Forex Trading Journal - Learn From Yourself
by: Casey Stubbs
Making profits as a forex trader needs many things to fall into place. One of the key things is to have the right tools and processes that will give you the necessary structure so that you can trade with confidence. A forex trading journal should be one of the tools that you first look to setup. It will provide a framework of discipline that will allow you to trade like a professional trader.
What Is It?
A forex trading journal is a notebook, spreadsheet, or other record where you keep details about each trade that you make. These details should include the decision-making or strategy behind the trades. You will also want to note down every detail of the trade, including the date, what currency pair was involved, direction of proposed movement, entry price, planned exit price, the trade size, pips target, pips returned, profit or loss, and the relevant trading session. You can also put in a screen shot of the trade if you want to for future reference.
Why Keep This?
If you have a forex trading journal, you won't have to rely on your memory to remember every mistake you have made in the past as well as every profitable trade you've been able to accomplish. As a trader, you should know that trading currency is a non-stop education and experience is often the best teacher. You will give yourself the best chance to succeed by analyzing the various elements of your good and bad trade decisions. This will allow you to emulate profitable trades and, at the same time, avoid the trades that cost you money.
You will find that a forex trading journal provides benefits in many other ways including the way that it will make you think and analyze your activities. You might be the only one that ever reads it but it still will change the way that you approach future trade decisions. Seeing your trades in black and white can be a sobering experience and adds a dash of reality to what can just seem like paper transactions. You'll immediately find that it will make you think more professionally about what it really takes to make profits over a prolonged period. Having to record something will help to stop you from over-trading or gambling.
Learn From Your Mistakes
When you are trading in the world of foreign currencies, making mistakes is unavoidable. Sooner or later, you will slip up. Do not be afraid of this as it can teach you a valuable lesson. In fact, most of the successful traders found their edge through trial and error. Profits won't come without making some genuine effort to educate yourself as much as possible. Eventually, you will have to learn from your mistakes. And what better way to do that than with a forex trading journal. There is a reason that most successful and respected traders have one and use it constantly. Big financial institutions, banks and companies trading in the market also do the same thing. If you choose to have only one tool by your side, then this is what you will need.
About The Author
Casey Stubbs is an experienced forex trader who likes to share his expertise with those wanting to learn more about currency trading. To get free advice and to see Casey's own forex trading journal, please visit his established trader community at => http://www.winnersedgetrading.com
Article source: http://www.articlecity.com/
Showing posts with label currency trading. Show all posts
Showing posts with label currency trading. Show all posts
16 September 2010
17 February 2010
Forex Trading Tutorial - He Blinded Me with Forex
Here we have my man Nial Fuller talking about pin bars and reversals in a forex trading tutorial video...
The charts tell it all.
The charts tell it all.
19 January 2010
Domo Arigato, Forex Roboto
Forex robot - good or bad?
by Mike Bordon
Forex robots are booming expert advisors in the forex business. Especially for those who have just entered the field and have just started to understand the rules and knacks in the trade find forex robots to their advantage. Automated forex robots use software that in turn uses complex algorithms which trade currency for you, day and night. There are many kinds of robots in the field, they are ranked as gold, silver, bronze and new& testing according to how accurate they prove themselves to be.
The trade takes place when a set of parameters set by the developers of the software are met in the market. It works by means API that is application programming index. This program receives information on the most current trade trends from your broker's account and then the software plans its trade according to this. Forex is a very fast paced market and whatever business strategies you are using have to run along with it. Forex robots are fast and are being updated by their developers 24*7.
All the forex trading automated software in the market today claim to turn into a genie and buy you heaps and heaps of quick money. But, while choosing a software you have to be very careful as along with all these promise forex scams are also rising. People are being cheated with assurance of success, but failure was the result. Therefore, while going to buy a forex robot, you have to always try it on a false or a demo account. When it has proved its accuracy, you can directly apply it to you real account, but otherwise not.
