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Learn To Trade Forex With Smart Money Part 3

stersuhr — Sun, 27 Nov 2011 04:52:03 +0000

In this forex trading course series covering how Smart Money (SM) trades in the currency market we have covered quite a bit of information. If you haven’t yet read the first two articles in the series entitled Learning to Trade Forex With Smart Money I recommend you go back and do so now. The first two articles in the series covered the problem with most forex trading strategies, and the second article in the series covered the very basic foundation of how SM trades in and moves the currency market. We also learned the all important fact that consolidation is accumulation. Through the rest of this article we will cover and break down the 3 phases of the SM day trading forex strategy. Lets begin!

Accumulation Before The Trend

Plain and simple without accumulation SM cannot and does not take a position in the currency market. Therefore accumulation is the first phase of this forex trading strategy, and must be identified when looking for a setup. SM has no option but to enter the market through periods of accumulation which is often seen visually to you and I as sideways consolidation. Normally you will want to see at least an hour of sideways accumulation, with the market on average accumulating for a few hours before moving off into one of the next phases. This stage is absolutely critical to the trade setup. As discussed in the second article of the series, because of the sheer volume of currency SM moves they MUST enter their position over the course of time so as not to

Learn To Trade Forex With Smart Money Part 2

stersuhr — Fri, 25 Nov 2011 03:36:48 +0000

In the first article of the series entitled Learn To Trade Forex With Smart Money – Part 1 we talked about how the retail trading sector is setup keep traders losing. We also discussed how this benefits the forex broker, but have you ever considered who else might be benefiting from this business model? You’ll have to think bigger than yourself to answer this question, in fact you’ll need to think bigger than the retail forex market to properly answer the question. Not only do forex brokers benefit from retail forex traders but Smart Money in large part profits as well. How so? This is a question we will answer later in this article, before we get to that let me reiterate the purpose of this series of day trading articles. The first article should have served as a wake up call for all retail forex traders caught in a “cycle of losses”. It should also have clearly identified the problem forex trading strategies all losing traders tend to use. Within this second article we will discuss who is driving the moves in the forex market. Additionally we will cover the exact model those driving this market use! Think about that for a second. If you can identify when those actually driving this market are getting in then you can essentially take their same trades. The power behind that one fact alone is huge!

Who Really Drives The Forex Market?

In the last article we discussed Smart Money (SM) briefly. To reiterate, SM refers to those who are driving the forex market such as the banks, hedge funds, and/or large trading institutions. Its been said that no one can control the forex market. This is a thought that most new traders are taught in regards to forex. I’d like to present to you a different school of thought, and that is that EVERY move during active trading times is a calculated and manipulated move made by SM. First lets dispels the myth that this market cannot be controlled even by a central bank. For this we will use the recent example of the EUR/CHF. The Swiss National Bank (SNB) said they were going to not allow the EUR/CHF to

Learn To Trade Forex With Smart Money Part 1

stersuhr — Thu, 24 Nov 2011 05:55:51 +0000

I personally feel like you and I are a lot alike. You probably started in the forex market the same way I did, with the same dream of day trading forex a living and financial freedom. Heck, you and I probably bought some of the same trading products. Do you remember the feeling you had when you bought those first few products? I sure do! If I had to sum it up in one word for me it would have been hope! The hope of never having to work again, the hope of being financially free, the hope of money never being a worry! Unfortunately for me, and probably for most reading this, things didn’t quite pan out that way. Now I’m not going to sit here and harp on how bad the products in the forex market are, rather I’m simply going to get right into the problem and how to go about fixing it! I’d like to ask you right here and now to “suspend your disbelief”. What I mean by that, is to shut off the little part of your brain that always wants to raise doubt. If you can suspend your disbelief long enough to get though this series of articles I believe I can help you. Alright let’s get right into the core of the issue.

Suspend Your Disbelief

Everyday there is more crap thrown in everyone’s face. “Educators” wants to tell you trading forex is so

Channels, Triangles, And Trend Lines – Short Term Day Trading

stersuhr — Sat, 17 Sep 2011 03:54:08 +0000

Day trading channels, triangles, and trend lines has been around for a long time. These are standard chart patterns that many look for, and use in their day to day trading. As a forex trader we are always looking for an edge. Something to give us better entries, smaller stops, higher risk/reward, ect. That being said let’s re-examine these three forex chart patterns as they relate to the 1M chart. Now I don’t believe in forex scalping in the traditional sense of the word. Taking a few pips over and over is simply not a profitable long term forex trading strategy for retail forex traders. Having to deal with a 2-3 pip spread simply negates any thought you should have of this type of trading method. That being said we are looking for 1 to 1 risk/reward (R/R) at least. Doing so will ensure we do not set ourselves up for failure. That is also why I call these types of trades, “short term day trades” rather than forex scalping. Trend Lines – As stated above we are looking for trend lines on the 1M chart. Unlike traditional use of trend lines I’m only looking for the break of these trend lines, not a re-test and bounce off of them. In order to be properly formed I need to see 3 clear points touch the same trend line. Again the key here is that there are 3 obvious points at least, making a clear decisive trend line. Remember

