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Based on my own experience as well as working with hundreds of traders over the years, I have come to the conclusion that there are three major components to winning in the stock market. An excellent Method, a customized Plan that fits YOU, and the right Mental Approach. While mastery of each of them is paramount, building the right Mental Approach seems to be the most challenging to master for the majority of traders. Without a winning attitude and the proper mindset, even the soundest of all methods will lead to lost money. In fact, a winner is more defined by mental make-up than by method. This is why the trader with a winning attitude and a faulty approach can still produce positive results, while the trader with a loser's mentality will stumble and fall, despite an excellent approach. Don't think so? What do you actually think causes one trader to play six winners in a row, and another to experience six consecutive losses? How is it that one trader can use a daily newsletter and win, while another uses it and loses? What do you think differentiates the person who buys XYZ and wins, from the person who buys the same XYZ and loses? The difference lies in the Mind, plain and simple. One of the most revolutionary axioms I have ever come across is this: "As a man thinks in his heart, so is he," and this universal truth is just as applicable to traders as it is to anyone else. Monitor the attitude of a winner and you will find a level of confidence and certainty that is almost beyond belief. And while most people will make the mistake of assuming that winners are confident and certain because they win; the truth is that winners consistently win because they are confident and certain. No method, however sound, will work for the trader who mentally pictures himself losing before each trade is placed. And no amount of Money, however large, will save the individual who secretly harbors the belief that, "Whatever I touch, turns to mush." As choice-making individuals, we must choose a winner's mindset. You can never fail, or even feel like a failure, if you recognize the simple fact that you are not your results. You create them, which means that you posses the power to alter them if you happen not to care for them. There is room at the top for all dedicated traders, but the first step is to actually believe that. The second is to start acting like it. Think the part, then act the part and the rest mysteriously takes care of itself. But don't take my word for it. Just try it. Jared Wesley

Good Morning All: If the title sounds a little confusing, it was meant to. The issue to be discussed today is not just 'when' to trade. There are trades that can be done any time the market is trading. That does not mean that you should be trading all day long, it just means that the times you pick to trade can be any time, IF you know what to trade. These next three articles will discuss this issue, and are geared toward the 'intraday trader', not the swing trader. When to Trade What, Part 1 of 3 The comment above said that trades can be done any time of the day, does that mean even lunch? Yes. While it is often much discussed 'not' to trade lunch, part of that statement is left off. Do not trade lunch, unless you know how to trade it. Lunch is the time when many traders get into trouble, because they do not realize that many things will not act the same during lunch as they do during 'non-lunch' times. The first issue to consider is the volatility and target expectations. If you could give a 'volatility rating' to the market, or stocks in general, it would look like this. If things move '1' during lunch, they move '3' between 2:15 and close, and move '5' between open and noon. If you do not realize this, targets will be unrealistic and lead to frustration. Before Open: So how do you focus your time? For many people, the time spent between 8:30 and 9:30 may be the most productive (all times are Eastern, New York, market time). Preparing your watchlist, forming a gap list, and starting a market bias can be key to how your day goes. Get ready for the open by picking the best of your favorite stocks, the best of your daily watchlist, and the best of your gapping stocks and know how you will play them, if at all, before the market opens. The First Five and Thirty Minutes: Very few traders realize the power of reversal times, or the power of having the knowledge of how to trade each part of the day. Most traders, who play trends and breakouts, should not even be playing the first thirty minutes of the day. Look at your records. The chances are that you have a very low batting average for trades taken during the first thirty minutes. The only trades that should be taken during the first thirty minutes are based on gaps or other very special strategies. The 9:35 reversal time is one of the most reliable, yet few traders realize its power. Many get stopped out of plays, rather than profiting from, the 9:35 reversal. The above chart shows an example of a price pattern that gapped bearishly, sold off hard for less than two minutes, and turned around so quickly, most traders who mistakenly tried to short the move down suffered losses. Knowing that this flurry move down offers a buying opportunity on a regular basis when played on the right stock can turn potential losers into big winners. Once the five-minute reversals are over, many stocks have solid moves into the 10:00 reversal time. This reversal time can run anywhere from 9:50 - 10:10, but the power move usually comes closer to 10:10. Trends between 9:35 and 10:00 are usually very reliable, if backed by a strategy. However, 10:00 or 10:30 are the reversal times that often set highs or lows for the day. Stocks that do not reverse at these key times may go on to be 'power trends'. Closing Comments: Traders who do not have clearly defined trading plans will not make it in this business; it is that simple. All plans should pay close attention to 'when' trades are being taken and factor in the power of reversal times. Next week, we will look at the power of these two critical morning reversals, and the arrival of lunch. Paul Lange

