Forex : Advice 6

Trading Forex is certainly not easy, otherwise everybody will be millionaires. In fact, 90% of Forex traders are actually making losses.

Forex market is too complex and there are too many factors that are giving huge impact to the daily fluctuation. The pure technical analysis or the fundamental analysis can never forecast the Forex market trend accurately.

Invest more time to really understand how Forex market work, especially study the trend behaviour characteristic in specific time frame before committing with your hard earn money.

Forex : Advice 5

Another major mistake done by Forex traders is to overtrade their Forex account, failing to measure the risk their margin can absorb. Positions taken always surpasses what the margin deposited can undertake. Margin trading is actually a two-sided sharp blade sword.

Most often, Forex traders only need USD1000 to hold a USD100,000 position, but it doesn't mean that an account with USD5000 must hold up USD500,000 position. Treat a USD100,000 position as USD100,000, not just USD1000.

An experience principle is, not to use more than 10% of the margin in trading Forex.

How to trade breakouts ?

I use the following rules for my breakouts trade.
1. As a general rule, the more times a line of resistance or support has been tested
the more important the violation will be if it occurs. I generally never trade less
than three/four tests.
2. The time frame between the tests of resistance and support is also important and
generally the longer the support or resistance has been in place, the more valid the
break will be when it comes. A period of months is obviously a far more valid period
than a few weeks.


When looking for breakouts, the longer term monthly and weekly charts should be looked
at rst and the daily chart used for timing.

Once a clear break has occurred, the odds are the trend will continue in the direction
of the break. If the trend reverses quickly, and goes back to the breakout point rather
than continuing, the break is likely to be false. Stops should therefore be at or near the
breakout point.

Forex : Advice 4

After few unsuccessful Forex trades which incur huge losses, Forex traders might get lack of confidence in Forex trading. Forex traders getting fear and indecisive towards the Forex market.

After open a position that in line with the trend, enter at the right price, but getting nervous and unfomfortable after winning only 10 pips, fearing the floating profit will vanish in any time. Lack of confidence, Forex traders tend to close the position with little profit.

While making losses, Forex traders always have confident that the price will bounce back and will never cut loss. But when making profit, the confident seems disappear. This resulted most Forex traders win less and loss more and the net result is making losses.

In Forex trading, must stop early when making loss and must wait patiently when making profit.

Signal Blog

You can found my signal on http://crackingforex.blogspot.com/

Forex : Advice 3

The Forex price fluctuation may divide into the bullish trend, the bearish trend and the flat trend, never go against the trend. If having open position which is against the trend, stop loss, never open another position to pull the low average price position. Although there always an end for a trend, but one cannot predict the Forex high and low for a trend. The high and low is formed by the market forces. 

These make the single truth, many Forex traders knew it, but in the actual Forex trading, they actually repeated the same error, keep opening new position that against the trend in order to lower the average price. Resulting the first open position price is already few hundred or even thousand pips away from the current price. 

Some Forex traders often like to hedge when their position is on the losing side, they do it by buying or selling new position in order to lock in the original loss order. This technique is invested by Hong Kong and Taiwan's financial companies. Such technique work to balance Forex traders' psychology in facing losing orders, providing Forex traders more times to rethink their trading strategy. 

In fact, Forex traders after locking the orders, while reconsider their trading strategy, often have the instinct to settle the profitable order and keep losing order, not considering the market situation. This process will continue, Forex traders will relock and unlock the orders several times until the first order is already several thousands pips away from the current price. 

Many Forex traders always have such experience, waiting for the 'best time' to cut loss or liquidate position. While an order is losing few hundred pips and the 'best time' come with losses is only 20-30 pips, one might hoping to settle at break even level; and when break even level reach, one might hoping for 20-30 pips profit to exit the market. Lead by greediness, the 'best time' to exit market will never arrive. 

Learn to stop loss, cut the position, and admit you have done a mistake. There's always new opportunity as long as your margin is not tied with any open position.

Status 30-jan-2009

usd/jpy 28-Jan.2009

I will go long on Usd/Jpy

2009.01.28 20:00: Sell USDJPY @ 88.98900

Forex : Advice 2

Every Forex trader is driven by greed in Forex trading, else the Forex market won't be the largest market in the world. In Forex trading, it's not difficult to make a 10-30% profit annually. What makes most Forex traders losing at the end is their greediness. Most Forex traders are not satisfy with 10%-30% profit annually, what they want is double or triple.

