No Indicator Forex Trading

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No indicator Forex trading is also known as trading Forex without indicators. This simply means that you would base your trading decisions strictly upon price action rather than traditional indicators such as moving averages, stochastics, etc.

A simple example of no indicator Forex trading would be trading based upon new highs or new lows in a particular Forex market. For example, you may choose to buy a particular currency pair if the current price is greater than the previous 52-week high. With this same simple system in mind you may choose to sell a particular currency pair when the current price is below the previous 52-week low.

Trading Forex without indicators has grown tremendously in popularity. A great deal of this is due to the fact that many beginning traders have not been able to trade successfully using Forex indicators. Many will also say that indicators are lagging in nature and we’ll get in on important price moves too late.

I would like to clarify here that there is nothing wrong with using indicators, even the traditional ones in order to make your Forex trading decisions. It is not the use of indicators that caused traders to fail. It is the improper use of the indicators which have caused traders to fail.

No indicator Forex trading is no guarantee of your trading success. Just like trading with indicators trading Forex without indicators requires knowledge, patience, and skill.

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The Scientific Way to Trade Forex

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For those looking for the scientific way to trade Forex I got some good news for you. In order to be scientific about the way you trade Forex you’ll need to have rules and be consistent about following those rules. Let’s begin our exploration.

You trade Forex scientifically you’ll first need to research Forex scientifically. The first part of this process is that we must observe the Forex market and then we must create a hypothesis based upon our observations. Don’t worry, a hypothesis isn’t anything complex is simply a proposed explanation for some observable phenomenon. Let’s say for instance that you have observed a certain pattern when looking at the daily chart of a particular currency pair. In your observations you noticed that when this pattern occurs the currency pair moves upward in value relatively frequently.

Your hypothesis in this case is that when “X”pattern occurs then the market moves upward. You now have a hypothesis on which to base your research. From here you would continue to observe the pattern and seek to find what percentage of the time the market does move upward and by how much.

At this stage if it is discovered that you can buy this market based upon your newfound pattern then you may have the basis of a profitable Forex trading system. As you can see the scientific way to trade Forex can aid you in your research as well as move you closer to finding a consistently profitable Forex trading method.

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Forex Money Management Strategies – It’s About More Than Just Risk

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It seems that everytime I look for good information on Forex money management I am given an explanation of how it keeps your risk under control. While every trader needs to control risks, that is far from being the whole picture.

You see, the whole reason people get involved in speculative markets in the first place is to obtain an better ROI (Return On Investment) than they would using more conservative investments such as CD’s, Bonds, or mutual funds. This means that you are interested in speculating in the Foreign exchange markets because you are seeking above average or well above average returns, right?

One big reason that the currency market is perfect for specualtion is the level of leverage. Naturally, leverage makes it possible to grow your money faster than if you used no leverage at all of if you were buying stocks on margin with a conservative 2:1 leverage. What money management does is give you an additional type of leverage by making your money work more efficiently for you.

The best way to illustrate the power of money management is though an example. We will use two ficticious traders named Peter and Paul:

Paul decides to use the EURUSD as his financial instrument of choice. Paul’s system is good and he makes $1,000 per trade starting with a $10,000 account. Paul trades 1 contract per trade for a total of 30 trades. His total equity is now his original $10,000 starting account balance + 30 x $1000 profit = $40,000. Without going into great detail we can simply say that Paul is doing well.

Peter starts with the same amount of opening account equity, $10,000. Peter is using the same basic system as Paul. He makes $1,000 per trade per contract, but varies the number of contracts he trades based upon his available equity. For Peter’s 30 trades his total equity is now his original $10,000 starting account balance + $766,000 profit = $776,000.

What did Peter do differently than Paul to grow his equity to a level 19 times greater than Paul’s? That’s a good question! Peter used a different strategy and allocated his capital using “position sizing”. In other words Peter varied the number of currency pair contracts he traded based upon his equity. Once his equity reach a certain level Peter then allocated $5,000 for for each new contract traded. Peter did not start adding contracts until his equity had reached the $15,000 level and then added a new cotract with each $5,000 in additional equity.

