Friday, June 30, 2006
FX Education & Training
I have been receiving an ever increasing amount of emails for those of you interested in having dialog about Forex trading strategies. Of course you can email me at info@fxtradecentral.com. I have several sites with a different emphasis within the Forex Education and Training umbrella.
FX Trade Central
This is my mother ship Forex Education and Training website. The focus on this site is to provide an approach or methodology for learning to trade currencies. I also provide a running Forex course evaluation for a comprehensive approach to learning opportunities. Click Here now to view this site!
FXT
This is my premiere training site. This is where I learned to trade currencies and am an active participant in the Online Trading Rooms where the real training takes place during active market hours. Click Here now to view this site!
Forex Journey – Blog
Frankly this is where I can talk about anything I want. I try to relay my personal experience is learning the Forex market, as well as tips and tricks along my journey. I will always be a student of currency trading. Don’t click here because you are already there!
Lens
If you missed my posting on what the heck is a Lens just search back in the May/June archives. I have two lenses which are designed to provide more of a focus on my trading (http://www.squidoo.com/forexjourney) and why Forex trading is the next great frontier (http://www.squidoo.com/successinfx). The Forex Journey Lens is the only site I post excerpts from my trading plan and current trade set ups I am evaluating.
Your risk management strategy resides between your ears. Don’t listen to any sales pitch claiming one system is easier than others. It really lies in a simple formula. Dedication and perseverance! It is not as easy as the sales people make out, but it is also not as hard as the naysayer claim either! You education is truly a lifetime financial skill! No matter where you get your forex education, just get it! It is your most important investment.
Keep the emails coming! Your feedback matters!
Happy Trading!!
Read More...
FX Trade Central
This is my mother ship Forex Education and Training website. The focus on this site is to provide an approach or methodology for learning to trade currencies. I also provide a running Forex course evaluation for a comprehensive approach to learning opportunities. Click Here now to view this site!
FXT
This is my premiere training site. This is where I learned to trade currencies and am an active participant in the Online Trading Rooms where the real training takes place during active market hours. Click Here now to view this site!
Forex Journey – Blog
Frankly this is where I can talk about anything I want. I try to relay my personal experience is learning the Forex market, as well as tips and tricks along my journey. I will always be a student of currency trading. Don’t click here because you are already there!
Lens
If you missed my posting on what the heck is a Lens just search back in the May/June archives. I have two lenses which are designed to provide more of a focus on my trading (http://www.squidoo.com/forexjourney) and why Forex trading is the next great frontier (http://www.squidoo.com/successinfx). The Forex Journey Lens is the only site I post excerpts from my trading plan and current trade set ups I am evaluating.
Your risk management strategy resides between your ears. Don’t listen to any sales pitch claiming one system is easier than others. It really lies in a simple formula. Dedication and perseverance! It is not as easy as the sales people make out, but it is also not as hard as the naysayer claim either! You education is truly a lifetime financial skill! No matter where you get your forex education, just get it! It is your most important investment.
Keep the emails coming! Your feedback matters!
Happy Trading!!
Wednesday, June 28, 2006
The Impact of News Events, Part 2
As we mentioned in Part 1, fundamental news tends to adjust the technicals and these adjustments translates into potential trading opportunities on the Forex market. Give these facts it is important we use both fundamental and technical analysis in our approach to trading currencies.
Fundamentals tend to be very inconsistent. This is why most traders, including myself, focus on the technicals. Fundamentals focus on the structural issues of currencies, such as flows of money and tend to be cyclical. Certain fundamental data carry different weight for different currencies. You will hear terms such as balance of trade, capital flows, employment and industrial production.
What does it all mean?
I have no clue. I am not an economist and I will never ever pretend to be (even with my fascination of the Central Bank role in the currency markets). In the end price action matters! How the currency price reacts to the news is the key. For example, EUR/USD pair is trending down and unexpected economic number that is dollar negative is released. The pair is likely to spike up and over a period of time resumes its previous downward technical direction.
It is all about using technical analysis to assess the likely direction of price and supporting it all with fundamental data. It is entirely possible to have two technical indicators and use fundamental data as a 3rd confirmation.
So how do we incorporate this into our currency trading plan?
Know the news and its anticipated impact on the currency pair. In my previous blog posting I provided some links to the two sites I use to monitor economic releases. If you reviewed the site you would have picked up on the fact that some news events are given a greater weight than others. I trade the London-New York overlap session, so the 8:30 am releases (and Fed news) catches my attention, but I will also get up a little earlier if significant news out of the ECB or Bank of England is expected. I tend not to have any short term position on or if I do I may close attention to my stop-loss. I let the market set the trend and enter the market when the “whip-saw” action has settle down and the market sediment for the news and trend has been established.
Be patient and be discipline! Always understand the big picture!
Happy Trading!!
For more information on how I trade visit http://www.squidoo.com/forexjourney. Feel free to email this lens to your friends!!
Read More...