There are many developers who take advantage of the newcomers to the currency trade and try to sell them faulty software. This will not get you huge profits but heavy loss. So stay away from scams, and before taking on a forex automated program give it a trial and only after you are satisfied, apply it to your real forex account.
About the Author
Forex Robot will help you to earn real profits in the forex trading. For more details you can visit http://www.forexrobot.com/
Article source: http://www.goarticles.com
by Mike Bordon
Forex robots are booming expert advisors in the forex business. Especially for those who have just entered the field and have just started to understand the rules and knacks in the trade find forex robots to their advantage. Automated forex robots use software that in turn uses complex algorithms which trade currency for you, day and night. There are many kinds of robots in the field, they are ranked as gold, silver, bronze and new& testing according to how accurate they prove themselves to be.
The trade takes place when a set of parameters set by the developers of the software are met in the market. It works by means API that is application programming index. This program receives information on the most current trade trends from your broker's account and then the software plans its trade according to this. Forex is a very fast paced market and whatever business strategies you are using have to run along with it. Forex robots are fast and are being updated by their developers 24*7.
All the forex trading automated software in the market today claim to turn into a genie and buy you heaps and heaps of quick money. But, while choosing a software you have to be very careful as along with all these promise forex scams are also rising. People are being cheated with assurance of success, but failure was the result. Therefore, while going to buy a forex robot, you have to always try it on a false or a demo account. When it has proved its accuracy, you can directly apply it to you real account, but otherwise not.
There are many developers who take advantage of the newcomers to the currency trade and try to sell them faulty software. This will not get you huge profits but heavy loss. So stay away from scams, and before taking on a forex automated program give it a trial and only after you are satisfied, apply it to your real forex account.
About the Author
Forex Robot will help you to earn real profits in the forex trading. For more details you can visit http://www.forexrobot.com/
Article source: http://www.goarticles.com
04 May 2009
Psychological Price Levels in Forex Trading
Importance of Big Figures in Forex Trading
by: John M Bland
Those who have followed me over the years know the importance I place on “big figures” (otherwise referred to as “round numbers”) in forex trading. There is a technical, fundamental and psychological component to big figures that make them significant. While this isn’t always quantifiable, pivotal big figures are often the ones that drive expectations and currency forecasts.
What is a big figure in forex trading? A big figure (or “round number”) is a forex rate that ends in 00, such as x.xx00 or xx.00. Examples are EUR/USD 1.3400, 1.3500, 1.3600, etc and USD/JPY 89.00, 90.00, 91.00, etc. Market convention is to drop the 00 and refer to big figures without them, such as EUR/USD 1.34, 1.35, 1.36 or USD/JPY 89, 90, 91.
Not all big figures should be treated the same. Some big figures have more significance than others in forex trading. I refer to these as pivotal big figures, which are ones that end in 2, 5, 8 and 0. For example, EUR/USD 1.32, 1.35, 1.38 and 1.40 are more significant than EUR/USD 1.31, 1.33, 1.34, 1.36, 1.37 and 1.39. The pivotal big figures ending in 0 and 5 are most significant. The way I look at it, if a pivotal big figure is broken, the risk is for the next round number as long as it trades below it. For example, if EUR/USD 1.40 is broken, next target would be 1.38. If that level is broken, I then divide the 1.35-1.38 range in half and use 1.3650 as the next target with the broader risk for 1.35. Note these are not support or resistance levels so I give leeway around pivotal big figures and look for whether they are established as support or resistance.