There are numerous effective money management techniques that you can use. What I have just shown you was an oversimplfied example strictly used for the purposes of illustrating the incredible power of position sizing. This simple example is referred to as “fixed dollar amount” technique because we increase or decrease the number of contracts based upon a fixed dollar amount (in this case that amount was $5,000). Techniques such as these can make any good trading system better. With that said, it stands to reason that it is imperative that you have an excellent trading system to begin with. Properly applied, strategies such as these can truly skyrocket your equity.

Filed Under: Forex Trading Systems Tagged With: , , ,

Forex Trading Easy

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Many beginning traders alooking for ways to make Forex trading easy. There is nothing inherently wrong about looking for an easy way to trade Forex as long as you are not thinkng that Forex trading is some get-rich-quick scheme.

Many trading professionals have stated that while Forex trading can be “simple“, it is not necessarily “easy“. One way to intepret that statement is to look at the fact that Forex trading can be realatively straightforward. Often times the simplest Forex trading strategies are the ones that work the best. The second part of the statement referring to trading not necessarily being easy speaks more to the difficulty one encounters in maintaining their trading discipline. It is a fact that newer traders have a harder time maintaining their discipline. The biggest reason for this is their trading discipline is young and has not yet fully developed.

Many beginners are under the mistaken impression that Forex trading takes the intellectual prowess of a rocket scientist and nothing could be further from the truth. New traders are often times led to believe that trading Forex successfully requires some magic or some secret formula. Most of this type of information is most likely prepetrated by those looking to sell new traders a quick-fix, get-rich-quick solution.

There are a number of things that any new trader can do towards the goal of making Forex trading easy. Here are but a few:

Don’t enter the markets unprepared – If you don’t sufficient knowledge, skill, or working capital you simply should not trade. Sure, you can stick your toe in the water in an unprepared state, but is that really how you want to approach something in which you wish to excel?

Have a strong will to succeed – A strong will to succeed in the markets is imperative. Without this you will abandon your Forex trading endeavors at the first challenge that you meet. This often happens to new traders when they experience their first real loss with real money.

Be a constant student of the markets – By always taking every opportunity to learn about the markets you better prepare yourself to be the succeddful trader that you have always wanted to be

Those are just a few tips that will help youu make Forex trading easy. Remember to be patient and prepare yourslef for long-term foreign exchange trading profits.

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Forex Secret Trading

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When it comes to Forex secret trading the big secret is that there is no secret! All the information you need to learn to trade Forex successfully is readily available.

Those looking for information on Forex secret trading are most likely those who are just starting out in Forex trading and are led to beleive that their is some, mystical, magical formula or a “holy grail” of Forex trading. If some wrote a book called, “Forex Secret Trading” or “Forex Trading Secrets” it would probably fly off the bookstore shelves.

If there is one thing that some may consider to be a “secret” it is the affect that trading can have on you emotionally. While this really is more of an “unknown” to those who have yet to trade, it is very much worth mentioning because emotions can cause you to lose your trading discipline. Without discipline profitable forex trading will be difficult, if not completely impossible. It is easy for this secret to catch new traders off guard because emotions and discipline may not seem tangible enough factors to be concerned with.

A real danger in searching for Forex trading secrets is that all you may do is search…never finding that “perfect” Forex trading system you are seeking. This is a very common form of beginning Forex trader’s “paralysis by analysis”. This can also lead a beginning trader to abandon a perfectly good trading strategy and continue searching for the “holy grail”.

In the long run, you will be much better off to stop looking for Forex trading secrets and focusing on learning practical Forex technical analysis techniques. The key here is to always educate yourself in the effective techniques of Forex trading. You can start trading with a simple strategy and then continue to repeat your success by sticking o your strategy and let it profit over and over again.

Filed Under: Forex Articles Tagged With: , ,

Free Forex Signals

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Free Forex signals are there for the taking virtually everywhere you turn…but should you even be looking for free Forex signals?

First let’s start off with a definition of what a Forex signal is. A Forex signal is an indication to take action generated by a Forex trading system (a set of rules designed to trade Forex profitably). Forex signals may take several different forms:

Buy Signal – This type of signal tells us that we need to buy a currecny pair to enter a long trade or buy back a currency pair to exit a short trade

Sell Signal – This type of signal tells us that we need to sell short a currecny pair to enter a short trade or sell a currency pair to exit a long trade

Adjustment Signal – This type of signal informs us that we need to make and adjustment of some sort. That adjustment may be as simple as changing our current stop loss and adjusting it in the direction of the market’s movement (trailing stop).

