Archive for the ‘Forex Broker’ Category

How Do Day Trading Techniques Work?

by

Dee Winne

Daytrading strategies are a way of identifying stock trading ideas that are able to be bought and sold while in the same session. There are times where this type of transaction could be held until the next day, but in general virtually all positions are flattened on the day of entry. The goal is to collect a good profit without having to takethe overnight chance of an adverse price move against the trade. In general, there are three types of day trades which might take place – trades dependent off economic announcements, trades based upon chart patterns and trading based off of another security.

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Within these 3 types of trades, you will find an added breakdown. These types of transactions may be done manually, semi-automated as well as completely automated. Manual trade positions deal with atrader just simply watching the security trade in real-time to get a feel for the direction together with volatility. A trader may additionally watch a live financial newsfeed and try to find opportunities in which a piece of news which comes out is not estimated into the valuation of the shares. Manual trading usually do not have a specified set ofprocedures to identify trading opportunities – they are generally built around the individual traders level of skill. Semi-automated trading takes advantage of charting software programs, which includes those which can be programmed and customized. There is always a handful of methods which are adhered to in order to locate trading ideas, which can comprise of a variety of steps and measures. As soon as a trade is found, a trader uses thier judgement as to the validity of the trade. In addition the trader may discover that a particularstock trade is not working out or is not progressing as intended and will choose to just get rid of that trade and look for others. Semi-automated day trading most likely is the most widely used form of short-term trading. A set of guidelines is utilized to dig into the markets for trade ideasmeeting the criteria after which the speculator places the tradeby hand and monitors the progress. There is frequently a number of exit methods that will be implemented, but you will find a great deal of adaptability to change the rules determined by what the market is doing. Automatic market models are fully encoded trading strategies that demand little if anyintervention from the market participant. A fixed list of mechanics is run to detect ideas, transact trade positions as well as keep on top of the transactions once a trade is filled. Usually, programmed trading systems are left to handle all components of the transaction. Only in extreme situations would a professional use any judgement with this kind of system. To program a reliable automated day trading system necessitates numerous years of practical experience in both trading the markets and expertise inprogramming languages. This does not necessarily mean the actualsystem has to be complex; to the contrary some of the best automated trading systems are based on a clear-cut principle but function in a very completely unique manner. This sort of strategy is not for everyone. It entails at the bare minimum several hours of your time during trade hours to locateand execute trades. On top of that it demands a greater than average understanding of the markets. Furthermore, this form of buying and selling increases the chances of losing money for many individuals. Day trading techniques

are captivating given that they can give a very good rate of return for those that possess a sufficient amount of expertise. It is additionally a lot of fun for many individuals to make an effort to learn about this type of trading as a pastime. There are a lot of brokerages which will ensure that you get a virtual account free of charge. This really is the best method to try your hand at day tradingand develop your current knowledge.

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Will the Trend Stop or Continue On – Find Out How to Tell with Technical Analysis Training Course

by

Peter Markham

So you have started to trade and you have developed your stock trading strategy . You’ve taken technical analysis training course and and for your preferred style you have gone with trend traing after some time in thought.

[youtube]http://www.youtube.com/watch?v=pWRCNxI2Z_A[/youtube]

Trend trading is a strategy that is very attractive. The trending patterns just pop out when you retrospectively look at stock charts. You salivate about catching a beginning trend and riding it through to its final conclusion many months down the road . The money beckons and sucess is before you ! Alas, in the real world trading is not quite so easy . You enter a trend – you may be a bit late or you get in near the trend’s beginning , but you do make it on board . You are now in the trade and you’re able to get a small profit as you see the predictions you made come true. Then you have a strong day and then the market stops dead when resistance is hit by the stock. You tell yourself that you can’t make the whole move in a day and there is more ahead and then you add to the position you are in . Then the next day the market opens , goes absolutely nowhere, and then it starts heading down fast. Because you have added to your position you are quickly back at break-even and once you have the orders in place, you have already lost money. What occured ? How could you tell before it happened that the trend wouldn’t continue and that instead you should take your profit when the market opened strongly up and paused ? Here are some trading tips that will tell when a trend will stop and when it will continue . If you use the tips along with the technical analysis training you’ll be on top of your game. First and most importantly : use higher time period charts to set your targets ; look for logical places of support and resistance to figure out where the market is going to stop or start moving . If you are not sure how you can predict where support and resistance will exist in the future , or within your trading are unsure of how to coordinate your time frames , then consider using technical analysis training course for some help . You’ll find Drummond Geometry to be a top option but there are many schools of thought which are valid as well . A tool is another element that you need with which to make judgments about the strength and robustness of a trend . Resistance or support will be broken through by a strong trend and a weak trend will stop and either go into sideways congestion at a point of resistance or support or it will reverse and move in the opposite direction . If your analysis tool kit has the right tool you can make a prediction of which action is more likely ; you’ll have to wait and see without the right tools , and you have a high possibility of getting disappointed. To measure this appropriately you should use momentum tools and apply the tools to a timeframe smaller than that of the trend you are currently trading … basically if you are trading a daily chart , with your trades try to pick the day’s high or low, then you would be looking at an hourly or half-hour chart to give you support in your trading decisions intraday . We will continue this discussion in part 2 of the technical analysis training series.