The EURUSD is continuing to hold its uptrend on the weekly chart after this last retracement. We are starting to come into an area where buyers on the weekly chart may become interested. The daily chart pulled back and tested the 1.3700 level and bounced a little bit. If the EURUSD takes out the 1.3775 level look for a quick move to the 1.3800 in the near term. The weekly chart on the GBPUSD remains bullish. Last week steady buyers came into the market. Watch for the GBPUSD to continue to move higher but wait for a possible PBS on the 4 hour chart near the 1.6600 area. The AUDUSD had a fairly bullish week last week as prices moved into the 40 ma on the weekly chart and the .9300 area. We saw sellers react to these levels as prices began to come off on Friday. Look for the daily chart to possible kick off a retracement to the .9100 to the .9130 area. The USDCAD still looks like the uptrend on the weekly chart is still intact after this recent retracement. The weekly chart may want to continue to come off further or base out. The Daily chart retraced and tested the 1.100 level last week. The hourly chart shows a strong amount of buyers coming into the market at the 1.100 area. Watch for the USDCAD in the short term to make another effort higher to the 1.1100 level.

Do you ever wonder what separates an average trader from a great trader? There are two very important things that differentiate these two types of traders: Discipline and Confidence. Today, I would like to focus on the latter. Being a confident trader is paramount to succeeding. Quite frankly, without it, it will be very difficult to attain a high level of success. There is a fine line between confidence and doubt, especially in trading. After several winning trades, most people typically have a positive approach to their next trade. However, after a few unsuccessful trades, many traders lose that "swagger" and the shrouds of doubt begin to creep into their mind. These demons can appear in several aspects of trading. Sometimes it's as simple as being afraid to pull the trigger on your next trade. Other times it's that strong desire to make your money back at any cost and then taking every trade you see, despite the patterns being of lower quality. Confidence will even affect trade management. For example, selling the winners too soon, and allowing the losers to run right into your stop loss, and on the extremely undisciplined side, letting losers run past your stop loss. These are just a few of the things that can happen when a trader loses confidence and let's doubt cloud their vision. This is why confidence can literally make or break a trader! I'm sure many of us have watched a basketball game in which a great player scores 50 points. After the game the interviewer commonly asks, "You were on fire! So what was it like out there?" The player often responds with something to the effect of, "I hit a few early on, built some confidence and after that I was in the zone! The basket looked twice as big as usual! I was really feeling it tonight." Trading is not much different. After 4 or 5 winning trades in a row, we believe we can do nothing wrong. Why? Confidence. On the flip side, if a basketball player misses 10 shots in a row, they might be more hesitant to take the next shot. However, the best players still want the ball. Despite missing 10 shots in a row, they still want to take the game winning shot. In this situation most average players would shy away from that kind of pressure, especially after such a terrible game. But the best always want the ball, regardless of the situation. It's simply a matter of confidence. Down to their core, they still believe they have what it takes to win the game, regardless of what happened previously. Do you have that level of confidence? How can we keep a confident, consistent approach to trading despite the inevitability of losses? The first thing any good trader will do is OBJECTIVELY evaluate the situation. Take a step back and look at the trades you've taken and ask yourself if they are within your trading plan, and what was the root cause of the problem? Were the patterns lacking in quality? Were you distracted by an outside influence or some other event in your life? Was the market not conducive to trading (i.e. a no-follow-through market)? Or was it just a matter of simple odds? Yes, sometimes it's just a matter of odds. Although it doesn't happen often, on occasion even good trades don't work. Unfortunately, after most traders have lost a few in a row, they get very "gun-shy" and start thinking about all the negative things that could happen if they took another trade. In this way, we start to question whether a certain pattern is "good enough" or whether we ourselves are good enough to make it in this business. By this point, our positive mental approach has been shattered, filled with fear and riddled with doubt. So the next time a great pattern appears; we will often pass on the opportunity, due to our increased sense of loss. One of the huge differences between a novice trader and a successful experienced trader is the ability to recognize what is happening, without letting our emotions make the decisions for us. A professional trader is a disciplined, objective individual who is extremely confident in their approach. Not only does this relate to taking trades, but it also relates to managing trades. Many novice traders will sell too soon in fear that the trade will go against them, yet they are all too happy to let a trade stop them out. The novice will take full advantage of the losers, yet cut the winners short. The root of this problem is confidence, or lack thereof. For a professional trader, his/her hope for gain far exceeds their fear of loss, whereas with a novice trader; their fear of loss far exceeds their hope for gain. The experienced trader knows that in the long run, over the course of a week, a month or a year, the odds will work in their favor. So, maybe they lose 3 in row, or perhaps they have a trade that gets within 3 or 4 cents of their target only to watch it pull back and stop them out. Despite these circumstances, they are not tempted to deviate from their trading plan when the same situation arises again, because they are supremely confident that the odds will work in their favor in the longer term. How many people have "almost" gotten to their target, only to watch the trade pull back and stop them out? What happens the next time this situation occurs? Many novices will take the money and run, in fear that the same situation might happen again. Once bitten twice shy. Yet, to their dismay, this time, the trade continues on and not only hits their 1st target, but eventually goes on to hit their final target. Frustrating isn't it!? This is why it is so important to stay disciplined and confident at all times and to not adjust your plan until you have back tested the results over a period of several weeks or several months. Professional traders come in everyday with the same positive attitude, expecting to make money. Even if, for some reason, they lose money on Monday, this absolutely will not change their approach on Tuesday or Wednesday. They wake up with the same belief every day, and that belief is the product of confidence. They are confident that what they are doing is right, and it will produce results. Even the best traders have losing trades, and on occasion, losing days. Losing is part of this business, it is completely unavoidable. It's just a matter of time before you have a losing trade. This doesn't mean you are a failure, or that you don't know what you're doing, it just means that for 1 trade out of 100's or even 1000's something went wrong. It's our job to figure out what went wrong, and to fix it. Remaining confident and positive allows the astute trader to quickly evaluate the situation and move on with even more confidence than before, because they've now eliminated one more way to lose. Remember, confidence breeds success, and success breeds confidence!! So, the next time you find yourself in a rut, perhaps having lost several trades in a row, do not let fear and doubt creep into your psyche. Just remain focused on the task at hand, which is to find quality patterns that produce results. We've all had losing trades; it's how we handle them that will define our success. Remember, those "few" losing trades will be very insignificant compared to a lifetime of trades. Don't let your fear of loss overpower your hope for gain, because the disciplined, confident trader is a successful trader! Always stay positive and objective! Jared Wesley The Confident Trader Day Trader School

