(See beginning of this article under name Forex Secret. Forex Literature As A 90-95% Of The Traders Loose Their Deposit. (Part I)

B. Williams quotes 5 bullets killing a trend, whereas I exemplify their insufficiency and I add up 11 more thereto, not denying the above 5 of them.

B. Williams idealizes the Elliott wave theory, whereas I show that the combination of fives and threes is none the idealizable, otherwise a mankind 100-year development project could have long been elaborated on the basis of Elliott waves pattern, leading to exasperation at the fact that humanity progress does not follow Elliott and Williams. The other thing is that nowadays brokers have mastered the job of manufacturing more waves out of the 5 initially.

The aforesaid is applicable to each of the 20 problems of Forex.

A portion of my live Forex trading methods are to be found in this book, while the other portion thereof is forwarded upon request. Those eager to continue training under my supervision as well as to trade live, please, feel free to contact me on my e-mail address below.
It all could be funny unless it were sad. But IT IS sad, because the above examples are scaring in number. Bearing it in mind, do, go again through excerpts from distinguished scholars books:

- Awesome Oscillator (AO) serves us keys from the Wonderland;

- Accelerator Oscillator (AC) gives us with significant superiority over other traders;

- using AO is similar to reading tomorrow’s “Wall Street Journal”, while using AC is reading of the day-after-tomorrow’s issue thereof;

- by using AO solely, one may attain profits even without any knowledge of current rate; should the oscillator turn down, one may merely ring one’s broker and say: “Sell at the market price!”.

As You have guessed, these are extracts from B. Williams’s “New aspects of Exchange Trade”. Have You read the thing? And now, please, give a glance to the a foregoing figure, depicting the way, the vaunted Williams’s indicators may entail an abyss of losses.

But what truly makes my blood boil is as follows. B. Williams is a professional psycho therapist and his narrative style is none of an incidental one. This is a suggestive method by virtue whereof he attempts to demonstrate the exclusive, correct and faultless nature of his trading technique. The “faultlessness” is to be discussed in an individual chapter, and my only claim here is that I can easily draw hundreds of examples, where one can bump into loss by way of following Williams’s indicators.

By myself, I am an advocate of theory of chaos. But this theory is disclosed by Williams in a very primitive and a superficial manner, which fact results in his blind follower losses. As to the author, he resorts to propaganda methods instead of providing a clearcut distinction between the cases, where the above theory is 100% effective and those, where it is not.
Williams could have explained to his admirers directly, that in these certain instances the theory is to be relied upon, while in these instances it is not to. The difference is in this, this and this. In the former instances one should necessarily enter, whereas in the latter instances one should abstain from entry. But the guy haven’t done the job (due to either not being desirous or to not having sufficient knowledge).

I was a success in finding out distinct operability criteria of the Williams’s technique. To achieve this, I had to improve the Alligator, by virtue whereof I enabled my students to easily pinpoint the difference between the Williams No.1 option (a trend, encouraging profits) and No.2 option (a flat, inflictive of losses).

By the by, it is supportive of the chaos theory methodological correctness and of imperfect Williams’s method structure, plotted on the basis thereof. Instead of acting upon the trader’s consciousness Williams resorts to forbidden subconscious programming procedures, thus stimulating man’s inherent and acquired instincts as if saying: “If You wanna get rich, follow me! My method empowers one to trade without a single glance at a price! The Awesome Oscillator constitutes a key from a Kingdom!” Etc., etc., etc…

Hence, only 1 of 20 Williams’s followers exhibits Forex-earning capabilities in a most favorable environment. Thus, under this statistics, B. Williams is better not to be idolized, the way he has been by the crowd of his admirers. On the other hand, other Forex maestros’ trading techniques are far worse than that of B. Williams. So, let’s continue illustrating Forex truisms being erroneous in live trading.

- The “Theory of Chaos” of B. Williams. The author has not advised what should be added up thereto. A separate chapter here is dedicated to the issue.

- Trader’s psychological problems. I haven’t found any revelations pertaining to THE WAYS OF ELIMINATING THESE PROBLEMS.

- The issue of a stop-loss order is certainly important: even under trend hedging is an indispensable protective shield against market surprise. But is the problem too far complicated to require a dozen pages’ elucidation? Has the author beheld any secret? Wah! He hasn’t noticed anything but he still has repeated all that wanders from book to book on Forex.

Once I was stunned by a question put forward by one of my students after having read B. Williams’s “Trading Chaos”: what’s the use of giving so much attention to the stop-loss problem and above all what’s the good of chewing over the role of safety cushions in the automobile industry as though readers are down with minority?

Doubtlessly, it’s funny reading that Williams has never violated traffic regulations, priding himself on the occasion. Any psychiatrist could tell a hell lot about such a personality type, although, I should admit that Williams is American, not Russian.

Drawing picturesque, memorizing examples, each scholar is right to insist on protective barrier placement as a loss killer. But there is hardly anyone to introduce certain novelty into the issue and to disclose the secret as to what there should be in the trader’s store besides a stop-loss to insure against his deposit melting and extra losses. A separate chapter here is targeted at the issue.

I have shortly come across an aphorism: “Genius is not to the effect, that nothing can be added thereto, but it is to the effect that nothing can be deleted there from”.

If You go through numerous books on Forex at this aspect angle, You are sure to surprisingly find out that 90-100% of their contents may be subject to withdrawal. WHY?
BECAUSE nothing new and 100% correct is offered therein. Instead, reiteration is going on of what is familiar to any professional, since everyone is itching to exhibit one’s originality by way of retelling: a paramount authority of FA over Forex exchange rates; continuation and reversal patterns; a stop-loss importance; a divergence being a component of a trend reversal, etc., i.e. book-to-book travelers.

“An outstanding Forex trading techniques” and “a genius scholar”, etc., making their appearance in books’ abstracts and annotations are off springs of 1% originality added up by an author to 99% of common knowledge.

Sale is publisher’s primary target, giving birth to “genius” mediocrities and plagiarism. Standing separately among these books are opuses by B. Williams, being admired and scrutinized regularly by the majority of scholars and by myself. But EVEN HE cannot be qualified as “genius” with account to the above formula. He is rather “eccentric” than “genius”.

The thing is not, that his technique is addenda-allowing (this fact backs the correct Williams’s choice of the chaos theory to be applied to Forex) and I easily managed to add 11 trend-assassinating bullets to the 5 of Williams. The thing is that a number of Williams’s postulates ARE WRONG and thus loss- inflictive. These can be and should be subject to removal.

CONCLUSION: I guess, it’s understandable by now, that script-writing has turned to be business for scholars, incorporating additional advertising and additional charges for their students. However, the above is not worth millions Forex losers sacrifice.

Much more respect-triggering is Warren Buffet, having made a minimum of USD40 bn at the stock market without writing any books on his trading tactics. W. Buffet is the world’s second-rich man after Bill Gates, although this fact being thoroughly doubtable. B. Gates is supposed to declare the whole of his income obtainable from the Microsoft Corporation, whereas W. Buffet, being a trader, is sure to deem himself entitled to show the Inland Revenue what he really wants to.

The difference is fairly evident. The profit obtained from US companies, constituting the Gates official fortune major portion, may be kept track of, as well as the offshore profits may sometimes be properly checked. But Buffet’s profits attractable at all. Do You expect a man, lending his own daughter a sum of USD20 against a receipt, to allow ALL of his profits to be taxable by state? Or a moderate portion of profits is sufficient, yeah? It is entirely his job, whereas we are to learn to gain at least a spoonful of what he has acquired during 40 years of his activity at the stock exchange.

Thus, to cut it short: a classical Forex literature exhibits but an anti-scientific unsystematic nature, constituting a “crise de genre” and triggering losses among 90% of beginners, abandoning Forex market.

In what does science differ from a philistine and amateur effort? In a systematic and objective nature, in a methodology perspective. In there any of the above to be found with scholar literature on Forex? No, but instead there is in abundance:

A. Tautology and absence of new approaches. From book to book world-distinguished scholars feed traders (as if the latter were silly little chaps) with stories about R&S levels importance, technical indicators, continuation and reversal patterns, etc., which is as interesting and instructive for a professional trader as ABC reading is for a professor of philology.

B. Absence of integrity. Individually, it is all clear: Elliot waves, Fibonacci levels, resistance levels, reversal patterns, etc. But what’s the way it all is interconnected and integrated? In what way it is influential over each other? What is primary and what is secondary? Imagine a doctor diagnoses and cures patients without a slightest idea of interaction of digestive, cardio-vascular and other systems.

