Forex Trading – A Peep Into The Fibonacci Den

by

ForexAbode.com

Fibonacci analysis started with retracements of prices during a trend according to Fibonacci sequence. And it is really surprising how many times we see the trending prices retracing to Fibonacci levels of 38.2%, 50% or 61.8% and then continuing the trend.

When we talk about Fibonacci numbers in nature etc, it seems to have some magic behind it. But then every magic has a logic behind it. What I am talking is Fibonacci in flower petals, in shell spirals, in the family trees of rabbits and cows and so on. But the why Fibonacci works in trading also? Is it that magic or is there a logic?

Well, no magic is without a logic or reasoning and same is true with Fibonacci analysis in trading

Why do technical analysis indicators work? The major reason that any technical analysis indicator works is mainly because of the number of traders taking major positions on the basis of the signals generated by it. The success of any indicator depends on the number of traders following the signals generated by it. A sell signal comes and people start selling big and the prices would drop further down.

Going back to what was mentioned above that Fibonacci sequence, at times, shows that there is a mystery behind it. That makes traders to try to find newer ways of analysis based on Fibonacci sequence. And that brought in so many other Fibonacci indicators in trading market. These tools are Fibonacci extensions, Fibonacci Arcs, Fibonacci Fans, Fibonacci Time zones etc. All these indicators use Fibonacci sequence of numbers in different ways. As an example Fibonacci retracement levels are flat levels and take into account only the prices while Fibonacci arcs take the prices and time into consideration

This article is to see which Fibonacci indicators we should use.

Which Fibonacci analysis is better?

Well, I would say that the better is which tends to be the base of major trades as a tool used by more number of traders. The professional traders always like the simplicity in their analysis while even if they analyze larger volumes of diversified data. They would not use a big numbers of indicators but only selective ones. And hence the vote would go to the original Fibonacci retracements amongst all the other Fibonacci indicators.

Fibonacci retracement and extension but to which level:

38.2%, 50% or 61.8% or more? To what level we should expect the correction depends on the strength of the trend. When the trends are very strong a correction may not be very big. During the trends which are not trends the retracement levels may be big.

It is always advisable to use some indicators to check what is the strength of the trend and whether any indicator is indicating a trend reversal. We can use ADX, Stochastic and MACD, Ichimoku clouds etc. If the ongoing trend is very strong then price may not retrace very much and may only go to 38.2% level. If the trend is moderate then it may further retrace to deeper levels. A balanced combination of complementing technical indicators is always good.

Use of technical indicators and time frames:

What kind of time frame charts the traders are using and what kind of trades they are making for major trades also adds to the dependability of the signals. One thing is sure that no big trades would happen on the basis of the analysis on 5 minue charts. Keeping a track of longer term charts and shorter term charts is always important to see the true direction and knowing entry and exit points.

For more details please check

Fibonacci

and

Ichimoku

pages of ForexAbode.com. You may also share your views at

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Forex Trading – A Peep Into The Fibonacci Den

Forex Trading Course – Don’t Wasting Your Time On Pointless Lessons

by

Matthew John

If you have any interest to study forex trading from the very basic to the advance level, the best alternative is taling a good forex trading course. Finding forex trading lessons at the internet is really easy, but you finding the real one won’t be easy task. After all, wasting time by studying methods that doesn’t works or a course that only has abstract idea without real to-do-list are will make you lose motivation quickly.

When you choose a forex trading course, make sure it has these features:

1. Teach the Basics

No one can start from advanced level. If your lessons suddendly jump to any complicated indicators or scalping system, return it immediately. Your course ought to teach you how to develop your trading skills from scratch and familiarizes you with numerous aspects of basic forex trading like charting, indicator, leverage, trading account, online broker, etc.

In my opinion, learning by doing is the best approach. Look for a course that teaches you how to open a demo/practice/dummy account in an online forex broker and getting used to a trading platform. After that, you can learn to use various features of the trading platform such as chart, make an entry, place stop loss order, read news, etc.

2. Have a Great Trading System

Enter the market without proper preparations is not something that will be taught by a good forex trading course. There are many types of analysis and tactics in forex trading and each of them is good in a specific situation. Applying these strategies and analysis correctly is the key to successful trading system.

A good trading system contains specific strategies based on certain analysis to make profitable entry and exit decision. This system must have tested against historical market data and present market movement to demonstrate its efficiency.

