Day Trading Forex Live

Breakout Trend Continuation on the GBP/USD 11/08/2010

stersuhr — Wed, 11 Aug 2010 20:59:54 +0000

As I was explaining in the live forex room today we have seen some tough trading for this entire week if you are a short term forex trader. When you open up your trading platform and see a huge move in currencies before you got there it makes for tough trading, and here is why. As a short term trader you must use tight stops to keep a good risk/reward ratio. So as you examine a market that is near or past it’s trading range the possibility of a retracement is strong thus making a continuation trade risky, and additionally taking a retracement trade presents risks due to the fact that the general momentum is down and thus against you. Again as a short term trader with very tight stops entries are everything and without much room for error you have to be careful on days where you come in after a large move. Now on to today’s forex trades. Today we took 3 trades. The first 2 forex trades ended up break even over all, one positive and one negative. On the third short term trade we closed out with a nice +25 pip profit or +2.5%. The red candle with the black line through it represents the area we got in as well as the candle we entered on as well. The reason I entered on this trade is because of the closing price of the previous candles. The red line represents the low of the candles and thus the support

Breakout Continuation Trade on the EUR/JPY 26/07/2010

admin — Wed, 28 Jul 2010 03:01:30 +0000

Here is a great example of the breakout continuation trade on the EUR/JPY. This type of forex day trading setup is a great way to trade breakouts without having to chase the initial breakout. When entering on the initial breakout, often times these are simply fake moves that lead to a complete reversal in the market. This forex trading strategy relies on the market proving that it is holding the breakout BEFORE you choose to enter! By letting the market prove that it is holding the breakout before entering the trade you increase your odds for success greatly. On the trade below we have a great example of the breakout continuation forex trade. The market breaks below the previous major intra-day swing low, and closes below it. On the following candle (#1 blue arrow) the market comes back up and tests the level of breakout. On the following candle (#2 red arrow) the market bounces off that level of breakout proving that it is holding and additionally closes as a bearish engulfing candle. On the next candle we were looking for the market to test the resistance area again which it did, thus giving us a great entry with a great risk/reward trade setup to go short on the breakout continuation setup.

The Power of Simplicity in Forex Day Trading

nial — Mon, 19 Jul 2010 03:23:19 +0000

Day traders are probably more prone to become confused and frustrated than other traders simply because of the fact they typically enter many more trades than longer-term traders and so have a greater chance of committing emotional trading mistakes. One excellent way to head off such emotional trading mistakes is to use forex day trading strategies that are simple in construction yet also highly effective and logical. Many day traders make their job much more difficult than it needs to be by trying to interpret numerous lagging indicators during live market conditions. Stick to simple price setups like breakouts, rejection of support and resistance levels, rejection of trend lines as well as moving average rejections and you will find yourself trading in a much more calm and fluid manner than before. As a general rule you want to see confirmation of your entry by more than one signal. So for instance, if you are waiting for a pull back to a specific support level before entering a trade on the 15 minute chart, it would be wise to wait for a bullish candlestick reversal pattern like a hammer, to give you confirmation that price has indeed rejected this level and is likely to head higher. Such price pattern confirmations can be used with any entry technique. The importance of maintaining an objective trading mindset cannot be stressed enough. There is no sense in letting your day trading method confuse you and start a cascade of emotional trading mistakes

Trend Continuation Following a Reversal Candle on GBP/USD 14/07/2010

admin — Thu, 15 Jul 2010 10:05:14 +0000

Today we took a nice long on the GBP/USD for +40 pips. Overall it was really slow European and NY session, which required a lot of patience to wait for the proper trade setup. However after an hour and a half of waiting for this setup we finally had a good trade. Overall the market had been trending up so we were waiting for the proper retracement to get in with the overall trend. We finally got that setup when everything (EUR/USD, GBP/USD) came down to a nice support level and gave a solid reversal candle formation marked by the arrow on the left. We waited for the market to not only close as a intra-day reversal candle pattern, but additionally I wanted to see some buying pressure before going long. A few candles later we had just that, the market gave the reversal candle and then was followed by a couple bullish candles. The second arrow points to the candle that gave us a little pullback for an entry long. This is very important….the market showed up its direction with the reversal candle and then the bullish candle following that. Almost always after a change in direction similar to this, the market will make one last pullback (in this case down) before continuing up in the direction of the forex reversal signal.