There are several reasons why pivotal big figures are important:
1) Psychological – There is a strong psychological component to pivotal big figures. This is hard to quantify but there is clearly an emotional impact. Think about your trading and how your sentiment changes when a big figure ending in 2, 5, 8 or 0 is firmly broken or holds. As an example in the current market, the EUR/USD failure at 1.38 (correction high was 1.3790) was followed by 1.35 coming under attack. This pivotal big figure was briefly broken (low of 1.3444) but so far not conclusively as EUR/USD has been unable to stay below it. A firm 1.35 break would raise a risk for 1.32 and 1.30 while a move back above 1.38 would put 1.40 in play again. In another example, a recent failure above USD/JPY 92 has seen the upside stall and 90 subsequently tested. Note, the use of pivotal big figures is just one tool and should be used in conjunction with other tools and indicators that make up your analysis.
2) Options Barriers – Options barriers are often placed at big figures and this often leads to talk of a defense of these levels. When a barrier is at a pivotal big figure it often has a bigger attraction as stops are also often placed at those levels. I am not sure why anyone would use a big figure as an options strike but this is often the case. A discussion of options and the impact on spot forex trading will be left to a future article. The point here is that options strikes are often set at big figures.
3) 10 Big Figure Ranges – Central bank and finance officials often talk in terms of 10 big figure ranges. This is especially true in USD/JPY and in the EUR/USD as well. These ranges usually start and end with a 0 or 5, such as USD/JPY 85-95, 90-100, 95-105. This may be a reason why pivotal big figures ending in 0 and 5 have taken on more significance over the years. In the years when central banks were more openly interventionist, the market assumed a defense of these ranges and often put this to a test. In the current market, the Swiss National Bank (SNB) openly defended EUR/CHF 1.50 (pivotal big figure) as the bottom of the range for many months. The SNB then abandoned a defense of this level and this saw EUR/CHF drop below it. The market is now focused on 1.45 (another pivotal big figure) as the next line of defense and the SNB appears to be currently defending 1.46 to prevent a run at 1.45.
4) Stops – Despite big figures being obvious targets for the market, there are still traders who place stops at or just above/below these levels. This is an invitation to getting stopped out of a position as these round numbers can be like waving a red flag at a charging bull. We refer to stops as JUBBS, which are stops at obvious levels. For a description of a JUBBS stop, visit the Global-View.com website and search under JUBBS. Sometimes the market feels compelled to test big figures, especially pivotal ones, to see if there are stops or bid/offers at these levels.
5) Congestion Around Pivotal Big Figures – Sometimes congestion around a pivotal big figure will take place as the market battles in a tug-of-war to establish on one side or the other. This often sees a narrowing range as the market trades on both sides of a pivotal big figure each day. Those on GVI Forex have seen me point out these patterns when a big figure, especially a pivotal one, prints each day. This offers a chance to trade on both sides as long as this pattern persists. However, the longer this pattern goes on, the more momentum is drained from the market and the greater the risk of a directional move once this pattern is broken.
To sum up, pivotal big figures can be a useful tool for forex trading. Pivotal big figures can be a good guide to the market bias and to potential targets. Central banks and financial officials often think in terms of round number ranges and this helps guide market expectations as well. The use of pivotal big figures can offer trading opportunities during periods of congestion and then signal directional moves when the pattern is broken. Whatever the case, it pays to be aware of pivotal big figures and the ways it can impact trading.
About The Author
John M. Bland has been involved in the forex market for more than 30 years . He is a co-founder of www.global-view.com,the leading forex discussion site and home of the original forex forums. Global-view is a place where forex traders come for currency trading, the latest rumor , breaking news and forex trading flows.
Article source: http://www.articlecity.com/
by: John M Bland
Those who have followed me over the years know the importance I place on “big figures” (otherwise referred to as “round numbers”) in forex trading. There is a technical, fundamental and psychological component to big figures that make them significant. While this isn’t always quantifiable, pivotal big figures are often the ones that drive expectations and currency forecasts.
What is a big figure in forex trading? A big figure (or “round number”) is a forex rate that ends in 00, such as x.xx00 or xx.00. Examples are EUR/USD 1.3400, 1.3500, 1.3600, etc and USD/JPY 89.00, 90.00, 91.00, etc. Market convention is to drop the 00 and refer to big figures without them, such as EUR/USD 1.34, 1.35, 1.36 or USD/JPY 89, 90, 91.