Forex Day Trading Strategy – Day Trade Forex Volume

stersuhr — Wed, 10 Aug 2011 03:09:21 +0000

I’m excited to bring everyone our latest forex trading strategy! This day trading system is the culmination of a massive amount of effort. Over the last few months Chad (London Trader) and myself have spent a large amount of time forward testing in addition to back-testing this trading strategy in an effort to produce something a cut above the rest…a strategy that would have the ability to take on the toughest, most choppy price action the market could throw at it and still turn a profit. Little did we know that we would unveil this day trading strategy in just that type of marketplace! As of writing this ( Aug, 9th 2011) we are in the midst of some of the most volatile price movements ever seen in the currency market. In spite of that we have maintained a win ratio of over 70% during this time! Below is the day trading strategy that is responsible for those gains! First and foremost this day trading system is traded on the 5M chart. Because volume in the forex market does not all go through one central location we have to obtain the fairest representation of volume and we do this by using the volume from the largest retail forex broker which is FXCM. FXCM also handles a large amount of institutional clients thus giving us the fairest representation of overall volume possible. All that is needed is a demo chart of their MT4 platform. We do not recommend using them

Breakout Confirmation Entry – Day Trading System

stersuhr — Wed, 15 Jun 2011 00:51:20 +0000

As a general rule of thumb, I never chase a breakout. Over the years I have found chasing breakouts to be a trading strategy that is overall negative. When they workout it can lead to a lot of profit! However more often than not, all the smaller negative trades from chasing false breakouts end up eating up any profit from the few bigger winners you do have. Because breakouts can lead to large profits I didn’t want to avoid them all together. What I have done is come up with a forex trading strategy that allows you to catch breakouts, yet still filter out the majority of false breaks. I would highly recommend that you understand the standard Confirmation Entry – forex trading strategy before looking at the Breakout Confirmation Entry. This breakout strategy uses the same 3 candle formation as the normal entry, only the confirmation candle goes the opposite way…which is in the direction of the breakout. To begin lets walk through the chart above. In a normal Confirmation Entry, candle number one would be the reversal candle which is the first candle in the normal setup. The criteria for a reversal candle is that it touches either support or resistance and then closes above it in the case of support or below it in the case of resistance. As you can see candle number one meets that criteria. The reversal candle for the Breakout Confirmation Entry and standard Confirmation

Forex Exhaustion Reversal Setup – Day Trading Strategy

stersuhr — Sun, 12 Jun 2011 18:25:58 +0000

High Risk Reward Day Trading Strategy Before we get into todays forex lesson, we wanted to let you all know, we have changed the live trading room membership fee to to just $299 Per Year.Â We also offer a 14 Day Free Trial here for those interested in checking out our service. The trading room is doing well and we now have a large following of traders from all parts of the world. There are now 2 traders running the room. If your serious about learning to day trade forex, it’s worth checking out. As a day trader in the forex market you are always looking for high risk/reward (R/R) setups. However there is a balance between having a high R/R and your win loss ratio. As a general rule the higher the R/R for any given day trade setup, the lower the win/loss ration will be. The same is true for traders who seek a high win/loss ration, that is they usually have a lower R/R per trade. Finding a the correct balance between your R/R and win/loss will vary for each forex trading strategy, and/or your method of trading weather that be long term position trading or short term day trading. In this forex trading article we are going to cover a forex trading strategy that relies on a high risk/reward, yet still has a win/loss ratio of 60% or higher when traded correctly. To begin I call this forex trading strategy the “Exhaustion Reversal Setup”. Not only do I rely on the forex market to be offering a high risk/reward scenario, but also I look for a market that is running out of momentum. Later in this article I will discuss how I determine these overbought and oversold conditions which are critical to the Exhaustion Reversal Setup, but first we are going to cover what levels to look for. While there is no 100% mechanical method of determining which levels to take this trade setup off of, there are common sense clues we can look for. These clues in addition to practice trading this method will lead to the proper support and resistance levels being selected. How To Determine High Risk/Reward Setups The key when determining these high risk/reward setup levels can be summed up with one question. Does this level figuratively jump off the chat at you? Levels such as the previous days high and low, and other clearly identifiable overall highs and lows are the levels to look for. Additionally I prefer to trade off previous levels where the market bounced off of it quickly rather than a slow turn. For example if the market came into resistance and

Using Correlation To Day Trade The Forex Market

stersuhr — Sat, 07 May 2011 23:41:39 +0000

Whether you are trading equities, metals, of currency you need to be aware of correlations. Correlation is defined by one source as a, “mutualÂ relationÂ ofÂ twoÂ orÂ moreÂ things,Â parts,Â etc”. In the forex market we see this type of “mutual relation” between currency pairs on a daily basis. By effectively recognizing this correlation in the forex market you will be able to not only keep yourself out of more bad trades, but equally important get yourself into good trades you might have otherwise missed. Losses as a forex trader are unavoidable, however with a quality price action based forex trading strategy, in combination with the correlation found in the forex market, you can be overall profitable. In the forex education article we will discuss how to use correlation to improve your existing forex trading strategies performance. First and foremost is your chart setup. One person can only effectively trade a few pairs. If you were to try and look at 20 different currency pairs you no doubt will miss many good day trading opportunities due to a excess of pairs you are trying to manage and trade off. Because of this I watch 6 major currency pairs that drive the majority of volume in the forex market. These currency pairs are the GBP/USD, EUR/USD, USD/CHF, GBP/JPY, EUR/JPY, and the USD/JPY. In total I watch 6 currency pairs. I have my charts setup with all 6 pairs viewable at the same time, as you can see in the chart above (click on the chart above to

