` Nak Share Jugak...

[tebbaloi]

aku ada short article pasal forex utk di kongsi bersama²

~ sharing is caring ~

Swing Trade The Forex​

​

Swing trading is a very popular technique used by Forex retail traders. In this article, I will discuss what it takes to succeed in swing trading, as well as the most common mistake made by swing traders.

What Is Swing Trading?

The currency market is famous for large price fluctuations. Prices may ‘swing’ upwards one week, and later ‘swing’ downwards the next week. Swing traders are people who attempt to ride these large price ‘swings’ to profit from them.
For example, if I believe that the current market price is reaching its peak, I may enter into a sell trade in expectation of profiting from (what I believe will be) a subsequent drop in price in the very near future.
Swing trades are typically held for a few days up to a couple of weeks, depending on the strength of the prevailing ‘swing’.

Why Is Swing Trading So Popular?

This form of trading is particularly popular in the currency markets because the markets are often ranging. This characteristic allows ample opportunity for swing traders to choose which market ‘wave’ to ride on.
Also, unlike the small profit targets of a scalping trade, swing trades potentially yield a much bigger profit. A scalp trade may net an average of about 10 - 20 pips profit, but a swing trade can yield as much as 100 pips or more per trade.

The Most Common Mistake Made By Swing Traders

Because the nature of swing trading involves the prediction of market tops and bottoms, many traders invariably make the mistake of incorrectly estimating the end of a ‘swing’.
For example, as the market price begins to turn around on an uptrend, a swing trader may incorrectly perceive it to be a trend reversal signal. However, this turnaround may only be a temporary price retracement before the market continues on the upward movement, causing the trader to suffer from a potentially large loss.
Swing trading is not as easy as it looks, Aand many traders get burnt because they don’t know how to properly estimate market tops and bottoms. (By: Harold Hsu)
​

 

[tebbaloi]

Getting The RIGHT One (By: Harold Hsu)

Forex Trading Systems - Getting The RIGHT One


Many new traders look for the ‘best’ and ‘most effective’ trading system to purchase without realizing that there’s no such thing. However, a trading system can be an effective medium to learn more about the Forex market. Good systems provide a benchmark with which inexperienced traders can observe market movements.
In this article, I will discuss the important factors to consider when choosing a trading system to adopt.

Don’t Choose Complex Systems

Many traders make the mistake of assuming that a complicated system will necessarily provide them with better returns. This is rarely the case, especially when the traders don’t understand how each of the system indicators complement each other.
Retail traders are almost always better off working with a simple, straight-forward trading system. The important thing is to understand how it works, and also its weaknesses. Is the system better suited for trending markets, or ranging markets?
A thorough understanding of a simple trading system will help you much more than a shallow, superficial grasp of a complex one.
Look For Actual Trading Track Records
There are many (what I like to call) ‘scam trading systems’ that use back-tested or simulated trading results to promote its sales. Unfortunately, many ignorant people buy into these marketing gimmicks and spend good money in purchasing a useless thing.

At the very least, good trading systems will have records of past actual trades that include both profitable and unprofitable trades. Avoid websites selling trading systems that claim to not have a single losing trade… it’s simply too good to be true.
Pay Attention To Track Record Losses
A trading system with 90% winning trades is useless when the losses are large enough. If you win $1 nine times out of ten and lose $10 one time out of ten, you’ll still come out a net loser.
That’s why it’s important to pay attention to the largest draw-downs of every trading system that you’re considering of using.

 

[tebbaloi]

Study These Traders and make Huge Gains! - (By: Kelly Price)

Forex Trading Tip - Study These Traders and make Huge Gains!


I have been teaching forex trading for 25 years and forex trading tip to anyone is to study the story of “the turtles” if they want to succeed at currency trading. Why?
Because it covers a group of traders that learned to trade in just 14 days and went on to make $100 million in 4 years! If you want to know how to succeed in forex trading, then read and learn how “the turtles” did it.

