Tuesday, December 04, 2007

Online FOREX Trading – If You Want To Win Understand Price Momentum

If you want to win at online FOREX Trading you need to understand the importance of price momentum in putting the odds on your side.

If you don’t understand price momentum you will lose.

Let’s look at why it is so important and how to put the odds in your favor.

A common error

Most traders like to trade in the following way in online FOREX trading.

They like to buy into support and sell into resistance but they don’t pay attention to price momentum.

They hope resistance and support hold as they enter their positions and this is a recipe for disaster.

Why?

Well keep in mind this well known phrase.

A trend moving in one direction is more likely to continue than reverse.

So if prices are moving strongly to test support and resistance and price momentum is strong these levels can and do give way.

WAIT FOR CONFIRMATION!

A better way to trade is to use support and resistance and wait for them to hold before trading against these levels.

The odds will be vastly increased, as you will be looking for resistance and support to hold before taking your position and seeing price momentum weaken as the levels are tested.

This increases the odds of success for you and allows you to trade with price momentum on your side.

You won’t get in at such a good level as if you predicted correctly without using momentum, but as you can’t predict where price will go anyway always:

Wait for confirmation of a momentum change and your trade is more likely to be successful.

What indicators should I use?

By far and away the best indicator to use is the stochastic indicator.

We don’t have time to explain it in detail here, so simply read our articles.

The best set up you can get is:

For the stochastic lines to reverse and cross with either bullish or bearish divergence as the price tests support or resistance.

This will show price momentum changing and falling as the test is made, allowing you to enter a trade with momentum on your side, increasing your chances of success.

Another useful indicator to use is:

The Relative Strength Index RSI devised by Wells Wilder.

Again, if you don’t know how it works read our other articles.

Watch it to turn down as support or resistance are tested.

Get the odds on your side

The above two indicators are great for helping you judge price momentum and decide if support or resistance are going to hold.

Support and resistance levels give way frequently, but get price momentum on your side before trading and you will dramatically increase your chances of success.

Remember:

To increase your chances of success trade with price momentum on your side, the trend is your friend as the old saying goes – Act on price confirmation and don’t PREDICT.

By : Sacha Tarkovsky - http://www.net-planet.org/

3 Secrets To Consistent Winnings With On Line Forex Trading

If you really want to get in a market with almost nothing to begin with the on line forex trading market is the place to be. Where else can you start with $25 and realistically make 100 times that in a relatively short period of time. If that sounds like hog wash then stop reading now but if you have the ability to dream and turn that dream into action then the sky really is the limit. Let me share the 3 secrets to consistent winnings in the on line forex trading market.

Discipline

You have to have this and their is no way around it. Most people read this and they think to themselves, "I know .. I know .. I know!" OK, watch those same people lose all their money in the first year or sooner. I have to stress this enough or I would not be doing this article justice. Stay Disciplined. Do what you need to do. Do not fall in love with a certain move, get out while you are ahead. Do not let emotions get in the way of making the sound choice.

Never let a gain turn into a loss

There is nothing more discouraging than watching a profitable move go the other way against you and turn into a loss. That is greed epitomized. Be happy with what you get. Go into a move with your gain and loss stops in place. Remember the old but wise expression, "No one ever went broke taking home a winner."

Use a reliable and effective forex trading platform

There is no sense in going into a move with everything in place only to find the execution was poor. You need a reliable and fast trading platform with good spreads and a low minimum start up requirement. In fact, you can click on the link below and find a very good on line forex trading platform that I recommend.

Good luck trading this upcoming week.

By : Blake Rice - http://www.fxprofits.info/

Commodity Forex Online Trading

If you are even a bit part player on this planet you would certainly have heard all the buzz about Spread Trading. From here to Timbuktu everyone and their aunt is getting online with this amazing way of trading in the worlds forex, stock and commodity markets. As it is so easy to start trading here are a few pointers to bear in mind before you start trading online with your hard earned money.

Firstly. Start off small.

While you are learning the ins and the outs of trading take time to get to know the market, the players and more importantly your own psyche.

Paper trading first will give you a great idea if you are on the ball or if you need to spend more time honing your skills before taking the plunge with your money. Find out what the smallest amount you can start to trade with and stick to it. Don't double up if things go bad. Know in advance what you are willing to play with and do not go over.

If at all possible, get the advice of someone who has traded for a while and see what they do. Getting to know what other people think of a market is a very good way to help you get accustomed to the market too. Read as much information as you can on the market and trading in general. Learn different strategies as there is certainly more than one way to profit from the markets and there are some excellent sources of information available to help you.

Set yourself a stop.

Even before you put on a trade make sure you know where you are comfortable to get out if things go against you. Set a price and stick to it. If you are comfortable with losing 10% on a trade, set a stop and you will be comfortable knowing that you have put a limit on your loses.

Getting to know the hows, the whys, and the what force of online trading will definitely make you a much better trader in the long run. Taking a little more time with you preparation before hand can help eliminate the silly mistakes which can set you back before you have even begun.

By : Tony Perrin - http://www.onlinefxtrading.co.uk/

Learn Forex Trading Online Tips

Forex trading, often called "FX," is the practice of trading currencies for profit. A forex trader buys one currency and simultaneously sells another, hoping to realize a profit from any variance in valuation between the two currencies. Because currencies are the largest market in the world, there are many opportunities to profit. So, how do you learn to trade currencies? Fortunately, there are many excellent free resources that can help you learn forex trading online.

Learning To Trade Currencies Online

In the past, if you wanted to trade currencies, you were forced to buy expensive courses, attend high-priced seminars that often required traveling to other states and purchasing cost-prohibitive computer programs that allowed you to tap into the trading activities of more experienced traders.

Today, all of that has changed. You can learn forex trading from the comfort of your home without spending outrageous amounts of money on courses and seminars. There are several resources online that will not only teach you the fundamentals of trading currencies, but will share basic, intermediate and advanced strategies of trading while showing graphical examples of such strategies to ensure clarity. Further, this information is often offered free.

Watching Other Forex Traders

Many websites that offer free tips and even entire courses on forex trading principles and techniques are run by experienced currency traders. These are men and women who often have years of trading experience and can offer their insights regarding the best forex trading techniques to use in various markets. Some of these experienced traders even conduct free online workshops which allow you to virtually look over their shoulder and watch as they trade in particular markets. Watching these advanced traders is one of the best ways to learn real trading techniques that work in today's currency markets.

Preparing To Trade Currencies Live

Learning in a classroom setting is not the same as conducting live trades. Once you learn the basics of forex trading strategy, you should prepare to do a few live trades. After watching over the shoulders of experienced traders, you should have a good feel of what to expect. Part of learning how to trade currencies involves knowing what signals to watch for in your particular market and staying on top of those signals. If you know these things, you are likely ready to trade forex live.

How To Get Started Trading Forex Online

You only need a few things to begin conducting live currency trades. First, you obviously need a computer with access to the Internet. Second, you need access to an information source that can provide you with real-time signals so you can keep on top of your market. Third, you need a small amount of cash to begin trading. Lastly, you need calm nerves. Though forex trading is potentially very profitable, some people do lose money.

Once you have decided to learn forex trading online, you need to begin learning the basic strategies of trading currencies. After you have mastered the basics, begin learning some of the advanced techniques of forex trading. You can often access this type of information for free online along with clear examples that will help you understand the currency markets. Remember, although there is a high potential for profit, there are significant risks to trading currencies.

Try to learn from the best traders in the world by attending online forex trading workshops. After doing the above, you will likely be ready to start making your first few trades live.

By : John Ruddell - http://www.learnforextrading.co.za/

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