Author:

Peter Markham is a Forex trader with 30 years practical experience in the markets. He received his education in Sydney and Los Angeles and has been a trading consultant worldwide. He has written widely on Technical Analysis Training Course

. Among the many choices Peter recommends this

technical analysis training course

for an original and productive trading approach.

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Will the Trend Stop or Continue On – Find Out How to Tell with Technical Analysis Training Course

The Best Tactics For Short Term Forex Trading

by

Vincent A Rogers

In terms of being the best tactician in short-term forex trading, we recommend momentum trading and for good reasons, too. Its main aim is to achieve the profit target as soon as possible with as little risk possible under the volatile circumstances that surround each forex transaction. Basically, you take advantage of the momentum when it is on your side by entering the forex market either on a long or short basis.

[youtube]http://www.youtube.com/watch?v=VB3iFq1xcBA[/youtube]

You will require three kinds of moving averages to accomplish your purpose, namely, the moving average convergence divergence (MACD), the 100-day simple moving average (SMA), and the 20-day exponential moving average (EMA). You will see why later. For the MACD, be sure to use the default setting on the 5-minute chart. Said default setting is: Signal ENA=9, First EMA=12, and Second EMA=26. To start on this short-term forex trading strategy, open the 5-minute chart and look for the right currency pair. This means the pair trading below the SMA and EMA. Take a look at the MACD histogram. You will enter into a long trade when the MACD starts turning positive but stay within 5 candles. Your stop loss margin must be positioned at the candle’s low point, which should be above the EMA and SMA. You will exit half of your position the moment the trade changes in your favour but be sure that it is still within the amount risked. The other half of your position will follow a trailing stop within a -15 pips on the 20-day EMA. This forex trading tactic should pay off handsomely under the right circumstances. Now, let’s assume that that your chosen currency pair is trading in the opposite direction – above the EMA and SMA that is. In this case, you must be patient and wait until such time that the currency pair is trading below both the EMA and SMA by 15 pips, minimum. In reverse of the first situation, you will enter into a short trade with the MACD turning negative within 5 candles. (The first situation was go long on positive turn). Your stop loss is at the high point of the first candle breaking through the EMA and SMA. (In the first, it was at a low point). You will also exit half of your position with the other half set for a trailing stop at +15 pips on the EMA. Again, this forex trading strategy should be in your favour when you can closely monitor the charts. There are other strategies for short-term forex transactions, of course. Two examples are the use of 2 charts, namely, the hourly and the 10-minute charts as well as the 200-bar MA. You can also explore these options but we recommend trying the momentum trading strategy first.

Vincent Rogers is a freelance writer who recommends Go Markets,

Online Forex Trading

Brokers based in Melbourne, Australia who offer trading accounts for beginners and the more advance traders using the MetaTrader 4 and 5 Platforms

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The Best Tactics For Short Term Forex Trading

Trends In The Currency Markets – How To Stay On The Right Side

by

James Woolley

People approach forex trading from many different angles. Some like to look for overbought and oversold markets to try and trade price reversals, whilst others look for potential breakouts. However the most profitable trading strategies are generally those that trade with the overall trend. So let me provide you with 5 indicators that will help indicate the current trend.

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1. MACD The first indicator is the MACD indicator. This is widely used amongst forex traders and is one of the most popular. You can use this indicator to highlight the current trend because if the actual MACD line is above 0 the pair is in an upward trend, and vice versa if it is below 0. 2. RSI Another indicator you can use is the RSI indicator, short for Relative Strength Index. A lot of people use this indicator to find overbought or oversold pairs, but it is just as useful for identifying the current trend because if it is above 50 it is trending upwards, and if it is below 50 it is trending downwards. 3. Stochastics The Stochastics indicator can be used in a similar way. The 50 level is again the critical level and is the difference between an upward trending market and a downward trending market. 4. Exponential Moving Average Moving averages are really popular as well and I particularly like to use the exponential moving average (EMA) ahead of all the others because it is more relevant to the recent price action. There are lots of settings you can use. You can use a 5, 20, 50 or 200 period EMA, for instance, but whichever one you use, the current trend will depend on whether the price is currently above or below this indicator. 5. Supertrend The Supertrend indicator is not one of the mainstream indicators like those mentioned above, but it is no less valid. In fact it is one of the more effective indicators. It is really easy to use because a green line indicates a bullish trend and a red line indicates a bearish trend. These are 5 technical indicators you can use to identify the current trend and find out which way you should be trading. However there are lots of others you can use such as the CCI, TRIX and Smoothed Repulse indicators. The point is that you have a much greater chance of making money on a consistent basis if you always trade with the trend. So it is always worth consulting some of these indicators from time to time in order to spot the latest trends in the forex markets.

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Trends In The Currency Markets – How To Stay On The Right Side