Trading the Forex market can be tremendously exciting and rewarding but that doesn’t mean that starting out can’t be nerve wracking and at times frustrating. That’s why eToro offers you these 10 top tips to help you trade:
1. Get Your Feet Wet Gradually. Most new traders start by opening many trades and then find it hard to monitor them all. By focusing on just a very few trades in the beginning you’ll give yourself the opportunity to keep track of your trades, and to get to know how the markets movements should be reflected in your trading approach.
2. Stop Forgetting Your Stop-Loss! The key cause of unsuccessful trading is excessive losses and the single biggest cause of losses is incorrect portfolio management. Remember that a Stop Loss is not there for decoration, it is there to prevent your losses from mounting up. Use it wisely and you will soon see your loss rate reducing!
3. Build A Trading Plan/System. Every trader develops their own individual trading system, depending on the amount of time they dedicate to trading. Traders with more time may adopt a day trading strategy, while others might trade longer term positions. The important thing is that, whichever trading style you adopt, you stick to your trading plan. Many new traders who experience trading losses find themselves tempted to switch approach however one or two losing trades don’t necessarily mean that your trading system isn’t going to be a profitable one.
4. Don’t Cut Your Profits Short. The number one mistake new traders tend to make is closing their winning trades too early. By sticking to your trading plan you can learn to avoid making hasty exits which will reduce your potential profits.
5. Don’t turn Profitable trades Into a Losing One. Once the market is going your way and your positions show a profit, keep a close watch on them. Move your stop loss forwards to your entry point to secure your investment. Then keep moving your stop loss forwards in the direction of the trend to secure your profits and prevent your trade from slipping back into a loss.
6. Beware Of “Scaling In”. “Scaling in” is a strategy where an investor increases his position size when the position is negative, hoping that it will retrace back and close all the positions in profit. Using a “Scaling in” strategy isn’t necessarily a bad thing but it can quickly wipe out your account if you don’t know how to use the strategy correctly. As such it can be a risky approach for the beginning trader.
7. Plan Ahead. Never enter a trade because the price is suddenly rising or decreasing. Always plan your trades in advance. Know your desired entry point, Take Profit and Stop Loss rates before you trade and wait for the right opportunity to arise.
8. Preserve Your Capital. Profits are there for the making, but the real key to lasting Forex achievement is not to make profits; it is to keep hold of them. Letting profitable trades run, cutting your losses quickly and keeping cool under pressure and in line with your trading plan is you key to profitability not for a single trade but across all the trades you make.
9. Trends Carry Momentum. New Traders are often unaware that as a new trend starts to build its momentum tends to increase. Additional traders will tend to jump on board an emerging trend, strengthening it as it continues to develop. Try to trade with the market’s momentum on your side, as it will often push your trades in the right direction, hitting your profit targets sooner than you might expect.
10. Don’t Waste Your Time On A Losing Trade. If you find yourself in a losing position, remember that it is better to save your energy, cut your losses and move on to the next trade. The Forex market is full of profitable opportunities, just waiting to be exploited, so don’t waste your time on an unprofitable trade!
Author : Etoro Team
Saturday, August 14, 2010
8 Professional Trading Tips You Need To Know
- Never trade on wishful thinking. If you place a trade and it’s not working out for you, get out! Don’t compound your mistake by staying in and hoping for a reversal.
- Psychological Factor. Uncontrolled emotions are the number one cause of trading losses. Don’t let your emotions sway you, stick to your trading plan and remember to set (and stick to) your Stop Loss orders.
- “The Trend is Your Friend”. When trading in the direction of a trend you’re trading with the majority in the Forex market. As a result you’re trading results will generally improve.
- Accept that a part of successful trading is knowing when to cut your losses. Every trader sees the market go against them sometimes. Successful traders know that profits are achieved by owning up to your mistakes quickly in order to keep your losses in check. Dropping your failed trades will free you to focus your attention on looking for the next successful trade to let run.
