Nobel Finance Sydney – Money Matters Newsfeed

By Adnan Kaleemi

Stops and reverses are important. Think of it like this. Why do you use stops? Because your prediction or analysis of the markets suggest that the stop area is the price in the markets from where the market can turn. If this is not the reason than why does one use stops? With this analysis of the forex markets or any other form of markets rises another question. Should we use reverses. The only question you will ask at this point is what if the second stop is hit and the result is two trades in a loss? I have often been asked this question and my answer is that if you are too scared to take the losses in trading than you should not trade. Taking profits and not the losses is like breathing in and not breathing out. The whole process of respiration has to be completed. Think of the reverse as a new trade.

The important thing I want to emphasis on again is money management. Two trades with low risk will not hurt you as much as one big loss. Keep the losses small and risk only 1-2% of your account in any given trade. The strategies I give my clients are low risk opportunities so that they can keep their losses low. So reverse your direction with the stop only where it is advised and keep the risk to absolute low. There is no such thing as no risk in the markets. We always look at the risk and reward ratio and positive expectancy.

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By Monica Hendrix 

If you want to target 100% annual gains, then the 2 tips enclosed can be incorporated in your forex trading strategy and will instantly make it more profitable. These tips are simple and easy to do and will help you make big profits so here they are.

1. Cut Your Trading Down and Risk More

When I say cut your trading back I mean just that.

I know traders who make 100% annual gains trading less than once a month with their forex trading systems!

Most traders don’t understand this important point:

You don’t get paid for your effort and you don’t get paid for how many times you trade – you get paid for getting your forex trading signals right and that’s it.

If you cut back your trading, you can focus on the really best trades in terms of risk – reward. There is a rule – called the 80 –20 rule that applies in all areas of life and in essence it states:

20% of your effort will produce 80% of your income and it applies in currency trading to.

Furthermore, there is no point on a small FX account of risking just 2% per trade (like many people recommend or diversifying) – all this will do is ensure you make small gains or dilute them.

If you say a trade your confident in hit it hard with up to 20% of your equity. In forex trading you have to take calculated risks – if you don’t, you will never make meaningful gains.

2. Trade High Odds Breakouts

Trade breakouts of valid support or resistance. These are areas that have been tested 4 or 5 times (in at least two different time frames) when these levels break chances are other traders have stops behind the breakout and other technical traders will want to buy.

Once the breakout occurs and is in motion it’s likely to continue – so you are trading with the odds. It’s a fact that most of the biggest trends develop from new market highs – NOT market lows so focus on buying these breakouts.

Trade Less – Risk More

Forget all the nonsense written about day trading and trading frequently – it will simply ensure you lose, as you don’t have the odds in your favour.

If you want triple digit gains, they come from the big breakouts and you need to hit them hard when they come.

Sure, your forex trading strategy won’t involve you trading much – but that doesn’t mean you won’t make a lot of money.

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By F. Robey

Forex trading isn’t for sissies.

Savvy traders can make a lot of money with foreign exchange (FOREX) trading, the simultaneous buying of one currency and selling of another in an over-the-counter market. But most who try it (95%!) end up losing their money and quitting.

So why not find out right up front what they’re doing wrong?

Here are 5 ways to lose your shirt with FOREX.

1. Leap Before Your Learn. Because FOREX is so “hot” right now, new traders don’t take the time to learn. Instead of waiting until they understand the fundamentals, they follow advice and tips from other traders. So if you’re not going to take the time to learn how to make sound trading decisions yourself, hire someone to trade for you!

2. Thinking Demo Accounts are Real Life. While using broker demo accounts may be a helpful learning tool, they are not the same as real-life accounts! Time sensitivity is everything in this market, and you don’t get that with demo accounts. When you deal in real time, with real money, the real action begins. So be real careful!

3. Forgetting Trades Happen in Pairs. If you make the right decision about one currency, you’re only half-way there. You have to be right about the second currency that makes up the pair. So be twice as diligent!

4. Getting Upset by Losses. If you’re afraid of losing money on a bad trade, that’s OK—as long as you don’t let that fear keep you from acting. If you do, this isn’t the investment method for you. This is a very volatile market and you need to accept that losses will happen. So accept them when they do, and move onto the next trade!

5. Chasing Short-Term Gains Instead of Developing a Long-Term Strategy. You might get lucky and make a few bucks right away, but the FOREX is not a get-rich-quick scheme. You need to develop a plan for trading success that includes making small trades day in and day out over a long period, instead of expecting to strike it rich with one or two huge trades. So plan for the long haul!

Avoid doing these five things and you and your wallet will be much happier!

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By Kelly Price 

Forex charts can make you money, technical analysis works and can make your forex trading strategy a success – but it only works if you use your forex charts in the RIGHT way and most traders fail to do this, which sees them make 3 fatal mistakes that cause losses.

Here are your 3 fatal forex chart errors to avoid

1. Using Technical Analysis On Invalid Data

You need to data that is valid to apply technical analysis and the biggest error a forex trader can make is to try and day trade. Forex day trading causes traders to lose because volatility in short term time frames is totally random and can and does take prices anywhere. This means support ad resistance levels are meaningless and you cannot trade them.

Forex day traders never win and blame their tools but it’s the data length that’s the problem.

2. Predicting

Many traders think they have to predict where forex prices are going to go to win – but this simply means they are relying on hope and if you rely on hope you will lose. You need to execute your trading signals on your forexc charts on price momentum changes – this will put the odds in your favour and allow you to win.

If you don’t know what momentum indicators are learn about them now, o get ready to lose.

3. Buy Low Sell High

This is related to the point above point – people simply love buying dips but they don’t have price momentum on their side and their guessing and more often than not get it is wrong. Furthermore, it’s a known fact that most of the major currency trends start from market highs NOT market lows and traders miss these moves, as their waiting for the dip.