Managing Your Forex Trades – Trailing Stop Losses To Maxamize Profits

stersuhr — Mon, 11 Apr 2011 22:37:03 +0000

It’s been said that anyone can pick an entry, but knowing when to exit is what separates those who are consistently profitable from those who are not. Anyone that day trades in the Fx market knows this all to well. When you choose to exit a trade can turn a bad trade into a good one, or a good short term trade into a losing one. Not only are exits critical to maximizing profits, but equally important is the ability to know when to exit a loser. Within this forex education article we will discuss how to trail your stop loss on an already profitable day trade, and initial stop loss placement. Every forex trading strategy that I put into use relies on support and resistance in some way, shape, or form. It should then come as no surprise that all my exit strategies for short term forex trading rely on support and resistance. When you think about support and resistance in the forex market, no doubt you think of a trading strategy that has been around since the dawn of the marketplace, and for good reason! Support and resistance is the ONLY proven “indicator” in this or any other market. When the market turns off a level and runs the other way you now know 100% that that level has a serious supply of either buyers or sellers. No other indicator in this market can identify potential areas of buyers and sellers like already proven support and

Forex Trading Strategy – Day Trading Confirmation Entry

stersuhr — Mon, 28 Mar 2011 19:59:32 +0000

Forex Day Trading Strategies – Confirmation Entry

In a relatively short period of time most traders new to the forex market will gain the ability to know which direction the market should move overall, but as a forex day trader it takes more than that to be aÂ profitable trader. Trading short term not only involves understanding which direction the market is going to go, but more importantlyÂ WHENÂ it will go inÂ that direction. Timing, beyond a shadow of a doubt is more important to short term forex day traders than overall direction! So how do you select precise entries. In this article we are going to cover one of my favorite forex trading strategies which I call the confirming pullback setup. If you have been through my other forex trading strategies on the site you will begin to notice a common thread between all of them and that is support and resistance. Support and resistance play a key part in all forex trading strategies that I use, and the confirming pullback setupÂ is no different. Having said that we start looking for confirmation entries by identifying all S/R in the area of the current price. After that it is really a simple 3Â candle setup. 1.) Reversal Candle - Once the market has reached a level you have identified you then wait to see if the market is going hold on that level. You never know where the market is going to stop and therefore we wait for the candle that

The Art of Forex Day Trading

stersuhr — Wed, 14 Jul 2010 13:36:10 +0000

The art of day trading forex is similar to that of any battle. Sun Tzu in “The Art of War” said, “Military tactics are like unto water; for water in its natural course runs away from high places and hastens downwards… Water shapes its course according to the nature of the ground over which it flows; the soldier works out his victory in relation to the foe whom he is facing. Therefore, just as water retains no constant shape, so in warfare there are no constant conditions.” So is true of forex day trading and the forex market itself. By understand how the forex market moves, you will thus understand the art of forex day trading. Similar to water, the forex market takes that path of least resistance, flowing if you will from one area of support to another area of resistance. When one force overpowers the other (buyers out number the sellers, or vise versa) the market shift direction, and flows until the same happens at a different price level. Understanding basic support and resistance (S/R) is vital to your forex day trading success or failure. By knowing where the price is likely to stop this will enable you to more proficiently place stop losses, take profits, and form entry strategies. Not knowing and understanding how the market moves is like going into battle without knowing your enemy. You see the forexmarket is like any other foe, it repeats itself in patterns over and over, and thus allows you the

How I Day Trade Forex Successfully

stersuhr — Sat, 10 Jul 2010 08:36:05 +0000

When I first wrote the title to this article it took me a few days to actually think about the content that I was going to put into it. You see trading forex, and especially being a short term day trader in the forex market is tough! While I could have just filled this with simple tips and tricks found within most similarly titled articles, I really wanted to make this of value and make it personal to what has really guided me to becoming a profitable day trader. I emplore you to read it, meditate on it, and apply it to your personal trading. We will not discuss specific strategies in this article, rather the gems most others don’t talk about. With that being said, let’s get right into the 3 most important points to becoming a successful forex day trader. Above all else you have to be determined. Very simply put you will not just learn a forex trading strategy and then in a short amount of time become a successful day trader. This is without a doubt the toughest market to trade because it is so intercorrelated, additionally it also presents the possibility for the greatest gains in my opinion. Every single pair effects the other, and therefore there will always be external forces you do not see pulling on the currency pair that you are trading. Having said that, you have to know and believe with everything, that it is possible to become profitable in

Learn to Day Trade Forex – Live Forex Education

stersuhr — Tue, 25 May 2010 18:04:17 +0000

Learning to Day Trade – Live Forex Day Trading Education When first learning to day trade the forex market no doubt you were full of hopes and dreams. With all the catchy advertising and promises of riches who wouldn’t aspire to greatness. You make your first few forex trades and your up a few hundred maybe even a thousand or more. Then what happens? The beginners luck wears off in a quick hurry, and reality comes flying in like a ton of brinks. Elation, hope, joy, and your dreams alike come crashing down. Its at this point and this point only that you realize you need some form of forexÂ education, some form of edge to make you profitable over the long haul. You can sift through hundreds, or possibly even more forex specific web pages promising the world. They play on the human psychology and the constant want for more. While not wrong in and of itself, what they have to offer, as you very well know if you have been around the forex market for any length of time is far from what they make themselves, there education, or their product out to be. So how do you cut through the crap? You’ve wanted to become a profitable forex day trader but just cant seem to find a real education, service, or mentor. Take a look at our live forex day trading room. Is a live forex day trading room for you? Well first ask yourself a few questions. Do you think that seeing the education done live in front of your own eyes would be more beneficial that simply reading it from an E-book, or viewing videos of past trades? Do you think that being able to ask someone who has been in your shoes questions, in-real time live market situations could serve to further your trading career? Are you tired of buying products of every sort without seeing its value first? I’m sure there is one person after another reading this article that can completely agree with the words spoken above. Its not because I’m some savvy marketer, or just simply saying what I think people want to hear, its because I’ve been in your shoes. I at one time was searching as well! Over the years I spent literally thousands on products promising the world and delivering nothing. After a few years of this I finally put together what I believe is the best of my own personal forex tradingÂ strategies as well as things I have picked up along the way. If you have an interest in learning forex in a real time environment, seeing live charts, in depth explanations of a full time forex day traders personal live trade entries, the ability to follow along with those entries if you so choose, and the opportunity to test drive such a service forÂ 10 days,Â than you have come to the right place! I look forward to seeing you in our live forex day trading room!