One day trading legend Richard Dennis decided to prove that trading was not a gift it was a skill anyone could learn if they wanted to do so and he set out to prove his point.
He gathered a group of people together - men and women, young and old and with varying levels of education and set about teaching them to trade in just 14 days.
The group included a couple of professional card players, a female auditor, a security guard and a kid fresh from school - Dennis then went to work and taught them to trade in just 14 days and gave them accounts.
The result?
They made him $100 million in just 4 years and many of this group went on to become trading legends.
This story is the one that inspired me to trade back in the eighties and it should inspire anyone, because it just shows that anyone can learn to trade currencies and your age, sex or educational background, are no barrier.
Sure you may not become as rich as “the turtles” life simply isn’t like that but the opportunity is there and you might! I have traded professionally for 25 years and I am no rocket scientist and you can to and earn a great income.
So what are the lessons you can learn from the turtles?
Firstly it’s how quickly they learned the method - 14 days.
Dennis knew that simple forex trading methods worked best and he taught them one.

It’s a fact that a simple method is more robust in the face of ever brutal market conditions and is more robust than a complicated one - but Dennis taught them something more:
To have confidence in the trading system, so they could execute it with discipline through long periods of losses to hit the big trends and big profits.

This really is the key of this forex trading tip:
You can have a great method - but if you don’t have the confidence to follow it with discipline then you have no method!
Most traders simply do not understand that they will get periods of losses (despite what some vendors may tell you) and you must stick with your method to enjoy currency trading success.
Don’t believe discipline is easy - its not. The turtles had far more losers than winners yet they made huge profits as they stuck with their method.
Dennis drilled into them that they must play great defence first, before anything else and gave them strict money management rules to apply.

So it’s a simple method, strict money management and discipline and these keys were valid in the eighties and there still valid now.
You can read more about the turtles in Jack Shwagers excellent book Market Wizards and a book by one of the most successful turtles ( Curtis Faith ) called “Way of the Turtle” It’s a fascinating story and there is much to learn from it.
This story inspired me to trade back in the eighties and I hope that my forex trading tip has inspired you, rather than listen to some self proclaimed guru who only talks the talk, spend $50.00 or so and get the real story from traders who have walked the walk.

I hope you enjoyed my forex trading tip and it encourages you to trade the most exciting and potentially lucrative investment medium on earth - global forex markets.

 

[tebbaloi]

A Free, Proven System That’s Profitable - (by : KELLY PRICE )

Forex Trading System - A Free, Proven System That’s Profitable


In this article we will look at a free system that’s used by some of the world’s top traders and it’s proven to make profits. If you use this system you will beat 99% of the forex trading systems sold by vendors online, so let’s look at it.
The forex trading system were going to look at was devised by a trading legend - Richard Donchian who is considered the father of modern trend following and is considered a trading legend and has influenced such great traders as Richard Dennis and countless others.

The system is Richard Donchian’s 4 week rule.
He originally devised it to trade commodities in the seventies but it’s very useful for forex trading because it works well in trending markets and forex markets are great for long term trends. The system is incredibly simple but don’t let that put you off, it makes money! The system is very robust and based on timeless logic.

It’s a well known fact that the best forex trading systems are simple, as they are more robust than complicated ones that have too many elements to break.

Here are the rules:
1) Close short positions and go take a long position when a price exceeds the highs of the previous 4 weeks.
2) Close long positions and take a short position when a price falls below the lows of the previous 4 weeks.
Thats it!
Now the above will work very well in any trending market but in sideways markets it will get chopped about so you may want to consider a filter to take this into account.
The filter is to enter on the 4 week rule - but exit the position on a shorter time frame and go flat. 1 or 2 week cycles could be used for this; you would then simply re enter on the next 4 week signal.

Now you can test the above system and you will see it works but most traders wont bother using it - Why? Because it takes tremendous discipline to execute it and it’s not a system that is particularly worried about price entry levels and most traders are obsessed with this.
It’s also very often buying breakouts and most traders hate doing this because they would rather wait for the pullback, this is despite the fact most major trends start from new market highs NOT market lows.

