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Aggressive Forex Trading Strategies for Long-Term Profits




The lure of quick money brings many people to the online currency trading scene and most of the people get tied up, trying to make daily profits investing in short time frames, where prices are very volatile.

However, most of the top traders and the ones holding all the money only place between 1 and 5 orders per year, since they have found a way to make more significant profits on each of their trades. While this may not seem aggressive, these traders often risk as much as 50% of their accounts in order to secure profits in the hundreds of thousands and even millions of dollars. The real question to be answered is: how can you take advantage of this type of trade and make some real money?

Identifying the long-term trend is the first thing you must do, in order to place a trade of this magnitude. If you look at the EUR/USD during the middle of 2011, you will find that it moved in a channel that was approximately 500 pips wide for over 3 months. Once it broke out of this channel it continued to move down for 800 pips before correcting to the 76% Fibonacci level before turning down for an additional 1000 pips to this type of long-term trader.

Posted January 20th, 2012.

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Using a Trend Trading Strategy

Trend trading is a strategy used in many financial markets, including in the Forex market, by many traders and investors. Although trend trading strategies work in many financial markets, they are particularly effective in the currency market.

Trend trading is actually based on basic, fundamental principles of successful trading and investing:

- Buying when prices are low and when the future looks hopeful

- Selling at, or immediately before, the price highs in a particular trend.

Although these types of strategies are based on basic, fundamental principles, using a trend trading strategy is not simple and it can prove to be difficult.

First of all, the trader or investor must identify a trend and then predict where the trend will stop. They will then hold their position until the trend is broken by the currency, or if the currency reaches the predetermined sell point.

In Forex Trading, trends are often defined as when currencies break out of their Bollinger bands and then trend in one particular direction. The easiest part of using a strategy that involves trading trends, actually tends to be the identifying of trends, as long as your Bollinger bands are well set.

Posted January 16th, 2012.

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Using a News Trading Strategy


News trading in the Forex market involves trading currencies around newsworthy events, such as important releases of economic data. Traders and investors not only consider US market news, but also news from other countries, as long as they are relevant to the currency pairs they are working with.

Using a news trading strategy is all about comparing news with previous forecasts: traders and investors are most interested in whether current news meets, exceeds or falls short of previous forecasts. Predicting the extent to which the market will react is also important to traders and investors using a news trading strategy. Quite simply, some newsworthy events and stories will bear more importance than others, however the more difficult side of news trading involves predicting how the market will respond to particular news in particular settings. If you implement a news trading strategy into your Forex trading, you must work out what the market is most concerned with at present and the degree of concern that the market is showing. You must consider whether or not there is a strong consensus for whatever the market is most concerned with, as the market isn’t always stable.

Posted January 15th, 2012.

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123 Forex Trading Strategy




The 123 Forex trading strategy is one of the most effective ways to trade reversals. It works on any time frame and on any currency.

I prefer patterns like that because it has to do more with the price action so it’s not just about using Forex indicators it’s about the behavior of the price it self.

The 123 pattern is basically about breaking the low of the last valley or the high of the last peak. If for example the price made a new high then it bounced back for a while then it moves back to break that high then it’s a strong indication that there is momentum upwards and vice versa.

In the pictures below there are 2 patterns for the 123 strategy, one is pointing down and the other one is pointing up so let’s see when to buy or sell using this strategy.

Step #1: Once the 123 pattern is formed place your sell stop entry below point 2 or in-case it was a bullish move place your buy stop above point 2.

Step #2: To control the risk of you trade always make sure to place your SL target (Stop Loss) which is preferable to be few pips above point 1 if you are selling or below point 1 if you are buying

Posted January 14th, 2012.

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4 Effective Strategies to Foreign Exchange Trading




If you had aspired to become highly successful in making money by buying and selling in the foreign exchange market, you must have already put in place a sound risk management strategy. This simply means you will be disciplined enough to know when and where to apply your stop loss. Your personal character will determine the way you trade. A sound trading strategy will enable you to make the right choices at the right time that will allow you to buy, sell, long or short foreign currencies in almost any currency exchange market in the world.

Before you embark on your journey into foreign exchange trading, you need to understand that the foreign exchange market is a worldwide-decentralized financial market for trading currencies. This is a continuous operation business: 24 hours a day except weekends. According to the Bank of International Settlements, as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007.

We came up with 4 strategies to help you fine tune your own trading strategies and made it more robust.

Sustainability

Posted January 13th, 2012.

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The Secrets On Developing High Probability Trading Strategies




By John T Conejos

A lot of people are on a quest on finding the best trading strategy that assures to produce enormous profits for their investment. Most are hoping to find high probability trading strategies that doesn’t require a lot of work to put into and even have zero risk involved. Though it’s very possible for you to develop a strategy that can produce great rewards, no strategy involves zero risk and effort.