They should be thinking, “buy high sell higher” and going with the breakouts rather than waiting for pullbacks that never come and make them miss the move.

4. Too Many Indicators

Many traders believe that the more indicators they cram into a forex trading system – the better, but the total opposite is true. When there are to many indicators used the system has more elements to break – it’s a fact that simple systems are more robust and more profitable, so when using forex charts keep your system and technical analysis simple.

6. Using Indicators Wrongly or Ones That Dont Work

If you’re using an indicator – use it correctly or not at all. For example, traders use moving averages to execute trading signals – It’s a lagging indicator! and should never be used to execute trading signals.

Traders also like to use Bollinger bands to execute trades but this is simply a volatility indicator and should not be used to execute trading signals.

Many traders also use indicators that dont work and the most common is the fibonacci retracement – its got to be the dumbest indcator out there – devised to slove a problem to do with the copulation of rabbits in the 12th century, its been hijacked by vendors selling it as way to make money – try it and lose.

If you want to use forex charts to make money you have to obey the rules – if you make any of the above mistakes you will lose.

It’s a bit like being a captain of a boat your charts can help you navigate the ocean and earn a living – but if you use them incorrectly and break the rules of the ocean you will lose. So be a good captain in the forex markets, use your technical analysis correctly and navigate your way correctly to big gains.

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By Todd Judkins

Close to 95% of all Forex traders will lose money. We’re not just talking about novices, either. Whether you trade Forex for a living, as a hobby or just for fun, odds are against your success. That’s a simply astonishing fact. However, the remaining 5% of Forex traders somehow manage to break even and there are those lucky few that actually make money in the currency market – consistently!

Like the TV show says … “How’d they do that, anyway?”

That’s the million dollar questions, isn’t it? Countless books, seminars and expos have been hosted to answer this very question. That sad fact is that thousands of books have been written and countless seminars and interviews have been conducted in an attempt to answer the magic questions. The reality of the situation is that there is no magic formula; no one single Holy Grail of Forex trading.

So what do the successful traders do that the rest of us have simple not comprehended. They have mastered a process of winning where they combine and customize several factor to produce consistent results. They have mastered the Process of Trading.

The Process of Trading is:

Strategy > Money Management > Self-Mastery

Here are some simple Forex Education tips to help you master the process of forex trading:

Success Tip #1 – You’ve Got To Have a Plan

You must have a written business plan that will detail all aspects of your trading. When are you going to trade, how much to risk, strategies for entries and exits are just o name a few. To become a consistent (profitable) Forex trader you have to plan your trade sand trade your plan.

Simplicity rules! Don’t make this plan too complicated. One sheet of paper for you mission statement and another for your trading plan should suffice. Anything more is probably too complicated.

Success Tip #2 – Focus on Your Personal Psychology

Knowing yourself will allow you to master the discipline necessary to execute high quality trades with solid money management techniques. Lack of discipline is fatal in Forex trading. Go on a personal journey to identify you attitudes towards risk and money. Get intimate with your strengths and weaknesses as a trader and build in to your trading plan strategies to minimize those weaknesses and maximize your strengths.

Different personalities lend to different trading styles. Get familiar with all the different styles and over time you will begin to gravitate towards one particular style. Don’t fight the urge like I did. I insisted I was a day trader, but had only limited results. I found my winning percentages were much higher when I entered swing trades. Guess what’s my bread and butter strategy now!

Success Tip #3 – Be Realistic About Your Expectations

This is a hard one, I know! I am on the internet every day and the amount of advertising is staggering. Brokers are offering free education (fox in the hen house if you ask me), forums of all different trading styles and points of view. Gurus pushing their system as “the one” that will make you the big bucks. How do you get through all that noise?

Let me tell you loud and clear right now – everyone is right and everyone is wrong. You have to make a personal commitment to become a successful trader, find a trading style that works for you and expect a slow and steady approach to wealth building through Forex.

What works for me may not work for you. Expect to go through an exploratory period where you are learning and at the same time exploring yourself as a trader. Keep an open mind and don’t pay attention to all the noise out there.

Success Tip #4 – Exercise Patience

Rome was not built in a day and neither will your trading account. In fact, I tell all of my students that while they are studying to become successful Forex traders they should not look solely at their account balance as an indication of success or failure.

By tracking and increasing your percentage of high quality trades you execute is a far better barometer of your progress than your account balance. Cause and effect rule here. Over time when you increase your probabilities through the execution of high quality trades your account balance will respond accordingly.

Keep the focus on the process and with time your results will blow your mind.

Success Tip #5 – Money Management Is Top Priority

I would rather have a shaky strategy and excellent money management techniques than the other way around. This topic warrants its own blog post to do it justice. Limited your exposure (read “risk”) allows for you to stay in the game and allow the laws of probability to work.

Let’s take a casino for example. They need gamblers to frequent their slot machines to make money. Why? They have a game that has a greater than 50% chance of making money for the house. The more people that play the slots, the greater the casino’s profits.

The casino controls risk by payout tables (always favoring the house!) and increases their probabilities by keeping gamblers at the slot machines (read “free drinks”). As a trader you must limit your risk by committing only 1% – 3% of available capital to a single trade. When you execute enough trades with a high probability strategy you too can clean up like the casinos – but only by staying in the game long term.

In conclusion, Forex trading is not easy. It’s hard work and will test the limits of your patience and perseverance. If anyone tells you otherwise .., buyers beware! It can be a very rewarding and profitable venture if done correctly. In the end it is a profession that requires a learning curve and practical experience, no different than an airline pilot or engineer. Understanding how to approach and learn this game will allow you to reap all the benefits advertised. It is your Forex Education that you will master the Process of Forex Trading.

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