Another problem is traders think it’s too simple and prefer trendy systems which are more complicated (which don’t work) this system doesn’t have the buzz factor of being based on artificial intelligence or a neural network despite the fact it will beat most if not all of them longer term.
The pro traders however know its value and many systems by the great traders over the years have used it as a base - including the legendary turtle traders, who made $100 million in 4 years, with no prior trading experience. So yes it is simple but that doesn’t mean it doesn’t work it does.

Test it and you will see, so now you have a free forex trading system which since inception, has made traders hundreds of millions of dollars and could make some profits for you to.

 

[tebbaloi]

5 Forex Trading Myths - (By: John Baker)

5 Forex Trading Myths


1 – If I trade stocks successfully, I will make money in Forex
Despite the fact you are successful in the stock market, this does not imply that you’ll be successful in the Forex market. There are a lot of differences between the stock market and the Forex market. First of all, the Forex market is open 24 hours a day. This requires a lot more complexity and work. As you know, you cannot be in front of your computer 24 hours a day. You’ll have to figure out the best time periods to trade so that you can be successful. Also, you need volatility. And here’s another problem with the Forex market. There are periods of very high volatility and very low volatility. This difference is much higher in this market than on stocks. You may think that as the Forex market is open 24 hours a day, you can day trade whenever you want. You just need to turn on your computer and there it is… a trade just for you. Well, that’s not even close to the reality. This may happen from time to time but it’s not frequent. You need to develop a good strategy. The last point I need to focus is a real important one. If you want to trade Forex you need to find a good forex broker. Well, this isn’t a simple task as in the stock market because this market is not regulated. This means that there are a lot of brokers that don’t act in the best interest of their clients. Be ready to spend quite some time finding a solid broker that fits your needs.


2 – If the Forex market is open 24 hours a day, I can make a profit whenever I want
Well, not quite… As you know, to make a trade, a trader needs volatility. The volatility can appear anywhere within the 24 hours. As you cannot be in front of your computer all the time, this makes your work harder. First of all, you need to figure out the best time to trade (where volatility usually appears) and you also need to adjust your strategy to this period.

3 – I don’t have to pay commissions in the Forex market
You don’t have to pay commissions but you have to pay the spread. The spread is the difference between the bid and the ask of the currency pair you want to trade. Sometimes, these fees are not so cheap. If you plan to be day trading, you’ll see a major part of your profits to be left for the broker.

4 – In order to be profitable in the Forex market, I need to predict what will happen
As Forex is a complex market, you need to constantly learn and evolve as a trader. This does not mean you have to predict; this means you have to react and react fast. As a trader, you need to access charts but also need to access to all the information you can. The more information you have, the better your response will be when something, good or bad, happens in the market.

5 – I’ll be more successful if I use a more complex strategy
This is clearly a myth. Simple things work better in life as well in Forex. If when you’re defining your strategy you use 3 indicators, I bet most of the times there will be one that goes against the others. Try do define a good but also a simple strategy.

 

[tebbaloi]

Avoid These Forex Trading Common Mistakes - (By: Jon Provencher)

Avoid These Forex Trading Common Mistakes


Learning about the common mistakes inexperienced foreign currency (Forex) traders make will help you to develop your skills and chances of being profitable. Here are some common mistakes and assumptions inexperienced traders make:
- Misplacing Stops
Stops are necessary to avoid disastrous losses, however poorly positioned stops can be just as disastrous. Prior to placing a trade the trader should calculate the risk to reward ratio for the trade. The stop should be set with the traders money management in mind and should not be too close or too far away from the price. Traders should also calculate moving their stop as the trade goes in their favor to lock in profits and reduce potential losses.