No Signal – Some might not consider “no signal” to not be a signal at all. When there is no signal we simply take no action.

Now back to our question, “should you even be looking for free Forex signals?” Probably not. Not that it is always the case, but oftentimes when you are asking for something for free that can possbily make you money it is a step in the wrong direction. Why? Because “free” does not mean profitable and effective. Generally the cost of a forex signal may very well not be your greatest expense. If the signals are not reliable you could stand to lose a great deal of money. It is for this reason that I stress “profitable” over free.

Another reason you may not want to look for a free forex signal is that it speaks to your level of preparednesss to trade the markets. If you were looking to make a real success of Forex trading you probably would understand that it take money to make money. It is pretty certain that successful Forex traders are not spending their time looking for free forex signals

Does all the above mean that all free Forex signals are bad? Absolutely not, but if you are looking to get all of your Forex trading tools for free you may be telling yourself either conciously or subconciously that you are trying to make money in the Forex market without being fully prepared.

Filed Under: Forex Trading Systems Tagged With: , , , ,

Use a Forex Trading System Course to Learn Forex Trading

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A quick study of beginning of Forex trader behavior shows that most are searching for things such as “Forex secret trading” or “Forex tip trading” or even “free Forex trading systems”. Not nearly enough are for searching for ways to learn Forex trading and profit in the long term.

A Forex trading system course can be an excellent way to jumpstart your understanding of the Forex market. By learning how to trade Forex you’re placing your self heads and shoulders above most other “would be” Forex traders on the planet. There’s a very good reason for this. Those who want to learn Forex trading understand that Forex trading is not a get rich quick scheme. They understand that successful trading in Forex is a journey and not just a destination. For these reasons and more smart traders prepare themselves to be successful and among those smart traders some will even become very, very wealthy.

So how do you go about finding a good Forex trading system course? Here are several places to start looking:

Your Forex Broker — many Forex brokers have a good selection of learning materials for those who are beginning as well as intermediate and advanced traders. This is not at all a bad place to start although it is advised to seek additional Forex education outside of your broker is well.

A Recommendation from a Friend or Associate — one of the best places to start is with someone that you are already familiar with. Finding a friend or associate to recommend a good Forex trading system course to you can really be of tremendous help. If your friend is having Forex trading success with a particular Forex course ask them for further details and if he thinks the course might benefit someone at your experience level.

Online Forex Courses — an online Forex course can be very convenient for you as you may take the course from the privacy of your home or office. Many online Forex courses take the form of a “webinar” which is an online equivalent of a Forex trading seminar. This can actually be quite interactive and extremely informative.

Local Forex Seminar — local Forex seminars are typically held at larger hotels that have facilities to accommodate conferences. This setting can be excellent as it provides an opportunity to interact not only with the instructors, but with fellow attendees as well. Seminars can be an excellent place to network with those interested in sharing trading ideas and strategies.

Which ever type of Forex trading system course you choose make certain that you do your due diligence so that you can feel comfortable knowing that you have competent instructors. The level of knowledge and skill of instructors will most likely vary widely. Be certain to avoid those courses and instructors who try to lead you to believe that Forex trading is a riskless venture. Find those who focus on creating consistent profits for long-term Forex trading success.

Filed Under: Forex Articles

Free Forex Range Trading Systems

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Free Forex range trading systems should not be very difficult to come by. First let’s start off with a few different strategies used to trade ranges.

The first range trading system would be trading using support and resistance. This could also quite easily be done by defining a range using a channel. A channel is simply a set of 2 horizontal lines drawn on your chart. The top part of the channel is created using the highest high of the last X number of periods where X can be any whole number. The bottom part of the channel is created using the lowest low of the last X number of periods. For example on a daily Forex chart a 10-day channel can be created by drawing the top part of the channel using the highest high of the last 10 days. For the bottom part of the channel we simply use the lowest low of the last 10 days.

