Forex Trading Software

Posts Tagged ‘Could’

Why a tiny country could become a big problem
Bahrain may fairly insignificant as an oil producer, but its status as a regional banking, trading and financial hub means plenty is at stake if protests inspired by Egypt and Tunisia spiral out of control

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A Diming Growth Outlook Could Derail Euro
The EURUSD is trading higher after finding trend line support but is facing potential resistance at the 20-Day SMA at 1.3014. A break above the technical level would inspire a long position, especially if we see anti-dollar sentiment continue. However, a move below the rising trend line near 1.2770 makes the case to sell the pair with a target of 1.2500. A jump in the German Zews current …

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Friday would be an uneventful close to the week. I had tempered my expectations for the market impact that the European growth figures and US consumer-based data would have on price action; but the resultant lack of activity was even beyond what I could have imagined. However, the supposed improvement in the big-ticket German and Eurozone figures would help to offset the prevailing current that has recently exposed the financial cracks in the region that have been overlooked recently as the hope for capital returns blinded investors to real and fundamental troubles. Looking ahead to next week, there is very little scheduled event risk to go on. This could lead to one of two scenarios: we could see new trends keep direction with a focus on financial stability issues or a mild reversal on a lack of volatility. It is important to be prepared for both (and realize that there are other scenarios that could catch me off guard).

For my active trades, I am keep the focus on the majors. My best performing position to this point is the EURUSD short; which is now at half my standard size after the pair put in for its fifth consecutive decline. A correction is highly probable after such a run; so a reentry at a ‘better’ price is an option that I will have to keep open to. In contrast, GBPUSD looks like it is coming up to technical support in a rising trend channel floor around 1.55. Follow through will have to come after a significant break; so this may be more than the pair can muster unless risk appetite really drops. With this in mind, I’m only a quarter of my normal size on this position until there is a confirmed break of 1.55. My long USDJPY setup is looking good; but the recent activity doesn’t matter to me because I’m in this for the long-term (weeks to perhaps months). A break of the descending wedge of the past two-and-a-half months would certainly offer a short-term reversal to build on though. Finally, I have exposure in the crosses on that short AUDCAD. This pair isn’t reversing as quickly as some others because this isn’t a straight-forward responsive to risk trends. I am still in full size on this; but given my entry was so close to the reversal point, I should take half profit soon.

Looking for potential future trades, this isn’t a time to jump into tentative trends. USDCHF is unique because it is one of the majors that hasn’t really decided direction – breaking from its EURUSD correlation to await a strong underlying trend in the dollar. A confirmed break (ie a 240 min or daily close) above 1.06 would fulfill my criteria here as long as there is a Dow move and fundamentals to support it. A little more unusual is my EURNZD setup. Having retraced a tentative long-term descending trendline breakout, we see that the rising trend of lows has stopped the pullback at 1.80. Continuation should technically be easy to forge; but I am simply too doubtful of the euro to go in until I find confirmation that risk trends will continue to deteriorate (and Europe isn’t at the center of this fear).

View full post on DailyFX – Analyst Picks – Today’s Picks

f you are considering forex day trading than this article is for you. On the net you will see more products and forex trading systems sold in day trading than for any form of trading and this article will give you the facts on forex day trading.

The most important fact is it doesn’t work long term and you will get wiped out here’s why:

Short Term Volatility is random

Millions of trader’s trade trillions of dollars each day and to say you can tell what this huge diverse mass of people will do in a few hours or a day is ridiculous.

Humans are un-predictable in short time frames – PERIOD.

All Volatility is random

This is a by-product belief of the above and of course short term volatility is random.

If this is so, then all support and resistance levels are not valid in a daily time frame, as volatility takes prices anywhere in a day and you have no way of trading.

Tools that work in other time frames, simply don’t work in intra day trading and never can – that’s why a day trader can never get the odds in their favor and his luck will soon run out.

So why is it so popular?

Because it’s a good story and internet marketers know this.

They sell ridiculous e-books claiming regular profits and untold riches, all for a few hundred dollars! If they worked, a lot more traders would make money and they don’t.

It sounds low risk scalping small profits that build up over time but the reality is a thumping quick loss of equity for the trader.

But I have seen the track record you may say…

Sure you have but you never see a real one – there always hypothetical simulations done knowing the closing prices – how hard is that?

Anyone could do it even a kid could – but life in forex is not like that, you have to trade going forward and not knowing the closing prices and that makes things a little more difficult!

Its a good story and some of the advertising copy is fantastic but it’s a story but good stories don’t make money. My kids love Harry Potter but they don’t think they can fly!

Forex day trading appeals to greedy and naive traders who are looking for a fast buck and in forex markets making money is not easy and nor would you expect it to be – with the rewards on offer.

THE GOOD NEWS IS…

There are far better ways to make money than forex day trading and these methods use longer time spans where you can get the odds in your favor.

Traders can and do make money in forex trading – but the day traders end up in the 95% of losers and if you don’t want to do the same, avoid forex day trading.

Get proper sensible forex education and trade the longer term trends for profit.