Forex Money » Stop Loss

Forex Secrets – Developing the "Anti-Chaos" Trading Strategy and Tactics at Forex Market (Part I)

admin — Tue, 20 Apr 2010 13:22:43 +0000

“Trading chaos”: B. Williams’s contribution and the reasons why millions of traders all over the world lose their deposits when they work according to the techniques of this author.

The book “Trading Chaos” by B. Williams is the classical edition that deals with giving the technical analysis to Forex. It is of a great interest not only to me but also to millions of B. Williams’s admirers all over the world. From the viewpoint of mine as a trader, this book is so popular because B. Williams tried to do the following:

1. To present Forex chaotic market as a system, making use of the chaos theory.

2. To depict his vision of logic of the structural components motion in this chaos: a) the strategy (Elliot’s wave theory); b) the tactics (the fractal analysis; the use of fractals and the so-called “key factor” – i.e., financial and economic instruments.

3. To submit 5 levels of the professional training of every trader. Each of these levels is clearly described and specified – as well as the corresponding goals and the instruments that traders must be capable of using at each of these levels.

In particular, the following chapters of the book in question are dedicated to the problems enumerated below:

Chapter 6. The first level – a trader- novice.

Chapter 7. The second level – an advanced beginner.

Chapter 9. The third level – a competent trader.

Chapter 11. The fourth level – a skilful (trading) trader.

Chapter 12. The fifth level – a trader -expert.

4. Besides, B. Williams enumerates 5 “bullets” that can “kill” any trend -i.e., its reversal points (points of reference). Starting from such points, one can develop new strategy and tactics of the work within the trend.

5. B. Williams also recommends making a business plan. In this “control list”, one must clearly specify “the working rhythm”, the signals from “the big finger” concerning the deal opening, “stop-loss” levels, cushion pads (suspension pillows), etc.

6. As a professional psychotherapist and trader, B. Williams submits practical recommendations to the beginners and skillful (competent) traders – see Chapters 11 and 12 from “Trading Chaos

Forex Automated Trading – Easy Steps to Detect Forex Software Fraud

admin — Fri, 16 Apr 2010 09:31:04 +0000

With so many Forex automated trading expert advisors on the market today showing outrageous and profitable trading results, you may be tempted to purchase one of these automated Forex trading systems to see for yourself. It is extremely hard to resist the temptation when you come across Forex automated trading results showing a 500% gain within two weeks. How can you say no to automated Forex trading software that claims 99% wining trades? There are also Forex managed account services claiming 25 consecutive profitable months without a single losing month. Then there are marketing statements claiming financial independence without having to know a thing about the Forex market. Lastly, there is the coup de grace of offering a full money back guarantee.

Let’s examine each of these marketing promises to understand them for what they are. In order for an automated Forex system to obtain a 500% gain within two weeks, it must take extreme risks to compound its trading account. Compounding the trading lot size will compound the potential winnings, but it will also compound losses. It is unlikely that this automated Forex trading software will continue to replicate its winning results week after week without any losses. If this Forex automated trading system really works, then the inventor should be richer than Warren Buffett and Bill Gates. The last time I checked, Bill Gates is still the richest man in the world.

It is human nature to want to be right all the time. Unfortunately, this is a bad trait in Forex trading. In order to have 99% wining trades, this automated Forex system is trading with a very large stop loss or no stop loss altogether. By trading without a stop loss, the unrealized losses in the account are open floating losses. This Forex automated trading software will not close the trade until it is profitable; hence, it will continue to hold the losing trade until the account gets margined out. You can have 99 wining trades, but with this technique, one losing trade could wipe out your entire trading account. Trading without stop loss is like playing Russian roulette with your money.

Often, I come across Forex managed account services using automated Forex trading systems without a single losing month. This is too good to be true, as even Warren Buffett cannot make this claim about himself, so you should stay away. Alternatively, you can make the cheques out to Bernard Madoff and get in early on the Ponzi scheme.

There are no shortcuts in life. Any automated Forex trading software or products claiming to provide financial independence without you needing to know a thing is likely to be a Forex software scam. Trading involves both risk and reward. You must read and understand as much as possible before using any automated Forex trading systems.

The best marketing hook ever invented is the full money back guarantee. A guarantee to give you the option of testing the program completely risk free so that you can experience the effectiveness of the automated Forex system first hand. You should be aware that it is extremely difficult to get your money back regardless of what the vendors’ guarantee says. Most of these guarantees are not protected or honored by companies like Visa, PayPal or MasterCard. Understand that there is always risk involved and use these five easy steps to detect Forex software scams.

By: Winsor Hoang

The Rubber Band Forex Trading System

admin — Sat, 20 Feb 2010 07:21:01 +0000

Of the many trading methods available out there there is one that has been recently realized and that is amazingly simple and uses the forex trading platform of your choice. This trading method will show you how to build your own indicator suite based on the author’s recommendation, but this method is not only colored screenshots, it will allow you to make a profit very often, in fact more often than you think.

