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How To Trade Effectively On Forex

It is important to have a good start when you are on forex market. There are many aspects which require special attention. You should get to know w lot of facts about forex. There are many wrong opinions which are the main reasons why people are unable to get income and to become really successful. If you think that forex market is the best place for you to start your own business you should get prepared. There are many people who do the same mistakes and who are unable to understand why they are losing. In order to avoid such an unfavorable outcome it is necessary to make sure that everything you do is made properly and that you are able to cope with any difficulties.

In order to make sure that you are string enough to trade on forex market you should try to check your knowledge. That is why, it is better to get started with the help of demo account. As only you have no problems in understanding of what is going on you are likely to see that there are many various advantages which you may make use of. In order to make sure that you are right it is better to get prepared.

You have to realize that although it is not necessary to have any education you still have to be clever and to know a lot. Any business requires certain level of expertise. Due to the fact that you have no experience it is better to make sure that you are able to operate the notions and that you are not confused when hear some terms. What is more, it is also important to get to know that forex market is the best place for you to make money and to become an independent person. That is why, you have to take it into consideration and to make everything possible in order to use it in the best way.

If you face any difficulties when trading or if you are unable to get all the info you need it is better to ask professionals. There are many web sites specially dedicated to the forex market. You are likely to find there all you need. What is more, it is possible to contact people who are giving pieces of advice. Of course you will have to pay money for the explanation.

There is one more aspect you should take into consideration. It is better to be aware of the scammers. There are many people who just rip off the inexperienced traders which in the result get nothing. That id why, it is better to check each source of information you have. What is more, you need to make sure that there is nothing wrong and that you are able to get income even without any help of the advisers.

For the people who want to make money from forex trading - please check out this site with useful info.

If you are looking for managed forex trading service - get more info about this service and forex investment.


August 8th, 2010 Posted by affcoach | FOREX | no comments

Overcome Your Fear And Get Rich On Forex

It is possible to make money and to lose money on forex market. What is more, there are people who cannot get income no matter how hard they try. If to be precise these people manage to make some income but it is nothing in comparison with the money it is possible to get with the help of forex. That is why, you should be careful and try to do everything possible in order to develop your skills and to increase your chances for the victory. Mistakenly majority of the traders think that there is no reason to do something in order to develop trading skills as everything depends on luck. What is more, there are even people who think that it is better not to waste any time on learning. In fact I would like to object. There are many people who just want to get successful. I know no one who managed to make money or to become a professional in anything without doing anything. To the contrary most of the people who managed to make millions were working hard and risking a lot. That is why, if you would like to make money with the help of forex market you should take it seriously and get prepared for the long and exhausting process of trading in which you are going to become a millionaire.

There are few facts which you have to take into consideration. It is impossible to rely on luck when you are trading on forex. What is more, you have to make sure that there is no reason to think that forex market is a place for rich and successful people. You are the one who is likely to get income in the trade. That is why, it is better to try to do everything possible in order to get successful. Do not let the others tell you what to do. It is extremely important to understand that as only you manage to overcome the difficulties and as only you realize that there is nothing impossible you are likely to get money.

You have to get to know how to avoid losses. There is a great risk on the forex market. That is why, your task is to do everything possible in order to get it to the minimum. Very often people think that it is impossible to do. Usually these people lose money. That is why you have to believe in the fact that there is nothing impossible and that you are likely to get a lot as only you decide to increase your expertise.

Do not listen to anyone but just start looking for the ways out. There are many people who would like to make money with the help of forex. They come to the market and get disappointed very soon. You have to avoid such outcome. It is better to understand that the more you try the better it is.

You should understand the basics about managed forex trading service - before you do the first step in forex investments.

What can save you from lots of troubles is a final piece of advice - today the online technologies give you a really unique chance to choose what you need at the best terms which are available on the market. Funny, but most of the people don’t use this opportunity. In real life it means that you should use all the tools of today to get the info that you need.

Search Google or other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and join the discussion. All this will help you to build up a true vision of this market. Thus, giving you a real chance to make a smart and nicely balanced decision.

And also sign up to the RSS on this blog, because we will do the best to keep this blog tuned up to the day with new publications about forex trading.


August 8th, 2010 Posted by affcoach | FOREX | no comments

The Psychology And Analysis Of The Market.

A lot of specialists of the Forex market are sure that making decisions on the currency market is based only under the mood of the market.