A miracle trading strategy doesn’t exist. Your high probability trading strategies will depend on your personal trading style, risk acceptance and choice of market. You won’t see a strategy that works every time. You must be ready to face the risks as well as know how much you are prepared to lose per trade relative to your capital.

It is just reasonable for different markets to require the application of multiple strategies

The strategy that generates high profit in the equity market can cause a disaster for options or futures due to the expiration. A strategy that functions well in the currency market cannot often be applied in mutual funds investing since while currency can be traded almost 24 hours a day and 7 days a week, a mutual fund can only be traded once a day.

Posted January 13th, 2012.

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Important Stock Trading Tips

By : Bidisha Nath
It is important to know about a number of crucial stock trade tips. Effective stock market tips are traditional, time tested and the most profitable way to help traders based anywhere in the world.

Stock Trading Tips 1

While there should be certain underlying inspiring factors as to why you want to trade in stock, but you have to take a position to trade with confidence. Therefore, you must know why you want to trade in stocks. To take a strong grip in stock investment, you have to understand why you want to do it before you move ahead. Though you may have diverse motivations and reasons for choosing to trade stock, but the major reason is to make money and more money. Because that’s what stock trading is.

Stock Trading Tips 2

Posted December 12th, 2011.

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How to Plan Your Forex Trading Strategies



By Scarlett Li

Plan Your strategies

A foremost question every Forex trader should ask is whether they want to manage Forex accounts by themselves. The majority of retail Forex traders hold full-time position somewhere else, hospital, schools or law firms. Is it a luxury to manage my own Forex accounts?

Many people decide trade Forex without having a plan. Oh wait, they do have a plan. Becoming super rich in one month. Well, It’s not trading. It’s gambling. Don’t wish to try your luck in the Forex market and don’t ever dare to dream of becoming Buffet-rich in one month. You can make a consistent return if you have a trading plan and know how to manage your risk.

Technical Forex analysis studies about historical prices and believes history will repeat itself. technicians use different trading indicators, for example, candlestick patterns, Trend indicators, stochastics and so on. While Fundamental Forex analysis studies these macro Economic indicators, e.g., GDP, interest rate and so on. Which analysis fits to you better? Or you would rather like to combine the both analyses? How to find this out. Go to see what other traders are thinking, like joining a Forex forum.

Posted December 9th, 2011.

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Forex Trading Strategies That Leverage Trading Performance


Author: Peter Johansson

Forex trading was out of reach for the savvy individual investor some years ago. Banks and other financial institutions dealt in this currency exchange practice before the advent of the internet. Things are not the same now. Online forex trading has become the most influential at-home money earning platform with positive benefits as well as high risks. Risks can become negligible when you learn the tricks of the trade. However, you do not need to employ a professional or hire a commissioned individual to help you trade foreign currency. It is an active 24/7 market that can be managed solely by you, provided you have the right trading strategies in hand.

What is forex trading really? Isn’t it the buying and selling of foreign exchange? Why is it so hard to understand it then? Well it’s not hard and you do overcome all the risks involved when you get the hang of it. Timing is everything in forex trading. One of the noteworthy trading strategies is the entry order. This allows for a timely investment on one of the hottest currencies at that time and selling it at a point when it reaches a much higher peak. This strategy must accommodate the traders’ needs and investing assets at that point of time as well. Online forex trading allows for automated entry order thus not having you stay alert round-the-clock to make the right move. You can avail of online forex tools once you have got the hang of your very own online trading platform for instance the full stochastic indicators. They allow easy decision making on when to enter the market and make positive profits.

Posted September 15th, 2011.

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What Is SGX Nifty

In the world of stocks and shares, it is common to hear terms such as SGX Nifty being used. To a professional, this term has a great deal of meaning. To a layman, however, it just might sound strange and could carry no meaning at all. If you are wondering as to what SGX Nifty means, this is explained below.

To put it in very simple terms, SGX is the Singapore Stock Exchange and SGX Nifty is the Indian Nifty that is being traded in the Singapore Stock Exchange. It varies, therefore, based on the Indian Nifty, and gives the market the go-ahead to trade in Indian derivatives. It also permits the Indian markets to get the FII in position within the country.

SGX Nifty is widely important due to the fact that since Singapore is two and a half hours ahead Indian time, the direction in which the SGX works is a major determining factor of Indian markets since the trading at Singapore begins earlier than in India. This impacts the Sensex as well as the Nifty 50, along with other worldwide indices as well. This is very important due to globalization, where the whole world looks at other markets in order to analyse economic performance.

Posted July 21st, 2011.

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