July 21, 2010

Forex Trading - How to analyse Forex Charts?

To succed in forex trading by having one profitable trade after another, one necessary ingredient as we all know is correct chart analysis. If your chart analysis is not correct, you cannot proceed further.

Chart analysis is not just about plotinhg correct currency pair or having most advanced indicators. It is also about timing as well as having a clear mind with no pre-conceived notions.

Let us look at some of the key essentials and necessaties of making sure that you analyse the chart correctly -

1. Timing of analysis - By this what I mean to make sure that when you are analysing the chart the market is ready for accepting trades. If for example you are analysing close to a fundamental announcement like Non-Farm Payrolls, then definitely placing a trade at that time will be highly risky! Or if you are analysing during off-liquid hrs, then the analysis will not be correct.

2. Plotting the indicators correctly - This is an obvious one. But often traders make mistake while plotting tyhe indicators. Sometimes they either plot too many indicators and sometimes far too few. There shouldn't be more than 3-4 indicators plotted at any time. Out of these one indicator should be primary and the rest as confirming indicators.

3. Avoiding pre-meditated mindset - This is a big point. Let me tell you an example. Years ago when I was trading, I used to have a mindset whenever I opened the charts that I need to find a trading opportunity. So, I used to look at charts differently and ecause of my pre-meditated mindset I used to find tradinmg opportunities when they didn't used to exist. Needless to say most of these trades used to end in loss.

A trader should always analyse the chart with a clear mind and be ready for the fact that the trading opportunities will not be available each and everyday. But when they exist, s/he should not second guess and should place the trade without any fear.

There are other aspects also when doing correct forex chart analysis. But if you are able to master the above 3 aspects, then you can be certain that you have got atleast 90% of analysis right!

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July 14, 2010

Currency Pairs - Which Forex Currency Pairs should you trade?

Forex Traders sometime ask me suggestions on which Forex currency pairs should they typically trade.

If you are ever had same confusion, then it typically implies few things -

1.You don't have any particular Trading plan in place - The reason I saw this is because If you are not sure of pairs to trade, then it means that you are not referring to a particular trading strategy. Each good trading system highlights which currency pair it works best with.

2. The trader doesn't has enough insight in each currency pair - See, if you are aware of what are the positives and limitations of each currency pair, then the decision will become much easier. For example, we know that USD/CAD is highly influenced by Oil prices. Similarly, USD/CHF has negative correlation with EUR/USD. Another one, EUR/GBP is less volatile so it moves slow, but each pip is worth $1.5

The selection of currency pair to trade should be based on -

1. The volatility of the currency pair - Does it move much? Does it move enough to follow technical patterns?

2. What is the spread - If the spread is large like 10-12 pips, then the currency pair is not suitable for day trading.

3. Is the currency pair technicaly moved or is it highly driven by economics - USD/JPY for example is highly economically influenced and doesn't respond to technical analysis that well as compared to other currency pairs

The above factors will help you decide on currency pairs that you should trade.

Now, if you ask me one or two currency pairs that you should always consider, I would recommend you - EUR/USD and GBP/USD.

Why? Because they meet all the above requirements. They are highly liquid, they have very tight spread like 2-4 pips across more or less all the brokers and they respond very well to technical levels.

So, if you are just starting in forex trading, start with these currency pairs.

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April 21, 2010

Delphi Scalper Bonus - Details of my $691 Delphi Scalper Bonus package

I just created a video to explain you my $691 Delphi Scalper Bonus package. Watch this short video to know the details.

The details are available at - http://www.Delphi-Scalper-Bonus.com  .Remember, I am giving this bonus to only 1st 25 people

Remember to follow the instructions and use this link to claim my Delphi Scalper Bonus package

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April 19, 2010

Delphi Scalper - Webinar on Delphi Scalper

Delphi Scalper - I just came to know today that Jason Fielder is organizing a delphi scalper webinar on 21st of april to anwer the questions that forex traders have send him related to Delphi scalper.

Since there are only limited number of people he can accomodate for this webinar, you must make sure that you register immediately.

Here is the link to register for this webinar.

Oh, by the way. A lot of you have been asking me what is the bonus I am offering on Delphi scalper?

Well, mark your calenders tomorrow because thats when I'll tell you details about my Delphi Scalper Bonus and how you can claim it.

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April 12, 2010

Delphi Scalper Review - Scalping Video from Jason Fielder

Jason Fielder from Delphi Scalper team just released a free Scalper Video. It contains very nice content on Scalping. Let me do review of Delphi Scalper new video. This video is just to build the correct understanding in the minds of traders.

The Video contains one very interesting point - How to separate good Scalping Softwares from the non-performing ones. This is very important since a lot of scalping systems out there implement non-profitable money management principles.

Non Profitable money management principles is a big reason why most of the scalpers loose money in forex market. I mean if a scalper aims to make 15 pips in profit per trade by risking 50, then over a period of time he is bound to suffer losses. This Delphi Scalper Video tells how to identify a good scalping software

Check out this site for the Review as well as an amazing Delphi Scalper Bonus

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April 7, 2010

Delphi Scalper Review - And also Bonus Offer on Forex Delphi Scalper

Delphi Scalper is a new forex software which Jason Fielder is coming out in few days time. This looks to be a nice scalping software which can help in making some quick profits. I'll post review of Delphi Scalper as well as details of a marvellous bonus in coming days.

Scalping is very popular among traders since it is quick hit and runa pproach..You wait for the opportunity to open a trade, monitar the trade for few minutes and then take away some quick profits.

So, the beauty of scalping is that you can place scalping trades multiple times a day. Also, since each trade lasts for just few minutes, you need to monitor the trades for very limited durations.

But the only thing a scalper has to take care is of making sure that entry point of the trade is precise as there is little margin for error in scalping. Jason Fielder needs to take care of this aspect in Delphi Scalper.

So, watch out for my review of Jason Felder's Delphi Scalper in coming days as well as details of the amazing bonus for Delphi Scalper

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March 7, 2010

Online Forex Trading - What is Rollover Credit and Debit in Forex?

Forex Rollover Credit and Debit is the term used that is meant to tell about the interest the bank charges or pays to the trader for having trades rollover to next financial trading day.

In forex trading, as you know the trading day is considered to start at 5 PM EST till 4:59 pm the next day. So if you have a trade which was not closed on the same trading day, then the broker will provide the forex rollover credit/debit depending on the interest rate prevailing in the currencies involved in the trade.

So, lets say you opened a EUR/USD trade at 2 PM today that you don't close by 5 PM, then your broker will check the bank interest rates of EUR and of USD. Since in this case you have bought EUR by selling USD, you'll earn the interest on EUR, but will give the interest of USD to broker.

So, if EUR interest is 1% and USD interest is 0.7%, your net gain is 0.3% (1-0.7) and you'll receive the Rollover credit applied to your trading account.

Few points related to Forex Rollover Credit/Debit -

1. The rollover values fluctuates since bank interest rates doen't remain the same across trading days.

2. This concept of rollover credit and debit is primarily applicable to swing trading where the trade lasts for days/weeks/months. If you are day trading, then you won't have to worry about this at all since the typical day trades happen between 1 AM to 3 PM EST.

3. Even though there is money involved, the trade decisions by individual traders are not that much influenced by the rollover credits. The trade decisions are based on technical analysis. Profit/Loss  from Forex Rollover credits/debits values is very low as compared to profit/loss made by currency movement.

Feel free to post your thoughts in the Comments..

Here you can see a Forex Swing Trading System that you would like!

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