This is what exactly happens to Forex beginners. They are sure to have learnt something, but they are being muddleheaded instead of having a systematic knowledge. Medical students undergo a course of anatomy. Geologists and military men make use of topographic maps. And what do Forex beginners have to this end? You are free to interrogate any scientist if he has knowledge of parts of science without having knowledge of the whole. Guess, what he’s gonna answer? And now give consideration to what is being currently published on Forex and being accessible to anyone. Thereafter You will easily “evaluate” the “outstanding contribution” made by each of Forex scholars.

4. Methodology and techniques subjectivism and absence of objectivity. See live scholar, Th. Demark’s “Technical Analysis As An Emerging Science” recommending to manually draw R&S lines from the right to the left instead of so previously doing from the left to the right. The book’s preface qualifies it to be “refined techniques built during a quarter of a century of a laborious scrutiny of market tendencies and projecting methods”. And thereinafter: “Demark’s empiric-data strictly scientific approaches are in striking difference from an artistic intuitive one thus constituting a rational basis for dynamic systems, mechanically outputting market signals.” But, with having not disclosed his system’s essence, is Demark aware that his subjective Forex trading suggestions may happen to entail severe mistakes. Yeah, he substantiates his viewpoint in chapter “Why price projections may not go into effect”: “…due to no technique being perfect”. Good a science with “no technique being perfect”!

Demark is looking rather a philosopher, than a trader with his tirade being nothing but a sophism, made use of as back as in ancient Greece to provide grounds and protection for any kind of absurd.

In accordance to Demark, “a mistake becomes obvious the next day as soon, as the first deal price is registered”. I am itching to ask the scholar: “How many points may a currency travel in a wrong direction during an earth day?” I am answering myself: 100 pts or 200 pts or more. Demark diagnoses: “This instance evidences a breach, indicative of a new opposite tendency”. Well, I’ve got it.

Once there is loss, one should loss-close and enter oppositely.

Take a look at the picture below:

Fig.10. EURUSD H1 chart as of March, 22 – April, 18, 2005 manifesting a month-long flat. (See Note below)

How many days should one per-Demark loss-close with the rate repeatedly swiveling as though to Demark’s ill luck? The scholar has to be asked, how large should a trader’s deposit be to survive Demark’s experiments, being ranked “refined techniques” and “strictly scientific approaches”, “cardinally different from others’ “, less scientific ones, as I can guess.

The opus author will again fall soothing upon You: “One oughtn’t to expect herein outlined technical methods and indicators to offer profits and not to entail losses. Forex trading involves both: a profit opportunity and a loss risk. Preceding results are in no way guarantor of perspective success”. Further on, with greater cynicism and hypocrisy: “Should You be seeking a trading panacea, put this book aside: it’s in no way helpful to You”. Well, what’s the use of buying the book at such price?

Demark, by the way, gives the interpretation of his book’s objective to be “fuelling readers with methodology, encouraging one to systematize various TA techniques”. Great! I thought, it were a new discovery of Forex regularities to be delivered to traders. But it looks, like the scholar has plunged himself into systematizing earlier 50%-correct discoveries without taking any pertinent responsibility.

Hence, no avail to purchase the book and to litter one’s brain therewith, since Forex rates enjoy 50/50 up-down travel chance, even under the probability theory.

Thus, not too much understandable, where Demark’s scientific approach manifestation is to be searched, whereas the essence of things is incomprehensible once the reversal results come evident after an earth day only with no reference to his book.

John G. Murphy, another Forex scholar, outlines in the preface, that the “less art – more science” slogan is specially topical now that greater entities begin taking interest in this area.

As to myself, I have truly appreciated the preface writer Murphy joke as being filled with subtleness and tristesse.

Now, pertaining to science-to-practice correlation and theoretical conclusions implementation… How many scholars of those hundreds referred hereto resort to live examples while teaching long and short entries and close ups thereof? Very few of them:

- B. Williams “Trading Chaos”, “New aspects of Exchange Trading”;

- J. Murphy “TA of Futures Markets”

- S. Nisson “Japanese candlesticks. Financial markets graphic analysis”

- A. Elder “Basics of Exchange Trading”

- L. Williams. “Long-Term Secrets of Short Term Trade”

- Ch. Lebo, D. Lukas “Computer Analysis of Futures Markets”

- D. Swagger “TA, Comprehensive Course”
… and hardly few more.

Disappointing enough, but it is fairly lucid why 90% of beginners mutate into failures and abandon Forex.

By way of getting familiar with the SYSTEM, one will suddenly realize how smooth are Forex artifacts to get apparent one from another, e.g.: M5 Elliott waves constituting M15 wave I, this wave being but H1 and H4 corrective within certain Fibonacci levels.

One gets clear vision of what all the Forex-traded currencies are doing now and what they are going to in half a day. Williams did have grounds to claim, he needs several tens of minutes to analyze tens of charts. He DID have understood Forex as a system, though he has offered but the system components portrayal in his books. Depending on where utilized, the Alligator may appear to be responsible either for a profit or for a loss. But Williams has not even taken pains to present a differentiation between the Alligator being a profit assistant and the Alligator being a loss bringer.

The above is conditioned by the Williams Alligator being a great TA tool, but pertaining to a certain AREA OF Forex only. Other areas require other TA facilities. I will do my best to teach You to effect proper estimation of long-term and super short-term entries being appropriate for the moment.

I will also dwell on why it is not difficult to add extra 11 trend-killing bullets to the 5 of Williams’s; why it is easy to build up a currency travel vector daily projection. The whole thing is minimized to several criteria, being constantly effective irrespective of currency intentions. As a result, You will not have to monthly pay quacking mountebanks’ impotent daily forecasts.

But now let’s move on with Forex scientific criteria. Stagnation and dogmatism are alternative attributes of Forex folios’ anti-scientific substance. Have You ever come across a criticism of any Forex-oriented theory? I mean a weighed objective criticism, assigning credits to the author for elaborating a revolutionary theory, which has by now got obsolete due to a number of objective reasons and thus requires improvement, i.e. replacement.

For instance, I have found nothing of the kind in relation to the 100-year old Dow theory, originally incorporative of benign principles. But life goes on, and there seems no reason to head-hammer life-rectified Dow’s postulates:

- a long-term trend (primary, basic as per Dow) being several years long. Curious enough to spot a currency pair to stand open for so a long period;

- a medium-term trend (intermediate tendency) being several months long. As per Dow, the MTT is opposite (corrective) to the basic trend;

- a short-term trend, not exceeding 3 weeks and incarnating minor fluctuations within the intermediate tendency;

- intraday trend being per-Dow midget ripples, not worth paying attention to.

You are now welcome to take a close look at the figures below, as of October, 2004 through March, 2005.

Fig.11. EURUSD D1 chart. (See Note below)

Fig.12. GBPUSD D1 chart. (See Note below)

CONCLUSION: This theory of Dow’s might be deemed effective rather till late 80s, than presently.

Nowadays, with 3 pips spread, 50-200 pips pullbacks and trends not exceeding a week, the Dow theory

MUST BE recognized as being despairingly obsolete and trader-hostile, since, under a 3-pip spread, it is, certainly, top of recklessness and stupidity to stand open for months or years. A different trend classification is to be called for, meeting updated Forex environment standards.

I guess there’s no need to continue being proponent of the fact that presently Forex theories are obsolete in their majority, with this sort of methodology being requisite for analysts rather than for traders. As opposed, I hold it more appropriate to forward my entry and exit technique to traders willing to conduct successful and loss-safe trading.

By way of prompting: please, attempt to view Forex as a system inclusive of components being familiar to You: Elliott waves, reversal patterns, Fibonacci levels, MAs, ally currencies, etc. All the above staff is integrally intercommunicative rather than existing individually, the way, each organ is in the human body.

I DID have understood it, and I realized the way B. Williams is able to analyze tens of currencies within tens of minutes in order to execute correct long and short entries.

It may look surprising to someone, but a qualified doctor is capable to diagnose Your body hazards after a short examination and talking to You. The doctor has actually examined but several organs, but his knowledge system has empowered him to jump at wider conclusions, as Williams at Forex.

GROSS TOTAL. Steady and regular Forex profits are real opportunity. There is hardly another area which enables one to knock up a fortune without having rich aged relatives abroad, without having to join one’s native country’s throughout corruptible authorities or else. If You have discovered THAT ANOTHER area, You are free to get engaged therein. Then, Forex is not likely to be requisite.