Day Trading Stop Run Reversals in Forex

stersuhr — Fri, 19 Mar 2010 13:02:53 +0000

Day Trading Stop Run Reversals Have you ever felt like your entering the market at exactly the wrong time? You see a great trade setting up and enter, only to see the price almost instantly reverse, stop you out, and then run in the direction of your original trade. If that sounds familiar than you have been the victim of what I call a day trading stop run reversal. Market makers, banks, and institutions do not intentionally move the price in this fashion to hurt retail forexÂ traders, they do so to profit from them. Retail forex traders do not create the moves we simply ride them. Knowing this, if we can recognize frequently recurring chart patterns such as stop run reversals, then we can effectively learn to day trade these reversal patterns. Let examine this pattern more in depth and explain the process, order flows, and supply/demand surrounding these trade setups. Stop hunting is something well known in the forex market, but the reasons behind “stop hunting” are not as well know. So what is the real reason behind these moves just beyond a major area of support/resistance and then a complete rejection? Quite simply put, large banks and financial institutions have to move huge sums of money and want the best price possible. If they want to go short the GBP/USD for example, they will run the price up past the previous high by a few pips or more and trigger the stop losses they

A Successful Traders Mindset, Day Trading With An Edge

stersuhr — Tue, 09 Mar 2010 11:03:11 +0000

A Successful Traders Mindset – Day Trading With An Edge Its been said that a trade is won or lost before you even enter the market. While this fact is true if you simply place the trade and walk away, what about the times we actively manage our day trade positions. Managing forex trades brings into play human emotions, which is why we must have a successful traders mindset which will allow us to day trade the forex market with an edge! Here we will outline 3 effective rules to manage and even eliminate some of the psychological pitfalls that often lead to mismanaging trades or entering poor trade setups. 1.) Know Your Reasons For Entering A Trade – Indecision is one of the biggest killers of what would have been a successful trade. Knowing exactly what you are looking for to trigger an entry signal is key. Plan your exit strategy for when the trade goes in your direction and an exit strategy should the trade move against you. This will ensure that you dont get shaken out of a solid position. Additionally and along the same lines, many traders new to the forex market often start out with a strategy but quickly change from one to another based solely on a few losing trades. A successful traders mindset tells you that you have to look at this decisively as well. If your forex trading strategy is fundamentally sound, why not try adjusting small portions to a trading system first? When you make the jump from one

How to Trade Forex with Trend lines – 5 Golden Rules

stersuhr — Wed, 03 Mar 2010 06:44:37 +0000

Day Trading Trend Lines – 5 Trend Line Trading Rules To day trade trend lines profitably I follow a few simple rules. While there are many rules out there, these are but a few that should make any trend line forexÂ trading strategy more robust when applied properly and accompanied by sound money management. 1.) Only trade the 3-5th bounce of a given trend line, before bounce #3 the trend line is not established, and after bounce number #5 off a trend line the momentum in the market usually begins to die. The main point here is no direction in this market is sustainable forever, and while you may be able to profitably take a day trade off bounce #6 and beyond, your odds of success decrease dramatically. 2.) Trade trend lines that are “gently sloping”. If the trend line is near 45 degrees, the odds of it holding are less than a trend line of only 20 degrees. Rarely does the market continue in one direction without letup at a steep angle. When there is a steep drop or rise in price the market very often quickly reverses thus voiding any steep trend line and therefore should be avoided. The fact is it takes extreme buying or selling pressure to cause the market to enter a steep move, and steep trend lines even for a central bank are unsustainable for extended periods of time. 3.) Have an entry plan

Forex Entry Signals For Day Trading – When To Enter

stersuhr — Wed, 03 Mar 2010 06:35:49 +0000

Forex Entry Signals – When To Enter Above all other forex trading strategies, when day trading in the forex market you must have precise entries! With longer time frame forms of trading such as swing trading as well as position trading, entries are not as crucial as the overall direction is. Quite to the contrary day trading, because of the use of tight stop losses does require precise entries. Lets examine two simple techniques that can be used to not only provide quality entries but also tight stop losses and then we will tie both techniques together. The first entry signal that we will discuss is the simple break of a candles high or low, lets explain. As the market continues to move in the direction of the short term trend, almost always there are brief retracements seen on smaller time frames such as 5M charts. These retracements can be 2,3,4, or more candles that are in the direction opposite to the trend. In the case of an uptrend the retracement will be marked by candles that continue to make lower lows as well as lower highs. This is something that is very easy to see in a trending market. In this example as the market retraces down you could enter on a break of the previous candles high. Not only does this provide an entry but also by putting the stop below the low of the previous candle (setup candle) it also provides a stop loss location. Now this is the first step to an entry but to give yourself better odds of a profitable scalping setup lets examine the use of candles in conjunction with this. Candles are a widely used tool in the forex market, and can be used in day trading strategies to give precise entry signals. Above we talked about the market once it has established a trend and is now retracing against that trend. Using the same example of an uptrend that we used above lets now combine that with the use of a reversal candle. Assuming the market is retracing down each candle also making a lower low and lower high, and then a “hammer”candle forms. If the next candle breaks the previous candles high (the hammer candle) you would go long. Now not only do we have the previous candles high being broken, we also have the previous candle forming a “reversal candle formation”. Now these are just two examples of triggering an entry and how to combine them. There are any number of combinations that you can use to trigger entries and when you combine them the trade setups becomes more powerful. Try using the examples above but this time make sure the “setup” candle closes at support/resistance depending on the direction of your trade. This adds yet another confirmation that the trend is going to continue and thus increases your odds for success. Below is a chart with 4 setups, the red arrow pointing to the setup candles and the blue arrows pointing to the candle that triggered the entry by breaking the setup candles high/low depending on the intra-day trend direction. You will see that all 4 setups are in the direction of the short term trend and thus present great day trading opportunities. Use the steps below to examine the chart and the entries. 4 Steps To Entry: 1.) Find the overall short term trend direction using whatever method you normally use. 2.) Look for a retracement against the trend into an area of support or resistance depending on the overall direction. 3.) The candle that touches that area of support or resistance should be a reversal candle such as a shooting star, Hammer, or Doji. 4.) Depending on the direction of the trend buy/sell when the candles low/high is broken by 2 or 3 pips. 14 Day Trial Of Our Live Forex Room – Access Here

