Ninja Trading

The FOREX trading strategies and 7 basic rules

Working with right trading strategy is critical for successful FOREX traders. The strategies based on fundamental and technical analysis mix eliminate profits at big time scales. The key to FOREX big profits is in identification of big trends at right time.

Today the exchange participants have several analytical tools that are able to forecast the market movement. To understand and be able to use these tools is essential for beginning traders. You have to have a good knowledge of basic notions to be able to use the successful strategies.

The prices trend keeps moving until it breaks the support or resistance level. Every time a currency breaks the resistance level the price would still rise for some time. The same as when a currency breaks the support level the price would still decrease for some time. If you can detect it at the right time than the luck “would turn its face to you” resulting in big profits.

FOREX has several internal and external factors affecting the trend changes. To identify that you need to be aware of all major factors and to understand that they depend on general and technical reports.

The charts analysis is one of the most reliable ways to detect a trend at the right time. To determine support and resistance levels you have to analyze the prices chart at several time intervals. The longer the chart and the longer intervals it has the more trustworthy your analysis would be. Traders then use these levels to take a decision on specific currencies buy and sell operations.

The mean values analysis and shifting is another trend identification general method. The mean values shifting provide you with better overview of changes in prices as this eliminates the short price waves in time periods. If the price moves over the mean shifted value it might go to the next level. And if the price is lower than it would need some more time to pass.

7 FOREX unbeatable trading rules

Rule #1. Never risk with bigger amounts than you may easily lose as you might lose all your money. All experienced traders insist that you may never “put everything on last card”.

Rule #2. Never risk with amounts bigger than 2% of your trade account. It’s different for mini-trading. Say you’ve got $300 on your account but you need to risk with close to $15. Well, go for it but as your account grows limit yourself with 2% risks.

Rule #3. Always set stop-losses. If it is unclear where to put the stop-loss don’t make a deal.

Rule #4. Before you enter you have to know your exit point.

Rule #5. Before you open a real account become a successful trader with virtual one.

Rule #6. If your share “jumps in water” take a break.

Rule #7. Don’t let your emotions to rule over your mind and actions. You can beat the system only with clear mind and patience.

The choice of a foreign currency trading service is not an easy task. And one shouldn’t hurry up to make a decision on such a service.

It is very important that you follow some general tips – today the online technologies give you a truly unique chance to choose what you need at the best terms which are available on the market. Funny, but most of the people don’t use this opportunity. In real life it means that you should use all the tools of today to get any foreign currency trading information that you need.

Search Google and other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and participate in the online discussion. All this will help you to create a true vision of this market. Thus, giving you a real opportunity to make a smart and nicely balanced decision.

P.S. And also sign up to the RSS feed on this blog, because we will do the best to keep this blog tuned up to the day with new publications about the topic of foreign currency trading companies and important trends on the currency exchange market.

The traders: mistakes and advices

Unfortunately, most traders are often get caught by the same traps that could be avoided when followed certain rules. So, let’s discuss them now.

1.Buying on top

Most traders open their positions when they have to be closed. By Elliot’s theory it’s a moment of 3rd and 5th waves ending. You would surely have some chances to get the big tip but the risks are greater. Resulting such actions a trader gets a little profit but promptly the rates move down and a trader suffers losses. To avoid that always remember:
-if the volumes increase and the rates are on top of the market and prices don’t rise than you should never buy;
-buy only at the market that is growing and volume supported and in case there was a resistance level breakout;
-to every buy there’s a sell where a trader finishes his long deal or enters in short position;
-the currency prices and volumes always make trajectories characterized by same direction.

2. Selling at base

It’s also a frequent mistake. It is a reverberation of previous one for here we have a mix of volume increase and rates decrease. People may lose lots of money on that for with short position you may not hold the market growth. So, remember:
- if the volume grows and prices are at the market base you should never sell. Use it when all support levels are broke and there’s no predisposition for prices drop;
-sell only at the market that is going down and is supported by volume and in case of support levels breakout.

Trading advices

1. A trader should never play against the market
As currency exchange is characterized by rates movement directions you should learn the market “mood” and open most positions towards priority trends.

2. Follow the strategies and not picks
Basically, you should buy at the base and sell on top but to enter the market you have to first understand its high and low sides. Beginners should first learn the market “mood” and then try to get the top and bottom sides of current trend. If you predict the other players’ expectations you would have success.