- Focus on money management and a trading plan. Only enter a trade once you know how much of your margin you are willing to risk from the trade and how much you’re hoping to profit. Figuring out this calculation will help you develop your very own risk/reward ratio for your trade, the first step in a successful trading plan. Over time, the difference between successful traders and unsuccessful ones is that the former always enter the market with a trading plan and the latter never do.
- Take personal responsibility for your trades. Great traders accept personal responsibility for everything they do. Remember that you’re the one who is pulling the trigger. Great traders know that they are responsible for all the trades they make, either good or bad. Blaming the market or bad luck can cause a trader to lose focus on their ability to learn from their trading errors and apply their lessons to improve their trading in the future.
- Don’t become greedy. When traders have an open trade that is making them profit they often forget their pre-determined target for the trade, as they are sure that the trade will continue to make them profits. Remember that the markets are dynamic and that no trend lasts forever. If the price reaches your target, bank the profits or move your stop-loss forward to prevent a loss.
- Trade the News. Most of the really dramatic moves in the Forex market occur around important news events. Trading volume increases in advance of news releases and the resulting moves are normally significant: allowing traders to grab pips from rapid market movements. News-traders will often make only one trade a day due to the large potential profits involved by correctly trading important news releases.
Follow these guidelines and you should start to see an improvement in your trades immediately. But remember, the key to becoming a successful trader is discipline and the ability to stick to a set of rules.
author : eToro Team
Thursday, August 12, 2010
Scalping M5-EU, Parabolic sar in the Ouside Bolingger Band
Entry Scalping EURUSD, Parabolic sar in the outside Bolingger Band, Hits +26pips
Wednesday, August 11, 2010
Fed outlook weighs on European shares; banks fall
LONDON, Aug 11 (Reuters) - European shares fell on Wednesday, with banks and miners declining, after the Federal Reserve's pessimistic view of the U.S. economy stung investors confidence on the sustainability of the economic recovery.
By 1045 GMT, the pan-European FTSEurofirst 300 .FTEU3index of top shares fell 1.4 percent to 1,047.64 points, falling for the second day in a row.
The U.S. central bank on Tuesday offered a more sombre assessment of growth and said it would reinvest the money from maturing mortgage bonds it holds into government debt to counter recent signs of economic weakness. [ID:nN09275781]
"The comments from the Fed yesterday are weighing on the market. There is a bit of nervousness about the outlook for the U.S. economy and we see some economy sensitive stocks among the worst performers," said Heinz-Gerd Sonnenschein, equity markets strategist at Deutsche Postbank in Bonn, Germany.
In Britain, the Bank of England said that inflation will fall well below its 2 percent target in two years, even if interest rates remain at their record low, leaving scope for further policy easing if the economy worsens. [ID:nBOE004293]
Banks were lower, with Barclays (BARC.L), HSBC (HSBA.L), Societe Generale (SOGN.PA) and Deutsche Bank (DBKGn.DE) shedding 1.2 to 3.8 percent.
Europe's main barometer of investor anxiety, the VDAX-NEW volatility index .V1XI, rose to a five week high and German government bonds rallied as investors' appetite for risk waned following the U.S. Federal Reserve's gloomier assessment of the economic recovery.
Miners were pressured by falls in the price of copper and other metals as the dollar rose against a basket of currencies. Eurasian Natural Resources Corp (ENRC.L), Kazakhmys (KAZ.L) Vedanta (VED.L) and Xstrata (XTA.L) fell 1.9 to 3.1 percent.
Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC40 .FCHI declined 1.6 to 1.9 percent.
The Euro STOXX 50 .STOXX50E index of blue chips in the euro zone shed 1.8 percent to 2,751.31 points, falling below its 61.8 percent retracement of its slide from a high in April to a low in May of 2,805.69 points and holding above its 50 percent retracement at 2,736.73 points.
SMITHS GROUP STRONG
Smiths Group (SMIN.L) bucked the weak trend, rising 2.7 percent to extend the previous sessions' gains, as traders cited break-up hopes for the British technology firm.