To trade using these channels we would sell when the price of our chosen currency pair reaches the top part of our channel and we would buy when the price reaches the lower part of our channel. In this type of range trading system we are actually countertrend trading because we are selling when themarket is moving upward and buying when the market is moving downward.

A better way to range trade in the above scenario might be to let the price move above the upper level and then sell if and when the price moves back down into the channel’s range. The reverse would be true of initiating a buy trade. This strategy has built in confirmation that the market is indeed moving in the direction that we wish to trade in.

Although many may not consider a channel breatout trade to be a range trade in reality it is. This is because the trade is taken in the direction that the price “breaks” through the upper or lower level of the channel. This is an extremely effective method of trading.

So we have covered a few examples of a few free Forex range trading systems. You can easily experiment with these using your own Forex charting software to create range trading systems that fit you to a tee.

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The Importance of Controlling Your Forex Trading Risk

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One statement holds true in Forex trading and that is “there is no reward without risk”. Experienced Forex traders realize that there is risk with every single trade that they take. Successful traders know that risk is a very natural part of any speculative venture and Forex trading is definitely speculation.

One of the first important concepts to embrace is that there will be losses in your trading. While this may not sound good to beginning Forex traders, successful Forex traders around the world recognize that this is par for the course. Losses are a natural part of trading.

There were many people who will start off trading and will do everything in their power to avoid losses. Successful traders understand that this is an exercise in futility and while beginning traders are busy trying to avoid any and every loss successful traders are racking up profits.

New Forex traders place themselves in a very sticky situation. Because new traders often try to avoid losses they will find themselves stuck in “paralysis by analysis”, constantly searching for the proverbial Forex trading holy Grail. The question on the new traders mind is often, “how can I trade Forex with no losses and no risk?”. This question is often answered by those selling commercially available Forex robots and the answer is often, “by buying my super, duper, never-lose Forex robot”. In the end the new Forex trader will learn more about losses and risking Forex trading than they wanted imagined.

The question that new traders should be asking themselves is, “how can I trade Forex successfully and build equity over time?”. By asking this question the trader doesn’t open themselves up to getting sucked in by ridiculous claims of riskless Forex trading.

With the example above of asking yourself the right question you’re on your way to controlling your risk and reaping rewards in Forex trading. One of the most successful methods of risk control is knowing your level of risk prior to initiating a trade. By consciously evaluating your potential risk before your trade you have prepared yourself for the inevitable losses you will encounter no matter how successful Forex trader you become. The determination of how much you will risk on each trade will all be dictated by your well-thought-out, thoroughly-researched Forex trading system.

One successful risk control technique is to risk only a certain percentage of your available equity on each trade. For instance, if your choosing a relatively conservative percentage of equity such as 1 to 3% you are allowing yourself to conserve your equity. With small percentages such as these a trader can afford to have a number of consecutive losses without being taken out of the game. The 1 to 3% percentages quoted are simply an example. As stated previously your Forex trading strategy will determine what your individual risk level per trade should be.

Filed Under: Forex Articles

Forex Trend Trading Education

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Forex trend trading education is a great way to learn Forex trading. Learning to identify and profit from trends can benefit short-term and long-term traders alike.

Trend trading isn’t discussed or taught nearly as much as it should be. This is because trading with the trend is generally thought of as a strategy for long-term traders only. If you happen to have an interest in shor-term trading learning to properly identify the prevailing trend can be beneficial to you as well.

There are numerous way to get the trend trading Forex education that you need. Here are a few of them:

Forex books – There are many excellent books written on trend trading. You are more likely to find a wider variety at your local bookstore than at your local library.

Forex courses – This is a great way to learn. Many courses are available in a variety of video ormats that you can either download or receive by mail on DVD. The course available from DisciplinedForexTrading.com is outstanding. Their course “Disciplined Forex Trading” is one of the best in the business.

Forex seminars – For those who like to intereact with other trades in person a live seminar can be a rewarding experience. There is an online version of a Forex seminar called a “webinar”. These are particularly convenient as the webinar can be viewed from either your home or office computer

My personal first choice is always a local seminar, but they are rare and may not always be convenient. Choosing to seek out forex trend trading education is definitely a step in the right direction. As the saying goes, “learn more to earn more”.

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