Note:

Full text of this article and pictures of examples http://www.masterforex-v.su/

If you wish to be trained on Trading System Masterforex-V – one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/

Author: Vyacheslav Vasilevich
Article Source: EzineArticles.com
Provided by: Beading Necklace

The delusion conceptually propounds that intraweek and intraday FOREX currency quotes movement is governed by either improvement or by deterioration of the states economic situation. But in reality, even in case the actual Forex news is superior to the estimated one, the FOREX quotes up/down movement is of 50/50 probability.

This statement is thoroughly important. Once the job of Forex trader is gambling on FOREX exchange rates differential (FOREX pairs up/down movement), the following is to be realized to obtain faultless profit:

FOREX pairs pricing mechanism (say at point X where you are completing the market analysis)
Factors imparting growth/decline to FOREX rates (up/down from point X).
Thus, having understood the FOREX rates factors effective at the extra-exchange (book-maker) FOREX market and the given currency motive factors, a trader must possess distinct knowledge of whether to buy or to sell the given currency pair.

So, what are these factors?

FOREX student suggest unambiguous interpretation of factors responsible for the price formation and the fluctuations there of:

Forex rate constitutes a demand-supply balance for a given goods (currency).
Any violation of this balance, (for instance, in case where the estimated news is in disagreement with the issued official one), results in the FOREX rates reciprocation in chase of a new demand-supply balance. Poor demand brings about decline in a certain currency rate, with a high demand leading to the growth of the latter. The situation continues as long as the currency buy/sell demand comes to balance at another level or at another point.
Referring to the B. Williams (Trading Chaos 2 Chapter 1 The market is what you are thinking of it):

Each world market is dedicated to distribute or share limited amount of something among those desirous to obtain it most of all. The market affects it by way of finding out and identifying the exact price? Underlying the buyer/sellers power absolute equilibrium point.

The above point is readily established by stock, futures, bonds, FOREX and options markets, be it either via an open auction or by virtue of a computerized facility. Markets spot this point prior to any misbalance being detectable by you or by me or even by traders at the exchange floor.

With this scenario holding true and it really does we are in position to jump at certain simple yet important conclusions as regards the information being circulated through the market and enjoying doubtless acceptance.

Thomas Demark was more laconic in Technical analysis – an emerging science:

Price movement is governed by demand and supply. Should demand exceed supply, theres a price rally and if visa versa, theres a price decline. All economists do share these underlying principles.

Hence, the role of fundamental analysis for FOREX market is readily apparent.

In scholar fiction one will discover roughly the following explanation, persistently wandering from book to book, from site to site and suggesting attaining successful trading at FOREX market by way of scrutinizing the countrys economic fundamental data, viz. by tracking the factors reflective of the countrys economy condition as below:

State economy condition dynamics indicators (GDP, trade & payments balance, current account, industrial production, etc. It is knowledge, that the higher the above indicators the faster the economic and the currency price growth);

Stock indices, via average arithmetic index of the countrys securities market condition and dynamics. E.g.: 0.3% daily DJI growth in the USA means that this certain day the shares of 30 leading US companies, being pictured by DJU, went 0.3% more expensive. By similarity, DAX30 is the major German index, incorporating the price of shares of the countrys 30 leading companies.

The countrys interest rate, since the higher the rate, the greater number of investors is eager to invest into the countrys economy and hence into national currency strength.

Rate of inflation (the higher the rate, the quicker the National Bank will hike the interest rate). With this assumption, the CPI constitutes a key factor.

Money supply growth in domestic market, which fact brings about the inflation, leading to the interest rate hike.

The countrys gold and currency reserve assets.

Variation dynamics correlation of: balances of payment, trade balance, state budget, gross domestic product (GDP), etc.

Trade and industry dynamics (industrial production, industrial orders, DGO, capacity utilization, retail sales, etc.)

Construction statistics (construction spending, new home sales, housing under construction, building permits, etc.)

Labor statistics (unemployment rate, new jobs, etc.)
Society investigations (consumer confidence, consumer sentiment, purchase managers and service managers sentiment, etc.)

To be considered additionally are the countrys political stability and tranquility (clearly, any political, natural and other cataclysms are sure to turn investors nervous making them withdraw the investments from the country, thus weakening its national currency). And with the currency being the national economy derivative, changes in economic data will inevitably result in the above currency rate movement.
Conclusions:

Progress in economy results in the currency exchange rate rally.

Decrease in economic indicators leads to the national currency rate decline.
To sum it up, critical economic and political news (whose calendar is issued in advance and is familiar to any trader) constitute a standing factor giving rise to misbalance and causing the currency rate fluctuations.

In anticipation of important economic and political news FOREX pair crawl to the rates as inspired by the estimates (rumored trade), whereas upon actual news there occurs a pulse motion of FOREX pairs in accordance with the scheme below;

Forex rate grows if actual news are better than the estimated one;
Forex rate declines if actual news are worse than the estimated one.
ARE YOU FAMILIAR WITH THESE ABC BASICS OF STUDYING FOREX?

Do you accept that one can earn money by way of using these basics, known to every trader?

Then why, having absorbed these economic axioms, 90% of Forex traders in the world are losers rather than winners.

Where is the delusion of the above ABC truth, nudging traders towards losses? Let us perform sort of point-by-point analysis.

The currency exchange FOREX market is a book-makers one. It is gambling on rates difference without direct money delivery to the exchange market, except for hedging of traders funds by Forex brokers, via buy-sell difference especially during strong trends). Then, http://www.forexite.com reads: Trading is performed without actual currencies supply, which fact cuts overheads and enables Forexite to go long and short on the currency http://www.forexite.com/forexite_advantages/forex_advantages.html.

Comment: Have you ever met any book-makers;

- whose logics was coincident with that of THEIR clients (traders),

- whose stakes were being made in accordance with THEIR technical analysts forecasts, economic laws and common sense?

And what extent of doubt and skepticism should be attached to THEIR free recommendations, advice, surveys and forecasts, laid out at THEIR sites through THEIR analysts?

As a regular result, over 90% of the world traders are still loosing their deposits at FOREX each time they follow Thomas Demark stereotype that All the economists share these underlying principles.

Comment No.1. In as much as the above underlying principles are 90% contradictory to practice, it gives rise to the following question. Might these underlying principles, shared by all economists including Thomas Demark have possibly turned into dogma, alien to life and practice?

Comment No.2. What should a trader lean on: practice or dogma even if supported by great names, provided that the trader is purported at earning money?

FOREX analysts issuing their daily bulky market reviews are not FOREX traders in the overwhelming majority (see detailed discussion below). And on bringing together pairs 1, 2 and 3 there appears certain regularity.

Please, think over A. Elder words, that: FOREX rates and the fundamental analysis are tied together with a mile-long rope. The fundamental analysis is ultimately decisive. But anything is likely to happen prior to this eventuality. Another, yet no less renowned trader and analyst, Bill Williams underlines the same mental regularity of an experienced professional trader (level 3 of his traders skill rating as per Trading Chaos 2): On attaining level 3 you emerge as a self-provided pro trader. You are always familiar with the markets basic, usually invisible structure. You no longer need to refer to others opinions. You neednt read Wall Street Journal, watch market-oriented TV programs, and subscribe to information bulletins, waste money on information channels.

Comment: Logically, there is a counter-implication, that if You are eager to become a successful trader, You are to restrict the influence of various surveys and recommendations on yourself even in case they originate from the world famous Wall Street Journal, to say nothing of crude gurus in analyst skins who use to know ahead of time where currencies will go.

Forex news is a scheduled issue of fundamental data, which as a rule impairs FOREX rates a sharp pulse of motion. But then, why the currency rates movement vector is only 50% coincident with the ABC truism logics as to where the rate should rush in case of actual news being much better or worse than the estimate. And, please, make an attempt to answer the following question, stirring for every trader: why with the new being worse than expected (say, on US economy), the USD currency would initially fall by 40 pips (news work-off) but in 5 to 10 minutes it would swivel back and would display a 200-point rally, with no account to either the issued news or to common sense.

Below are some examples:

Fig. 1. GBPUSD chart as of April 1, 2005 after the news, positive for the GBP and negative for the US economy.
See Note below

In March the CIPS manufacturing index amounted to 52.0 (with the previous data revised from 51.8 to 51.6). Oil price in NYC has grown by USD 2.40 up to USD57.70 per bbl (new record of the latest 21 years). Non-farm payrolls in the USA was minimum since last July (previous data revised towards lower values). There has been a decline in the Michigan sentiment index to 92.6 (median estimate was 92.9, with 92.9 previously).

All the US indices faced a fall down. DJI at NYSE has fallen by 99.46 pips (-0.95%) towards closing at 10404.30. NASDAQ declined by 14.42 pips (-0.72%) to 1984.81. S&P500 slipped by 7.67 pips (-0.65%) to 1172.92. 30-yr US Bonds yielded 4.729 (0.037 lower as compared to the previous close). By contrary, FTSE100 has grown by 19.60 pips (+0.40%) to 4914.00.