Good Morning All: If the title sounds a little confusing, it was meant to. The issue to be discussed today, is not just 'when' to trade. There are trades that can be done any time the market is trading. That does not mean that you should be trading all day long, it just means that the times you pick to trade can be any time, IF you know what to trade. That is the point of this article. When to Trade What, Part 2 of 3 That was the opening paragraph last week in part one of this three part series. In the last letter we looked at some 'pre market' organization, and we discussed the first reversal time, 9:35 (all times are Eastern, New York, 'market' time). We then mentioned the next two reversal times, 10:00 and 10:30. This week, we will talk about those two key times, as well as the beginning of the 'lunch hour'. Next week we will conclude with part three. There are 9 micro reversal times. 4-5 of them are major and critical. Also, understanding HOW to use them and HOW they interact is imperative. Let's look at the morning reversals, 10:00 and 10:30: There is also a minor reversal time at 11:15. It is simply amazing how many traders do not use the reversal times to their advantage. This probably spawns from the fact that many traders do not even know or understand them. If you are one of those traders, you are going to learn something that will change your trading career in the next couple of paragraphs. A picture says a thousand words, so look at the charts below. These are the three five-minute charts of the QQQ from the LAST THREE TRADING DAYS, period. We generally give the reversal times a window of 5-10 minutes on each side. The key is when the Pristine Buy or Sell setup occurs, at the approximate time. The yellow 'stars' show the two major reversal times we are discussing. They are all happening 'right on the money', though they do not need to in order to be effective. Second, these charts are simply that last three days. They are not the result of a special search. If you continue this exercise on your own, you will be astonished. Most other days are even more amazing. Note, that the 10:00 and 10:30 major reversal times form a reversal, every time, and one of them usually sets the high or low for the day, or at least for the morning. This is typical of what you will find every day. Again, no effort was used to find these charts for this article. The only time this is not 'amazing' is when we have 'power trend' days that do not really reverse at all, and that is because the very definition of a power trend day is that the market carries a trend one way all day. Sometimes these days don not begin until the 10:00 reversal time puts in the first reversal, but these power trend days are rare; usually one every other month. Don't believe it? No problem, go take a look for yourself. Go print out a bunch of five-minute charts. Print them from the market, the futures, or your favorite stocks. Print some from this week, some from a month ago, some from two months ago. It does not matter. Then go through and draw vertical lines at 10:00, and 10:30. You will be shocked and amazed that virtually every day, you have drawn lines though the high and low of the day, or at least the high, until much later in the day. And you thought trading was tough. The next time period to look at is the beginning and ending of lunch. These times can change a little depending on if the market is 'trending' or choppy. Generally, the last true move ends around 12:20. We often count lunch as starting at 12:00, but if there is a strong trend in place, it may follow through until 12:30. On strong trend days, the last reversal around 1:30 often sets the trend back in place. If it is a choppy market (80% of the time), lunch may stay choppy, until the 2:15 reversal time. This one is usually in stone, and the whole lunch concept, as well as the afternoon reversals, will be discussed next week. Closing Comments: Traders who do not have clearly defined trading plans will not make it in this business; it is that simple. All plans should pay close attention to 'when' trades are being taken and factor in the power of reversal times. Next week, we will look at the power the lunch and after noon reversal. Paul Lange Vice President of Services Pristine Capital Holdings, Inc.