- Abusing Leverage
With Forex brokers providing up to 400:1 leverage, it’s easy for inexperienced traders to get carried away with the dream of making quick profits. When traders use a high level of leverage the returns can be astounding, but when the trade doesn’t work out the result can be catastrophic. Traders should always compute the dollar value of the risk they are taking for each trade and ensure that this is appropriate for their investment balance. Skilled traders rarely risk more than 2-3% of their investment balance on any one trade.

- Placing Technical’s On A Pedestal
Technical indicators are great tools that assist traders to make decisions. However making decisions for trades based solely on what the technical indicators are telling us can end up in large losses. By considering fundamental data together with technical data you will have a much better chance at being profitable.

- Day Trading
There are profitable day traders out there. However, for inexperienced traders, trading with the longer term trend will be easier and have a better chance of making profits. Longer duration trades give the position more time to move in your favor, particularly if the market is volatile.

- Blindly Following A System
There are a lot of Forex systems out there that promise miraculous results. But if you start trading one of these systems without evidence that it really works you could find your investment balance quickly reduced to 0. If you want to use a Forex trading system, a sensible approach is to back-test and forward test it using software or on paper prior to putting any real money at risk.

- Underestimating Emotions
Emotions can have a huge impact on your Forex trading. Keeping a trade diary will help you to understand how your emotions are affecting your trading, you can then learn to use them to your advantage.

- I Back-tested It So It Must Work
A mistake traders make is to assume a back-tested system will continue to work. Forex markets are constantly changing and are effected by global and political events. Before you start to use a back-tested system you should calculate if it reasonable to assume that the market conditions the system has been tested on are likely to be similar to market conditions in the future.

 

[tebbaloi]

Day Trade for a living and Live the Dream - (By : KELLY PRICE )

Day Trade for a living and Live the Dream


Most novice traders are attracted to day trading as they feel it can offer them a living by making small regular profits that can build up into a substantial income over time. Let’s look at day trading in greater detail. The reality of day trading profits is a myth, no day traders make money longer term and if you see a day trading track record of profits, you will however see the disclaimer below.

You need to read it very carefully - here it is:

“CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown”.

So what use is a track record with this written on it - it’s not worth the paper it’s written on. It simply means a vendor can make up a track record (showing any profit they like) in hindsight knowing the closing prices and they do.

They know day trading is a good story but that’s all it is a story, I love James Bond but don’t take it seriously!
No day trading is doomed to failure simply because the logic it is based on is just plain ****** - think about it:
You have millions upon millions of traders transacting trillions of dollars each day and every trader has different skill levels, motivations etc and you simply cannot tell what this vast diverse group will to do in a few hours and it’s totally futile to try.

Volatility is random in short daily time spans, you therefore cannot get the odds in your favor and you will never win. Of course day trading also breaks the cardinal rule of trading which is - run your profits to cover your inevitable losses. Day traders certainly keep losses small but sometimes they hit a profit (day traders get lucky to) but do they run it?
Of course not, they close it out at the end of the day!

So we have lots of small losses, a few small profits and over time, equity gets destroyed - that’s the reality of day trading.
If you still don’t believe me, try and find a day trading system with a real (not simulated in hindsight) track record, supported by brokerage statements over the longer term.
By the way if you do let me know - I have been searching for one for 25 years and not found one yet.

If you want to enjoy forex trading success - learn to follow the longer term trends, where you can get the odds in your favor and make some great profits and leave day trading to the naïve, or lazy traders.

Concentrate on working with a logical, robust and long term method which will give you forex trading success.

 

[tebbaloi]

Forex & the Big Mistake - (By: Martin Bottomley)

Forex & the Big Mistake


One of the biggest myths in foreign currency trading is that price is predictable and that for every level that price has visited, it will revisit that level again.
If you are a regular reader of my articles, you will be aware that as the result of my trading system support service, I get asked a lot of questions.

One particular question that I am asked on a fairly regular basis is - “Do I really need to use a stop loss? After all price always returns sooner or later doesn’t it?”
Well no actually, it does not, but I can see why I am often asked this question.