Now, the question is to certified economists: what will happen to the GBPUSD within one day or even several hours upon publication of these data? You are right, USD should not simply fall down, it should collapse. Powerfully, swiftly. Well, well

And this time, the same question to experienced traders. By FOREX news headlines You might have guessed that the events are taking place at the Friday American session. Correct. Initially, anyway, the GBPUSD chart will go up by 100 pips (news wok-off), followed by a pullback. Then Forex chart starts a new rally.

It is now to be tracked whether the GBP will breach the latest rally high or not. If affirmative, it will rush up by approximately 160 pips (Elliott wave 1 was 100 pips, while EW 3 is 60% longer). But if the high is not breached? The GBP currency quote will in no way come to a standstill, moreover on Friday afternoon. Hence, – down, to the starting point! And, if breached, similar situation takes shape but the counting is performed in a down direction (EW1, being the same 100 pips plus 187 pips from 1.8826 to 1.8759 being EW 3).

The FOREX day trading tactics will be given scrutiny in a separate chapter. A still separate chapter will be dedicated to Friday trade at American session due to its inherent specifics and to strong seemingly inappropriate movement. The movement is, of course, appropriate. To say nothing of Friday. But it will be touched upon later.

Now, getting back to the currency chart. As apparent, the GBPUSD pair movement on Friday, April, 01, 2005 is in no way in conjunction with the US economy fundamental data. Each forex trader can provide from tens to hundreds of similar instances, where the news are of a certain vector, whereas, after a fraudulent rush along the news vector, a currency applies reverse thrust.

Thereafter, the next day, in daily currency surveys, certified economists are sure to explain all to us by way of inventing another undisguised nonsense, like: in spite of certain data, traders decided that the currency has already worked-off this side. But! How could this occur on Apr, 01, 2005, provided that the currency has been staying flat in a narrow range in the course of the whole of the European session?

Otherwise, another explanation may emerge, that forex traders were expecting still more inferior news on the US economy But! By how much more inferior, if according to DJ, the US non-farm payrolls MA was equivalent to 180K, with actual being +110K, estimate being +225K and prior being +243K? And in what manner do these economists count up world traders: by capita, by countries or by the funds, lost by those, who continued staying long in a holy belief in renowned academic scholars postulate of FOREX rates being tied up to countries economy statistics.

I wonder if Ill ever chance to witness legal procedures to be instituted against any of those famous scholars, so that no one would dare claim that fundamental data trigger rate spikes.

The same pertains to economists, writing about the way, hundreds of thousands traders throughout the globe have conspired to conclude that it is time to reverse the trends with absolutely no grounds. Is it really feasible?

Such reading-matter is, but hammering a single question into ones head: is it lie or is it stupidity of those cooking daily reports for taking traders for a ride, fooling them up and keeping them from the truth, which might be of great avail to them in daily trading. Traders are not a decisive factor, thus rates movement is in no way dependent on their will. Practically in no way.

Wanna check? Negotiate with tens of traders of the trading floor and arrange for a simultaneous entry long on some exotic FOREX pair. In so doing, try to push up either the NZDHKD, or the NZDCAD, or the HKDCAD. No need? I think so. Youll certainly suffer failure with the above, to say nothing of the EUR, GBP, CHF.

Another example:

Fig.2. GBPUSD movement as of May 13, 2005.

See Note below

This is an M15 chart of the American session, where the USD pair has grown by over 100 pips from 1.8583 to 1.8481 against the news, negative for the US economy:

Most indices have dropped down: DJI at NYSE by 49.36 pips (-0.48%) to close at 10140.12; S&P500 by 5.31 pips (-0.46%) to 1154.05. NASDAQ has grown by 12.92 pips (+0.66%) to1976.80. 30yr US Bonds yielded 4.484 (0.047 drop from previous close)

There is a fall in Michigan sentiment index. In May UMich was 85.3 with med est 90.0 and prior 87.7. So it was worse than the estimate, reaching the low since March, 2003. The index decline was being observed for the fifth month.

The April US export price index was +0.6% with prior of +0.7%.

Below are other similar examples of that same day.

Fig. 3. EURUSD chart as of May 13, 2005.

See Note below

Hundreds of examples may be offered, where the Forex news vector is opposite to that of the currency movement. Practically, actual news may happen to be superior or inferior to the estimate. FOREX quotes up/down movement is also of 50/50 probability irrespective of the above.

Why does it happen and what is the way for a trader to pinpoint entries and exits? This is going to be discussed in ensuing chapters of this book.

Note:

Full text of this article and pictures of examples http://www.masterforex-v.su/

If you wish to be trained on Trading System Masterforex-V – one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/

Author: Vyacheslav Vasilevich
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If you are interested in learning to trade forex successfully, then the most common path for an aspiring trader these days is to search the Internet for information to apply immediately to their live forex trading account. The problem is that their search often leads them to destinations where there are plenty of false promises, bad ideas, negativity and an obsession with indicators. Many of the EBooks on sale today are filled with recycled concepts or incomplete strategies which the authors themselves do not use. Many authors do not earn money from forex trading but they earn their living by selling these EBooks to the novice forex trader.

This easy access to forex guru’s who fuel the idea that forex trading is the holy grail of easy money, then financially feed off those same people they have sold this idea to. At the end of the day what many of these forex guru’s sell is a gross misrepresentation of what it takes to trade forex for a living.

Forex Trading is not easy. You can become a good forex trader though dedication and by treating forex trading as you would any other skill. The reality is that it is hard work and must be treated with the same amount of seriousness as you would any other career.

The effect of all these gurus is that many forex traders start off overly optimistic with unrealistic goals. Whilst there is nothing wrong with a positive mental attitude but this positivity must be built on strong foundations and realistic expectations.

New forex traders normally start their career by purchasing some secret set of indicators and they are quickly punished for their naivety. Many of these forex traders then purchase a different set of secret indicators until they become disillusioned and then quit trading.

In fact, many forex traders that are now successful went through this learning process, including myself. This is only a problem if you refuse to learn from your mistakes. You need to break from this cycle of reliance on secret indicators and guru methods to be successful.

You help yourself in the beginning; by learning to think for yourself and understanding that whilst anyone can trade forex, to be successful, you must learn to BE a forex trader.

To BE A Forex Trader

To trade forex is easy, all you need is a forex trading account with money in it and then you enter the foreign exchange market and start trading.

To be a forex trader is more work. You need to grow from the starting point of having very little knowledge to the stage where you have a trading plan, understand the concepts and behaviour of the forex market and be able to trade with a cool head and understand that wins and losses are all part of being a Forex Trader.

Learning How to Trade Forex by thinking like a Forex Trader in Seven Steps.

1. Understand your place in the Forex Market

This is very important you must understand that you are very small fish in a big ocean.

In the Foreign Exchange Market the majority of the liquidity is coming from big banks and experienced institutional traders. These are the big fish. The big fish will happily enjoy you as a little snack.

You are only fooling yourself if you think it will be easy to take money off these big forex traders.

You have to learn to swim alongside these big fish and catch the same currents they do. Swimming against them just marks you as prey and sooner or later you will be eaten.

2. Learn to read the Forex Charts and Understand the Foreign Exchange Market.

Many novice forex traders believe that these big forex traders have access to some secret forex trading strategy or use a secret set of indicators, but the truth is this is just not the case.

These major forex players are using simple, but proven technical analysis techniques – most commonly horizontal support/resistance, identification of trading ranges, Fibonacci these are then coupled with fundamental themes.

Begin by accepting that the other major participants are highly experienced in the market and they make money because of experience and by a complete understanding of the core skills and not because they hold a holy grail of secret indicators.

3. Money Management

It is crucial that you understand as a novice forex trader the emphasis is not on how much you can make from forex trading but on how you manage what you have.

This is the most common downfall of all novice traders. It is common place to see a starting trader risk the majority of their account on one or two positions.

This style of trading is not sustainable and professional traders do not trade in this manner. Everyone sometime in their career will have a string of bad trades. A typical number might be 10 losing trades in a row. The question is do you have a money management plan in place that enables you to survive this?

4. Focus on the Market

Many novice forex traders open their forex charting software and activate their latest hot indicator or tool and proceed to place their trades as per the tools recommendations. This style of forex trading is unlikely to have much long term success.

When these indicators fail to generate the required profits then these traders then move rapidly on to another set of indicators.