I'm going to write daily in this thread my journey using VSA to speculate in the currency markets. My purpose is to get better at this methods (VSA and Wyckoff) and write daily my own interpretation of the (smart money) large operator's moves in currencies. Background about me: Been trading for 5 years (next April), I was trading for the first 4 years using classic technical analysis and supply and demand zones until I discovered the beautiful Wyckoff method and then the vsa method. So basically I am just 8 months using VSA in spot forex. Things I'm looking for in the charts: I am usually looking for the Yao Ming bars, basically I look for climatic action followed by a spring (or upthrust) and then the classic no supply bar (or no demand). I use 1H, 15min and 5 min charts. Everybody is welcome to chime in, just remember that the charts I will be posting are not sell/buy signals, they are just my interpretation of the current story line within the market. Let's begin

Hello folks, I want to start a free chat room for serious traders using Volume Spread Analysis and Wyckoff methods on their day-to-day basis. Im usually online from the middle of London session to the end of NY session (somedays I may be online for the open of the Tokyo session). Details: 1.- No head trader: Nobody giving signals or anything, no guru, just serious traders sharing charts, analysis and talking about Smart Money manipulation. ie: Chat user1: Hey guys seems like GJ its being accumulated after that selling climax Chat user2: Yes, I will be buying any no-supply bar anytime soon 2.- Free of charge: Kinda like the forexstreet chat in the forex socialnetwork but without all the newbies, scammers, signal vendors. I don't like the forexstreet chat personally because it gathers all type of traders with all types of strategies, experience, etc. Because of this, it usually gets a little messy (just my humble opinion, no offense). The idea would be something very similar to this but for VSA and Wyckoff traders only, trading spot forex and/or currency futures on a serious day to day basis. 3.- Non-educational: The motivation of the chat room would not be for educational purposes but I´m a believer that everyday is a learning opportunity and I am always open to learn something from everybody. So, obviously we all will be learning together from each other, but this would not be the main reason of the room. 4.- Real purposes of the chat room: Meet fellow traders using the same methods (Wyckoff and VSA) to make money in the markets, manipulation talk, sharing analysis, basically all the purposes of a trading community but with a filter for Wyckoff method's believers and VSA traders. Important: The chat would be using a private instant messenger like Skype, Hangouts, etc. I don't want to be the "owner", I want the chat open when Im not online so Im open for suggestions from all of you interested. If you use VSA and/or Wyckoff method to trade the currency futures or spot currency markets you are very welcome to join with ideas to make this happen. Please let me know by replying in this thread or via PM Warm regards from Mexico,