3. Teach Risk Management Strategy

Even with a good trading system, it always possible that the market will move against your prediction. In your lessons, you should be taught about solving this problem by applying various risk management methods. There are many forms of risk management methods, but at the very least it should teach you how to place stop loss and take profit order. Applying these methods will reduce the risks from emotion factor; something that have caused many traders fall.

4. Giving Examples or Proof

An excellent forex trading course won t only teach empty theories that is not applicable in the real market. It have to show some proof or provide video examples on how the system being applied and gain profits. It is even better if the system have some positive testimonials from people who actually used it.

5. Offering Money back Guarantee

A great course must be confident enough that its system and learning material can help you to become a much better trader. This confidence can be reflected in the form of 100% money back guarantee. If you have studied it and don t think that it have that much value, you can always ask your money back.

Getting a great forex trading course is the first task to become a successful trader who know precisely the best way to study the market and take profits from it. In the future, it’s possible to include different forex software to your trading system and evolve it further.

Check the details of the most effective forex course at

a review of forex wealth builder

. Start your career in forex trading by getting Matthew’s 100 % free course at

online forex global trading

.

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ArticleRich.com

Most people look at what has already come to pass on their chart. After that, they come up with a one trade idea and then wish it will work out.

Since we can’t see what happens next, untested traders tend to assume circumstances of what they want to happen, or what they fear.

Traders think about registering a trade and the price hovering in their direction for easy revenue and high-fives from acquaintances.

However, we want to be concerned about all the possibilities. The price may possibly drop, rally, or do nothing.

If you are very confident, you may miss clues that the market is turning versus you. If you are very doubtful you may dodge a good trade or jump out of it too early.

What Do You Need?

Strategies are what you must have that could have gotten you into a trade, with an initial income target and stop loss.

This article will offer traders with meaning and classification of day trading and intraday trading.

Moreover, you will be exploring different day trading systems, how traders generate profits with day trading systems, some recommendations for the best Forex day trading systems, and some insightful tips for you to use in your daily trading.

Get To Know What Is Forex Day Trading

Forex Day Trading is the buying and selling of securities, but only within that same trading day.

Day Trading can take place in any market but frequently it happens in either the Forex trading market or the stock trading market.

In order to be profitable as a Forex day trader, you must have a decent amount of capital with a good amount of knowledge regarding the market behind you.

However, having all of those does not necessarily assure success.

Why Do Traders Day Trade?

Forex day trading is used in order to reduce the need to pay fees for maintaining a position overnight.

The fees are discussed as “Swaps.”

In some cases, the swaps may perhaps be positive.

A trading strategy established on acquiring assets with positive swaps is described as a “Carry Trade.”

However, this strategy is ahead of the scope of this article. Day traders hang on a lot of importance for the Forex market.

Day trading Forex is a very much speculative activity. Yet, it keeps the market functioning smoothly.

Forex day traders are the ones who furnish the market with liquidity.

How to Day Trade in Forex

The guide to a lucrative Forex day trading may possibly be considered controversial, as it is something that everyone has an outlook about.

What everyone agrees on though, is that it is a very dangerous activity. It should only be believed if one has an in-depth understanding of the market and a clear awareness of those risks.

Qualities of A Successful Day Trader or A Professional Day TraderCapital Requirement

A large quantity of capital at the trader’s clearance with an adequate risk/reward ratio is definitely necessary. It is even though day traders are considering for more return contrasted to the average sizes that traders achieve. It is still suggested to keep the trade size fairly low.

Market Knowledge

Comprehensive knowledge of how the market performs and what the main governing factors of market moves are is essential.

A successful day trader must keep an eye on both fundamental and technical gauges.

Extraordinary Discipline

In every portion of life, discipline is essential. On the flip side, disregarding discipline in day trading may possibly result in huge losses.

Success without discipline is essentially impossible. You need to be able to observe prices for prolonged periods of time without making any reckless trading decisions.

Most of the time, you may notice profitable market moves that you have projected but did not implement is painful. Yet, it is better to waste a chance, than to guarantee a loss.

Strategy

One has to embrace one or many strategies in order to reduce losses and boost profits.

Market conditions differ from day to day, so should a day trader’s strategy.

A lucrative day trader has to come up with a new strategy almost every other day. They should also at least regulate their current strategy to the new market conditions.

In order to day trade Forex effectively, an innovative mind is vital.

Conclusion

A strategy will give you more detailed information for implementing your day trades while depending on the defined technical indicators and objects.

It is also recommended to try executing a few systems and evaluate which one is the most fascinating and comfortable for you.

Don’t compete for profits straight away, the most important idea when picking a system is to be confident in what you are doing.