You must focus on the forex market and understand what the indicators are telling you so that you can pick the forex trades which have the best probability of being winners.

Successful forex traders use indicators and tools as Fibonacci, Pivot points, price channels, MACD, RSI etc. These tools by themselves do not make a successful trader. There are many successful traders and unsuccessful traders who use the exact same indicators.

The key is that successful traders understands how the market behaves around the indicators and understands what the signals actually mean.

The best way to achieve this is to stop swapping between tools and select those that compliment your trading plan, understand how they work, and then spend time in the market experiencing them.

5. Plan your trade and trade your plan.

This is a common saying that seems to get lost on novice traders. It should be every trader’s goal to make pips on each forex trade as per their trading plan. Forex Traders must treat each trade as a business decision by calculating their risk and defining their entries and exits points, those that do not open themselves to big losses when a trade goes bad.

Many novice traders seem to lack the discipline to follow a plan for each trade. So what happens is typically the following; a novice trader will see a potential set-up, they decide on some arbitrary sum to buy or sell with a quick guesstimate, then place the trade without analyzing any risk and having an exit strategy.

Of course this way of trading can be profitable over the short term, more down to luck than skill. But eventually the luck runs out and the trader is caught napping and a common result is a wiped out account.

The first question novice traders tend to ask themselves how much will I make on this forex trade?
The first question experience traders tend to ask themselves is how much is my potential loss / risk?

6. Your mind is your strongest asset and weakest link.

Entire books have been dedicated to the subject of psychology and its role in trading. That doesn’t mean they are all going to help you, but you should take this as a sign that the subject is not to be ignored.

First you must understand the role psychology plays in trading. You must learn to understand your personality traits and how they might affect your trading style.

A trader I know is a bad loser and when he has a bad trade, he had a habit of going straight back and trying to win those pips back with even worse results. But he understands this as a weakness and when he has a bad trade, he takes a break of 20 minutes before he goes back to trading so that his emotions do not affect his trading decisions.

Second you must make it your aim to never stop learning. You cannot get yourself to a certain level and then become complacent. Every day is a learning experience in some way or other and you must be prepared to learn lessons and invest time in improving your skills and experience. The day you stop learning is the day you should stop trading.

7. Understand The Forex Market is always right or Expect the Unexpected.

The forex market is an interesting place, but there is one thing every trader needs to learn. Always expect the unexpected and do not get wrapped up in past successes. No matter what your charts or indicators tell you; sometimes the forex market will just do the opposite.

Whatever happens in the market you must maintain an objective outlook on your strategy and the forex market and ensure that bubbles and crashes do not derail you in the long term.

By following these steps and learning to become a forex trader rather than just trading the forex market, you will put you on the path to ultimate success as a profitable forex trader. This is something that 90% of all novice traders fail to achieve.

Author: Adrian Faiers
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Most investors who trade Forex use a broker. A broker is an individual or a company, who buys and sells lots of currency according to the trader’s wishes. Brokers earn money by collecting commissions or fees for their services. Many of the Forex Brokers available today do not charge any fees or commissions. Most of our clients do not understand how a Forex Broker can stay in business and not charge any fees or commissions. Brokers do there very best to spin this fact into a positive for their particular firm, but most Forex Traders know the facts. The fact is that Forex Brokers make a significant amount of revenue from the spread in each Forex trading pair that the client trades. For instance, when a client of these Forex Brokers buy the EUR/USD, the spread is usually 2-3 pips. The cash equivalent of 2-3 pip spread in a standard account is $20-30 per standard lot currency trade. This amount is what the Forex Broker earns for every trade that their clients take. As you can see, the Forex Broker is getting paid rather handsomely to conduct the business of buying a selling currencies. We feel that some of those enormous profits that the Forex Broker can and should be distributed to the Forex or Currency Trader.

You should check that a broker is registered and or regulated in the place they conduct Forex Trading services. A Forex broker also needs to be associated with a financial institution, such as a bank in order to provide funds for margin trading. Picking the right Forex broker for you will take some work on your part. There are Forex Brokers who do not charge a trading commission and some that charge commission. It may be a good idea to talk with friends and business associates about their Forex brokers. You may get some good leads, and you’re certain to hear who to stay away from. There is nothing like word of mouth advertising. I have conducted numerous interviews and conversations with leading Forex Brokers, and the most important question you can ask them is always the same, I will explain. I realize you are in the market to make money and so am I. I really want to do my Forex Trading with your firm but I want to be discounted on my trading volume through trade rebates. This type of question for the Forex Broker will reveal two very important things to them. First, they will know that you have done your homework ,and the Forex Broker will know that requesting a rebate is well within the right of any Forex Trader. Second, the Forex Broker you are interested in will most likely not try to pull a fast one over on you, and that you are a knowledgeable Forex Market participant. This should be the first step in choosing the right Forex Broker, because if you are an active Currency Trader, you will be collecting on sizeable trading rebates every month regardless of your trading wins or losses.

If you are thinking of investing online, you could choose several online brokers and contact their help desks. Seeing how quickly they respond to your questions could be key in how they will respond to their customers needs. If you don’t get a speedy reply and a satisfactory answer to your question you certainly wouldn’t want to trust them with your business. Just be aware that as in other types of businesses, Before sign up service might be better than After sign up service. I would put your potential Forex Broker on the clock when you reach out to them. I typically would give the Forex Broker a six hour window to fully address your question by email or phone call. You must realize that even though a Forex Broker Firm calls you back in a few minutes after you send them an email or a call, that does not mean they are the best Broker Dealer available. It means they have a quick response division maybe, but that is it. The Forex Broker has not proved anything to or your interests until their promises are in writing. What I mean is that they can blow smoke at you till the sun goes down, but until they put your needs as a Currency Trader on paper, they are just words. I have found some of the lesser known Forex Brokers are the best to deal with. Remember, the more a Forex Broker Dealer advertises to have your business, the more that cost will be put into your trading spread or fees. The Forex Broker who has a good customer base and treats their army of Forex Trader right, is the choice for me. Those fancy commercials and websites the bigger Forex Brokers have are nice to look at but that is where my interest in them end.

Before you choose an online broker get a copy of their online demo account. What features are included? Is the software reliable? Does it offer automatic trading? Are there extra software features that cost more? I think a FREE demo account is essential for a quality Forex Broker to have and practice on, but they can cause a problem when it comes to live Forex Trading. When it comes to trading in the Forex Market, the Forex Demo account does not take into account the biggest problem a Forex Trader faces, that is emotion. It is great to put on a position in a Demo account that makes and losses incredible amounts of money. What if it was real money that was being won and lost in real time? What if you freeze up when trading your account and start hoping a bad trade back to profitability? these are just some of the many questions that eventually must be considered. I think a Forex Trading Demo Account is a good thing for very new Forex Trader, but be careful not too get to comfortable with trading it. The difference in trading a demo account and a live Forex account is huge.

Before setting up an account with a Forex broker you will need to do further investigation. How quickly will these brokers execute your buy/sell orders? What is their policy on slippage? What are the transaction fees? What is the spread, fixed or variable? What are the margin requirements and how are they calculated? Does the margin change with currency traded? Is it the same for mini accounts and standard accounts? All these fundamental questions should be investigated, and most of the quality Forex Broker present the answers to these questions right on their websites to view. The most important issue, in my opinion, is the Forex Trading Rebate that a Forex Trader should be receiving.

Don’t forget to be prepared to be able to offer the Forex Broker information about your trading volume. If you are trading your own system or trading an Expert Advisor, it is in your best interest to give your Forex Broker an idea of your monthly trading volume. This information that you provide your Broker will help them offer you the best Forex Trading Rebate possible.

by Jimmy Mack (Fx Trade Rebate)

Author: Jimmy Mack
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(See beginning of this article under name Forex Secrets – Developing the “anti-chaos” trading strategy and tactics at Forex market (Part I)

It is horrible to imagine what could happen to USD rate at the spontaneous market in this case. At the controllable market of Forex USD rate would fall down just by 1-2%.

I hope that my opponents, who deny the existence of a system controlling Forex market, do remember the elementary economical laws. The spontaneous market is a barometer that establishes the real price of goods on the basis of the demand and supply (in the given case, it is the real rate of exchange of any national currency).

The Episode #2 . The hurricane Katrina and the flood in USA on September 7, 2005. USD rate stably increases. Chronicle of events.

As the result of the dam (dike) debacle, several states in USA become submerged. The industry, agriculture and transport network were destroyed. There started panic not only among common inhabitants but among officials of various ranks as well. Hundreds and thousands of people perished. There were cases of looting. Many looters (and, maybe, just desperately hungry and thirsty people) were shot by soldiers of USA army. The government of USA declared this hurricane to be a disaster on a national scale. For the first time a new plan of civic defense was introduced (see BBC. The total chronicle of events).