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Good Morning All; New traders often find themselves very challenged to have the discipline to follow the trading plans that they have created. The truth of it is, few have created any real plans and even fewer have a comprehensive working plan. Those that do, often find it difficult to follow their plan in the heat of the day. One of the reasons this can happen is because traders often do not spend their time properly, before, during, and after the market. Organize Your Time Of all the time a trader can devote to their occupation, most new traders usually fall into the schedule of spending 90% of their time actually trading the market. They spend 5-10% of their time preparing for the market, either the night before, or the morning prior. They spend 0-5% of their time following up on their trades after the market. Unfortunately, for new traders, this can be a big down fall. Being caught up in the excitement and overtrading, without stopping to evaluate trades, is a bad combination that can lead to failure. It is fine to be with the market all day. Just make sure your trading plan identifies what times you should be trading. It is a great idea when you start out to use about one third or your time preparing for every day, about a third of your time following up on your plays and reviewing them, and only one third actually trading. This is very different from where most new traders are. This does NOT mean that if you spend 6.5 hours trading, you must devote another 13 hours to your trading. You should have strategies identified that only take place at certain parts of the day. There should be parts of everyday where you will not be trading. You can use this time to review the morning trades, or the prior day's trades, and to update your record keeping and journals, and even paper trade new strategies. Closing Comments Many newer traders feel like they are missing something if they are not part of every possible trade. Patience will pay off for those who are selective and take the time to review each of their trades and learn from the ones that did not work out. The concept of following up on trades and how to do it is immensely important, and beyond the scope of this commentary. Make sure you understand it well, before trading.

How Can the Chaos Theory be Applied to Forex? Chaos Theory is a mathematical theory that studies systems, and how small differences in their initial conditions can have majorly differing outcomes. This is often explained and related to as the butterfly effect. This theory is that a small initial condition such as a butterfly flapping its wings could cause a large difference such as a change of weather on the other side of the world. Famous forex trader Bill Williams was one of the first to suggest that Chaos Theory could be applied to the markets, and devised a strategy behind it. The principle behind his ideas is that psychology plays a large part in success, and that the key is to find determinism within events in the market. Traditionally, traders will use technical and/or fundamental analysis to work out which way they think prices are going to move, but Bill Williams believes that this is an inferior way of trading, because neither method works for the dynamical system that is the real markets. There are two critical aspects that must be understood for Williams’ theory to work. The first is having confidence in your own judgement, and the second is proper understanding of the structure or dimensions of the market. According to Williams, there are five dimensions to the market, and analysing each one will reveal further information, building a bigger picture each time. These sections are the following: • Fractal – Trades should not be made before the first fractal appears; indeed, any signals from other dimensions can be disregarded initially. A buy fractal is five consecutive bars, in which the middle bar is the highest. The opposite configuration would be a sell fractal. • Momentum – The Awesome Oscillator illustrates the current market momentum of the last five bars. They are compared with the previous 34. • Acceleration / Deceleration – This dimension measures the acceleration and deceleration of the market momentum, by looking at the momentum and the five bar moving average. • Zone – The fourth dimension is known as the zone, and appears when the momentum and acceleration (or deceleration) are of the same direction. • Balance Line – The last dimension of the market is the balance line, which is the level at which the price would be if chaos was not having an effect on the market. This ‘chaos’ is any kind of information that might be hitting the markets. It is also described with the Awesome Oscillator. The idea is that it requires less energy for the price to move away from this line.

Article By Thebinaryoptionsbroker.com Binary Options Vs. Forex Trade For any trading investment, investors must compare binary options vs Forex trading factors appropriately. In the past few years, binary options are becoming most common. The main reason being the options offers high profit returns and are easily traded. The binary option involves the betting over a currency pair that it will expire in-the-money. If positive, it returns a fixed amount, not withstanding how far the option goes. At times the option only pays off only if the option goes in-the-money, regardless of price at expiry. For example if a binary had a strike price of 1.3, the long position would return $100 per contract regarding the higher price than strike price at expiry. The options are standardized and traded on exchanges. On the other hand, in Forex trading, there are many shared features. They also provide the opportunity, but not the need to buy (call) or sell (put) a certain underlying asset at a particular price (strike price) by or on a particular date (expiry date).Forex trading does not involve currency pairing, but rather the future trading on the currency pair. It is the exchange-traded agreement to buy or sell at some point for a price that relies on initial factors. When trading options, one has to predict if the price of an asset will go up or down from its current value over a given period of time. For instance, the current price of USD IS 1.31 and one thinks its might increase in the next hour. The individual can place the bet and wait for the one hour. Any correct predictions result to up to 80% profit on one's investment. While, Forex trading one speculates that the value of a particular currency will increase or decrease in comparison to another, with a target of making profit. For instance, when the current price of a currency is 1.4 and one thinks the price will shoot in the near future. One buys 1 lot of the currency pair and wait for the price to increase until the desired point before closing the trade at profit. In options, margin is not used when trading. People can still make great percentage profits on their investments, so traders find binary options very attractive. The advantage is that an investor can never get a margin call. While in Forex trading, people use margin to trade. Each broker determines the maximum margin and sometime it can be up to 1:500. Margin allows investors to increase their investment capitals so that they can make an increased trade and make more profit for the winning trades. In binary options, before making a trade, the investors will know the exact payout and loss return percentages to be made for the particular option at expiry. Brokers can offer payouts up to 80% or even more depending on the option traded. Other brokers never offer loss backs, this means that if an investor's option trade is a losing one, the investor will definitely loose the invested amount and not more. In Forex trading, the investors never know the maximum profit to be made on a particular trade. The investor can always regulate an order and be guaranteed some percentage profit if a stop regulation is initiated. Any losses and profits in Forex trading can be managed with the regulations to limit or stop orders. Actually, the maximum loss in this trading is an investor loosing all the money in the trading account. In binary options, there are no spreads, swap or commissions when trading. While in Forex trading, an investor has to consider the spreads and swap, and any commissions. Each broker in binary options determines the maximum and minimum trading size for their clients. Sometimes the maximum amount can be up to $5000 and the minimum up to $5 per trade. While in Forex trading, brokers allow their clients to trade smaller lots such as 1000 units of the base currency in the trade. They also determine the maximum trading amount. Binary options are available in five types which an investor can choose to trade. They include; 60 seconds option, high/low, touch/No touch option, option builder and boundary option. In Forex trading, there are a variety of order types. The most essential ones are the market orders of buying/selling. Other advanced orders include stop, OCO, trailing stop, limit, hedge orders among others. Therefore, investors must be able to lay out the factors of binary options vs Forex trading in order to choose an effective investment.