On the downside, chipmaker Infineon (IFXGn.DE) fell 2.6 percent, after technology stocks in the U.S. weakened following earnings reports.
Steelmakers ArcelorMittal (ISPA.AS), ThyssenKrupp (TKAG.DE) and Salzgitter (SZGG.DE) fell 2.3 to 3.7 percent as traders pointed to increasing pressure on prices and analysts gave a negative outlook on price development in the coming quarters.
On the macroeconomic front, growth in Chinese investment and factory output slowed further last month as the government brought credit growth back to normal after a record lending spree in 2009 to counter the global financial crisis. [ID:nTOE67A01A] (Editing by Louise Heavens)
By 1045 GMT, the pan-European FTSEurofirst 300 .FTEU3index of top shares fell 1.4 percent to 1,047.64 points, falling for the second day in a row.
The U.S. central bank on Tuesday offered a more sombre assessment of growth and said it would reinvest the money from maturing mortgage bonds it holds into government debt to counter recent signs of economic weakness. [ID:nN09275781]
"The comments from the Fed yesterday are weighing on the market. There is a bit of nervousness about the outlook for the U.S. economy and we see some economy sensitive stocks among the worst performers," said Heinz-Gerd Sonnenschein, equity markets strategist at Deutsche Postbank in Bonn, Germany.
In Britain, the Bank of England said that inflation will fall well below its 2 percent target in two years, even if interest rates remain at their record low, leaving scope for further policy easing if the economy worsens. [ID:nBOE004293]
Banks were lower, with Barclays (BARC.L), HSBC (HSBA.L), Societe Generale (SOGN.PA) and Deutsche Bank (DBKGn.DE) shedding 1.2 to 3.8 percent.
Europe's main barometer of investor anxiety, the VDAX-NEW volatility index .V1XI, rose to a five week high and German government bonds rallied as investors' appetite for risk waned following the U.S. Federal Reserve's gloomier assessment of the economic recovery.
Miners were pressured by falls in the price of copper and other metals as the dollar rose against a basket of currencies. Eurasian Natural Resources Corp (ENRC.L), Kazakhmys (KAZ.L) Vedanta (VED.L) and Xstrata (XTA.L) fell 1.9 to 3.1 percent.
Across Europe, Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC40 .FCHI declined 1.6 to 1.9 percent.
The Euro STOXX 50 .STOXX50E index of blue chips in the euro zone shed 1.8 percent to 2,751.31 points, falling below its 61.8 percent retracement of its slide from a high in April to a low in May of 2,805.69 points and holding above its 50 percent retracement at 2,736.73 points.
SMITHS GROUP STRONG
Smiths Group (SMIN.L) bucked the weak trend, rising 2.7 percent to extend the previous sessions' gains, as traders cited break-up hopes for the British technology firm.
On the downside, chipmaker Infineon (IFXGn.DE) fell 2.6 percent, after technology stocks in the U.S. weakened following earnings reports.
Steelmakers ArcelorMittal (ISPA.AS), ThyssenKrupp (TKAG.DE) and Salzgitter (SZGG.DE) fell 2.3 to 3.7 percent as traders pointed to increasing pressure on prices and analysts gave a negative outlook on price development in the coming quarters.