According to the theory of reflexivity of George Soros, the less the scale of the predicted market is, the less it is subject to the theory of the classical analysis. Here again on the foreground there is a stock market game psychology, knowledge of structure of stock jobbing, understanding of psychology of crowd and etc. And when it is said that after certain indignation in the market again formed movement is adjoined by huge weight of speculators (small private investors), and they, that is suspected, push the market further away there are first doubts. Let’s remember, who is the basic participant of the Forex markets? First of all, these are large commercial banks with milliard turns. Secondly, these are Central State Banks, i.e. the structures possessing huge means and possibilities. Thirdly, these are investment funds which also operate hundreds billions of US dollars. There are also large firms and corporations which conduct active international trade and constantly need foreign currency (often work in the market through the authorized banks).

And the last, the most numerous group, these are private investors, however their cumulative means do not allow to influence a course of the auctions strongly. Therefore even if all private traders simultaneously will start to work with one active, on the same time interval, their actions will not be so considerable, as any, even very weak currency intervention, for example, Bank of Japan.

About the structure of the work.

You have to realize that any commercial bank or investment fund has a staff of professional traders, that work with the assets of an organization, and on different investment horizons. The structure and strategy of the work of big participants of the market is rather plural, but let’s try to put it on primary structuring. One large part of participants is concentrated on rather small strategic goals, i.e. to say in simple words, they just “pipsing” earning several pips on the difference, but attracting rather large assets and having an opportunity to input the market for several times (even tens times) a day. As a result, they get a very good profit.

The other large part keeps positions for some hours or days. And there are strategic investors, that save positions for weeks and months. That’s why if a serious and big player decides to play with a large volume of assets with short money, then we can suppose that an employee of the same bank (fund) that keeps longer positions, will be informed about the planning operation, so this employee won’t be surprised with an “unexpected” fluctuations on the market, that have been initiated by his/her partners.

This trader can close his/her position, if it doesn’t move in the same direction with the aimed movement , in order to renew tender from more profitable levels. But the most important is that there are other commercial banks and investment funds (that are very large too), that want to open positions to the opposite side at this moment. To say in other words, they try to break the stake of other bank. That’s why there always will be fighting, and those who want to join one or another side, are always many too, whatever investment horizons they work.

Psychology is important, but not the determinant.

I think the most effective factor that speeds up the market sharply, are stop zones, orders for buying and selling. When they totally work, fluctuations on the market begin. But this is more a technical factor, and after it psychological factors “come”, they are connected with the behavior of the participants on the market. But the main conclusion is that constant fight of technical, fundamental and psychological factors, as a result ends with domination of the last factors.

As in any other sphere of our life Forex needs some knowledge.

Of course, you can start forex investment and be quite successful about it. However sooner or later the losses will come. This is when one might think “Why did I fail to start with a nice forex trading education?”

This does not imply that after reading even the greatest materials you will start closing trading positions with huge income, but this info will save you from lots of dangers. And even if you decide to get the assistance of a managed forex trading service, still you will make a much wiser decision.

And a final piece of advice - today the web technologies give you a really unique chance to choose exactly what you want for the best price on the market. Funny, but most of the people don’t use this opportunity. In real practice it means that you should use all the tools of today to get the info that you need.

Search Google and other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and participate in the online discussion. All this will help you to build up a true vision of this market. Thus, giving you a real opportunity to make a wise and nicely balanced decision.

P.S. And also sign up to the RSS feed on this blog, because we will do the best to keep this blog tuned up to the day with new publications about Forex currency trading.


August 8th, 2010 Posted by affcoach | FOREX | no comments

Forex Market. One Gramme Of Practice Or Tons Of Theory?

As with choosing of indicators, the restriction of “time cuts” of the market considerably simplifies life. I used to meet traders who tried to work with unusual time intervals, for example, 23-minute in a combination with 36 and 53-minute. After that other time intervals were chosen, and everything repeated. It is natural that in the course of studying of interactions of the base 23-minute graphic with 48-minute the purpose was completely lost, the purpose for the sake of which any person comes to the market, - to arrange transactions and to earn money. If the theoretical oddities of a trader accurately prevail over the work directly on the market the only thing, I can recommend in this situation, is to find a job as an analyst. Such people are not helped also by mechanical trading systems because after receiving a signal from MTS anyway it is necessary to do something, instead of beinng engaged in its next adjustment, calming itself that, as MTS is mistaken too also this signal is “absolutely precisely” false.