Also, keep in mind that a trader may perhaps not be able to shield their account with stop orders around the news.

If there is no liquidity on the market, the order won’t close. It will remain sleeping until the first available counterparty is inclined to trade.

So basically, it is only at their price that you will trade. However, the best day trading strategy in Forex is always to trade at your price.

Submitted by: Brian McAboy

Traders blame themselves all day long for not having the discipline to stick to their system.

You’ve done it. I’ve done it. Everyone does it.

Seems like a natural conclusion that if you’re not sticking to your system, and it’s just you, your system and the markets, then the problem must be you. Right?

Can’t be the markets.

Can’t be your system.

Or can it?

The Culprit Hiding in Plain Sight

Is it possible that your trading system itself can be causing you to hesitate, freeze up, get out early, or over trade?

Having helped traders work through their issues for more that 6 years, I can definitely say “YES!”

With nearly 98% of my clients, the same problem existed.

We isolated WHEN their emotions would flare up and then took a closer look at their system, we found a direct correlation.

This was a very clear evidence that their system really was the culprit behind their ‘discipline breakdowns’.

It makes complete sense too.

After all, they aren’t normally ‘undisciplined’ people. They demonstrate good discipline in numerous aspects of their lives.

They have also demonstrated achieving success already in their lives, so it’s not a fear of failure or success.

They’re okay with money, making money and accumulating it, because otherwise they wouldn’t be in a position to trade.

So the problem logically is NOT one of discipline, it must be something else.

A Huge Mistake Traders Make

It’s easy to think that just because you have a good strategy in hand, that you also have a solid system.

But the two are not one and the same.

You can have a very sound strategy, and even a proven method, but a lousy system.

This happens all the time, even to professional traders and trading system creators.

And if you try to trade with a system that has functional issues, it will affect how well and how consistently you trade.

How The Quality of Your System Affects You

When you try to trade with a system that is poorly constructed or is lacking certain qualities, it makes it difficult to follow and use.

You hit those points in your system where ‘what to do’ is confusing or unclear – you’ve probably experienced this at least once if not many times.

Those weaknesses in how your system is constructed are essentially ‘invitations’ for your emotions to come in and make the decisions that should be made by your better judgment.

When your emotions flare up, it is often your subconscious letting you know that something isn’t right.

Another Gross Error – And The Real Root of The Problem

No one seems to question the quality or user-friendliness of their trading system. They only challenge the strategy or indicators and rules used in the system.

The error and root of the problem is that everyone thinks they know how to recognize a good system (in contrast to strategy or method), or fix one that has issues, when if fact they don’t.

Because they lack this know-how, they live with disappointing results, needless beat themselves up for not being disciplined, and/or continually change systems looking for one that works, passing over several winners simply because they didn’t see them or know how to capitalize on them.

Does Your System Have Problems? Here’s How To Know It’s Solid

This starts with how you document your trading system.

To help you make sure your system is user-friendly and documented in a way that makes it easy to follow and trade consistently, use this simple 3-step process.

Watch the video that explains the process at http://tradingsystemmastery.com/simplifier/

One of the four main aspects of the psychology of trading is that of making sure that you have good tools with which to work.

Trying to trade with a trading system that is lacking is like trying to play golf with bent clubs or trying to play tennis with a loosely strung racquet it will require much more effort than it should and produce lesser results than if you have good equipment.

If your system is lacking, it represents direct functional issues in trying to use it. Even if you manage to force yourself to be more disciplined, your subconscious will make sure to let you know that something is not up to par and will correct the situation by thwarting your efforts.

Always keep in mind that trading psychology means much more than just focusing on being more disciplined. As you ve discovered here, what appears to be a lack of discipline can actually be a symptom of a completely different issue.

About the Author: Do you ever have trouble sticking to your trading system? Fix the real problem and stop trying to just be more disciplined . Having a solid system starts with how you

document your trading system

. To document your system in a user-friendly way that makes it easy to follow and trade consistently, watch this video that explains how at

tradingsystemmastery.com/

Source:

isnare.com

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Submitted by: G. B. Wiley

The forex market hours stretch from Monday morning in Sydney, Australia to Friday afternoon in New York. During that time the market is open somewhere around the globe at all hours of the day or night.

However it is not a 24/7 market because it does shut down on weekends. 24/5 would be more accurate. Even with the use of an automated trading system, like the Forex Megadroid Robot, 24/7 trading is not possible.

If you need to know the exact times that the markets open and close, you have to take time zones into consideration. Markets often use GMT as a universal way of expressing the time. GMT stands for Greenwich Mean Time, although some people call is UTC (Universal Coordinated Time). This is the standard (winter) time in Greenwich, London which is the point of zero longitude on the globe.

