Three Most Popular Chart Patterns in Forex Trading

Posted by Deb | Forex,Guest Post | Monday 26 August 2013 11:31 pm

There are many set-ups you can use when trading currencies. Many of them may appear like it’s sound and can bring you profits but be warned – there are many set-ups that can only result in a loss.

Forex traders can minimize some of the trial and error involved by using the chart patterns that have been proven by other forex traders as effective and have proven to be profitable set-ups.

Channel Pattern

The channel pattern is one of the most recognizable patterns in forex charts because it looks quite distinctive. It is two parallel trend lines that enclose price. These lines essentially govern the trend. Trades are usually entered that follow the trend – in this case, when the price bounces off one of the trend lines. Your profit target is usually within the domain of the opposite trend line. This set-up and strategy is quite profitable and if you have made the correct assumptions, you can ride the trend as it moves within the range and between the two trend lines. Even when the price penetrates the trend lines, there is still the opportunity to earn since the trader can then trade on the breakouts.

Double Top

A double top is another very recognizable set-up. The double top happens when the price of the currency tests the resistance level on two different occasions and is not able to break the resistance. When this happens the price now breaks and assumes a bearish movement. When a trader sees this pattern on his chart he will commence his trade when the price breaks the neckline and then the trend is joined when the price begins the pullback to the broken neckline. You will have a 73 percent chance of a successful trade using this pattern, which is quite high.

Asymmetric Triangle

The asymmetric triangle can be identified by looking the chart and looking for an asymmetric triangle where there is a trend line and one horizontal level that price will usually be able to penetrate. Trading with an asymmetric triangle pattern is similar to how you trade double tops – trade is entered after the currency price pulls back and goes to the broken horizontal level. But this trade is done with a strict stop loss and only of the risk/reward is 1:5:1. The asymmetric triangle has a success rate of 76%, which is very high.

These three patterns are quite effective in providing forex traders with a useful and tested way of plotting out a strategy and giving signals on when to enter into a trade. These three patterns pass the forex traders text of being profitable patterns regardless of the currency pair used.

About The Author

Mario Singh talks more about forex strategies at his website Askmariosingh.com

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Don’t Stretch Your Stop Loss

Posted by Deb | Day Trading Journey | Saturday 10 August 2013 11:33 pm

I would like to speak today about a habbit I once had, and recently heard about other new traders who are getting into it: I spoke with a new trader, who realized that when his trades go bad, with the market going stronly against him, he can often avoid loosing by stretching his stop-loss. He takes a bigger risk, and when the market seems to find a new critical point he adds new orders from the new critical line, thus “averaging” his losses. In this method he can make even double profits, since if the market goes back to its original possition, he will have more money or contracts invested and make more profit!

I know I have been doing this mistake a lot, and usually it works. When I used to do it, I made very nice profits over a long period of time. So what’s so bad about this, you ask?

Stop-losses are exactly what their name means: A point in which you think the trade has gone bad, and in which you should get out of the position in order to stop your loss. When entering a position, you should calculate exactly where you would like to put your stop-loss, so as not to loose too much. You don’t want to have your stop-losses too tight, otherwise they will catch before the market has a chance to retreat to your desired direction. Place the stop-losses in a position which is sensible by the graphs. If you see the stop-loss is too big for your account, simply do not enter this position. Wait for a better chance.

Putting a tight stop-loss and then stretching it will make you risk too much money. In most cases, by averaging out – entering again in the next critical point – you will be able to exit the position with a nice profit. But then, one day, the market will surely continue to go against you: It will continue breaking the subsequent critical lines, and if you go on “averaging”, you will find out you have wiped out your account.

Stretching your stop-losses is a bad practice. Lazy traders who do not want to calculate the right place for the stop-loss will find it appealing, but the big boom is sure too come. Don’t trade without good stop-losses.

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SEC and CFTC Binary Options Alert

Posted by Deb | Binary Options,Guest Post | Sunday 21 July 2013 10:46 pm

The fact is simple; trading binary options is profitable and risky. You know your exposure to loss on the on-set of the trade. This has given binary option trading a boost in its popularity. The simplicity of entering binary options trades and making money out of it has provided many people a respite from grueling economic times.