As you can see from the definition, it is necessary to carry to indecision and action-inactivity at the moment of being in a position. Indecision does not allow profits to grow (if the position is chosen correctly) or allows losses to be saved. It is natural, when the paper profit of the transaction grows, a trader wants very much to transform this profit to real faster and not to be dragged any more by psychological cargo of an open position. Probably, this situation also is defining at a choice of time intervals which a trader feels comfortable to work with. The correct choice of this interval can help with the decision of a question of premature closing of a profitable position. The output from a position with restriction of losses is a corner stone of all activity of a trader, and indecision at the moment of output from an unprofitable position can turn back with full loss of control over a situation.

If the stop-losses, placed on the basis of the technical analysis, are not executed because of indecision try to establish the maximum size of losses on a portfolio a month (for example, 5 % as traders in banks are limited) and if losses have exceeded this size - immediately liquidate all positions and do not start trade prior to the beginning of next month. Otherwise you simply will recruit the ranks of nice harmless animals from which professionals cut wool. So, if you have broken this rule, and have lost in percentage more than size established by you, and the position is still open, most likely, there has come a paralysis. To define a paralysis condition is simply enough and though different people emotionally display this condition variously, in the trader’s slang there is a concept of “warm bath”.

At the moment of a paralysis you plunge into “warm bath” that consists of your own sweat, fear and despair. And this is a very contrast condition - at the moments of movement of the market to your direction you feel simplification for some time, even emotional lifting, and then are even more deeply dipped into “warm bath”. At this time you are not so capable to estimate adequately not only the market, but also many things around you, that are not connected with the market.

You find comments of experts in hope of encouraging words about a fast turn and are indignant, when stupid analysts do not see signs of a long-awaited turn. You are ready to look the whole nights how all other world from Japan to the United States trades. I think, it is not necessary to explain that at approach of such condition it is necessary to close simply all positions and for a while to leave the market. And it is better to make it independently, instead of leaving the unpleasant procedure to the broker, trust me, the broker doesn’t enjoy that too. If you are from the category of people who enjoy such condition, then sooner or later you will lose everything and will be engaged by search of other, cheaper pleasures, than test a pain of losses on the stock market.

As in any other niche of our life foreign exchange market needs some knowledge.

Of course, you can start forex investment and get quite successful in it. But sooner or later the losses will come. This is when one might think “Why didn’t I start with a nice forex trading education?”

This does not imply that after reading even the best materials you will start closing trading positions with huge income, but this knowledge will save you from lots of dangers. And even if you make up your mind to get the assistance of a managed forex accounts service, still you will be able to make a much wiser decision.

And some general tips - today the web technologies give you a really unique chance to choose exactly what you want at the best terms which are available on the market. Funny, but most of the people don’t use this chance. In real life it means that you should use all the tools of today to get the information that you need.

Search Google or other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and participate in the discussion. All this will help you to create a true vision of this market. Thus, giving you a real chance to make a wise and nicely balanced decision.

P.S. And also sign up to the RSS on this blog, because we will do the best to keep this blog tuned up to the day with new publications about Forex currency trading.


August 8th, 2010 Posted by affcoach | FOREX | no comments

Forex Market, The Art Of Fighting With Yourself.

As far as I have noticed, the articles about psychology of the trade on the currency market, are usually written not by professional psychologists, but by working (or not working already) Forex traders. I have read a lot of articles about psychology of trade on the currency market and would like to share with you some thoughts.

For the beginning it is necessary to be defined with concepts. I offer the following treatment: indecision - this is inactivity of a trader in a situation when by one or another his/her own rules the trader should enter into the market, and also the actions of a trader that lead to untimely closing of profitable or unprofitable positions; the paralysis - this is the next stage of indecision, comes, as a rule, after non-observance of the order in case of avalanche increase of losses. As a result closing of an unprofitable position by a broker (because of a lack of assets) or spontaneous-emotional closing of a position by the trader finally follows.

To my opinion, the given problems are more to beginning traders as if a person has been working for two-three years on the market, this person faces psychological problems of other kind. Therefore all further reasonings concern, more likely, to beginners who only plan to come to the stock market or recently have plunged this environment.

From my supervision indecision of a trader is shown more often at first time after the trader entered the market. The problem of indecision, as its definition speaks, means two aspects: the first is an input the market, the second is an output from the market. The most interesting that at all evidence the second aspect is often lost at the general description of trade strategies.

At the beginning it is difficult enough for a beginning trader to understand constantly extending variety of indicators, and not by book examples, not on a demo account, but on their own money; and to estimate the importance and variants of interactions of these indicators. During the given period it is important to understand what is psychologically more comfortable for a trader - to hold a position between days or to work only within a day. Proceeding from sensation of this internal comfort also it is necessary to select for work not only a combination of “your” indicators, but also time scales of work.