It is important to mention that the author doesn’t recommend The Rubber Band Method in a fast 5, 10, or 15 min timeframe, he says 30 min to 4 hours is the optimum time frame for his forex trading system. However, some traders who like fast trading can do it in a 10 min chart, and even in the 15 min chart. It is beyond question that in a chart faster than 10 min, you will be trading “market noise”, and your pips will be limited.
His stop loss/limit ratio for money management is really good. By using RBM formula for setting stops and limit orders for profit targets, you can even lose 1/2 of your trades and still come out way ahead in profit.
You will learn alot from this simple method. It only uses his RBM custom indicator and one other technical indicator making your chart really simple and uncluttered. Additionally the system is so simple that it practically screams at you indicating when to take the trade and when you should take your profit.

The author of the Rubber Band Method looks at his trades in the morning and in the evening to see what’s happening. This means that if you have a day job, this is perfect for you.

He recommends demo trading this system for two months before using real money, but maybe that’s pretty conservative. If you understand it, start trading live money within a week or two! Just make sure you really do understand the RBM for forex trading and the one rule it teaches. You will make money, and lots of it.

By: Adrian Pablo

Forex Brokers – Forex Trading Account and How to Start Forex Trading

admin — Mon, 08 Feb 2010 17:51:48 +0000

Forex brokers don’t make money on each trade so you get unlimited trades with just about any forex broker. There are many brokers out there but they offer outrageous fees and other terms that you must agree to and are just not worth mentioning. Forex brokers necessarily tell you what the minimum to invest. In some cases, you can invest capital, with the entire $ 5 for the opening of trading account and to start Forex trading. Forex brokers can be compared on the basis of the spread they charge. Most brokers publish live or delayed prices on their websites with their profits calculated in the price.

Forex brokers usually offer many different trading platforms for their clients. These platforms often include real-time charts, technical analysis tools, real-time news and other data. Forex brokers commonly lean the prices. Forex brokers offer a lot of amazing services that investors can really take advantage of. They sustain strong spreads on the major currencies competing against the dollar.

Forex brokers are usually compensated through the bid-ask spread of a currency pair. For example, a retail forex broker may buy euros for 1.5475 U.S. Forex brokers necessary if you are going to trade currency. There are those who are qualified to do this without outside help, but for the average trader, attempting to trade on the Forex market without a broker it is like trying to hunt a dinosaur with a water gun. Forex brokers are the typical go-between in the forex market. Without this agent you will have a hard time dealing with the changes in the forex market.

Traders looking to protect their existing long USDCHF position or enter long at a favorable price may consider a hedge short USDCHF below 1.0490 with a target at 1.0290. Once the profit target is hit, we expect the bullish trend to resume. Trade without emotion – Don’t keep “mental” stop-loss points if you don’t have the ability to execute them on time. Always set your stop-loss and take-profit points to execute automatically, and don’t change them unless absolutely necessary. Trade with the trend in order to maximize your chances of success. Trading against the trend will not “kill” a trader, but will surely demand more attention, nerves and sharp skills to reach the trading goals you have set.

Comparing FX trading brokers is a tough asks. Although you can find a number of comparisons on internet, they are mostly done by forex brokers themselves highlighting their merits.

By: Mike Freije

Forex Killer Can Kill a Forex Beginner

admin — Tue, 22 Dec 2009 23:27:06 +0000

In the past I have written about the Forex trading software called Forex Killer, and have campaigned highly as regards the reliability and accuracy of the signals generated by this wonderful piece of software by Andreas Kirchberger. The possibilities with the Forex Killer software are endless, but in the hands of a complete Forex beginner it might backfire like an old and rusted gun. Nine times out of ten you read reviews of people screaming to high heavens how they have been ripped off and how Forex Killer is a pile of lies and … Ironically you will find that these people are complete beginners to Forex trading without any prior knowledge or practice (not even with a dummy account). Well yeah the sales page clearly states that you do not need to be a professional to use the software but using the software will not help you rid yourself of certain bad habits which will eventually lead to your pitfall. Most Forex beginners find it difficult to sit still once they see they are in profit and find it even more difficult apply a stop loss and stick to it.

Forex Killer might be a mechanical method of Forex trading that removes every emotion from your trading, but as a beginner Forex Trader who does not know how to control fear and anxiety as relates to trading you might it find it a bit difficult to trust and follow the signals without tampering with your trade. In Forex trading it is important to have the discipline and self control to follow a particular strategy or system and this applies particularly to using the Forex Killer.

As a Forex beginner who has purchased the Forex Killer there are a couple of things that you must pay attention to if you want to really see any of those profits other people make from using this great software.

Firstly, once you opened a trade in the direction that the Forex Killer software has indicated placed your stop loss and take profit target, even if the market begins to move against you do not adjust your stop loss. If on the other hand the market simply moves to your take profit point simply take your profit and prepare yourself for another trade, do not let greed get the best of you.

Secondly, when the Forex Killer gives a NO TRADE signal, remember that staying out of the market is also a position. A trader does not need to constantly be in the market as there are times when you need to stand aside and wait for the next tide.

After all said and done the Forex Killer Software will generate the signals for you, but your attitude to trading will determine how far you will get.

By: Karen Fairham