The binary options market has expanded so much in the recent past years. People from an average economy class to big organizations are involved in trading binary options. However, according to a latest SEC and CFTC binary options alert, many innocent investors have become a victim of corrupt business practices. This alert has detailed every possible type of fraud that a newbie investor can become a victim of; such as a platform that is designed, to run against you and providing you wrong signals, refusal or delay in crediting the profits that you make on your trades and sometimes even identity theft.

The binary options alert from SEC and CFTC also highlights certain regulatory requirements that some platforms are failing to comply with. In the alert, SEC states that because of non-compliance with registration requirements such as registering as ‘Futures Commission Merchant’ or ‘Registered Broker-dealers’, entering a trade becomes illegal. This could result in a legal action against your broker, endangering your trades.

The alert also highlights the importance of carefully researching and investigating the platform that you are about to choose. In this alert, investors have been provided with tips on how to ascertain that their chosen platform is clean. First off, you should check if the binary options trading platform has registered with the SEC. Secondly check if the platform has registered itself as an exchange. Thirdly, check if the platform is designated as a contract market. The (SEC and CFTC) alert provides investors with sources from which you can ascertain the required information. The sources are FINRA BrokerCheck, BASIC Search, CFTC website, EDGAR and SEC website.

You should be very careful with whom you place your hard earned money and sensitive information. Nobody wants his credit card information get stolen and maliciously used. With this alert at hand, you now know what exact legal notorieties you should be looking for while investigating a particular options company and its platform. The binary options market is relatively a new phenomenon, and regulators will take time to make trading with them securer. Until that time, you should keep yourself updated with such binary options alerts.

About Author:

Intellitraders.com is a free online trading community to help traders learn and trade binary options with best regulated brokers.

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How To Control Your Risks In Binary Options Trading

Posted by Deb | Binary Options,Guest Post | Monday 8 July 2013 8:45 pm

You can get plenty of advice on making investments. But, arguably, the best one has to come from the world’s most successful investor, Warren Buffet: “Rule No. 1: Never lose money. Rule No. 2: Don’t forget rule No. 1.” It is pretty general but it is the kind of statement you want to be reminded of every time you are itching to do a risky trade. When you are venturing into binary options, know that there are risks to be had if you are not well prepared for the market.

 

Growing GraphWhen you are just starting out, it pays to invest first in knowledge before you actually get to jump into trading. Any successful investor knows that you should master the basics. Learn the lingo or relevant terminologies, as in “put” (when you presume the value of an asset will be lower than when it was bought) and “call” (when you presume the value of an asset will be higher than when it was bought). Learn about trading platforms and which ones will be easy to use and come with comprehensive features. Learn about the different trading strategies. Mastering the basics will let you maximize your win rates and minimize your losses.

 

In addition to learning the basics in binary options trading, you should try to practice your newfound knowledge by opening a demo account. Demo accounts are ideal for beginner traders because they can be great training tools. You receive practice funds, which are not real money, and you get to participate in the market, applying the strategies you have learned for a set period. When you open a demo account, make sure that you do not have to pay a deposit, as most brokers will offer them for free. Also, you need to clarify whether the broker you are opening a demo account with will obligate you to sign up for a live account.

 

Trading on MoneyFinally, get trade analysis from reliable and credible sources. Trading analyses can help you place your trades on any asset — from stocks to indices —to favorable outcomes. You will want to go with sources that combine technical with fundamental analysis in order to come up with sound projections on certain assets. You also want to go with sources that rely on actual analysts, as opposed to robots.

 

Any financial investment can be filled with risks. The key is to control those risks so that you do not end up losing money in the process. With binary options, remember to master the basics. Try to get a practice run with a demo account. And obtain simple yet good analysis from good sources.