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Folks are invited to discuss about the Japanese economy, their currency and their relationship. I recently came to know that Japan is back in the news because of its Quantitative easing and depreciating currency. Will Quantitative Easing Be Japan's Savior ? Lets discuss . Japan is the fourth-largest economy in the world. Issue - The country remains in a deflationary environment due to a variety of factors. Employment is down, the population is aging, the Yen (Japan’s currency) is weakening, and there is very little immigration into the country. Japan’s New Idea to tackle the issue The new idea is not new at all. More quantitative easing, but this time on a massive scale. The program, recently announced by the new governor of the Bank of Japan, Haruhiko Kuroda, is for a cash infusion of $1.4 trillion by the end of 2014. The hope is that this new round of QE will transform the economy from a deflationary environment to one of 2% inflation. Japan’s version of quantitative easing is 60% larger than the United States. But will it work? Much like in the United States, the armchair politicians and economists are hard at work debating the issue. Some believe that previous quantitative easing proved fruitless so there is no reason to believe that it will work this time. Even if it does work, Japan will be left with even more public debt. Its debt load is currently 214% of GDP with a quarter of the country’s budget going to service that debt. If this round of QE does create inflation, interest rates will rise. Others are supportive of the plan. The IMF’s Christine Lagarde said that the newly announced plan was a step in the right direction. Others applauded the effort as a big solution to a big problem. Impact on Currency Forecasts call for the Yen to continue weakening to 105 against the U.S. dollar by the end of 2013 and 110 in 2014. Market Impact Whether or not QE in the United States aided in the economic recovery will likely be a debate that lasts for decades, but nobody argues that the markets have seen considerable appreciation since the program was announced. Regardless of the reason behind the market rally, investors are betting that Japan’s markets will see the same effect. Actions to be Taken If this new round of QE does for Japanese markets what it has done for U.S. markets, a bullish position on the Japanese economy through equity, bond, or total market ETFs may be warranted. Currency traders may try to take advantage of the weakening Yen in the Forex market. However, investing in international markets is difficult for retail investors due to the relative lack of information available.

New traders frequently have difficulty pulling the trigger, and when they do they frequently exit the trade too early. It makes no difference telling them to remove emotions from their trading. So what is the real problem? On most trading platforms we view profit and loss in terms of the deposit currency. The trouble is that we are all programmed to evaluate money in terms of what it equates to in real world terms. For example, when we go shopping, we look at prices and assess them in terms of value for money etc. Hence it is no surprise that when we are trading, looking at risk and return in dollars causes us to think about what that really means in the real world, and emotions suddenly overwhelm any more abstract reasoning. A solution to this problem is to only present risk and reward information in terms of the percentage of the account balance. After all, we are primarily focused on growing our accounts, hence viewing our trading in terms that relate to that objective makes a great deal of sense. Personally, I no longer look at dollar values whilst trading, the percentage values allow me to focus on what I'm really trying to achieve (growing my account), instead of emotive thoughts about the dollar value at risk. Staying focused is key and anything that helps us maintain that focus, must be a good thing. Paul Anderson