Fundamentals tend to be very inconsistent. This is why most traders, including myself, focus on the technicals. Fundamentals focus on the structural issues of currencies, such as flows of money and tend to be cyclical. Certain fundamental data carry different weight for different currencies. You will hear terms such as balance of trade, capital flows, employment and industrial production.
What does it all mean?
I have no clue. I am not an economist and I will never ever pretend to be (even with my fascination of the Central Bank role in the currency markets). In the end price action matters! How the currency price reacts to the news is the key. For example, EUR/USD pair is trending down and unexpected economic number that is dollar negative is released. The pair is likely to spike up and over a period of time resumes its previous downward technical direction.
It is all about using technical analysis to assess the likely direction of price and supporting it all with fundamental data. It is entirely possible to have two technical indicators and use fundamental data as a 3rd confirmation.
So how do we incorporate this into our currency trading plan?
Know the news and its anticipated impact on the currency pair. In my previous blog posting I provided some links to the two sites I use to monitor economic releases. If you reviewed the site you would have picked up on the fact that some news events are given a greater weight than others. I trade the London-New York overlap session, so the 8:30 am releases (and Fed news) catches my attention, but I will also get up a little earlier if significant news out of the ECB or Bank of England is expected. I tend not to have any short term position on or if I do I may close attention to my stop-loss. I let the market set the trend and enter the market when the “whip-saw” action has settle down and the market sediment for the news and trend has been established.
Be patient and be discipline! Always understand the big picture!
Happy Trading!!
For more information on how I trade visit http://www.squidoo.com/forexjourney. Feel free to email this lens to your friends!!
Monday, June 26, 2006
The Impact of News Events, Part 1
News is the Fuel.
The Forex market is driven largely by world financial market and news, both of the domestic and international variety. There are a host of players on the international FX stage including businesses, hedge funds, governments, banks, consumers and of course us traders!
By now I am sure you are wondering why a self-proclaimed technical trader is blogging about the news? After all isn’t this just more fundamental mumbo-jumbo?
Well you know what they say …
NEWS IS THE FUEL BUT THE TECHNICALS ARE IN CONTROL!!
Fundamental news has a tendency to adjust the technical when the news is unexpected. Before beginning my trading session I am sure to review the up coming economic releases to view any event that has potential to provide rocket fuel to the market. Some news will move the currency pair (Non-Farm Payroll) and some are may not. To get a list of those pre-planned economic releases that have the potential for moving the Forex market look into the following links.
http://www.dailyfx.com/calendar/briefing/
http://www.forexfactory.com/index.php?page=calendar
Here are some recommended sites to get a more comprehensive fundamental view of the market.
Getting to know the impact of news events on your chosen currency will allow you to anticipate movements and plan your trades for more profitable entries.
http://www.morganstanley.com/GEFdata/digests/digests.html
This site will give you much more the Forex, but you can search the archives for the FX related article. This site has been very informative for my long term planning.
In Part 2 we will discuss how to incorporate news events into your trading plan.
Happy Trading!!
Read More...
The Forex market is driven largely by world financial market and news, both of the domestic and international variety. There are a host of players on the international FX stage including businesses, hedge funds, governments, banks, consumers and of course us traders!
By now I am sure you are wondering why a self-proclaimed technical trader is blogging about the news? After all isn’t this just more fundamental mumbo-jumbo?
Well you know what they say …
NEWS IS THE FUEL BUT THE TECHNICALS ARE IN CONTROL!!
Fundamental news has a tendency to adjust the technical when the news is unexpected. Before beginning my trading session I am sure to review the up coming economic releases to view any event that has potential to provide rocket fuel to the market. Some news will move the currency pair (Non-Farm Payroll) and some are may not. To get a list of those pre-planned economic releases that have the potential for moving the Forex market look into the following links.
http://www.dailyfx.com/calendar/briefing/
http://www.forexfactory.com/index.php?page=calendar
Here are some recommended sites to get a more comprehensive fundamental view of the market.
Getting to know the impact of news events on your chosen currency will allow you to anticipate movements and plan your trades for more profitable entries.
http://www.morganstanley.com/GEFdata/digests/digests.html
This site will give you much more the Forex, but you can search the archives for the FX related article. This site has been very informative for my long term planning.
In Part 2 we will discuss how to incorporate news events into your trading plan.
Happy Trading!!
Sunday, June 25, 2006
Find Your Forex Niche
It is important to find the Forex strategy right for you! When I began learning to trade the Forex market I was introduced to intraday trading using 5-minute charts. I gained an understanding of the nuances of market movements and the importance of technicals tools, such as Simple/Exponential Moving Averages and Fibonacci. These proved to be valuable lessons coming from the options world.
OK, truth be told … I hated it!!
This style of trading just did not suit my personality. It was a necessary step, but as soon as I felt comfortable and confident in the 5-minute trading style I dialed my chart right out to the hourly charts and beyond. I know lots of people that like the fast pace, simplicity of this style and are some of the most successful traders I know.
I am just not one of them!
My personality fits a longer term view and I just did not thrive in the faster paced decision making required in the 1-minute and 5-minute styles. My focus is on swing trading on the 240-minute chart and intraday trading on the hour and 15 minute charts. It is important while you are learning to trade FX you maintain an open mind to all Forex strategies, but in the end your personal trading style must recognized and exploited for long term success!