 

Author Bio

Sarah Miller – a freelance writer and blogger who is currently writing in behalf of http://www.binaryoptionsexperts.com.  She is a business consultant by profession and a content creator, writer and blogger by passion. Having been exposed to the different aspects and faces of businesses, she frequently does research on useful information regarding the different methods and techniques to further improve business marketing, sales, performance and shares her passion of business management through blog/content writing.


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How to Get Over Your Fear of Entering the Stock Market

Posted by Deb | Day Trading Journey | Tuesday 14 May 2013 12:45 am


Trading in the stock market is a great way to grow your fortune — or to lose it all. It’s the first part that gets people really excited, and it’s the second part that makes them terrified to ever try at all. Learning how to trade, understanding how to read the symbols, researching the companies to make your choices, and navigating all the technical jargon can make the whole process very confusing and very intimidating.

It is important to find ways to get through it so that you can take full advantage of the potential that the stock market offers. Here are a few tips for how you can get over your fear of entering the stock market so that you can start pursuing your financial freedom:

Learn Everything You Can

Knowing is half the battle. Most people feel overwhelmed or intimidated by investing in the stock market because there is so much that they don’t yet know. You can feel more confident by simply doing your research. Learn the ins and outs of the stock market: how it works, how to read charts, and how to buy and sell. Then research companies that you may be interested in for investing.

Read as much as you can. Talk to friends, family and colleagues who invest to get some pointers (though you should avoid any advice about stock picks). Frequent blogs and authoritative websites. The more you learn, the better choices you will be able to make and the more comfortable you will feel.

Practice

There are many websites and software packages that will allow you to practice trades without spending any real money. You can simulate actual trading without having to take any risks. The more you practice, the more you will learn and the more comfortable you will feel. Look for programs that will allow you to use real-time market information for the most impact.

Start Small

You don’t have to plunk down your whole nest egg to start trading on the stock market. You can start small to get your feet wet and start to feel more comfortable. Invest as little as $100 or as much as you feel comfortable. If you lose the money, it won’t be a big loss, so you can feel more relaxed about trading.

Even if you lose your money, you’ll learn from your mistakes. The more you do, the more you will learn and the more comfortable you will feel.

Try Out Dividend Stocks

The stock market is notoriously volatile. However, there are some investments that are more “safe” than others. Dividend stocks are one such safer investment. These are usually investments with older companies and they offer regular payouts. They offer you some protection in your investing choices, so they can help you to feel more comfortable when you are just starting out.

There’s no need to feel intimidated by investing in the stock market. You can use these strategies to help you feel more comfortable so that you can start to invest and tap into your potential to increase your income or maybe even find financial freedom.

How did you get over your initial fears of investing in the stock market? Tell us about it in the comments!

The Author:

Kelly Opferman is a seasoned writer with an educational background including finance, teaching, and economics. She is launching a new app at Auto Loan Calculator.org.


 

 

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Trading on eToro: A Scam or an Opportunity for Novice Traders?

Posted by Deb | Day Trading Journey | Thursday 25 April 2013 11:04 am

Is eToro a safe platform to do trade for people with none or little experience?

Trading Forex can be hard, and nerve wracking. You need to make decisions fast; decisions that may make you lose or earn big sums of money. It may sometimes feel lonely when you have to make these decisions without anyone to discuss with the possibilities. You may feel unsure of yourself, and would like to know what other traders are doing.

Sometimes you are just afraid to make these decisions yourself. You want to try trading and make easy profits as so much internet advertisements promise, but you don’t have any proper training for that. Even if you have taken a course or two, you may feel inadequate for starting trading on your own.


Click here and find out how to join the social investment network. Start making money with no FOREX knowledge NOW!


Copying from Another Trader

Copying from Another Trader

Imagine having an online community where you can discuss your positions. You can “look over the shoulder” of expert traders and see what they are doing, learn from them or just copy their positions. And if you lose, you can look around and see others who have done a similar mistake, so you don’t feel you have been so dumb.

The eToro presents an opportunity to do just that, by introducing the idea of a social trading network using the eToro OpenBook. The openbook is a place for traders who trade, share their theories and thoughts with others, and also copy each other’s positions.