In today Forex market movement, most currency pairs fluctuate between 100-300 pips daily. It's not hard to gain 50-100 pips daily, in fact, most Forex traders succeed to do it. After taking 50-100 pips, due to greed, most Forex traders want to make another 50-100 pips on the same day. This will finally lead to making losses at the end of the day.

To overcome greediness, set a realistic target for each day. Let's say making 50 pips per day. Once the 50 pips profit is reached, stop and shut down your computer (assuming you trade Forex online). Never look back, continuing watching the Forex quotes or chart will make you want to enter the market again. Just call it a day with the 50 pips profit and proceed to enjoy your day doing some things you like.

usd/jpy 26-Jan.2009 ( Close order)

Today I close my Usd/Jpy trade price 89.4230

P/L on this trade was -111 pips

Order open post

Eur/Gbp 26-Jan.2009 (Close order)

Today I close my Eur/Gbp trade price 0.9367

P/L on this trade was 288 pips

Order open post

Gbp/Usd 26-Jan.2009 ( Close Order)

Today I close my Gbp/Usd trade price 1.38255

P/L on this trade was 563 pips

Open order post

Aud/Usd 26-Jan.2009 (Close Order)

Today I close my Aud/Usd trade price 0.65815

P/L on this trade was -148 pips

Order open post

Eur/Usd 23-Jan.2009 (Close order)

Today I close my Eur/Usd trade price 1.3022

P/L on this trade was -203 pips

Aud/Usd 23-Jan.2009

I will go short on Aud/Usd

2009.01.23 12:02: Sell AUDUSD @ 0.64330

Eur/Usd 23-Jan.2009

I will go short on Eur/Usd

2009.01.23 12:01: Sell EURUSD @ 1.281950

Usd/Cad 23-Jan.2009

I will go short on Usd/Cad

2009.01.23 06:35: Sell USDCAD @ 1.25630

Eur/Usd 22-Jan.2009 (Close order)

Today I close my Eur/Usd trade price 1.30606

P/L on this trade was + 0 pips (BE)

Usd/Jpy 21-Jan.2009

I will go short on Usd/Jpy

2009.01.21 20:00: Sell USDJPY @ 88.30900

Eur/Usd 20-Jan.2009

I will short Eur/usd price

2009.01.20 00:05

sell

0.20

eurusd

1.30606

Eur/Gbp 20-Jan.2009

I will go long on Eur/Gbp

2009.01.20 00:01: Buy EURGBP @ 0.90804

Gbp/Usd 20-Jan.2009

I will go short on Gbp/Usd

2009.01.20 00:02: Sell GBPUSD @ 1.43889

Forex : Advice 1

Follows blindly is most Forex traders' fatal psychological weakness. An economical data published, breaking news aired, 15 minutes chart showing a breakthrough, most Forex traders will rush to be first to enter the market. In such situation, most Forex traders seem fearless, not fearing making losses and only worry that others are making profit but not oneself if not fast enough to enter market.

One might argue isn't the number one rule in Forex trading to trade follow the trend? Obviously, it's the ultimate rule: "Follow the trends, it's your friend!". Forex traders need to follow the trend to trade, but not be the first to enter market after any data or news published.

Most often, few economic data are being released at the same times, most Forex traders already enter market once the first figure is out, not even waiting for rest economic figure to be released. The second and following figure released might just reverse the Forex movement.

There are also numbers of Forex traders who watch Forex chart closely, and will enter market when the chart show a steep movement. Not even taking times to understand what are the forces for such movement. It will be too late when they finally know that it's false alarm because they are already in the losing position.

In Forex trading, never be too eager to enter market, learn to overcome the feeling worrying too late to make more profit. Take time to analyse what's the impact of the economic figure released.

It might be a bit late once you have digest all the information, but once you are in the right direction, they are nothing to worry still the (stock) market close unless there are other breaking news.

This is what we call follow the trend, which will be moving on the same side till the market close.

Usd/Cad 19-Jan.2009 (Close order)

Today I close my Usd/Cad trade price 1.2561

P/L on this trade was +599 pips

Eur/Usd 19-Jan.2009 (Close order)

Today I close my Eur/Usd trade price 1.3294

P/L on this trade was +177 pips

Usd/Chf 19-Jan.2009 ( Close order)

Today I close my USD/CHF trade price 1.1200

P/L on this trade was +178 pips