While many of us spend months and years perfecting our trading strategies, there are individuals who swear by the use of software that can act independently, seeking out patterns and projecting where the price might move to without any input. In theory, these systems are an excellent idea, because they can work faster, and multitask in ways that a human cannot. There is of course a considerable amount of debate surrounding their use, and how effective they really are. It’s important to question them, and look at how they can be used in order to incorporate them into your strategy. One of the main things to think about is the trust that you’re likely to be putting in the computer. This is something that people have argued as a negative aspect, but in reality, this is entirely down to the end user. The issue is that if you simply follow the instruction of the computer, you could be getting yourself into trouble. While the computer can accurately monitor price action, levels of support and resistance, and a number of other parameters, it cannot account for fundamental knowledge. This is to say that an announcement that a human might be fully expecting cannot be seen by the computer. The responsibility therefore lies with the trader to make the final call. You have to double check the position is viable before you make it, just like with any other trade. Do not blindly trust the computer; it is an effective aid, not an automatic money-making machine. Increase Productivity Aside from this potential problem, it does seem as though pattern recognisers are really quite advanced. As already indicated, they are able to monitor far more information than a trader possibly can. Most of these kinds of software will update you several times an hour, with whatever opportunities they have found. They can also monitor a huge number of financial instruments; far more than you could accurately keep tabs on. Of course, you can set the program to notify you of whatever you like, but this is an example of just how expansive the software can be. The obvious benefit of being able to monitor extra instruments is that you’re given far more opportunities to trade. It will still require a high level of market understanding from the person using it, but you will be able to see when signals present themselves over a great number of currencies for instance. Primarily, this means that you are able to choose the more profitable positions, and also mitigate risk. There are two reasons for this: • Firstly, the more options that you’ve got, the more likely one is to be successful. You can quickly go through all of the potential trading opportunities, and if you wish, you can put a greater focus on perhaps one or two of the signals. This is a good way of maximising profit. If you’d just been manually monitoring a handful of charts, then you may well be missing out on a better opportunity somewhere else in the market. Recognition software will help you overcome this potential problem. • The second potential benefit of having a wider range of suitable opportunities is that you can spread your investment over a wider area. Putting all of your eggs in the proverbial basket runs the risk of losing a significant amount, should the signal prove to be inaccurate. However, you’re less likely to lose money if your investment is spread out over several positions you are confident in. Of course, this isn’t quite as profitable. Now, as we’ve already mentioned, you can customise what recognition software actually looks for, and this is very important. If you already have a sound strategy, then this kind of program should be used to compliment it, not change it. What we mean by this, is that you should set the pattern recogniser to notify you of signals that you would look for yourself. If you allow it to look for anything, you’re changing your strategy, and this could prove to be problematic and unprofitable. Forex Trading Success Success rates for forex trading software in particular, are actually very high indeed. In most cases, you’ll actually find that the price does not move into the predicted range in only 25 to 30 percent of the time. While this does appear to be a relatively high amount, it does mean that you can expect around three quarters of all notifications to be accurate. It’s up to you to ensure that you’re still analysing each one on its own merits – you don’t want to end up trading only the 25 percent of unprofitable notifications. To conclude, pattern recognition software won’t do the hard work for you, but it will present you with a wide range of potential positions, which if used wisely, can be extremely effective.