Price is very capricious. Price loves nothing better than to lead us traders into a false sense of security, take all of our hard won money, and then to smile sweetly over it’s shoulder as it waves us goodbye.

What do I mean by this?
A recent question that I received sets the scene quite nicely:-
“Why is it necessary to set a stop loss? I have been setting stop losses as detailed in the trading system, but I find that sometimes I get stopped out and then price moves back in the original direction and makes a lot of pips. Even when price runs against me it nearly always comes back”.

Did you spot the dangerous word in that question?
It is a strange phenomenon that we traders **** ourselves into believing something to be totally true, when in fact it may only be true most of the time, and in trading, this could be a very costly mistake.

Well, if you haven’t guessed, the dangerous word was “nearly”.
You see, if price ALWAYS came back, we could - given deep enough pockets - hold on in there, watching our losses grow, but certain in the knowledge that sooner or later we would see those losses reduce and then turn to profit.

This does happen quite often, but quite often is not often enough because if we are prepared to let our loss run, at some point the loss will keep on increasing until we are completely out of funds, at which point we will be forced (possibly by a margin call) to liquidate our position and this will likely more than wipe out the other times when we profited from price making a return to the levels that we had hoped for.
Price can come back nearly every time, but it only has to fail to do so once to wipe you out if you do not use a stop loss.

Setting a stop loss is a very sensible and essential thing to do.
Setting a stop loss should be an intrinsic part of your trading method. You should be in the habit of setting your stop loss on every single trade, at the same time that you place the trade.
Selecting your stop loss position is something that should be calculated prior to the placement of your trade, and you should at that time also consider the amount that you are about to place at risk in relation to your money management objectives.

Sure, sometimes you will get stopped out for a small loss and price will then carry on in the direction that you had hoped, leaving you on the side lines. On these occasions you will not gain all of those pips of profit.

In the long run though, setting your stop loss will keep you in the game, and staying in the game will allow you to make your profits from the many times when price moves just the way that you want it to.

 

[tebbaloi]

Emotional? Get Ready To Lose Your Shirt In The Forex Game!- (by: Joseph Plazo)

Emotional? Get Ready To Lose Your Shirt In The Forex Game!


“Go with your gut.”
Yeah right. That’s advice to doom you at the currency exchange game.

When it comes to forex trading, that’s a trading strategy that is bound to lose you money – unless your gut is highly trained and impervious to emotion. The trick to making money in the currency exchange market is to avoid making emotional decisions and follow a carefully thought out strategy that takes the current market and history into account.

Forex trading is a highly volatile market. Emotions tend to run high – and low – and either of those extremes can influence your trading decisions, unless you have a strategy planned in advance, and stick to it, no matter what you THINK you’re seeing at the moment. The keys to success in Forex are system, analysis and perseverance. Note that emotion is not one of them. Going with your gut is a losing proposition in forex trading.

Letting your emotions rule your decisions can hurt your trading in several different ways. It’s the reason that most experienced traders tell novice traders that they need to develop a system – and stick to it no matter what. The system tells you when to buy, what to buy, when to trade and what to trade for. By sticking to your system even when you want to fly in the face of accumulated data, you’ll maximize your profits.

A system based on technical analysis of historical market trends is one of the most potent tools that you can utilize if you’re just getting started in forex trading – and many traders with years of experience continue to use their system to keep the profits rolling in. In fact, many will tell you that when their ‘gut instinct’ and their system collide, the system is almost always right.

The third key is perseverance. Analysis of trends in the market will show you that the market moves in dips and spurts within overall patterns that are predictable. No trend moves smoothly in an up or down line – there are inevitable periods of time when values suddenly spiral up or down based on some outside factor. These are the times when emotion can hurt your portfolio.

When a currency that you’re holding takes a sudden dip south, it’s tempting to succumb to panic trading, cut your losses and run even if your system tells you to hold on. On the other hand, it’s easy to catch the rising excitement as a trade starts increasing in value and scramble to buy more of the same. These are exactly the times to rely most heavily on your trading system. It will tell you exactly when to trade for maximum profit.