Money Management A Day Traders Key to Success

stersuhr — Wed, 03 Mar 2010 06:26:58 +0000

Money Management – A Day Traders Key To Success No matter how successful a forex day trading strategy may be, you must practice sound money management to day trade the forex market profitably and more importantly to be around for the “long haul”! Anyone or any system can have a string of winners. A time when you the trader feel invincible, you might even feel like all your forex woes have been solved! But then what happens? Inevitable you experience a string of losing trades as any system does. You see, even with a winning percentage of 75% you can still mathematically have 10 losers or more in a row. When you flip a coin the previous flip does not have a bearing on the next, neither do previous trades out comes dictate the odds on the next trade, it is in fact completely separate from all previous trades. Knowing this you have to prepare for the worst, you have to be around long enough to realize your dreams of making a living in the forex market and the key to that is proper money management. So lets discuss proper money management as it applies to day trading forex. Without a doubt the first step is selecting a standard risk management per trade the fits you and your trading style. Most pro forex traders recommend risking no more than 2% of your entire account on any one given trade setup. So if you have a 10K account you would risk no more than $200 on any one trade. If you are entering a trade and need a 20 pip stop you can safely use 1 standard lot (20 pips X $10 per pip = $200). If you are using a 40 pip stop the lot size would be cut in half to 5 mini lots and you would still be risking 2% (40 pips X $5 per pip = $200). Lets examine now the psychological effect of trading and how proper money management plays a role in your trading decisions. Using a safe risk per trade such as 2% allows you to be emotionally detached from any one given trade, thus allowing you to make clear decisions on your entries and exits which increases your odds of making a successful trade and managing it properly. It also allows you to work through the draw downs with the confidence to stick to the rules of your forex trading strategy and know that the proper money management will pull you out and allow the profitable system to get back to overall profit. Every trader goes through trades where they over leverage only to see the trade head against them. What does that feel like? Palms are sweating, your heart is racing, and god forbid you try to sleep! When you enter the trade knowing the worst thing that can happen is you lose 2% of your account, you quite simply will not have those troubles. Your head will be clear to examine the market for an entry signal, and equally important you will be able to manage a running trade without the emotions of fear and greed pumping vigorously through your veins. You see money management not only protects you from huge losses, it enables you to make logical trading decisions based on facts not fear and thus increases profitability. Above all the main goal of most everyone who begins to trade in the forex market is to make this a full time career. Still there are some that simply want to supplement their income. No matter what category you fall into, you no doubt want long term success, not simply a lucky month or two. You can however enter trades with high risk and think of this market as a casino but I can assure you this method will lead to the fast demise of your account. You will be able to day trade and scalp the forex market for years to come, so why rush it with unnecessary risk when you can gain slowly overtime and actually give yourself a chance for success? Patience will allow you to apply the proper money management and will propel you toward steady success in the long run! If you would like to learn more about proper risk management as well as money management you are welcome to take your 14 day trial to our forex day trading room. See you there, until then happy trading!

1 2 3 Day Trading Forex Reversal Strategy

stersuhr — Fri, 19 Feb 2010 18:13:52 +0000

Day Trading Reversal Strategy During the course of any day you will often find many trends within the overall trend. To effectively day trade and thus take advantage of these moves within the large trend, you need to be able to quickly identify changes in short term direction. While you can use many methodsÂ to day tradeÂ these changes in trend, the “1,2,3″Â reversal strategyÂ recognises and provides an entry signal with precision that is rarely matched. A standard rule of thumb for a downtrend is lower lows and also lower highs, and the inverse for an uptrend. The 1,2,3 reversalÂ strategy will allow you to automatically see this breakdown in direction and thus show you the trend is over for the moment and a potential trendÂ reversal is on the way. In addition to that it can be used for an even safer trade signal entry’s, that is, trades in the direction of the overall trend. So what is the 1,2,3 reversal strategy? First determine what you are looking for, the overall trend to continue, or the overall trend to stall and retrace. As an example lets use a overall down trend,Â then the market is retraces against the overall trend. To determine when the overall trend is going to continue you would wait for the market to start back down again and this would be #1. After that the market tries to continue the overall trend, it stalls and fakes up again, but sets a lower high,Â this is #2. Finally

Live Trade – Trend Continuation with Candlestick Reversal

stersuhr — Sat, 13 Feb 2010 14:43:29 +0000

Here we have a 5M chart of the GBP/USD. During the day before the current screen shot the Pound increased its gains on the dollar and then after a last high momentum run up was turned around and continued to channel down going into the days London session. As I have talked about in previous articles the forex market is comprised of humans that drive price. Being the large run up in price the previous day no doubt many were taking some profit if not all, as well as some speculating short on the GBP/USD. In terms of supply and demand, the supply outweighted the demand and thus a retracement against the bigger and stronger upmove. However at point #1 there is a clear double bottom formation before our trading session starts, somewhere around 10PM EST.