On the macroeconomic front, growth in Chinese investment and factory output slowed further last month as the government brought credit growth back to normal after a record lending spree in 2009 to counter the global financial crisis. [ID:nTOE67A01A] (Editing by Louise Heavens)
Tuesday, August 10, 2010
Analysis GBPJPY
If GBPJPY penetration into area 135.00, pair it might be down/bearish into area 134.80 today, pair now in the area level 135.20-135.05 and trying to penetrate 135.00, Beware out a Daily range, because has been meet, High and Low range 169pips, daily range only 144pips, condition in Hourly chart was overbought CCI (14)Short position ,Exit on 7pips, tomorrow maybe GBPJPY daily target fall/bearish until 133.30
GBPUSD Scalping M5
GBPUSD according to my analysis, Done in area level 1.5785, Hits 34 pips (2 Open Position)
Monday, August 9, 2010
Scalping Today
GBPJPY Hits 20pips
GBPUSD + 22pips, daily target bearish to 1.5785
Scalping EURPY on News Release, BRC Sales Monitor y/y & RICS House Price Balance,
Previous 8%, Forecast : 5 %, Actual : - 8%, Hits ++35pips
Scalping M5 GU-Parabolic in the ouside Bollinger Band
Scalping M5 GBPUSD,Parabolic Sar in the outside line Bolingger Band 20, Hit 30pips (double Open Position)
Thursday, August 5, 2010
Analysis EURUSD
EURUSD yesterday suffered a correction to the area level 1.3117 and then bullish again to the area 1.3234, but still not penetrate to the highest area 1.3261,upside strong for this pair still going on today,beware on overbought condition RSI ( 14 ) and Stochastic ( 7,3,3) in daily charts, i still waiting to entry for this trading because a lot news today,
Support & Resistance Today :
R-3 1.3358 - R-2 1.3290, R-1 1.3235 and S3- 1.3125, S2-1.3060, S1- 1,3005
News On Today :
French Central Government Balance, French Consumer Price Index , French Trade Balance, ECB Presiden Trichet Speaks, Italian Industrial Production, Italian Prelim GDP q/q,German Industrial Production m/m, Unemployment Rate, Non- Farm Employment Change, Unemployment Rate , Average Hourly Earnings
Support & Resistance Today :
R-3 1.3358 - R-2 1.3290, R-1 1.3235 and S3- 1.3125, S2-1.3060, S1- 1,3005
News On Today :
French Central Government Balance, French Consumer Price Index , French Trade Balance, ECB Presiden Trichet Speaks, Italian Industrial Production, Italian Prelim GDP q/q,German Industrial Production m/m, Unemployment Rate, Non- Farm Employment Change, Unemployment Rate , Average Hourly Earnings
Wednesday, August 4, 2010
ISM-Non Manufacturing PMI Hits,EURUSD Hits + 28pips
Open Long Position, Before ISM-Non manufacturing PMI Release
I changed Long Position in pair EURUSD to Short, Cut Loss -6pips, because the results ISM-Manufactuim PMI News good visible for US Dollar, Forecast 53,2 and Release 54,3, Exit on +28pips, Cut loss- 6pips = Total hits +22pips..DO NOT BE GREDDY
Monday, August 2, 2010
Analysis GBP & Headline News
- GBPUSD : Hourly and Daily charts strenght to support the uptrend to the next level 1.600, but beware to breakout the support of 1.5778, the risk of a correction for turning things around towards the down, Resistance : 1.6040 - 1.5970 - 1.5910, Support : 1.5685 - 1.5830 - 1.5850
- Stronger European profit pushed GBP at the highest level in six months against the US Dollar, whereas the single currency, EUR reaches $ 1.32 and for the first time since early May.
- US Dollar to its lowest in three month on Monday (8/2/2010), while EUR gained after passing throught the technical level key
Good Job EURUSD..!!!
Good job EURUSD..!!!... volatile currency pair today is according to my analysis, after a long sideway/flat, finally this currency pair has been bullish around 1.3195 in area level resistance 3. I entry shortt position to take momentum reversal candle
Sunday, August 1, 2010
EURJPY & EURUSD Analysis
EURJPY Scalping Position Hits +12pips, 13pips..Total ++25pips
EURUSD Bullish in the Market Asian,Pair has the reached area level 1.3070.and will be up on the area level 1.3110, I've Entry in area level 1.3077 TP 1.3106,if the area is penetrated 1.310, then the EURUSD will continued to rise, but be carefull in trading monday, because the market usually dificult to guess and a lot of news to be released today, Beware of news release Retail Sales y/y(CHF) . Manufacturing PMI (GBP), ISM Manufacturing PMI (USD), Fed Chairman Bernake Speaks (USD)