Why Every Trader Should Know Price Action

By John Oswalt

I would have to say that the most difficult thing for many new and unsuccessful traders to overcome is that they don't really ever learn to have a strong grasp of the market. In fact, most are probably dealing with lagging indicators. These kind of trading systems usually rely heavily on when these indicators match the same trading direction. I'm not trying to demean this, because I actually used to trade like this. But when you take one loss after another, you tend to look for better ways to trade.

After all, can you honestly say that you understand what the market is doing when all you are doing is looking at some kind of indicator that is telling you WHAT HAS ALREADY HAPPENED? Of course not!!!!

I don't mean to be callous but the markets are not concerned about what your indicators are showing you. To the big traders, it means less than nothing. Think about it. Study all the famous and successful traders in history. Do you honestly think that most of them really cared about what the stochastics were doing? NOPE. However, if you do take the time, you will notice that most of these traders really only care about one thing: price action.

When it comes to price action, they might not have used it all in the same way, but I can assure you that price movement was their main criteria. I don't care if its stocks, bond, the S&P, etc....It simply comes down to what is the price doing, and how can I make money from it. Honestly, there isn't really that much separating all the successful traders in the world with those that have failed or are failing. It's not as if these succesful traders are that much brighter than the unsuccessful ones. Most of them didn't graduate from Harvard with honors. In fact, you'd be surprised to know that many of them barely finished high school.

The rich enjoy trading success simply because they are able to look at a chart and they are able to read and understand what its telling them, much like a book. They understand why a price goes or stops at a certain level. Basically, they can comprehend what it is that they are looking at. Its not just a bunch of colors and sticks on a screen. It means a whole lot more than that. It represents information that can be used to become a full time trader. The closest comparison that I can make is when a person is trying to understand the plays of Shakespeare. The language is English, but its a little hard to follow. But if you can look at it from a different perspective, then the light bulb clicks and once you get it, YOU GOT IT FOREVER. You'll be quoting Hamlet before you know it.

Its not really difficult. Anybody can understand price action. Its just that most people don't want to take the time to really understand how to read the energies of the market. Everybody always wants that holy grail or magical indicator that people can just plug into their trading platform and it'll do all the work for you. Well, it doesn't work like that. It would be a great if it did, but it doesn't. I had to learn that the hard way. But, as is life, you live and you learn.

The real tricky part is to get somebody to really teach you how to look at the market in this manner. It can be difficult if you want to learn it for yourself. Let's face it, if it was that simple, then all of us would be rich. It really comes down to the fact that you need some help with grasping the information and being able to execute it. This is where Trading in The Buff comes in. I know that you have probably purchased other courses and have been burned before. So have I. I know that it can hard telling which ones are for real and which ones are fake. So I thought I would try this course.

But something interesting happened. I realized everything I need is right IN FRONT OF ME. I just have to eliminate all the crap that's blocking my view. I used to trade with sctochs, FIBOs, Moving averages. It turned out to be the last forex training I'd ever need (It feels really good to say that). I thought I would be wandering around aimlessly from one system to another for as long as I live, or until I was dead broke, which ever came first. But, eventually I just found out that less is more. Not until you see the market's movement in all its glory with no interference, then you can't really say "I am a trader". - 23196

About the Author:

To learn to trade forex, you should really check out Trading In The Buff.

Online Forex Dealing

By Paul Bryant

There is something magical about currency dealing which has led to traders around the world embracing it as a fantastic tool to trade Forex with.

Being one of the biggest financial markets in the world it is probably no surprise to learn that over $15m USD changes hands every week in currency dealings. A large part of this is down to the fact that the Internet has made currency trading more accessible to people around the world.

It is important to note that the currency market is very volatile. Just as currencies go up, they also go down. This is both good and bad news because you can make money whichever way the market goes but of course you can also lose money. Some common sense and risk management is needed to avoid significant losses.

Moreover, taking part in online currency dealing will require you to know about your performance and what exactly you are performing.

Currency dealing is basically the buying of one currency in exchange for another, followed by the selling of that currency later as the exchange rate changes. The market is open 5 days a week, and thanks to different time zones, 24 hours a day.