GBP/USD

This double bottom signaled a possable end to the retracement against the stronger underlying uptrend, but we still needed more confirmation to signal a trade. At point number 2, you have a arrow pointing to a reversal candle formation also known as a hammer formation. The psychology behind this candle is quite simple. The bears tried to make one push down and couldn’t find any sellers and thus the price was rejected and a reversal candle formed. At that point the market now made a higher low, another confirmation point that is added to the candle formation, as well as the previous double bottom. At

Forex Chart Patterns – Scalping Setups

stersuhr — Tue, 19 Jan 2010 14:06:03 +0000

Chart Patterns -Powerful Scalping Setups Every market is made up of humans, including the forex market. This fact is often forgotten by many. For every price movement there is a person or group of people that created the move. When you think about this you can gather facts that can be used to trade price action profitably. Noting this fact when you see short term price patterns, this is not only seen by you but by others as well. These traders just like you recognize certain well established scalping setups and time tested chart patterns and thus these patterns become self fulfilling prophecies, and create reliable moves in the forexÂ market. Often chart patterns are simply dismissed as to simple to be profitable and thereforeÂ are often overlooked. Many people feel that something so simple canâ€™t be profitable, canâ€™t be reliable, but with practice these patterns can be all you need. First letâ€™s examine some short term chart patterns that can be used to day trade in the forex market. One notable setup is that of triangle chartÂ patterns. There are three main triangles ranging from ascending triangles, to descending triangles, as well as symmetrical triangles. A descending triangle is formed when the price makes a low and continues to make lower highs while maintaining the same low. As the price continues to “pinch’ towards the low it signals that soon, the price more often than not will break that low and continue down in the direction of the first move, the opposite being true for ascending triangles. Symmetrical triangles are similar in that the price continues to have a smaller range but unlike descending and ascending, symmetrical triangles make lower highs AND higher lows in a symmetrical fashion. Triangles in any form are important signals that a move in the market is on the way and often tell the direction of the move with high probability. If nothing else, they simply signal that the price is going to break one direction soon and can still be used as a break out type setup.

Another important and profitable forexÂ chart pattern is that of double tops and double bottoms (DT/DB). Letâ€™s go back to the fact that the forex market is made up of humans placing orders and thus moving the price around. How does this apply to DT and DB’s? Letâ€™s examine that a little further. When the market hits a price and turns around at an area of support or resistance and then makes it back to that area this is seen by all. Human psychology dictates that once the price hits or gets in that area again its will be viewed as a turning point and therefore, once again, the price turns more often than not. Often times in our live trading room support and resistance is at the heart of every live trades entry as well as exit.

An importantÂ key factor to these charts patterns is the timeframe they are seen and used on. As with any other setup in the forex market, chart patterns on smaller timeframes such as five minute charts are not respected as much as those on hourly, 4 hour, and or daily charts. Although smaller timeframe chart patterns are not respected as frequently they can still be used successfully. Often times they are used to signal that the price is going to move and used to signal a breakout rather than direction, which is still a valuable tool. Without a doubt almost every night in the live trading room we place a trade in part or in whole based on short term price setups. Although I donâ€™t recommend using strictly a triangle formation or a DT/DB to trigger a trade, if used in combination with each other and another entry/exit strategy they are extremely reliable.

If youâ€™ve tired of the other 99% of all other forex tradingÂ systems that use complicated indicator setups or other sources for market direction and trade entries that just donâ€™t work, and want to understand basics, then price action based chart patterns are for you. Without a doubt chart patterns are king when it comes to scalping and trading short term price action in the forex market. If you have an interest in day trading or swing trading chart patterns come check out what we do in theÂ live forex room with our 14 day trial.

Trading Forex Naked Why Indicators Will Fail You

stersuhr — Wed, 20 Jan 2010 00:01:50 +0000

Trading Forex Naked - Why Indicators Will Fail You Its no secret that 95% of all new forex traders will inevitable fail and leave this market after losing some or all their money. What knowledge can we gain from this well know fact? Lets examine what the common denominator is between those who fail to better use this statistic of the forex market. When entering this market most traders search for a forex trading system, do they not? You yourself may have searched for hours for the promise of forex riches. After many hours of searching maybe even days, you stumble on to the best system, with the newest proprietary indicators that promises riches. You then buy the product. Did it live up to the hype, have they fulfilled any of the advertised promises? Of course not or you wouldnâ€™t still be searching! The process is then repeated over and over until you either become so fed up with scams you quit or you lose all your money because of these so called magic proprietary indicators or software. So here are the facts we have up to now, 95% or more fail in this market, and most new traders use and buy systems containing the “magic” combination of indicators or software. Do you see the connection between systems based on indicators and software and the alarming failure rate of new forex traders? Now Im not saying all indicators and all forex software is bad and produces negative results, but they have