Using a mechanical system takes the emotion out of your trading, eliminating one of the key factors that people fail. Your system doesn’t get stubborn about proving a theory. It isn’t swayed by bad news, or elated by good news. It doesn’t hold onto a bad trade hoping against hope that if it just holds on long enough, the trend will turn around and become a moneymaker.
To be effective, your system – whether you develop your own or adopt one created by someone else – should identify the entry point of your trade, the exit point of your trade, mitigating factors, and an exit strategy.

In laymen’s terms that means:

- Under what conditions should I acquire a currency?
For instance, you may have a buy order for when a particular currency drops more than 5 pips because your analysis tells you that that’s likely to be as low as it goes.

- Under what conditions should I trade that currency for another

– and which one?

There are two reasons to exit – to maximize your profit, or minimize your loss. That means you have a set stop-loss order and a set take-profit order at which point to cash out your trade.

- What factors will I allow to change that decision?
If you’re not careful, this is where emotion will sour deals for you. While the money market moves in predictable patterns, there are always individual variations of a trend within those patterns. If you’ve taken those variations into account, it will be far easier to decide when a factor really does make a difference, and when it’s just wishful thinking.

- How will I trade out of a currency?

Your exit strategy may be as simple as ‘a stop-loss order when my loss hits 5% or a take-profit order when I’ll make 40% profit’.
By employing a system to tell you when to get in, out or stick, you’ll minimize the impact of your emotions on your trading and maximize your profit.

 

[tebbaloi]

Forex: The Keep It Simple SStupidd Guide - (by: Jim Wilson)

Forex: The Keep It Simple SStupidd Guide


A wonderful way to diversify your investment portfolio is to learn forex trading. Many new investors have discovered the world of foreign exchange trading to be an exciting new challenge. One that is filled with rewards that are beyond what they were achieving as stock traders. Currency forex trading is a great way to branch out into new investments. Experience a completely new world of investing by stepping outside of the chaotic domestic economy.

The unique thing about the forex market is that it never closes, if you feel like trading at 2am it’s not a problem. Unlike with other markets, such as the stock exchange, you can continue dealing with the currency trading market without worries over it closing at the end of the day. Websites give you 24-hour access to monitor what has been happening in the world currency markets at anytime. Through these sites you are able to learn all the basics about the market.

The websites will include tools and tips to guide you through the beginning steps of trading. This is a clear advantage because you can hone your trading skills before laying down your own money in the market.

When you think of it, the forex firms are training you to become skilled at trading for free by providing guidance, demos and news at no additonal cost. In a short while you will start feeling confident in trading and investing in forex. It only takes about $300 to start getting some good returns.

Learning forex does not require that you have a degree in economics or that you study the markets for years. The forex trading websites have made it easier for you to become successful. Forex brokers will give you access to the market for your currency trading.

Just like stock brokers, they can provide you accurate information and advice on how to deal with Forex trading strategies. Advice includes all the aspects of the Forex trading market which extends to research approaches and technical analysis to improve the member?s trading performance. Naturally, because this market has apparently been providing a great return on investment, large financial institutions have been proactively monopolizing the market.

However, with the trading firms, small-time individuals also have the opportunity to earn money through Forex trading brokers. As I mentioned earlier, the online firms have been providing powerful website tools to become familiar with the whole idea of the currency market.

Your choice of Forex trading broker will largely depend on your need in the trading market. Many brokerage sites will provide trading simulators and expert advice as well as research and analysis designed for first time traders. Furthermore, these websites typically provide experienced online Forex traders who offer in-depth advice to forex traders of all levels. All of these tools are available to beginners to try out.

You really can earn money by taking the time to learn forex trading. The availability of investment simulators and 24-hour customer support enables new investors to learn quickly. Not only can you be trading in no time, you will also be showing a tidy profit. Start researching forex trading. You might be shocked to see how many large companies are involved.