3. Trader must “give birth” to every decision
Trader should act only according to his plan and be disciplined. If you think you may not control the situation than fix all previously opened positions as chaos may bring you losses. Before you enter you should analyze the market, set all necessary levels and watch the trend development until it matches your assumptions.

4. Equalize take profits with stop losses.
These two are essential as they can regulate your losses. Any beginner noticing some profit takes it right away but may not close his loss position hoping the trend would go to needed side. As the result the loss of capital occurs in early stages. When market start opposite side movement close your loss positions if it is not beyond the logical reasoning.

The choice of a foreign currency trading service is not an easy task. And one shouldn’t dash to make a decision on such a service.

It is very important that you follow some general tips – today the Internet technologies give you a really unique chance to choose exactly what you require for the best price on the market. Funny, but most of the people don’t use this chance. In real life it means that you must use all the tools of today to get any foreign currency trading info that you need.

Search Google or other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and join the online discussion. All this will help you to create a true vision of this market. Thus, giving you a real opportunity to make a smart and nicely balanced decision.

And also sign up to the RSS feed on this blog, because we will everything possible to keep updating this blog with new publications about the topic of how to trade foreign currency and important trends on the currency exchange market.

Jake Bernstein – the trading psychologist

As Jake Bernstien, one of the most famous futures contracts traders said in his interview to FWN he started trading “by occasion”. He was a psychologist who responded to newspaper announcement about futures. By advice of his trader he opened an account. “I had a quick success turning to the same quick loss,” – says Bernstein. After following his broker’s advices Bernstein decided to trade himself. Now he is the active trader that works via his computer.

“I always was techniques oriented with pricing rules, seasons and cycles.” Bernstein first developed his own method of time calculation and as he didn’t have money to trade he was giving advices for money. When he saved enough money he started practicing his own method.

Now Bernstein is the president of MBH Commodity Advisors in Vinnetka, IL and the author of over 20 books. Since 1972 he publishes MBH Weekly Futures Trading Letter bulletin and teaches trading. He’s also a member of All Star Traders Hotline. “I learn my methods are effective every time I teach,” – says Berbstein adding that bunch of traders are usually misinformed so it is fun to teach things that work.

Bernstein enters the most active futures markets such as energy supplies, finances and S&P contracts. But he says he trades everything that changes predictably and he never trades palladium and orange juice for he dislikes the way of orders execution there.

When asked about analysis erosion because of many traders became the same graphic patterns oriented he replied that graphic patterns are at the same time a science and an art for if 10 people have the same conclusion by looking at the same chart it is called the objective reasoning. He also gave an example of Elliott’s analysis as the one that is highly subjective for people calculate the waves there based on own perception.

This trading veteran created his webpage and is optimistic about Internet effects on traders: “I think as Internet provides the prompt info distribution it allows more people to enter markets worldwide which increases their possibilities”.

Also Bernstein doesn’t think that electronic trading is capable of traditional exchanges displacement in nearest future: “I’m not sure about it for now as there’s always a room for a trader and a broker at every exchange. And if a broker is effective he would be demanded”. Though, Bernstein himself always was a “screen” trader because of his shortness and he explained that tall people at exchange would have an advantage over him. Speaking of present futures Bernstein predicts new inflation: “We are about to face one of the biggest inflation tendencies since 70s. The precious metals would go up in price. We now see the crops’ rise in price and energy supplies just go crazy and these are the inflation marks. We will see the interest rates increase and their huge bear market”.

To finish with here’s Bernstein’s advice to beginning traders: “Start with good capital, diversify, deal on wider and wider ranges and manage your risks.”

The choice of a foreign currency trading service is not an easy task. And one shouldn’t dash to make a decision on such a service.

It is very important that you follow a final piece of advice – today the web technologies give you a really unique chance to choose exactly what you need for the best price on the market. Strange, but most of the people don’t use this opportunity. In real practice it means that you should use all the tools of today to get any foreign currency trading information that you need.

Search Google or other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and participate in the discussion. All this will help you to create a true vision of this market. Thus, giving you a real opportunity to make a wise and nicely balanced decision.

And also sign up to the RSS on this blog, because we will everything possible to keep this blog tuned up to the day with new publications about the topic of learn foreign currency trading and important trends on the currency exchange market.