Forex News Sentiment – Pre News Trading

stersuhr — Tue, 19 Jan 2010 13:57:02 +0000

Forex News Sentiment – Pre News Trading The forex market as well as other marketsÂ are allÂ futures driven markets. What is meant by a futures market? In short, traders are always looking to determine where the price is going to be in the future, or in this case what the value of a certain countries currency is going to be in the future. This is the principal behind pre news forexÂ trading strategies,Â using sentiment. Every week and in fact most every day there is some high impact news being release for at least one country. These news releases can determine the direction of a certain currency pair for a few hours to a few days or longer. In addition to this and more specific to sentiment trading is the pre release market move created by the economic data, thus sentiment trading is born. Letâ€™s use an example to better define and therefore illustrate sentiment trading economic news releases. As an example letâ€™s say there is going to be an interest rate decision out of the Bank of England. Coming into this rate decision there have been many positive news releases out of Great Brittan. In addition to this there have been economic articles reporting pressure to raise rates on the bank of England. Reflecting on these thoughts and the fact that there is really no possibility for a rate cut, more often than not you will see the GBP/USD climb in anticipation of the pending rate decision. Itâ€™s really as simple as asking yourself one question before some form of economic data is released, â€œIf I had to be in the market at the time of this news, what position would I want to be in.â€ If there is a strong case for one direction that is clearly evident you will often see the price move that way BEFORE the economic data is released. Remember what was mentioned in the first paragraph, this is a futures market and the market will try to â€œprice inâ€ or predict the direction before the actually have the data. This is just one specific example and the principal behind this example can be used successfully with any high impact news release and with any currency pair. As you probably gathered from the example just mentioned there is a certain amount of research that is required to trade news sentiment in the forex market. Fortunately every news trade is scheduled weeks in advance which allows time to research a current countries economic condition as well as what economists are expecting. This is quite simply a tool in the tool chest. When we combine sentiment, support and resistance, exponential moving averages, chart patterns in our live trading room the pieces start to fall together. No one system is an end all that will work for years to come, and if you have been successful in this market for any length of time you know that. For this reason we strive to stay ahead of the market and use our many “tools” to remain profitable in ANY market condition. Come learn some new techniques such as sentiment trading that you can use to day trade and swing trade in the forex. Although many of our strategies are designed for short term trading in the forex market as just mentioned, they can be used across a broad range of timeframes, even for position trading as well as other markets from stocks to metals and everything in between.

Exponential Moving Averages – The Only Profitable Forex Indicator

stersuhr — Tue, 19 Jan 2010 13:54:28 +0000

Exponential Moving Averages – The Only Profitable ForexÂ Indicator Over the years I have tried every form of forexÂ indicators, every system, every gimmick and found the same results….negative ones. That is until I discovered the use of exponential moving averages (EMA’s) in the forex market. Itâ€™s no surprise the use of EMA’s fits so well in price action based day trading. EMA’s are simply a “smoothed” representation of the raw price action. Unlike the standard simple moving averages often used, exponential moving averages apply more weight to the latest or most recent price movement. What does that mean? If you are using a 10 day simple moving average the moving average is the closing price each period, added together, and in this case divided by 10. With an exponential moving average more weight is applied to the more recent days. In any case, and whatever moving average you are using how can you take advantage of them? Well in short, here are some solid principals to use with moving averages. Many make the mistake of using a simple moving average cross to signal entries and exits, and often times find the same results as they do with any other indicator, often times buying tops and selling bottoms and so avoiding the use of them in this fashion would be a wise choice. However moving averages in the forex market can often times be used as “floating” support and resistance for trades your are currently managing. Over years of trading you will find different moving averages hold more weight than others and knowing what EMA’s to use and the time frame to use them on is key. In our live trading room we implore 3 EMA’s in combination with our price action basedÂ forex day tradingÂ strategies. You will find if using the proper moving average that the price will frequently, during the course of a trend, retrace back and move away from a given moving average when used properly. Knowing this is very important, and can be used in combination with support and resistance as entry areas on retracement. As mentioned before each moving average has its place and some are more effective on different time frames, as well as some being more important and respected more frequently on different pairs. The key to exponential moving averages and the way they are used inÂ our live forexÂ trading room more often than not is for trade management. In our live trading room we teach how to profitably trade using moving averages as discussed above. Not only do we implement them in short term trading but also teach how to use them during news releases, as well as using them to place and manage swing trades. If you are interested in learning more about trading with moving averages as well as our other numerous day trading strategies we offer a 14 day trial to our live forex trading room. See you there, until then happy trading!

Reversal Times – Applied To Forex

stersuhr — Tue, 19 Jan 2010 23:52:01 +0000

Reversal Times – Applied To Forex Often times we forget that the forex market is made up of people; humans who one and all have some measure of fear, greed, fatigue, hunger, as well as many other psychological and physical factors. Applying this to your current trading method is something that can give you an edge. Price reversal times applied to the forex market is a new theory for many, so let’s take a moment to examine it deeper and the psychology and emotions that cause it. First let examine some human emotions and how they play a part in the forex market. To start let’s discuss fear. All traders, no matter how long you have traded in the forex market have some measure of fear, and fear it its proper place is healthy. Often times this is seen when the market starts to fall rapidly and the acceleration down is dramatic. The fear of the market continuing to fall is a self fulfilling prophecy and only leads to further downside. Also there is a fear of giving back floating profits. In combination with fear there is greed. All traders want to lock in profits, but also want to maximize the potential of the trade. Driving stop and take profit locations can often be negatively be affected by this Other factors that affect every trader are physical factors such as fatigue and hunger. Let me ask you this, how often do you not each lunch? Do you think traders