 

eToro – The Social Investment Network

Introducing the Idea of a Trading Community




Click here for a walk-through explanation on how you can open a social investment network account and make money using the OpenBook!

How Can You Use eToro OpenBook Effectively

If you are a new trader, the main use of the OpenBook for you will be to find experienced traders to copy from.

Choosing a Guru

Choosing a Guru

You are looking for traders who have a good and consistent revenue, who are a good record of winning trades,and who do not take too many risks.

Open the People tab in the OpenBook and look at the lists of eToro traders you get. You can sort them by maximal gain, profitable weeks, etc. You can also define your own search – filtering for only traders with a certain minimal gain, percentage of winning weeks, minimal number of trades made in the period you define (last month, last 3 months, last 6 months or last year), etc. Then choose from the list of traders who qualify by your criterions the ones that seem to be making the highest and most consistent profit.

If you are a more practiced trader, use the OpenBook to see what others are doing. You can find like-minded traders with which you can discuss the ups and downs of the various markets, writing on their wall the same way you would do in FaceBook. You can also choose to follow some traders, being alerted when they enter a position or write something on their wall so you can compare notes.

 

Real OpenBook Discussion Example

openbook

 


Click here and find out how to join the social investment network. Start making money with no FOREX knowledge NOW!

How to Use eToro Webtrader

The Platform for Doing Your Own Trading

The eToro platform is currently geared toward FOREX and commodities trade. They have given the possibility to buy a few stocks (as Microsoft, Facebook, Apple etc.), but the tools for tracking the charts of these stocks are still missing. For FOREX trading, for oil, gold and silver, and for the main indices (SPX500, NSDQ100 and a few more), eToro Webtrader gives proper charts to track, draw lines etc. and make bracketed orders.

Chart

You can use the Webtrader for actual trading, but also for practice. When you open an eToro account you get a practice account of $10000 and you can practice as much as you like making practice orders etc. It can be very useful to play with practice money while copy more experienced traders with actual money, until you feel sure enough to make your own trading with actual money.

Become a Guru Yourself

The Way for an Experienced Trader to Make More Money Using the Social Investment Network

ChooseGurus

If you are an experienced FOREX trader, eToro gives you the opportunity to earn more money by have people copying you. If you have a minimum of 10 copiers who copy your positions, you will receive a monthly bonus which varies from $100 (for 10-24 copiers) to $10000 (for over 1000 copiers). You get this bonus without having to actually deal with your copiers trade. The copying is done automatically by eToro.

If you decide to become a guru, it is advisable to make some personal contact with your followers, at least at the beginning, through OpenBook. Explain some of your positions; apologize when losing trades – these small gestures will make people more likely to copy you.

Open Your eToro Account


Click here for a walk-through explanation on how you can open a social investment network account and make money using the OpenBook!

Do You Have Experience With Social Trading?

Please share your thoughts and experience by leaving your comments below.

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Another One of these Days…

Posted by Deb | Day Trading Journey | Monday 22 April 2013 4:59 pm

Lately I write here only when I have bad days. Well, this is another such day…

In the morning I had a quick session, trading on one contract and making $25 (2 pips). I was glad and decided I will try again in the afternoon.

I started again an hour ago. It seemed the market will soon be going up, so I entered a longish position. The market was not quick to go up, and meanwhile I got a few phone conversations making me less alert to what was going on. Finally I got frustrated and quit on a small loss.

Then I entered on 2 small positions and reduced the loss to 0, although of course I still had a nominal loss of the fees.

I lost track of the time, remembered only there was a financial report due on 17:00, so I was not careful enough. The market was going up very quickly, and I was suprised what had happened and decided to join the crowd, expecting to make a small-medium profit just to erase the fees lost. But then, boom! The market turned around. It took some time to realize the markets in the US had just opened, and I was not supposed to be in a position. Till then I was just sitting here, looking at the market in amazement.

I won’t tell you how much I lost, but it hurt. I hope not to be so foolish again in the future!

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