Not all big figures should be treated the same. Some big figures have more significance than others in forex trading. I refer to these as pivotal big figures, which are ones that end in 2, 5, 8 and 0. For example, EUR/USD 1.32, 1.35, 1.38 and 1.40 are more significant than EUR/USD 1.31, 1.33, 1.34, 1.36, 1.37 and 1.39. The pivotal big figures ending in 0 and 5 are most significant. The way I look at it, if a pivotal big figure is broken, the risk is for the next round number as long as it trades below it. For example, if EUR/USD 1.40 is broken, next target would be 1.38. If that level is broken, I then divide the 1.35-1.38 range in half and use 1.3650 as the next target with the broader risk for 1.35. Note these are not support or resistance levels so I give leeway around pivotal big figures and look for whether they are established as support or resistance.
There are several reasons why pivotal big figures are important:
1) Psychological – There is a strong psychological component to pivotal big figures. This is hard to quantify but there is clearly an emotional impact. Think about your trading and how your sentiment changes when a big figure ending in 2, 5, 8 or 0 is firmly broken or holds. As an example in the current market, the EUR/USD failure at 1.38 (correction high was 1.3790) was followed by 1.35 coming under attack. This pivotal big figure was briefly broken (low of 1.3444) but so far not conclusively as EUR/USD has been unable to stay below it. A firm 1.35 break would raise a risk for 1.32 and 1.30 while a move back above 1.38 would put 1.40 in play again. In another example, a recent failure above USD/JPY 92 has seen the upside stall and 90 subsequently tested. Note, the use of pivotal big figures is just one tool and should be used in conjunction with other tools and indicators that make up your analysis.
2) Options Barriers – Options barriers are often placed at big figures and this often leads to talk of a defense of these levels. When a barrier is at a pivotal big figure it often has a bigger attraction as stops are also often placed at those levels. I am not sure why anyone would use a big figure as an options strike but this is often the case. A discussion of options and the impact on spot forex trading will be left to a future article. The point here is that options strikes are often set at big figures.
3) 10 Big Figure Ranges – Central bank and finance officials often talk in terms of 10 big figure ranges. This is especially true in USD/JPY and in the EUR/USD as well. These ranges usually start and end with a 0 or 5, such as USD/JPY 85-95, 90-100, 95-105. This may be a reason why pivotal big figures ending in 0 and 5 have taken on more significance over the years. In the years when central banks were more openly interventionist, the market assumed a defense of these ranges and often put this to a test. In the current market, the Swiss National Bank (SNB) openly defended EUR/CHF 1.50 (pivotal big figure) as the bottom of the range for many months. The SNB then abandoned a defense of this level and this saw EUR/CHF drop below it. The market is now focused on 1.45 (another pivotal big figure) as the next line of defense and the SNB appears to be currently defending 1.46 to prevent a run at 1.45.
4) Stops – Despite big figures being obvious targets for the market, there are still traders who place stops at or just above/below these levels. This is an invitation to getting stopped out of a position as these round numbers can be like waving a red flag at a charging bull. We refer to stops as JUBBS, which are stops at obvious levels. For a description of a JUBBS stop, visit the Global-View.com website and search under JUBBS. Sometimes the market feels compelled to test big figures, especially pivotal ones, to see if there are stops or bid/offers at these levels.
5) Congestion Around Pivotal Big Figures – Sometimes congestion around a pivotal big figure will take place as the market battles in a tug-of-war to establish on one side or the other. This often sees a narrowing range as the market trades on both sides of a pivotal big figure each day. Those on GVI Forex have seen me point out these patterns when a big figure, especially a pivotal one, prints each day. This offers a chance to trade on both sides as long as this pattern persists. However, the longer this pattern goes on, the more momentum is drained from the market and the greater the risk of a directional move once this pattern is broken.
