Forex Trading Made EZ - My Experience With It

By Micheal Bates

As a beginner investor, I believed I could produce great market results. I started investing to try to make a little money. I wasnt prepared for what was in store for me.

Beginner's luck doesn't usually last, though, and I was no exception. I decided to learn more, so I explored online Forex training programs, specifically Forex Trading Made E Z.

After completing this course, my financial situation changed dramatically for the better. Without this course, I can only imagine in what tough money situation I would be in right now. There are many other graduates of the program that have expressed similar beliefs about the effect of the program.

The training I received through Forex Trading Made E Z made all of the difference. It was perfect for me as a beginner because it provided a system that is easy to learn and trade with. Just like a gym membership, it's only good if you make the most of it; immersing yourself in the coursework, reading, and videos will prepare you to make a killing in the market once youre finished.

Second, this program produces high rewards with very low risk. The third and final reason it is great for new investors is that losing trades are rare and typically small. This is pivotal to having any kind of success to trading in the market.

The basis of the Forex Trading Made EZ system is called "Forex Scalping." This strategy utilizes quick moves within the market (usually inside of one day) allowing you to come away with a five percent return on your investment.

Since you are making a five percent return on your investment every day that you trade, you can easily see that in a month, you can double your profit, especially since you will also have very few losing trades.

Forex Trading Made E Z has changed my life forever. I get to be my own boss and make more money now than I could have possibly imagined. Review it for yourself and see if making money with low risk and high reward is something you want in your life. You'll be kicking yourself about another missed opportunity if you don't even take a chance to read a little about this life changing currency training program. - 23196

About the Author:

If you want to find out more about Forex Trading Made EZ Course, then you need to check out this website: Easy Forex Broker.

Trading The Breakout (Part I)

By Ahmad Hassam

A breakout typically occurs when the currency price moves beyond the period of consolidation or range trading. Who doesnt want to reap massive profits from a big price move in a short time? This is what breakout trading can provide you.

A breakout occurs when the price moves above or below a support or resistance level whether temporarily or permanently. There are times when trading the breakout can be very profitable even though breakouts are known to be technically unstable.

You will have to take into account many market factors including both the technical and the fundamental analysis in order to trade breakouts with a higher probability of success.

Both stocks and futures are traded on a centralized exchange. At the end of the day the traders can find out the volume of each security that had been traded during the day. The volume information is easily available for stocks and futures. Information about volume is critical to trading the breakout.

However, volume data is not available for forex markets due to its OTC nature. Being decentralized, this data cannot be collected. Lack of forex volume data is a huge disadvantage to forex traders. Volume reveals where the market is positioned or positioning.

Breakout signals a change in the underlying supply and demand conditions possibly triggered by a change in market sentiments. When the price attempts a breakout of a significant support or resistance level, this change is caused by some new markets fundamentals. Successful breakouts are generally accompanied by a rise in volume. Volume is a very important criterion for any breakout trading strategy.

Price breakouts can be of two types: 1) Continuation Breakouts and 2) Reversal Breakouts. Successful breakouts must be accompanied with a strong surge of momentum in the direction of the breakout in order to be sustainable. Poor momentum will generally lead to the fizzling out of the breakout and continuation of the existing trend.

Continuation Breakout: In a continuation breakout, currency prices break out of an established price level to again resume the underlying trend. The breakout occurs after a period of consolidation in which the buyers and sellers of the currency pair try to regroup and think about the next price move. The price action climbs higher in continuation of an uptrend or falls further lower in a downtrend.

Reversal Breakout: Reversal breakout means a new trend in the opposite direction. It is caused by new market fundamentals. A breakout my lead to a trend reversal and the beginning of a new trend in the opposite direction!

The prices may break the support or resistance but then retreat back into the previous price zone. A false breakout can always occur. There are many times when the price action does not move in a straightforward direction in the markets.

Stopping out most of the breakout traders if they have placed their stops just above or below the resistance or support levels! The worst kind of a breakout is the whipsaw type. - 23196

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Know The Forex Market. Learn Forex Trading!

High Probability Forex Trading Using Engulfing Patterns

By Tim Barnby

Few things are more satisfying to me that bare chart trading. Ive seen traders with so many indicators on their screen that I could not even see the price of the currency pair. What do any of these indicators tell you anyway? Do I need a MACD or a CCI? I can see which direction the trend is moving without them. How about a stochastic? I can see where candles are closing relative to the high or low. Other than some horizontal lines at key support and resistance levels, some Fibonacci retracements, and trend lines I often have nothing on my charts at all. All of these are topics for future articles.

A bullish engulfing pattern is characterized by having a real body which completely engulfs the real body of the preceding candle. A simpler way of describing this is that the bullish engulfing candle has a higher open and a lower close than the preceding candle. A bearish engulfing candle has a lower open and a higher close than the bar immediately preceding it.

The bullish and bearish engulfing patterns are powerful indicators of a trend reversal. Engulfing patterns must appear after a significant run up or down in price to be considered valid. When the engulfing pattern presents itself at a probable price reversal zone, or a confluence of support or resistance it is even more reliable. My experience has shown these patterns to be over 75% reliable, and normally offer at least a two to one reward to risk ratio when traded on the one hour or four hour charts. They are even more reliable on the daily and weekly charts.