The restriction of quantity of methods and used indicators considerably facilitates the life of a trader. It would be desirable to pay attention that simultaneous use of trend indicators and oscillators at the initial stage can essentially complicate the work of a trader, especially taking into account that lately in a considerable quantity of analytical reviews of the market the terms are met unreasonably often. But a trader should start studying the methods of trade based on the waves of Elliott, with their variety of treatments, only after successful development of more simple methods.

There are 2 ways you can make money on Forex market.

You can learn the basics of Forex market trading with the help of a good forex book and do the forex trading yourself.

OR you can hire professional traders to manage the money on your trading account and they will trade for you. Read more about forex investment.


August 8th, 2010 Posted by affcoach | FOREX | no comments

Principles For Studying Forex Trade Using Demo Account.

If you want to study the Forex trade right using a demo account, you should use the following principles:

1. If you are going to open a trade account that is about 10 000$, then make suer that the size of a demo account is 10 000$ too, but not standard 100 000$. The reason is that in this case you will not get used to run risks with larger sums than you have. If a beginner trader has got used to run risks with 100 000$ using a demo account, then the trader will run risks too much when he/she starts trading with real money.

2. You must trade with sizes of positions that are corresponded to your emotional risk level. You shouldn’t get used to trade with 100 lots, if in real you are going to trade only with 10 lots or to trade independently on what size is corresponded to your emotional risk level.

3. Ignore unreal implementation of orders that shows more profitable price in every transaction. Trade simulators often implement your order at a price that is impossible in real trade. If you want to buy a stock that is traded at a price of 20$ at the present moment, then place your order at about 20,05$ and when you want to close the position, do the same. This helps to a trader to get used to the implementation of orders in real trade. You shouldn’t get used to virtual profit, that never happens in real lie.

4. Create real emotions during virtual trade. Find someone, who you can compete in demo trade with. For every pip you win the other player must pay you 5$ for example (make sure that you hold the limit at 100$ during your friendly competition). This will help you to bring emotions to your trade decisions.

As soon as you feel yourself comfortable with the software of the trade platform, you have to stop virtual trade and start working with a real account, but make sure that you are staying within limits of your emotional risk level during your first working week. You will become a successful trader faster, working with real money than if you keep trading with demo account. Continuous virtual trade will lower your chances for successful trade with real money, because you can get used to trade with demo account. Trading with an account of unreal size, unreal volume of transactions, getting unreal implementations of orders and trading without emotions, without real risk, you get instincts that you are useless and inefficient. When you decide to trade with real money after virtual trade, you will trade even worse than a person who has no experience at all. Before you are able to move, you will have to get rid of all your bad habits.

There are 2 ways you can make money on Forex market.

You can study the basics of Forex market trading with the help of a nice forex book and do the forex trading yourself.

Or you can hire experienced traders to manage the money on your trading account and they will trade for you. Read more about forex investment.


August 8th, 2010 Posted by affcoach | FOREX | no comments

Forex Demo Trade, Is This A Mistake?

Demo trade is one of the biggest mistakes that a beginning trader can make. This is the least productive method to find out hoe to trade right. Practicing demo trade, every trade decisions is made by zero emotions. In fact you just practice how to make input-output without running any risks. And the fact is the more risks you run the more profit you get. As demo trade has zero risks, then it has no reward. In fact this practice increases risks of getting profit, when you start trade with real money, because you have learned to make decisions that can not be accepted in the real world. when you start making these decisions in real trade, this will bring you to the financial crash.

Traders must have 100% of technique skills to trade successfully, but they must use only 15% of these skills in the trade. Other 85% of the skills are necessary to keep your emotions under control. profitable trade is technical for 15% and emotional for 85%. So, how do you keep your emotions under control?

If you want to understand that, you need to determine what sum of money you can risk during your educational process and this makes trade a productive and educational experience. I do not offer you to run risks with all your capital in every transaction in order you to make sure that you trade ‘emotionally” on the markets. we all have different financial situations, and every person has a certain area where some sum risked money provokes a certain emotional level. Do you think that a person who has 2 millions US dollars of capital can feel some strong emotions running risks with 100 US dollars? If this trader buys 100 stocks for 20$ and the price of the stock falls to 19$, this won’t make the trader to worry much. But if this trader has 10 000 stocks in this situation, then he/she will feel very strong emotions.