Katrina was bringing USA to ruin. Senators from Louisiana asked $250 milliards from the federal budget for getting over Katrina after-effects.

Thus, it is an illustrative example of the greatest natural cataclysms in USA in the last decades. Even the poorest country in the world Haiti provided the financial help for USA ($ 36 thousands). The help of Ukraine made 1 million of hrivnias , etc.

What did happen to USD rate at the controllable Forex market? Notwithstanding all economical laws and even against the common sense, USD rate increased!

Chart 8.7. EURO/USD pair movement (For view picture see notes in end of article)

Chart 8.8. GBP/USD pair movement (For view picture see notes in end of article)

Brief conclusions for traders .

As I think, the thesis that Forex has turned from the spontaneous market to the controllable one does not need further proofs. Hence, traders must introduce amendments into strategy and tactic of their work at Forex.

What are the conclusions, significant for traders, logically follow from these facts?

Under the new conditions of the controllable market, a trader must not follow the crowd (flock). As B. Williams, A. Elder and many other authors have fairly emphasized, the crowd pushes the price at any spontaneous market. On the contrary, at the organized Forex market orders must be opened in advance of Consortiums interests!

I try to find the core of a good sense in each technique of the successful work at Forex . Is it necessary to rediscover the well-known principles? There are many prosperous traders who openly and honestly present their methods of gaining profits at Forex . If their techniques are successful, it means that these authors have a thorough grasp of the problem in its essence.

However, in practice, each of the techniques sometimes brings profits, whereas in other cases it is disadvantageous. And it does not matter, whether this technique is developed by B. Williams or by a not celebrated but a successful trader.

Conclusion #1. It is necessary to clearly delineate the domains where a given technique does work and where it fails (as well as the corresponding reasons). In such a way we can clearly understand what of the method by a given trader is worthwhile to be used as well as how and when to make advantage of it for our work at Forex .

Conclusion #2 . Your trading system must not be just a mixture (farrago) of various techniques. This rule is especially important for the beginners. After reading heaps of books on Forex , all of them make complaints about such a mess in their heads instead of enlightenment.

Conclusion #3. A trader must develop his own trading system. In order to gain profit, the following steps must be taken:

a. you choose just any technique developed by any author-trader (e.g., mine or B. Williamss, or somebodys else);

b. you must get used to work with the demo account according to this technique to such extent of automatism that you sense it as your own initial (original) trading system of the work at Forex

c. Only after this you should start to study additional literature. You must clearly see what pointes, borrowed from other authors, can help you personally to work at Forex , to improve your trading system for getting extra profits.

Objectiveness of Forex turning from the spontaneous market into the controllable one. The pattern of this process

Any profitable business transits from the spontaneous to the controllable one. It is an objective stage in the evolution of business undertakings.

In each branch of a big and super profitable business the initial stage of the chaotic competitive straggle is already has been passed through (petroleum, gas, ferrous and non-ferrous metallurgy, precious metals, arms traffic, etc.). At present all these areas are definitely divided between the principal participants. That is, there exist certain financially-industrial groupings, well-controllable and protected from intrusion of a concurrent.

The same concerns the biggest and most conservative area of business i.e., its financial branch, the world market of currency exchange included. Can it be otherwise? Can Chaos rule the market where the turnover exceeds $1 trillion per day? Can the biggest banks and governments depend on Chaos i.e., be dependable of the off-floor traders such as me and you? Can these organizations be worried about the direction in which we (traders) could turn the trend of all national currencies at this or that second? It is ridiculous to imagine!

To realize the power of the grouping that has organized the game of Forex all over the world, we should refer to the thesis from the journal Speculator. In June, 2001 the three biggest dealers at Forex market – Citibank, J.P. Morgan Chase и Deutsche Bank together with Reuters Group PLC had started up the system Atriax . However, the latter did not meet competition and stopped operations in spring, 2002. The author of the paper just hinted that even the alliance of the 3 biggest world banks could not make any serious competition to Organizer of the game at Forex (to Consortium or somebody else).

In this connection, how one can take on trust the principal thesis by B. Williams concerning Trading chaos that rules Forex? Whats important, all methods of this author issue from this postulate. The following conclusion by B. Williamss also raises doubts. He states that trends are created by traders, whereas brokers just realize these trends and place traders orders. According to B. Williams, the fact that now trends are made rather off-floor than on floor (as it was earlier) permits detecting what next will happen at the market (see Trading Chaos, Chapter 6).

So, to what extent can B. Williamss techniques be correct if their basis is principally erroneous? Let us enumerate the fundamental mistakes made in Trading Chaos. It is necessary to facilitate understanding of the techniques and practical recommendations given by B. Williams concerning the work at Forex .

1. B. Williams sees Forex as a spontaneous market, uncontrollable by anybody. According to this author, it is chaos but not an organized system that would have its own strategy, tactic, techniques, goals, methods of fraud, etc.

2. B. Williams mentions the pair trader + broker. However, unconsciously or deliberately, he has omitted the third participant of this very process. This is banks and the world financial system in general. Surely, this organization will not just take a detached view of the traders arbitrary game with the basic world currencies (USD, EURO, GBP, CHF, etc.).

Let us now evolve B. Williamss idea by ourselves. Our aim is to demonstrate absurdity of his chaos theory applied to the up-to-date market of Forex.

How brokers and banks market-makers can pay off profits from traders deposits if the traders total earnings would be bigger than the market-makers profit in this period?

Being in shoes of market-makers, National Banks, governments of leading countries of the world, etc., how will you conduct yourself on the eve of the news issue? For instance, after the publication of Michigan University Index, USD can go up by 150-200 points with respect to all national currencies. That is, in several hours dozens of milliards of USD will be redistributed. Somebody will earn the money, whereas somebody will lose it because of the difference in rates of exchange (quotations).

What will you do in the place of the biggest financial groupings? Would you just be sitting and taking sedative pills? Would you just be trying to guess what steps will be taken by professors of a Michigan University? Will 0.3% be added to the index previous value (91.4) or subtracted from it? Whats important, this difference makes milliards of USD for somebody! Possessing such capitals, would you just be sitting idly and waiting for God knows what? More probably, you will try to make this process controllable and predictable. Rather you will do your best to gain profit with the help of such indices and news. I think you will try to let the others lose their money.

What does the theory of chaos at Forex represent by itself if Organizer of the game has trained all traders to act according to the stereotype?

a). To place stop-losses and postponed orders at the same places.

b). If the issued news are better than the prognostication, one must stake on buy. Otherwise (if the news are worse than the prognostication), it is necessary to stake on sell.

c). If a quicker moving average crosses the slower one upwards, the order must be opened on buy. In the case of the downward crossover, the order must be opened on sell.

d). In the case of divergence, one must try to work against the trend. B. Williams and other classics at least had to mention that it was basically absurd to work like this at the beginning of the trend and in the middle of it.

This is why the given chapter is named Anti-trading chaos to be more precise, it is the anti-trading system.

Further Ill not dwell on absurdity of the chaos theory by B. Williams when applied to Forex . I hope it is quite clear. Any trader can find a lot of evidences of the fact that Forex is a controllable market. There are also many examples that prove fallacy of B. Williamss conclusion that traders form a trend and “push” it.

As I get it, the game of Forex and its rules in their essence are the following.

1. There is Organizer of the financial game (the Alligator) and participants (victims).

2. Organizer always tries to demonstrate: a). objectivity and honesty of the rules established by himself; b). simplicity of the analysis, predictability of the situations and the possibility of earning money easily and regularly by one of the numerous methods of the analysis (FA, TA, etc.).

3. All participants of the game are subjected to the same psychological treatment by Brokers, authors of numerical classical works on Forex and analysts via their sites and prognoses. That is, such specialists teach every trader to work as all others in the world do.

As the result, Organizer beforehand knows the traders line of conduct in these or those situations. The percentage of players-losers is stable about 90%.

4. A rapid growth in the number of fraudulent machinations developed by Brokers has become a logical continuation of the above-enumerated rules of the given game. Economists from Brokers have quickly grasped that the number 90% of traders-loses is very close to the figure 100%. What for will they send clients transactions to the foreign market (the market-maker bank)? In fact, traders will lose all the same! Besides, it is possible to slightly help traders in their losing by knocking down stop-losses – all traders keep their stop-losses approximately at the same place. In addition, the following tricks can be done as well: the slippage (opening of transactions at a price much worse than the price at which the trader wanted to open the deal); computer pending at the beginning of the heavy movement in currency pairs. One can give many analogous examples up to the undisguised fraudulent nonpayment of earned profits to traders.

