big moves.

1. The market

Like any market we have buyers and sellers millions of them trading trillions of dollars a day.

They all have different objectives. Some are hedging and some are trying to make money. There are many different groups from the central banks down to small speculators.

2. How is value determined

Of course value is determined by the participants and all their opinions come together to give us the market price.

The facts are there for all to see, but all the participants see them in a different way and that’s why currency markets are so hard to predict.

Well that all sounds chaotic, so how on earth can you predict or even try to predict where prices will go?

In the short term in the period of a day for example it cant be predicted ( that’s why day traders always lose ) but in the longer term they can by a study of:

Human psychology.

Humans determine the price of anything and they will always push prices to far up or down.

Humans are emotional as well as logical beings.

It’s these spikes in human emotion when greed and fear push prices to far up and down, that you can trade for big profits.

Consider in an example we all are familiar with that happened recently.

Crude oil spiked up to $80.00 a barrel and people predicted it would go to $100.00.

The supply and demand fundamentals pointed to no shortage of oil but greed and fear took hold and pushed prices way above fair value

What happened next?

It dropped to the $50.00

This happens all the time in ANY market, to varying degrees.

Human emotion pushes prices to far and then they return to realistic levels of value.

Sentiment indicators

Charts give you a great view of human psychology and there are some good indicators to help you spot that are sentiment based.

The fact is if you can sell into mass greed and buy into mass fear you can get some of the best risk reward trades around.

Discipline and the right tools

Its not easy to do. With the news and everyone else opposing you, but if you can get a method and stay disciplined then you will end up winning and winning big in forex trading, or any other market you wish to trade.

In part two of this series, we will look at some tools to help you achieve this and become a contrary trader earning big profits from the big moves

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.

A look at FOREX markets and Gold Futures for Tuesday, May 15th; Observe the visual pattern setup into an aggressive sell in the Gold Futures chart, which has already taken out scalpers and is currently pushing towards extended targets. In the FOREX, we review a few patterns we see setting up or completing, including buy patterns in the British Pound and Canadian Dollar.

Duration : 10 min 8 sec

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I have been giving some live trades to show how a simple system can make big profits. We have done 2 live trades and made two great profits.

We did the same last year we did 5 trades live and won on all of them!

Now that does not make me a genius, but I want to share something with you that I have learned over 25 years as a trader.

The Best Methods are SIMPLE

I have tried just about every way of trading from using artificial intelligence to neural networks and some methods overloaded with indicators and I can tell you the best methods are simple.

The method I use is simply this:

1. Look for significant levels of support and resistance

2. Use a breakout methodology

3. Use stochastics to time entry

4. Use Bollinger Bands for targets and RSI as contrary trading indicator

That’s it.

People think the harder they try or work on a method the better it will work but this is not true.

You get nothing extra for effort in the FOREX markets.

There are many smart traders out there who build incredibly complex systems and are dismayed when they collapse in the brutal world of trading.

The problem with complex systems is there are to many elements to break.

My system above works on any market not just currencies and its logic is sound.

It works makes money and only takes 30 minutes or so a day to execute and there is also no intra day monitoring as it works off daily closes..

It Does However Need:

The trader to spot and filter the set ups. This means YOU pull the trigger not a computer.

Many traders don’t like doing this but the fact is:

We can think computers cant and I personally like the responsibility of making the trade. If you want to delegate totally to a computer then this system may not be for you but I am always more comfortable pulling the trigger myself.

So there you have it a simple system that makes money and I have given you the logic and components for free.

I hope you like it and its of as much use to you as it is to me – after 25 Years I am still using it and it is still making money which is what forex trading is all about.

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Ask
Bid
Symbol
Last
Change
Chg%
Low
High
Time
Powered by
sec. quotes delay
Indicative currency converter
Amount:
Convert
*Indicative middle spot rates, %d sec delay.

Here You Go Chiedere
Offerta
Simbolo
Ultimo
Cambiare
Var%
Basso
Alto
Tempo
Powered by
SEC. quotazioni di ritardo
Indicativo convertitore di valuta
Importo:
Convertire

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