So, the normal forex market hours are 22.00 Sunday GMT to 22.00 Friday GMT. This is 10 pm in the UK in winter time.

New York is 5 hours behind the UK so the global forex market opens and closes at 5 pm Sunday/Friday in New York, 2 pm on the US west coast, 11 pm in Germany, 8 am Monday/Saturday in Sydney.

Things get a little complicated when you start to try to take summer time daylight saving into account. Daylight saving time means the actual time is ahead ny one hour in those countries. For countries in the southern hemisphere like Australia, whose summer months are from September through to March, daylight saving effects them at a different time of year to the northern hemisphere.

Here are the trading times of some of the big markets:

Sydney: 10 pm to 7 am GMT

Tokyo: 12 midnight to 9 am GMT

London: 8 am to 5 pm GMT

New York: 1 pm to 10 pm GMT

{Or we can express that in EST (Eastern US time)For New York, we can show that is EST}:

Sydney: 5 pm to 2 am EST

Tokyo: 7 pm to 4 am EST

London: 3 am to 12 noon EST

New York: 8 am to 5 pm EST

Now you can see how the markets are open 24 hours.

During this 24 hour trading cycle, the markets will experience good an bad times to trade. Markets can become volatile with lots of activity just after the opening of a major market. It is common for traders to stop trading for an hour or so after a major market opens, due to this high level of volatility and unpredictability.

The US dollar and the Euro are the two most traded currencies, although the dollar is way ahead being involved in 2.5 times the number of trades than the Euro is. This means that events in the USA have a greater impact on the financial markets than events in other countries. The New York market tends to slow down around 3 pm local time (8 pm GMT) and if you are involved in a US dollar pair, many traders choose to end their trading day at this time.

In theory, you can trade forex 24 hours a day (excluding weekends). Automated software like the Forex Megadroid Robot can even make this physically possible. However, a cautious trader will choose his times and will not be active during all of the forex market hours.

About the Author: The

Forex Megadroid Robot

is a better way to trade forex. Kick start your forex success, with the

Forex Megadroid Robot

. Read my own

Forex Megadroid Review

today.

Source:

isnare.com

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Submitted by: Ruth S. Lanham

The foreign exchange (forex) market is a very big financial market and, if you want success, you should be looking for forex trading strategies to maximize your potential revenue. Scalping in forex trading is one of the known and well-utilized trading strategies.

Scalping is more dependent on recurrent and short-term forex trades compare to other forex strategies. Actually, scalping is the sole terminology in the world of forex that is the most flamboyant piece. Traders who practice the scalping strategy are called scalpers and they are not after making lots of money on any particular trade. Their main goal is to achieve several very little pips for every trade. They want to earn small profits but frequently so that, at the end of each trading day, they have a considerable large amount of revenue. The time frame when doing scalping can be as short as a minute.

Scalpers are often the source of annoyance of some brokers. They usually do trades on a position even before the broker can fill out his first order. As a result, the brokers can lose money from this transaction. Because of advancement in technology, brokers today have the chance to fill out the orders they receive more quickly so scalping is not much of a nuisance like it was a few years back. Because of this practice of scalpers, majority of online forex broker websites, ban scalpers from getting access and they usually put a limit on the number of trades that you can make per day. In fact, one can trade for only about a dozen of times per day.

If you want to utilize the strategy of scalping which is also called picking, the very first thing that you should do is to search for an online broker who has no issues with scalping method. This task is so easy to be done for the recent years because the presence of forex market online has significantly grown.

Your next step is that you check out the forex broker especially all of the associated fees for every trade. A lot of sites are charging traders around eight point for every spread. Apparently, if your aim is to earn revenue of just some pips for every trade, then a spread which is two to three times of that is a hindrance to become profitable. Anyway, given the fact that there are scalpers who can still become profitable using brokers that have high spreads, it is enough proof of how powerful scalping in forex trading can be.

In a lot of ways, the central focus of scalping strategy is the extra special attention the trader gives to the forex market movements. As the trader continuously and closely watch the market, the scalper can hypothetically predict when the market is going in the middle or up or down. The skilled scalper will then go out to buy a currency pair whenever he or she feels that it s appropriate and then this pair of currency is sold as soon as the scalper sees that he or she can reap some few pips that are profitable.

About the Author: Are you looking for more information regarding

scalping in forex trading

? Visit

globalonlineforextrading.com/

today!

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