No one can determine an emotional level of another person. Every trader has to find his/her “emotional level of risk: in order to make the trade an educational experience. I have a friend who has 25 000$ of capital. He has found out that a loss of 100$ creates an emotional environment for him, and the diapason from 70$ to 130$ is his emotional level of risk. When this trader runs risks with 50$ then this emotional level is not enough. When he runs risks with 500$, this is connected with too much risks, and his emotions are too strong in order to think clearly and to make right decisions. After he got a month of trade experience, his emotional level of risk has risen. Now he feels himself comfortable but still emotionally running risks with 400$.

The secret of educational and profitable trade is to watch after your emotional level of risk very carefully and to change your actions when you have to. This also can mean the lowering of your risky capital. My friend, who felt himself comfortable with the risk of 400$, had to lower this level to 300$ after he and his wife found out that she was pregnant and decided to buy a house as their rented apartment was too small. This has imposed a great responsibility on his capital and the payment for the house has lowered his risky capital. A lot of factors can influence on the emotional level of risk and only you can judge where this level should be. No one knows your situation better than you. For those who do not know anything about direct trade at all, demo trade can be useful only when they study trade platforms. It is not very wise to trade with real capital trying to study the software. If you do not knowhow to adjust graphics, the list of tools, an order for input and so on, then it is recommended for you to trade on a demo account, if you follow a certain set of rules. The majority of demo accounts allow you to trade with accounts of different sizes. They also provide you with fictitious implementation of orders.

As in every other sphere of life Forex needs some education.

Of course, you can start forex investment and be quite successful in it. But sooner or later the losses will come. It is precisely when one might think “Why didn’t I start with a nice forex trading education?”

That does not mean that after reading even the greatest materials you will start closing trading positions with huge income, but this knowledge will save you from many dangers. And even if you decide to get the help of a forex managed account service, still you will be able to make a much wiser decision.

And some general tips - today the online technologies give you a really unique chance to choose what you want for the best price on the market. Funny, but most of the people don’t use this opportunity. In real practice it means that you must use all the tools of today to get the information that you need.

Search Google or other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and participate in the discussion. All this will help you to create a true vision of this market. Thus, giving you a real chance to make a smart and nicely balanced decision.

And also sign up to the RSS feed on this blog, because we will everything possible to keep this blog tuned up to the day with new publications about Forex market.


August 8th, 2010 Posted by affcoach | FOREX | no comments

Forex Trader, How To Treat Yourself Regarding Past Transactions.

A trader opens and closes positions every day, looks for new opportunities, wants to get more profit, using the advantageous conditions of the Forex market. Maximum of used opportunities brings to maximal profit. The procedure of getting profit may seem too boring, that’s why a lot of traders try to improve it. Some traders allow the results of their past transactions to influence on their decisions about further transactions. As a result they refuse from the practice “input-output” that has proved its success. The results of some first transactions of such traders influence on how they can use their opportunities in further transactions.

If a trader incur losses with his/her first transactions, because he/she couldn’t get ready right for transactions, then this trader can lose his/her self-confidence, that is so necessary for arranging further transactions. And vise versa,a trader can become too self-confident after the wide range of successful transactions.

So, there is a very important moment in the work of a trader — there must be a ban for thinking of past transactions and their results at the moment when he/she is planning new transactions. A trader can estimate the results in the end of a working day, but not during tender. How to make yourself not to think of past transactions? As even if a person tries to avoid the thoughts about past transactions, this practice is less destructive, than if a person starts thinking of them. The decision of this problem is in the following — a trader has to learn to have such called an “empty” opinion, but it needs time to acquire this skill. A trader must be able to reach to the source of such thoughts and to nip them in the bud.

A trader starts thinking of past transactions, as he/she considers them too important for the common progress of his/her work. A trader estimates the results and starts estimating the importance of past transactions. This way leads to nowhere, as in real a trader can not estimate his/her total progress considering such a small part of his/her work. As soon as a trader understands that, the motivation for thinking always of past transactions disappears.

Successful and experienced traders treat every transactions as a new one. A beginning trader treats his/her first transaction in this way. A transaction itself and its result do not have a great importance. A trader will have enough time to think of it, but only in the end of a working day.

This aspect of the work of a Forex trader is really very important. Actually you have probably already realized that. Every trader must learn the psychology of trade in order to be able to learn how not to think of his/her past transactions.

There are 2 options you can make money on Forex market.

You can study the basics of Forex market trading with the help of a nice forex book and do the forex trading personally.