Investing in some kind of currency dealing, will need you to open an account with a business firm. There are several on the internet and for you it will be vital to find a dependable one which is genuine.

Currency trading works by pairing up currencies. For example the GBP can be paired with USD or EUR or one of many different national currencies. The platforms make their money from the trade you place by charging a margin. This means they make money whether you win or lose.

This means that one can organize as well as benefit from the various price movements of a millions of dollars worth of Euros even for too little an investment. This can surely be a huge gain in terms of earning profits. However, if the position moves against you then you might be charged a lot and, hence, it is advisable that you try to be ahead of the state.

By dealing currencies online you are engaging in a woldwide market. You will need to keep an eye on any events that may effect the currencies you are trading. You should keep in mind that these events may be outside of the countries whose currencues you are dealing with. You will need to be prepared to monitor the markets very closely.

There are companies available that, for a small charge, will provide all the latest currency news as it happens. They can also provide previews and analysis of what might happen and what has already happened. There are also free versions of this information available, however, not all free services are reliable.

When you take the proper precautions and monitor markets effectively, currency dealing has a lot to offer. There are many people making a living from trading currencies online. - 23196

About the Author:

If you would like more information on exchanging currencies on the Internet please visit Currency Dealing

What is Moving Average Convergence Divergence (MACD)?

By Ahmad Hassam

Moving Average Convergence Divergence (MACD) is one of the most reliable and useful tool in the arsenal of a currency trader. MACD is a trend following momentum indicator or oscillator.

MACD shows the relationship between two moving averages of recent prices. It is a lagging indicator. Most technical indicators are lagging which means they are slow. They just tell you what just happened after the fact.

Learning technical analysis is essential for you as a currency trader. Technical analysis is based on the premise that past price action can be used to predict the future prices in the currency markets.

There are many chart types used in the technical analysis. Technical analysis helps you to read your charts and analyze them with a number of technical indicators. Using technical indicators is the key to understanding the market behavior.

MACD is calculated by subtracting a slow exponential moving average (EMA) from a fast EMA. Signal line is calculated by the taking the EMA of MACD. The Histogram is the difference between the MACD and its signal line.

MACD is one of the most popular technical indicators in currency trading and is used often. However, beware that MACD is often misunderstood and misused resulting in wrong signals. Like any other technical indicator you should use it in conjunction with other technical indicators for confirmation.

Crossovers: When MACD falls below the signal line from above, it is a bearish signal. It indicates the time to sell. Conversely, when MACD rises above the signal line from below, it is a bullish signal. It indicates that you should buy.

In case of a Divergence, when the price diverges from MACD, it indicates the end of the current trend. Negative Divergence is when the price is rising and MACD is falling. It is an indication of the change in the trend. Thats right; the lagging indicator that is supposed to follow the price is predicting future behavior.

When MACD expands dramatically, this happens when the shorter moving average pulls away from the longer moving average. It is an indication that the currency is overbought/ oversold and may return to normal soon.

One thing should be very clear when you use a MACD. All the above three cases are important and should not be overlooked by you as a currency trader. However, none of them alone are signals for a trade. If you simply start trading on MACD Divergence, it may not yield a profitable trade. MACD Divergence is tradable when confirmed by other indicators.

However, when planned in advance and confirmed by other technical indicators, success is more likely. This is due to the fact that several things are happening at the same time. Each is attracting the same bulls and bears into the trade that you are planning.

When you use MACD, crossovers and dramatic rises are usually easy to spot. Even novices can do that. However, spotting MACD divergence correctly comes after a little practice. - 23196

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Learn Forex Nitty Gritty. Try Netpicks Forex Signal Service.

Robert Kiyosaki's Rich Dad Poor Dad

By Elwood Misch

There's no other better time to get out of the rat race, if you're into one, but now. Robert Kiyosaki's "Rich Dad Poor Dad" will show you how to make money and give you that financial independence you've ever dreamed of. The author, Robert Kiyosaki, has been very successful in teaching people on how to get rich for over 20 years.

What can Rich Dad Poor Dad show you how to be successful? His ideas are about thinking outside the traditional box. One of the things he teaches us from the beginning is to not think of making money the old way. Yes, he says go to school and get a college degree. That is very important. But, don't worry about the PhD and working as a college professor. Not that its necessarily a bad thing if you want to be a working stiff the rest of your life.