George Angell outlines volatility and liquidity

The independent trader George Angell has proposed to use two moments – volatility and liquidity, which are important and have to be taken into account. He presently trades only with S&P 500 futures making only intraday deals never making the deal open overnight. Hi insists that you can never avoid volatility and liquidity as you would never have chances to trade intraday with something like oats.

As Angell recalls the early 70s: “I first bought sugar and it rose then I bought some carbon and it rose too so I bought some more carbon… Then the prices fell so I called my broker and ordered him to sell and he replied where to?” Then Angell became a trader for MidAmerican Commodity Exchange dealing generally with gold. Though he now works via computer he thinks his exchange experience is priceless.

He thinks that being short-term oriented people at exchange taught him the right times to enter, catch a trend, and take his profit and leave. Still, now he works only via computer at thousands of people at exchange never allow him to concentrate. Angell also says that technical revolution equalized all traders’ chances. He mentions that now exchange traders have no advantages over those not at exchange. “Now the mass trader benefits for masses are not able to speculate with insufficient benefits,” – Angell admits. He also thinks the practice prevails over the theory as LSS and Spyglass should be used in intraday operations up to own experience.

Angell never uses stops but action points because the stops give you the worst possibility to enter. Instead the action points signal to leave and wait for the breakout.

Angell started to work at Chicago Exchange when they invented S&P 500 contract but as with 1987 stock market collapse S&P liquidity disappeared he switched back to secured loans as with every tick there was a possibility to buy/sell them by thousands.

Angell also says that all markets have different traits and you have to know yours good enough as at different markets traders act differently. And every trader should also have a narrow specialization either in S&P or in black months, or in spreads or in intraday trading.

When asked about why many futures traders have no success Angell pointed out 3 factors: “First, lack of discipline. Second, lack of finances. Third, lack of knowledge as they don’t even get paradoxes.” He explained paradoxes by the situation where all people trade to pass by the stops and everybody is aware of the price going up at the same time not everybody can get profits.

Angell gives the following advice to the beginning traders: “Have enough finances. You also have to have a risk capital that you may afford to lose. Also, never think of money but always think of the market as money can take care of itself.”

The choice of a foreign currency trading service is not an easy task. And one shouldn’t hurry up to make a decision on such a service.

It is very important that you follow a final piece of advice – today the online technologies give you a truly unique chance to choose what you require at the best terms which are available on the market. Funny, but most of the people don’t use this chance. In real life it means that you must use all the tools of today to get any foreign currency trading information that you need.

Search Google or other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and participate in the online discussion. All this will help you to build up a true vision of this market. Thus, giving you a real opportunity to make a smart and nicely balanced decision.

And also sign up to the RSS feed on this blog, because we will everything possible to keep updating this blog with new publications about the topic of foreign currency trading companies and important trends on the currency exchange market.

FOREX trade principles

Don’t expect me to put here any comparisons of brokers’ strengths and weaknesses and advices on who to work with and who not to for it solely your choice is.

Any investment is connected with variety of risks. I underline any for whether you deposit your money to the bank or loan your neighbor there’s always a chance of not getting announced interests or losing the part of money or the whole amount. Surely, in mentioned cases the level and possibility of such risks are different. See, Russian investors already know by experience that trustworthiness is never indicated by fashionable offices, bunch of certificates and even the company relativity to state authorities. In bad times every company would rather lose the money of private investors, i.e. us. So, what could be the risk level indicators? I would name the most important as for me.

1. Basic company goals
2. Mechanisms of achieving goals
3. Company management that is essential for its successful and long-term functioning
4. Availability of own resources to stand the force majors

The rest (company history, office in downtown, etc.) are not so essential. I guess, every company just as a person may be born, mature, get old and eventually die and the life cycle for most of modern enterprises is 3-5 years (proved by statistics). So, if company tells you it’s being on the market over 5 years than its end is near.

FOREX stands apart from other markets for it is out of exchanges. It was created 20 years ago with banks immediately entering it. Thanks to means of communication the banks started trading directly without the mediating exchanges. This market became global and no country was ever able to limit or regulate it by its laws. That’s why the “classical” financial managers hate it so much. Still, for many European and North American banks FOREX speculations are the main benefiting source as they constantly decrease their personnel operating at other markets.