Or you can hire professional traders to manage the money on your trading account and they will trade for you. Find out more about forex investment.


August 8th, 2010 Posted by affcoach | FOREX | no comments

Forex Market: Trading Tactics

Having finished market research, the trader should know if it will go bull or on lowering. Besides, by this time he should solve, what part of the capital should be enclosed in the transaction. And, at last, last step is actually purchasing or contract sale. It is the most complicated part of all process of trade in the margined markets where determination of the concrete moment of opening and closing of positions should be as more as possible exact. The final decision concerning that as well as where is included into the market should be based on a combination of technical factors, principles of capital management and stock market order type.

Feature of determination of exact time of an input in the market and an exit from it on the basis of the technical analysis consists in very short-term character of this analysis and is determined in the days, hours and even minutes, instead of weeks and months. But in all cases the same technical tools are used. Further is considered general provisions of such analysis.

1. Tactics of actions at breaks.

There are three variants of actions of the trader at breaks of the prices:

# to take a position beforehand, anticipating break;

# to open a position at the moment of break;

# to wait inevitable recoil after break.

There are pros and cons of each of three approaches; the combined approach is sometimes applied. At work with several prizes the trader can open on one position on each of three stages. It is possible to take a small position before expected break, then to purchase still right after break and, at last, to open additional positions during insignificant falling of the prices during the correction following break. If the trader trades small positions its decision will be affected first of all by two reasons:

# he is ready to risk what means on this transaction;

# how much aggressively he will act.

The most conservative trader in this situation will open a long position on recoil of the prices. But, as it is paradoxical, waiting tactics also can appear risky - in the sense that, expecting recoil, it is possible to drop in general input moment in the market.

2. Crossing of trend lines

The given signal allows entering into the market or leaving it early enough, especially when there is a crossing of the significant, repeatedly “checked up” trend line. Certainly, thus it is impossible to forget and about other technical factors.

In case of trend line use as level of support and resistance long positions open at falling of the prices to level of a steady ascending trend line, and short - at elevating to level of a descending trend line.

For the realistic tips about forex trading - please visit this site.

Those who need forex investment opportunities - visit this managed forex trading site.


August 8th, 2010 Posted by affcoach | FOREX | no comments

Forex Trading Tactics

1. Use of support and resistance levels

Break of level of resistance can serve as a signal for long position opening, to protect which it is possible then by means of the stop order. It is possible to arrange under the nearest level of support or, for bigger safety direct under level of break which will carry out now support function.

Lifting of the prices to resistance level at the descending tendency and falling to support level at the ascending tendency can be used for opening of new positions and addition of prizes to already available profitable positions. At a choice of levels of a protective suspension first of all it is necessary to pay attention to support or resistance levels.

2. Use of updating of the prices

At the ascending tendency intermediate falling of the prices making percentage from the previous growth on Fibonacci, it is possible to use for opening of new or additional long positions. It is necessary to notice that in this case the analysis of percentage of length of correction concerns very short periods of movement of the market.

Right moment for opening of a long position is 38 %-s’ recoil of the prices occurring after the bull break at the ascending tendency. It is rather expedient to open short positions when at the descending tendency of the price jump aside upwards, covering from 38 % to 62 % of distance of the previous falling.

3. Use of blanks
The price blanks formed on bar schedules also can be used for a choice of the optimum moment of opening or closing of positions. For example, the blanks formed in the course of a rise in prices, often then act in a role of levels of support. Therefore at the ascending tendency it is expedient to open long positions at falling of the prices to the top border of a blank or hardly more low, in it. The stop order can be placed under a blank. At the descending tendency the short position opens while the prices rise to the bottom border of a blank or even partially fill it. The protective stop order in this case takes places over a blank.

4. Averaging

As averaging is called such strategy of work when you were mistaken, or have simply made any transaction and the price has gone against you, and you make the same operation under price already more favorable. The basic minus of averaging is that fact that you do not foreknow, to what price there will be market against you. And after all averaging demands each time (after the first) put doubled from previous the sum of mortgaging means. But if you do not have a lot of money - you presume price movement in 100, 200 and more pips. Though such motions in the market happen infrequently, - all the same it is not the best strategy, especially, if you see that were mistaken with definition of a direction of a trend.

People who took the decision to participate in forex trading should start from learning the basics of this market to make sure you do not have problems with this industry.

There is another option - you can hire professional traders to managed your trading account - read more about forex investment here. Also make sure to look for the info in a good forex book.


August 8th, 2010 Posted by affcoach | FOREX | no comments