These centers are also protected from the viewpoint of finances. If in flats the sums of orders of the traders who open transactions on buy and sell are approximately equal, Brokers can always hedge the difference between buy and sell with a market-maker under the condition of a heavy trend.

The only thing that cheats from Brokers are afraid of is the unmasking of methods of their work. Really, this will put an end to the afflux of new victims!

There are several sure signs of a fraudulent Brokers. In my educational course I enumerate some of such indications. However, here I give only one characteristic (traders should think about it well). If Brokers has one point of spread, you should calculate expenses on the marginal trade, in detail described in all classical manuals of Forex . For instance, let it be thought that you open the order for one lot. Forex Brokers supposedly buys EURO to the sum of $ 100 thousands for you. When you close the order, Forex Brokers supposedly transfer EURO to USD again. Thus, if you open 10 deals with EURO/USD pair during a day, your Forex Brokers is supposed to send money abroad and get it back 10 times, buying EURO for USD and v.v. All these transactions must be made exceptionally for you! Is it realistic?

In a next-door bank you should ask the conditions for the transfer of $100 thousands abroad and back. You will learn the cost of the commission for such services and the time required for this transaction (in half a day, the next day, etc.). Here I do not mention the papers that must be prepared for each transfer. I also say nothing about the time required for collecting all signatures.

I wonder, during this period of time what changes will occur in EURO/USD rate as the latter is altering every second?

5. To earn regularly at Forex, you have to master yourself. That is, a trading scheme must be developed. According to this scheme you will work against generally accepted rules. As it is already mentioned, these rules are popularized by Organizer of the game at Forex . Sticking to these rules, more than 90% of traders all over the world lose their money.

6. Developing my trading system, I have made use of numerous generally-recognized techniques of the work at Forex (by B. Williams, etc.). Surely, there is a kernel of good sense in any technique that enables earning money even if in 50% of cases. Therefore, the traders task is to differentiate the conditions, under which a given technique can provide profit. It is also necessary to understand where, when and why this technique yields a loss to the trader. Naturally, a trader must use only this first part of the system, where one can gain profit.

7. For the development of your own trading system, you must do your best to organically integrate different techniques, profitable at Forex. Various methods of giving analysis to Forex from different viewpoints do help us to more thoroughly and profoundly understand this market and, consequently, to gain profit regularly.

8. The game of Forex is widely spread all over the world. In addition to speculators, there are other participants in Forex e.g., individuals who need to exchange currency for their business. All these factors provide an objective opportunity to gain profits bigger (and more regularly) than in any other financial game of the world.

9. Therefore, Forex gives a real opportunity to get into the principally new financial market and to become a really independent. Anybody can be engaged in trading at any point in the world. For sure, a State, much as it would want it, cannot deprive a trader of his production facilities because in this area gaining of profit depends just on ones techniques and skill.

10. Forex gives you just a chance to earn money. However, not everybody can learn how to gain real profit. Even after having mastered the fundamentals of making money at Forex , a trader needs to learn a lot of additional factors in order to transform his potential abilities into real money. In this connection the following aspects are very important.

a). the psychological stability (the absence of fear and hazard, the ability to work automatically at the subconscious level, etc);

b). a reliable broker (the traders profits, being virtual, materialize only if you can convert it into real money at any second);

c). self-perfection via mastering new techniques of gaining profit, learning from an experienced instructor and due to exchanging opinions with other traders;

d). the possibility of obtaining money from the investor for the asset management. This gives the opportunity to proceed from the level of ones own deposit of several hundreds or thousands of USD to the principally new level of the work at Forex. In this way one can simultaneously reinvest a part of ones profits into the deposit and to spend money on heightening of ones own well-being. There is a simple example. At mini- Forex , many traders do not earn a lot of money: even if a trader has doubled his deposit in a month, his profit is small (e. g., by making $100 out of $50). Besides, a part of it he must take off from the deposit for the daily needs. Ill not give examples of large deposits because the tactics of work with them are principally different as well as the percentage of profit.

11. Not everybody can cover a distance from the chance (the dream) to its realization i.e., to making real money at Forex . As a trader, here you work against Organizer of this game, who is the professional. That is, to earn money regularly by taking it away from Organizer, one must become the professional himself. Do not hurry to open a real account at least till the time when you will learn to do the following:

a). As B. Williams himself, in several minutes to clearly see two possible alternatives of currency pair movement at the beginning of each session. Correspondingly, you must develop two business plans, where points of input into the market and output from it must be clearly designated.

b). To work out ones own tactic of the work with the demo account at Forex to perfection. The aim is to augment the demo account at least 2.5-3 times in a month.

c). To develop the long-term and intermediate strategies (not less than a month and a week, respectively) – as well as the short-term tactic (the intra-day trading session). Acquisition of this knowledge will help you to gain profit.

d). After opening of the real account, at the beginning you must work only with trends (under the conditions of flats you must deal with demo accounts). It is necessary to clearly distinguish one from another at the beginning of trading.

e). You must choose two ally currency pairs and work with them continuously, accumulating experience.

12. There can be reasons why your demo account does not augment regularly (in particular, maybe you are too busy at your main job). In this case, you better forget about Forex ! You must not open a real account there. It means that Forex is not intended for you.

By the way, there is completely nothing humiliating in the inability to make money at Forex . Some people do not understand technology, or literature. Others do not come to know fine arts, politics or sports, etc. Does anybody consider oneself inferior because of this reason? Surely, not at all!

Analogously, I perfectly well realize that the reaction to the last two items of my vision of the game at Forex can be inadequate. It will stimulate an immediate tide of slander and lies concerning me and my book. The reason is that Im not an employee of BROKER but a trader. I try to understand recent rules of the game at Forex, its mechanisms and to explain them to others.

Note:

Full text of this article and pictures of examples http://www.masterforex-v.su/

If you wish to be trained on Trading System Masterforex-V – one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/

Author: Vyacheslav Vasilevich
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This delusion globally entails identical aftermaths: 90-95% of traders turn steady to loose their deposits having studied books by Bill Williams, Alexander Elder, Thomas Demark, J. Schwager, et al.

Following the burn down of their first deposit traders plunge themselves again into scrutinizing Forex scholars, in this manner suffering losses of the second, the third and subsequent deposit. I will hereinafter try to elucidate where from the above regularity grows, so that no trader repeats his forerunners mistakes.

This statistics is common knowledge: 90% of traders constitute Forex losers But the figure has always been giving rise to a leviathan of my doubts. It isnt because of somewhat different 95%-5% loser-to-winner ratio quoted in the Van Tarp and Brian June Intraday trading: secrets of mastership. With 90% quoted universally, there naturally emerges the question, as to whether there is someone capable to check, to specify or to disprove the above figure.
NO ONE IS, besides the directors of largest Western banks providing streamline Forex quotes, but having never raised the issue.

WHY? Because should this statistics be published, there will be sharp and ultimate decline in number of those chasing easy profits from the world Forex market. Otherwise banks would not keep mum in advertising purposes. Neither would they be silent if losers constituted at least by few points less than 90%. In any advertising, customer attraction is ensured by quoting beneficial maxima and non-lucrative minima. This has always been, is being and will always be a universal practice.

As a conclusion, 10% Forex winners is a maximum result among traders. Its them, who have understood Forex market absolutely simple truisms and who attained steady daily earnings in amounts being gained by others within years or even the whole of life.
Certainly, those are to be recollected, who in late 80s were the first in the ex-USSR to grasp laws of commerce and who began accumulating their initial stock. The rules used to be so simple that presently any schoolboy or a first-year student can show the way the capital might have been easily scraped up and augmented on the USSR debris and in the course of market relations being established in the post-Soviet space.

I do exactly allow for the fact that through the years a new generation will be laughing at the way we are now incapable to comprehend the laws, where under currency rates either spike up or fall down, all of a sudden.

With this provision, those seeking fast money at Forex have a much greater time limit than the ones engaged in capital building in the post-Soviet space (Forex market is incommensurably greater than that in the ex-USSR), but not to the extent thought by many.

By now trends are thoroughly less numerous than they used to be 10-20 years ago. By way of taking a glance the charts history You are in the position to understand the way traders used to earn under 20- 40 pts spread, commission and slippage. A trend was followed by a trend at that epoch.

AND WHATS NOW? Nowadays many of traders are impotent to gain under 3 pts spread without commission and slippage.