Day Trading Forex Economic News Events

stersuhr — Thu, 14 Jan 2010 16:32:52 +0000

Trading Major News Events Join Me In The Room Live Forex Day Trading Room! Every month there are upwards of 500 Economic news releases coming out of a variety of countries. However only a select few are worth watching and trading, because only a select few move the forex market with any consistency. In addition to that knowing how to interpret the numbers is a skill that on your own takes years to master. Through years of watching other pro forex traders, and developing my own forex tradingÂ strategies, I now watch and trade the major news events in a live forex tradingÂ room where I call live trades. Trading majorÂ economicÂ news events in the forex market can be one of the most profitable forms of dayÂ trading. In addition to that, it only takes a very small amount of time. TheÂ price can move over 100 pips in seconds! Many forexÂ traders simply stay away from the economicÂ news releases because of this increase in volatility, and without a forexÂ education in trading major news releases I would recommend doing the same! But, with the proper day tradingÂ education, trading the news can be very profitable. In addition to that you gain aÂ more indepthÂ understanding of eachÂ countries current economic condition. Well how does it work you might ask? For every economicÂ news release, also known as an economic indicator there is an expectation or prediction of the number. When the actual number deviates or is different from expectations the price moves rapidly

Short Term Forex vs. Long Term Forex Trading

stersuhr — Fri, 15 Jan 2010 02:29:10 +0000

Short Term vs. Long Term Trading The Differences In short, forexÂ traders as a whole can be categorized into 2 distinct groups, short term traders and long term traders. When selecting the style of trading that best fits you, knowing the differences between the two is beneficial. Knowing the positive aspects and conversely the negative to a trading style is very important as well. To start we will examine the positive aspects of short term trading. The first and most evident draw to short term strategies is the fast passed action. Day trading or scalping the forex market can be a very exciting career once you become profitable. The allure of fast quick money is something that draws most new comers to the market, and thus to some form ofÂ forexÂ scalping strategy. Now that allure of quick money is not just a dream but in fact once you are proficient at scalping, becomes a reality. Another advantage to trading short term is the lack of exposure you have to the market. Often positions are only open while you are in front of the screen and closed when you leave or turn the computer off. Having zeroÂ riskÂ when you walk away from the computer is something many traders value. Now letâ€™s examine some negatives. Most notably is the high stress environment of trading short term. Often most traders new to the forex market think they can jump in head first. Without a proper forex tradingÂ education most new short

Scalping Forex Markets â€“ What itâ€™s All About?

stersuhr — Thu, 14 Jan 2010 16:26:39 +0000

Scalping Forex Markets â€“ What itâ€™s All About? Through the years the portrayal of a short term trader, weather in the movies, the news, or other ways, has always been that of a glamorized lifestyle. One filled with excesses in every form of oneâ€™s life, and for those that have perfected scalping the forex market this might hold a ring of truth. But what is involved in this form of trading, and what is it all about? Though there are many forms of forexÂ trading methods, one that seems to bring the most appeal and attention is scalping. As brought out in the first paragraph, this type of trading has a lifestyle and prestige attached to it that simply isnâ€™t connected to other forms of trading. Itâ€™s a fast passed, high stress, and if mastered, highly lucrative career. So is scalping the forex market exactly what its portrayed to be, whatâ€™s it all about? The easiest way to define scalping is to examine the standard goal and/or objective of a scalper. Most that implore this method are looking for small movements in the markets price, and most often take repeated small winners that add up to a large sum. In addition to that, losses are always very small to allow for taking smaller profits as well. Positions are held from a few seconds to upwards of a few hours at the most. Unlike other forms of trading, when you scalp, you are not looking for a large trend to ride,

Day Trading Risk Management

stersuhr — Fri, 15 Jan 2010 02:18:33 +0000

Day Trading Risk Management Risk vs. Reward Over the years I have seen traders come and go, traders ranging from those just learning the forex market to those that have been in the market for years. The common denominator or factor that lead up to their demise was risk management. You can have a very profitable forex tradingÂ strategy or system, yet without the proper risk management and the discipline to follow it, eventually it will be what turns what should be a good trader or strategy into one that loses. To start letâ€™s examine proper risk management. Even with the best forex tradingÂ strategy you will at times have losing trades, losing weeks, and sometimes even losing months. So given this inevitable fact how do you manage these losses and the risk properly. Itâ€™s really quite a simple answerâ€¦only risk 2% of your account at the most for any one trade. That means if you have a $1000 account only risk $20 per trade at most. This may seem small but examine your goals as a trader. Are you in this market to make a career out of it or are you simple here to strike it rich? If you choose the latter your stay in this market will be short lived! If you are in the forexÂ market to eventually make a living from it then you have to be smart and think long term. Small and steady is the only way to successfully dayÂ trade the forex market.

Day Trading Forex â€“ Keeping it Simple

stersuhr — Fri, 15 Jan 2010 02:16:53 +0000

Day Trading Forex â€“ Keeping it Simpleâ€¦ MACD crosses, Stochastics, RSI, ADX, Bollinger Bands, and the indicator list goes on and on, and the combinations of indicators in the composition of a forex trading strategy are endless. With a seemingly endless amount of possible strategies and indicators to follow how can you day trade the forex marketâ€¦.simply? Day trading the forex market is in itself a simple idea. The goal is to enter the market in a time of high volatility, and exit the market quickly with a small profit. The process is then repeated many time threw out a trading session and what was one small profit becomes in theory a large overall gain upon the close of the day. So what are some simple ideas to keeping your forex scalping or day trading strategyâ€™s simple. We are going to examine three crucial, yet often overlooked, and more importantly simple day drading tips that will keep things SIMPLE. Never trade more than four pairs. Every pair, like every human has its own personality. It is crucial when day trading the fast passed forex market to know each pair you trade intimately. In addition to that it is impossible to focus on more than four pairs at the same time in this fast passed environment. Only trade during times the market moves. The forex market moves 24 hours a day five and a half days a week. How do you know which time to