To sum up, pivotal big figures can be a useful tool for forex trading. Pivotal big figures can be a good guide to the market bias and to potential targets. Central banks and financial officials often think in terms of round number ranges and this helps guide market expectations as well. The use of pivotal big figures can offer trading opportunities during periods of congestion and then signal directional moves when the pattern is broken. Whatever the case, it pays to be aware of pivotal big figures and the ways it can impact trading.
About The Author
John M. Bland has been involved in the forex market for more than 30 years . He is a co-founder of www.global-view.com,the leading forex discussion site and home of the original forex forums. Global-view is a place where forex traders come for currency trading, the latest rumor , breaking news and forex trading flows.
Article source: http://www.articlecity.com/
20 April 2009
Forex Currency Brokers and the Traders Who Love Them
The Role The Forex Market Plays in Regards to Currency Brokers
by: Andy Richards
Many have asked the common question of the role that the Forex market plays in terms of Currency Brokers. When one trades in the stock market, the market that is used will very depending on the country where your shares are based in. For example a company in the UK will most probably be found in the FTSE market. Now when looking at the market in terms of currency trading, everyone trades in the Forex market. The Forex market is the universal currency trading market that is used all over the world.
When you do decide to go ahead with Currency Brokers, you will most probably have a discussion session of the Forex market and how it works. All major currencies are traded on the Forex which Currency Brokers will highlight for you. The trading occurs for five days a week through out the entire day and night. Trading closes on the weekends as expected.
Now it was a common trend for many people to try their luck in Forex by trading themselves. This was fine when the market was fairly stable, however with the current economic downturn; this has led the market to become quite volatile. As a result it is important that you get an expert to deal with your currency trading which is a service provided by Currency Brokers.
To make the most of Currency Brokers in the current economical climate, it is very important that you take your time in finding one that has a proven track record. After all you want to give your money to invest to someone that you know has given results in the past. The last thing you want is giving your money to someone to invest that has around about the same experience as yourself.
Need help? Visit currency brokers comparisons, reviews and resources visit http://www.yourbrokerguide.com
About the Author
Hi my name is Andy, I hope to be able to contribute to this site through my posts and look forward to talking with you all. I am interested in a variety of things, such as investing, and stock market stuff, computers and internet, obviously, as well as sailing,water skiing, pretty much any types of water sports actually.
Article source: http://www.articlecity.com/
by: Andy Richards
Many have asked the common question of the role that the Forex market plays in terms of Currency Brokers. When one trades in the stock market, the market that is used will very depending on the country where your shares are based in. For example a company in the UK will most probably be found in the FTSE market. Now when looking at the market in terms of currency trading, everyone trades in the Forex market. The Forex market is the universal currency trading market that is used all over the world.
When you do decide to go ahead with Currency Brokers, you will most probably have a discussion session of the Forex market and how it works. All major currencies are traded on the Forex which Currency Brokers will highlight for you. The trading occurs for five days a week through out the entire day and night. Trading closes on the weekends as expected.
Now it was a common trend for many people to try their luck in Forex by trading themselves. This was fine when the market was fairly stable, however with the current economic downturn; this has led the market to become quite volatile. As a result it is important that you get an expert to deal with your currency trading which is a service provided by Currency Brokers.
To make the most of Currency Brokers in the current economical climate, it is very important that you take your time in finding one that has a proven track record. After all you want to give your money to invest to someone that you know has given results in the past. The last thing you want is giving your money to someone to invest that has around about the same experience as yourself.
Need help? Visit currency brokers comparisons, reviews and resources visit http://www.yourbrokerguide.com
About the Author
Hi my name is Andy, I hope to be able to contribute to this site through my posts and look forward to talking with you all. I am interested in a variety of things, such as investing, and stock market stuff, computers and internet, obviously, as well as sailing,water skiing, pretty much any types of water sports actually.
Article source: http://www.articlecity.com/
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