Instability can be off-putting, but the correct strategy will allow you to take advantage of it. While there are of course countless exceptions, traders generally find that their positions are more profitable during less volatile times of day. There are a number of reasons for this, and it’s something that every trader should work on if it’s an issue. Ideally, you need to be able to trade effectively at any given time of day, following any news event. We all have our strategies, but it’s important to remember that they might need fine-tuning and altering depending on when we’re trading. You might find that your strategy is particularly effective for the most part, but is prone to considerable failure sometimes. You have to ask yourself what the reasons behind this could be. In many cases, the degree of volatility in a market can flip a strategy on its head. If you can ensure that you are taking volatility into account, and can adjust your strategy accordingly, you’ll find more success. To explain what generally happens when volatility shifts, we need to look at the most common mentality of a forex trader. As already stated, this is an over generalisation, and there are many differing viewpoints, but primarily, the most common trading strategies have the following as their basis. When a traders sees the price dropping down towards a level of support, whatever that might be, and however it has been calculated, the instinct is often there to buy in anticipation of the bounce back up. Conversely, if a price is moving its way towards resistance, then more often than not, a strategy will look to sell before the expected drop. The problem with this strategy is that, when the market becomes more volatile, the price will frequently move outside these levels of support and resistance. When they do, you may well find that you lose out more frequently than you are in profit. The solution to the issue is to not only mitigate the potential negatives of volatility, but to actually capitalise it. The best traders have a way to deal with nearly any eventuality. If you’re one of those people who avoids the market when it’s fluctuating rapidly, then you’re missing out on a considerable amount of trading time. The Breakout Strategy A breakout strategy is widely regarded as one of the most effective methods of trading when prices are capricious. It takes advantage of prices moving beyond given levels of supposed resistance and support. In the simplest terms, when the price moves above resistance, the strategy would have you buy, and when it drops below support, you sell. The rationale behind this is that when things are unstable, they are inherently likely to break above and drop below the levels you’d expect. So what’s the best way of determining the levels at which you should measure support and resistance? Many are of the opinion that a relatively simple Donchian channel is the best method. For those that don’t know, this takes the highest high and the lowest low of the previous x amount of time. One of the most common, and arguably the best length of time from which to take the points of resistance and support, is 20 hours. The strategy is relatively simple then. You have your trading platform plot in the Donchian channel, and then whenever the price moves outside the parameters, you open the corresponding position. It is essential that you monitor things; volatility means that prices will move quickly, and you need to ensure you realise the profit. It’s also prudent to decrease leverage and tighten up any of your stop orders. Measuring Volatility Of course, the secrets to making this strategy don’t end there. If the volatility was low, prices would be likely to move swiftly back within expected levels. If you trade a breakout strategy in these conditions, you’re likely to see more losses then profit. The golden rule then, is to make sure that the market is truly volatile before you switch your methods. There are a number of different ways of measuring volatility, and you should pick whichever you find works the best. Your forex trading platform is likely to come with several different options, but you can always download additional ones. The standard deviation over a given period is the most common way of measuring volatility. A breakout strategy is by no means a fool proof method of making successful trades when the markets are volatile, but it is certainly a very useful starting point if you’re generally very cautious when prices look unstable. If you can take advantage of any given situation, then you’re far more likely to come out with a positive balance sheet.

Technical analysis of GBP is favoring bearish moves in future with chances of small bounce back from support zone of 1.5440 to 1.5390. Resistance zone is currently at 1.5875 to 1.5834. GBP set a new 7-month low in past week after speech from BOE's governor. Unpexcted results of retail sales pulled GBP downwards on the last day of trading week. Expected percentage was 0.5% and the result, with the difference of 1.1%, was -0.6%. But this bad percentage was mainly due to bad weather situation in UK. At this time GBP's growth is under pressure due to unsupportive figures. At this time, BOE's attention is more towards growth and less towards targeting inflation.

This thread is for those who like to discuss about the Money Management in Forex Trading . I am waiting for your thoughts in the most important ingredient to successful trading. Risk reward is the most important aspect to managing your money in the markets. Every trader in the market wants to maximize their rewards and minimize their risks. A risk-reward ratio of 1:2 means your profit target is twice your stop loss. If your trade has a Risk - Reward ratio of 1:3, it means that for every winner, you will need to lose an equivalent trade three times to lose all your profits. If you gain 900 pips in a trade (with a 300 pip stop loss) you would need to lose three trades using the same Risk-Reward ratio to cancel the profitable trade. This is why a forex trader can have two winners and three losers in a month and still make money.

What are the factors that drive Forex prices in the long term?

Countries that are looking to calm currency volatility or bring exchange rates to a more sustainable level can implement Unsterilized Intervention to accomplish their aims. Unsterilized Intervention will allow the monetary base of the domestic currency to change and can be seen in contrast to Sterilized Forex Interventions.

Bit coin exchanges, such as the Trade Hill Exchange, offer clients the access to buy and sell currency on a digital platform. Bitcoin software allows traders to protect against changes in inflation, as these applications are designed to progress as a geometric series. The Trade Hill Exchange caters to some of the more exotic currencies (such as the Chilean Peso and Indian Rupee) but more commonly traded currencies can be bought and sold on the Trade Hill Exchange as well.

As most forex brokers offer traders a large amount of leverage in the current trading environment, Transaction Risks are arguably higher now than at any point in market history. Individual traders must keep this in mind when placing trades, as over-leveraged accounts can quickly lead to margin calls and significant losses.

Virtual Balances are something that traders should pay special attention because this is a good indication of whether or not your account is trading too close to a margin call. When this is the case, leverage should be scaled down to more managable levels.