Happy Trading!!
For more information visit my site at http://www.fxtradecentral.com or my lens at http://www.squidoo.com/forexjourney!!!
Read More...
OK, truth be told … I hated it!!
This style of trading just did not suit my personality. It was a necessary step, but as soon as I felt comfortable and confident in the 5-minute trading style I dialed my chart right out to the hourly charts and beyond. I know lots of people that like the fast pace, simplicity of this style and are some of the most successful traders I know.
I am just not one of them!
My personality fits a longer term view and I just did not thrive in the faster paced decision making required in the 1-minute and 5-minute styles. My focus is on swing trading on the 240-minute chart and intraday trading on the hour and 15 minute charts. It is important while you are learning to trade FX you maintain an open mind to all Forex strategies, but in the end your personal trading style must recognized and exploited for long term success!
Happy Trading!!
For more information visit my site at http://www.fxtradecentral.com or my lens at http://www.squidoo.com/forexjourney!!!
Wednesday, June 21, 2006
Chart Patterns
Now that we are in the summer doldrums, chart patterns take on a whole new significance!
For a review bookmark this link!!
http://www.stockcharts.com/education/index.html
Happy Trading!!
Read More...
For a review bookmark this link!!
http://www.stockcharts.com/education/index.html
Happy Trading!!
Tuesday, June 20, 2006
It is Better in Groups
Banks and Hedge Fund Managers do it! And you should too!!
Too often I hear about the lonely trader who sits at their computer while the Forex market forces devour their capital. These are the same people who say currency trading is too risky and it doesn't work.
So you have taken the classes and read the books. Most humans don't learn that way. We must also be shown how to do it. In our case we must be shown (and repeatedly) how to trade, when to trade and when not to trade. Repetition is the key to learning.
And so is trading in a group!
If you do not have a group of traders then form your own group. Just look on Skype to see the myriad of Forex traders out there. Ask questions in forums (know you source though). You interaction with other enhance your Forex trading skill and acumen.
This just may be what the doctor ordered to have that breakout that puts you well on your way to Forex success!!
Happy Trading!!
Click Here to visit a forex training and education site that offers cources and mentoring beyond the tex book and into the live currency market!!
Read More...
Too often I hear about the lonely trader who sits at their computer while the Forex market forces devour their capital. These are the same people who say currency trading is too risky and it doesn't work.
So you have taken the classes and read the books. Most humans don't learn that way. We must also be shown how to do it. In our case we must be shown (and repeatedly) how to trade, when to trade and when not to trade. Repetition is the key to learning.
And so is trading in a group!
If you do not have a group of traders then form your own group. Just look on Skype to see the myriad of Forex traders out there. Ask questions in forums (know you source though). You interaction with other enhance your Forex trading skill and acumen.
This just may be what the doctor ordered to have that breakout that puts you well on your way to Forex success!!
Happy Trading!!
Click Here to visit a forex training and education site that offers cources and mentoring beyond the tex book and into the live currency market!!
Thursday, June 15, 2006
CSI Forex
If you trade the Forex market you will inevitably encounter the proverbial down day (or worse yet a series of down days). By bad day I mean when you put on a trade and from 'pip' one just goes against you. Tell me, after this happened have you:
Chased the trade and ended up losing more?
Revenge traded against the trend to recoup your losses and ended up losing more?
Moved your predetermined stop and ended up losing more?
Flipped your position and ended up losing more?
Have you noticed a theme??
Well, when I have a series of losing trades I go into CSI mode!
I actually conduct a crime scene investigation on my trading. First if I suffer a big lost I close my trade station immediately. Experience has taught me that I am susceptible to revenge trading. After a break (could be several minutes or several hours or several days) I take a look at my trade journal and look for clues as to why I suffered a draw down. Keeping a detailed journal allows me to reconstruct my trades to isolate potential errors.
If I am lucky I found that I had sound analysis and execution, but just hit some losers. More likely is that I got away from my style of trading or over-complicated my technique and entered into a bad trade.
Go back to the basics! It works every time!!
Happy Trading!!
Read More...
Chased the trade and ended up losing more?
Revenge traded against the trend to recoup your losses and ended up losing more?
Moved your predetermined stop and ended up losing more?
Flipped your position and ended up losing more?
Have you noticed a theme??
Well, when I have a series of losing trades I go into CSI mode!
I actually conduct a crime scene investigation on my trading. First if I suffer a big lost I close my trade station immediately. Experience has taught me that I am susceptible to revenge trading. After a break (could be several minutes or several hours or several days) I take a look at my trade journal and look for clues as to why I suffered a draw down. Keeping a detailed journal allows me to reconstruct my trades to isolate potential errors.
If I am lucky I found that I had sound analysis and execution, but just hit some losers. More likely is that I got away from my style of trading or over-complicated my technique and entered into a bad trade.
Go back to the basics! It works every time!!
Happy Trading!!
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