There are a couple of valid methods for trading engulfing patterns. The first is pretty basic. You place a market order at the close of the candle. Your stop loss order goes a few pips past the opposite side of the engulfing candle, and the target goes somewhere at least twice the distance of the stop loss. Using this method, if the engulfing candle has a 50 pip range, your stop loss would be about 55 pips and your target would be about 110 pips away from your entry. The more advanced method involves pulling a Fibonacci retracement tool on the engulfing candle. Place your entry order at the 38.2%, 50% or 61.8% Fibonacci level of the candle, and place the stop loss in the same position as the first method. This method gives you a smaller stop loss, which offers you a much high per pip value, and a bigger target. It has a lower rate of successful fills, so youll have fewer trades using this entry method.

No matter what your method of entry is, you will profit from trading these powerful reversal indicators. Youll also save yourself the stress of conflicting technical indicators and cluttered screens. Trade this pattern for a week and see if I am wrong. - 23196

About the Author:

For more information on FX Trading, please come to the Market Mover Edge and look at our mentoring programs and live trading rooms. You can join my FREE FX signals list at FX Master-Mind Newsletter

The Forex Market and This Economy

By Michael Fredericks

We want to find out how the shape of the economy is affecting the Forex markets performance. The currency market is hanging in there, and so Forex seems to be holding its own as well.

Though it is impossible for traders not to be worried in such a questionable time. It is hard to determine what might happen in this current market situation, and like any other companies, the Forex market may be affected negatively. It is difficult to determine what we should do and when it should be done.

Experience in the Forex market does offer some insight, though, because Forex trading is the pure market mechanism at work. The longer one has been trading, the more you will understand that those who make the initial efforts and take the bigger risks reap the bigger rewards.

Of course no one could predict the world-wide recession, or that the US dollar would lose so much worth after the market crash in September 2008. True, Forex market is affected by the occurrences to other markets, but in no means are we helpless.

Last year saw a succession of collapse similar to dominos. The value of the dollar was not fluctuating. The market gave no hint that the large firms and banks on The Street would soon be revealed as so many naked emperors. When all was revealed, overseas investors had grave doubts about any investment on any timeline, now or going forward, and the heavy downward skidding began.

When asking where to turn next for profit, people point towards the Asian market, where their sheer size and production will become the necessity of the world. Investors will surely turn their gaze towards these foreign markets, leading to possible controversy over safety.

Will other currencies besides Asias strengthen? Most countries have avoided major crisis as they are swimming in a technical recession. Should we all be buying, buying, buying before the economic recession hits bottom since it is clear it hasnt?

It might be a good time to put your energy into the region where demand tends to remain high regardless of what else is going on globally. Rising prices in Asia represent opportunities in the currency markets. Some might see this as a time to re-align, seek change, and develop a new outlook as a boost to Forex market prediction and actions. - 23196

About the Author:

For more information about forex price action, then you can check out this website: Forex Trading Tutorial

Money Management in Currency Trading (Part III)

By Ahmad Hassam

Live to trade another day is perhaps the best advice that you will receive in your trading career. Forex markets are brutal and unforgiving. You need to learn to survive in the markets.

The single most common factor that causes many traders to blow up their accounts is greed. When you get greedy, you start taking unnecessary risks. You will spend countless hours trying to discover the Holy Grail technical indictor or a forex robot that will make you rich. You believe that by discovering that secret of investing, you will become rich without losing a single trade.

Unfortunately there is no Holy Grail in trading. You must learn not to risk more than 2% of your account on a single trade. Incrementally grow your account over time and never ever be tempted to risk big making one single winning trade that can make you rich.

You should know how much you are willing to risk in a single trade. I said 2%. But if you want to be aggressive you can go up to 5% but stay between 2-5%. Dont exceed it. If you are conservative, on the other hand, you should consider risking between 1-2% only.

Once you have decided on the risk level you are going to take, knowing the rest is simple for you. Suppose you have a $50,000 account and you decide on a risk level of 2% for a single trade. How much you can risk on a single trade? You can only risk (50,000) (0.02) =$1,000, this is the maximum you should risk on a single trade.

However, if you are going to trade more than one position at the same time, the amount may become higher. Lets assume you are in 3 trades at the same time trading three currency pairs! You should risk only $1,000 per trade. So your total money at risk will be (3) (1000) =$3,000. Once you have calculated your risk, you are can determine the trade size.

Trade size is the number of contracts you purchase in any one single trade. You need to first determine where you want to put your stop loss in order to determine the trade size. Lets use a simple example to make it clear. Suppose you are willing to risk $1000 on trading EUR/USD pair and you decide on a stop loss of 50 pips. Each pip on EUR/USD pair is equal to $10. So the number of contracts that you can trade are 2= (1,000)/ (50) (10).

By calculating your trade size, you have taken the guesswork out of your trading once you have determined your risk level. You can sleep well now. You know how much of your money is at risk. You are going to be able to trade tomorrow. No matter what happens today.

Using these common money management rules will help you avoid the pitfall of losing almost all the money in your account. Learning to survive the markets and trade another day is the essence of trading. This can help your trading take the next level of profitability. - 23196

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading and swing trading stocks and currencies. Trade Dow Futures. Learn Forex Trading.