So, FOREX is not regulated by laws of any country and the majority of countries just gets used to its rules. It implies that FOREX broker doesn’t need any licenses or certificates for it is just an organization. Some brokers may provide you with certificates on “Internet financial games organization”. False! There are no certificates like that. You can get a certificate on specific black jack table or slot machine but that’s not that case.

The second important factor is not regulated regardless of all complicated problems and risks connected with price changes in one way or the other. These problems refer to trust, honesty of operations, risk management and FOREX brokers marketing. Please understand that unlike at highly regulated exchange markets the FOREX brokers may not fall under any separate exchange by problems and risks character.

The selection of a foreign currency trading service is not an easy task. And one shouldn’t dash to make a decision on such a service.

It is very important that you follow some general tips – today the online technologies give you a truly unique chance to choose exactly what you need at the best terms which are available on the market. Strange, but most of the people don’t use this opportunity. In real life it means that you must use all the tools of today to get any foreign currency trading information that you need.

Search Google and other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and participate in the discussion. All this will help you to build up a true vision of this market. Thus, giving you a real chance to make a wise and nicely balanced decision.

And also sign up to the RSS feed on this blog, because we will do the best to keep this blog tuned up to the day with new publications about the topic of how to trade foreign currency and important trends on the currency exchange market.

Increasing a trader’s efficiency

There are certain ways to increase the efficiency of technologies traders use. For most of traders’ tasks are similar and can be categorized as follows:
1. Choice of actions matching the game strategy
2. Certain period price dynamics forecasts
3. Specific orders placement

These tasks refer to 3 stages of traders’ activities: collecting and analyzing the data; forecasting the situation; taking decisions to correct actions when dynamics doesn’t match the forecasted. These parameters are essential for analytic software developers.

This way for choice of actions most of times the stock-screeners (or filters) that chose actions by given parameters are widely used.

For prices forecasting the variety of tools are used – from traditional extrapolation to neuro-network algorithms.

Most order placement systems allow programming the parameters for automatic placement of orders. Though these parameters are set solely by users for most automatic trade systems are incapable of doing so.

Ok, the developers make the software based on management theory but when it’s used for investments management in traditional areas you never get sufficient outcomes. So, why does it happen?

See, most programs are operated by simple decision taking algorithms and the market operates by variety of more complicated ones.

Here would be in hand some tool allowing determining acceptable indexes intervals for every action criteria that match the set tasks.

Forecasting also uses pole methods – either very simple or too complicated ones that are hard to practice. The simple methods are based on standard extrapolation and the complicated ones are based on unclear logic or neurotic networks.

The presets for these two fields may be adequately developed only by narrow specialist. For example, the essential part plays the formation of educative variety and it’s very complicated to clearly specify the moment for education stop. Surely, adaptive systems may educate themselves “without teacher” or “with teacher”. The first case implies that change in model parameters is performed in correspondence with internal algorithm integrated in model. The second case presumes the direct setting of changes needed.

Often “the teacher’s opinion” is the value of forecasting mistake which is called the base function and here the target of education is to set parameters to minimum function. This has an overfitting problem that refers to practice variety randomly selected.

The model detects required relation and minimizes the base function mistake. But after the model sets itself to practice variety noted thus describing the variety’s specifications instead of row indexes dynamics regularity.

Besides, the systems are unaware of the amount of educational channels, price rows basic predictabilities and data volume needed from each channel.

The efficiency of complicated forecasters is determined by the levels of all preset parameters solution and refers to user’s skills.

The hardest part in it is processing of analysis and forecasts to actions taken. To take a wise decision you need all statistics on the possibility level of detected rules being right.

The choice of a foreign currency trading service is not an easy task. And one shouldn’t dash to make a decision on such a service.

It is very important that you follow a final piece of advice – today the online technologies give you a really unique chance to choose exactly what you require for the best price on the market. Funny, but most of the people don’t use this opportunity. In real life it means that you should use all the tools of today to get any foreign currency trading information that you need.

Search Google or other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and join the online discussion. All this will help you to build up a true vision of this market. Thus, giving you a real opportunity to make a smart and nicely balanced decision.

P.S. And also sign up to the RSS on this blog, because we will everything possible to keep updating this blog with new publications about the topic of foreign currency trading companies and important trends on the currency exchange market.