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Advantages of Learning How to Day Trade Forex from a Mentor

nial — Wed, 14 Jul 2010 13:41:37 +0000

The most efficient and effective way to learn any new skill or trade is from someone who is already a qualified professional in the field. Every specific profession has a certain skill set that individuals who excel at it possess. There is a reason why aspiring doctors must do a “residency” and learn from experienced and professional doctors, lawyers too, or any other professional field. Many forex traders erroneously believe they can “teach” themselves how to trade the market effectively simply because there is so much information available on the internet. This belief is also partially responsible for the fact that somewhere around 90% of traders fail to make consistent profits and eventually give up. The percentage is likely even a bit higher for day traders due to the fast-paced nature and refined skill set required to effectively day trade the financial markets. With the advent and widespread accessibility of the forex currency market, many more traders have chosen to dive in head first, so to speak, without any proper training, simply because it is so easy to get started in forex and it does not require the same capital supplies as stock or commodity trading. Needless to say, the world of forex day trading is littered with the blown out trading accounts of countless traders who thought they could learn to day trade forex effectively without learning the art and skill of this craft from a trained professional. The bottom line here is that whether you are a stock

Nice EUR/JPY Forex Trade Setup on 13/07/2010

admin — Wed, 14 Jul 2010 13:39:19 +0000

Here is a nice short we took on the EUR/JPY. Once again very similar to yesterday’s forex trade setup, in that all the pairs were correlating together. Notice the EUR/JPY goes up to the last intra-day resistance level, then closes as a reversal candle formation. After the reversal candle closed we went short.

We additionally took the same setup but on the GBP/USD for another nice short trade. Over all had a good London session and a good +55 pip day overall. If you would like to see what day trading forex live is all about, then feel free to take your 10 day trial to our live forex room. Please click the image to the left to view a larger image.

Day Trading Forex Market Correlations on the GBP/USD 12/07/2010

admin — Wed, 14 Jul 2010 13:38:02 +0000

Here is a great example of using market correlation to find an entry. On this trade we had everything either at previous support or resistance, and additionally each 15M chart was closing as a reversal candle formation. Additionally on the EUR/JPY and the GBP/JPY there was a great forex breakout continuation trade setups occurring. We went short on the GBP/USD and the EUR/JPY and took a nice profit from both trades. Please click on the image to enlarge for easier viewing of the live forex trading strategies. Additionally if you would like to watch us trade live, you can take your 10 day trial to the live forex room. Please click on the image to view a larger format.

The Art of Forex Day Trading

admin — 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

Forex Reversal Candle Patten on the EUR/JPY 09/07/2010

admin — Sat, 10 Jul 2010 09:05:25 +0000

Forex Reversal Candle Formation on the EUR/JPY 09/07/2010 Here is a great example of getting in with the current trend by using forex chart patterns that repeat themselves many times throughout the trading day. On this example the market as a whole was point towards USD strength as well as the YEN crosses being pointed down. On the EUR/JPY we were making consecutive lower lows as well as lower highs (this showed us our direction to look for). The market made a nice retracement (a place for an entry) and closed below the previous swing highs close, additionally it formed a nice shooting star reversal candle formation which gave us all 3 keys to a nice continutation trade. 1.) In the direction of the current short term intra-day trend. 2.) Reversal into an area of resistance, while still maintaing the lower lows and lower highs. 3.) The market formed a 15M reversal candle at the top of the retracement, thus showing the indecision at previous resistance. After this candle closed (blue arrow) and the market began to follow through down, we jumped on and took it for +15 pips. Probably could have taken a bit more out of this one but overall a great day. 3 winning trades and one small 5 pip losing trade.

How I Day Trade Forex Successfully

admin — 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 this market!