Rich Dad Poor Dad talks about the true, old tried and tested principles of real estate investing. Robert Kiyosaki's advice is mostly about smart financing. Which is very timely nowadays that many homes are in foreclosure. According to Robert Kiyosaki, real estate investing is a way to have your brain power and create real wealth.

Finding the right properties, getting creative financing and seriously focusing on financial literacy as well as academic literacy are just some part of Robert Kiyosaki's teachings. The ways how can one truly understand what properties are good to buy, when to sell and when to hold. These are the things why Robert Kiyosaki is well known.

There are many "how to be successful" help books and teachings, not only in real estate investing, but in life in general as well. Rich Dad Poor Dad is not the first and definitely not the last that talks about ways to be successful. However, just like any other gurus out there, Robert Kiyosaki has also had its fair share of controversies around his successes.

The controversy has many to investigate into whether Rich Dad Poor Dad example stories are true, up to and including the question about the people Robert Kiyosaki speaks about in the book. Do or did those people really exist? It went on to some even have made an analysis the Rich Dad was really made up to make the book more conceivable.

Robert Kiyosaki was sued his the co-author of the book Rich Dad Poor Dad. The reason? I and Robert Kiyosaki himself do not know. One thing for sure though, anybody who gets sued, is sued for something dastardly and frivolous lawsuits can backfire on you.

Regardless of the allegations about fictional characters, Rich Dad Poor Dad author Robert Kiyosaki does give some sound advice about financing and real estate investing. But, there is also another important point. The information he gives is not new. Robert Kiyosaki is also not the only person who gives out this type of advice. If that's true, would you want to invest your time or money with someone who has that much controversy surrounding him or who's been sued in the past? - 23196

About the Author:

Elwood Misch approach to real estate investing is focused around getting to know the properties more. This is one of the principles from the book Rich Dad Poor Dad he has been using for several years now.

Best Dos and Donts Of Every Forex Trading Course

By Nicholas James

For a lot of people the thought of trading on the Forex market is exciting given the possibility of making large amounts of money. The chances of started out on the forex are increased when you consider the low cost of entering the market to start trading. For most people the risk factor has to be considered before starting out, so its important to learn the essentials first through a forex trading course as this will be the starting point to bigger things when trading. Without any understanding the beginner is likely to lose money, with a few bad decisions they could end up in turmoil, so its important to get the basics down first before you begin.

When you begin trading one thing you need to realise is that the foreign market is influenced not only the global economy but also through social and political events. Any large event which has had an impact on the people of that country will affect the economy of that country. Currency prices may even be affected by changes in the weather, which is why you need to stay up to date on global events when you begin trading.

You will need to be aware of many things when learning about the Forex. One of the first things is who are the leading players involved. International banks and the larger financial institutions are some of the key players.

The internet has provided a convenient means for many private traders to begin trading due to its ease of access. Orders are now placed electronically over the internet so there is no more waiting for anyone to place an order.

Trying to learn how to actually trade on the Forex is almost impossible to do on your own. Many people take ages just to get an understanding of the very basics. It is very complicated indeed, however it is not impossible to learn if you want to do it on your own.

There are literally hundreds of ways to make money using Forex, so get some training first. You will often find educational centres that run weekend classes. If youre careful, trading by yourself can be done however make sure you understand the very basics. You will find a variety of courses online which offer dummy accounts to help you get started.

One way to learn as they say is, learn by doing it. You could start out by making simple low risks trades as long as you know the basics to trading you should be fine. However be careful as many beginners have lost a lot of money when they first started out through errors and wrong decisions.

With the Forex one of the best ways to become successful is by using Forex trading course software specifically designed to assist you track your movements in the market, so you can then make a decision and act accordingly. With many of the advanced pieces of software they will suggest actions it believes you should take and they can also be pre-programmed to take appropriate action automatically which takes a lot of the guess work out of the equation. When used with caution these software programs can help you make more profit. - 23196

About the Author:

I've discovered an easy and simple method for anyone who wants to learn to trade on the forex. To find out more visit Forex Trading Course