Thus, this book is intended for those willing to perceive Forex market laws.
In order to get understanding of the way 5-10% of successful traders obtain profits, lets at the outset analyze the reasons and the way the outstanding 90% of traders suffer losses. The 90%-figure looks scaring, to say nothing of 95% or 98%. It occurs despite the amount of literature on the issue equals to hundreds of fundamental books, written by authors, having gained capitals expressed by means of more than 7-digit figures (G. Soros, B. Williams, A. Elder, T. Demark).

Thus, the above minimum of 90% of smart, well-read, broad-knowledged people:

- scrutinize the really great traders heritage;

- open accounts with Forex Broker’s and banks, start trading and

- loose funds up to complete rout!

AND WHERES THE LOGIC? The answer springs to mind by itself… Theres something wrong in the literature (by the way, recognized throughout the world, where the deposit-killing statistics is as disappointing as it is in our country) so long as its studying yields such oppressive results.

STRANGE? No, rather natural, than strange on account of the following:

1. Being a great trader is not indicative of everyone being a great teacher.

2. Multitude of rules elaborated by scholars 10-40 years ago, has grown obsolete, since the Forex market is changing.

3. The scholars HAVE NOT revealed ALL the secrets even WITHIN THE FRAMEWORK OF THE THEN

FOREX, therefore by now their advice and recommendation turn out either obsolete or nave.

Thus, once ones advice and recommendations bring every 9 of 10 market participants to loose their money in each country, where ones books have used to be published and have enjoyed all sorts of hosanna in the press, THEN ONE IS NONE OF A TEACHER.

Naturally, no trader will reveal his professional secrets to the full. But when studying Forex literature one gets astonished by a negligible extent the above secrets are confided at all, with a book on Forex containing 99% of common truth and 1% only of useful novelties. But should one train up even several thousands perspective traders, one will in no way burden oneself with competitors, due to the Forex market huge sale nature. Beyond a shadow of a doubt the above traders are really great. You may agree or not, but anyone, having earned USD1 bn or more, deserves being named great. So, ones books should be published as memoirs. I am not attaching any irony hereto, since these persons have acquired gains by virtue of their minds and labor, as opposite to Rockfellers, who inherited their fortunes or to Russian oligarchs, who either stole or got their capitals dirt-cheap from state authorities.

Hopefully, understandable is the difference between such editions and manuals for beginners.

G. Kasparov, say, is far from writing manuals for chess beginners, since the job can be better completed by others with this fact not at all undermining Kasparovs being a great chess player. And his advice and recommendation is sure to be of interest rather to a close circle of grand masters, than to those having touched the chess for the first time.

Actually Kasparov is but to be respected for not being tempted by the lust for fast money, by virtue of his name in the chess world and by way of cooking up manuals for beginners.

At Forex, by contrast, and for some reason, everyone deems oneself a teacher, which fact results in millions educated people worldwide leaving stock market being disappointed, angry with an inferiority complex life-time pursuit.

And hence, the unanswered question for them: is that all a fraud or not, since gains are midget, whereas losses are titanic?

I am recalling the book titled The Alchemy of Finance by G. Soros (the one Ive read in early 90-s). I admit, its interesting, instructive, but it is all narrated in so an inarticulate and tangled manner. As indicated in the foreword by an American investor, the theory has hardly been understood by few only.

So whats the use of writing in such a manner? A theory may generally be complicated to any extent, BUT IT MUST BE wrapped in a simple, clear and understandable wording.
You are welcome to attempt to read the above book once You have time to. Shortly, the Soros reflexivity theory of the countries cyclic development may easily bear a couple-sentence confinement:

1. Following liberation from totalitarian yoke, a country is granted credits, then, there is a rapid growth and flourish of economy.

2. As soon as the above credits are to be paid back, a countrys economy faces a natural recession.

Is it as difficult? The question may be addressed to a schoolboy (to say nothing of an American investor): when should those countries companies shares be purchased and when they are to be advantageously sold in order to acquire maximum profit? Whats going to happen in case one is too late to sell the shares, shortly exhibiting an impetuous growth in price?

Propounded long before, the Soros theory has been entirely corroborated in August, 98 by the dismal practice established in Asian and Pacific countries and later in Russia.

There still is another question: how inarticulate should Soros have been to enable his theory to be grasped by few only?

The second part of the book is not worth retelling. Reading its original is sure to be much more instructive with my annotation leaving no conundrums therein.

The theory is permeated by Soross strategy: enter long on whats shortly going to enjoy price growth with a 100% probability and pull out Your money along with profits before the companies enter crisis, thus facilitating bankruptcies thereof.
This is the way I clearly lecture my students on Forex-related complexities, thus conveying my logics to them. Despite its own complexities (news, TA, corrective actions, etc.), Forex is essentially reduced to a very simple truth: at a certain moment one should not be late with going long or short on a currency with tertium non datum.

And when asked if the Williams Alligator needs something to be added thereto, the majority of my students reply Yes!, indicating what exactly is to be added.
Ill present a detailed vivisection of the issue in a separate chapter by way of proving that the Williams Alligator is but 50% effective.

Fig. 4. H1 EUR chart as of April 12, 2005. (See Note below)

The Alligators jaws display upward opening with a fractal formed at 1.3006. According to Williams, one should enter long one point higher, i.e. at 1.3007. Upward motion continues extra 11 points. Then the rate sharply swivels to fall down by 170 pts.
Another example.

Fig. 5. H1 EUR chart as of April 22, 2005. (See Note below)

Please, figure out 1.3094, 16 pts above the previous fractal, following the Alligator upward opening. Thereafter, a sharp down swivel covering 140 pts.
Hundreds of similar examples may be drawn. But what are the implications?

With the Alligators mouth opened, 50% of entries should be pro-Williams while the outstanding 50% – counter-Williams (i.e. vectored opposite to the Alligator mouth opening). When embarking on Forex, You must possess clear knowledge of the difference between either of the above 50%-portions. Otherwise, You are doomed to loose even if You follow Williamss technique, let alone other ones.

Even my students are in the position to advise what is to be added to Alligator in order to realize proper entry vectoring. Least of all would I want this example to be taken as a personal criticism of Bill Williams, whose contribution to the Forex theory is a significant one. And the majority of traders, like me, used to begin earning after studying HIS books. But not to go astray, even without any addenda Williams managed to make a tremendous fortune, since a skilled trader (moreover being the Alligators father) is capable to differentiate between a steady travel and a pullback, or, say, a flat, or, visa versa, a trend low for the entry to be vectored oppositely. It is all fairly understandable for an experienced trader. But what about beginners as regards their interpretation of a flat, a recovery or a trend change?

These folks are sure to require assistance, especially, in information not presented in literature on Forex.

Without this knowledge a trader will never perceive the ABCs of stable daily earnings. But why the Forex scholars do not clear out the issue? This query is to be addressed to them, not to me. While reading these opuses, I am getting horrified at the fact that we are being foisted expensive high-sounding titled books, which are not going to ever teach a trader how to attain profits at the market.

Lets open one of them (E. Naymans Traders Minor Encyclopedia and Master-trading: Secret Files) to get the understanding of the way almost all the books on Forex are written and supposed to have the price of USD20-100.

You may agree or not, but the name looks very beautiful and pretentious: Master-trading: Secret Files, 320 pages of sheer secrets

HOWEVER, I HAVENT FOUND ANY SECRETS THERE! You are welcome to discuss an argue Yourself:

1. The interrelation between fundamental factors and exchange rate dynamics being a detailed story of how a countrys macroeconomic growing, benign rumors trading and political stability promote the exchange rate growth.

A valuable secret to be practically encountered in any Forex edition. But below is a real FA secret (not paid any attention to by Nayman): why does currency use to reverse against its countrys economic news? A whole chapter here will be dedicated to the issue.

2. Construction of two moving averages on a single chart and twin combinations thereof. The author furnishes a wise recommendation: entries should be made in the direction the MAs diverge (adding secretly that the most effective MA combination is 21, 55, 89, etc., as per Fibonacci).

The pseudo-secret nature of the above recommendation underlies the fact that any MA combination (should it be 21+55, as the authors; 10+20 as in many Western trading systems; 5+8+13 as per B. Williams or 1+21 as used by numerous traders) yields the same results.

Ok. It all looks great. However, E. Nayman et al., seem to have circumvented the MA intersection chief secret, through which traders suffer constant losses: a lighter MA has crossed a heavier one, say, upwards, but thereafter there is sharp downturn resulting in the MAs intersection again.

Fig. 6. GBPUSD H1 chart as of April, 21-26, 2005. (See Note below)

A fivefold reciprocating crossing of MA 21 and 55. You are welcome to calculate traders losses.

Now, lets call it a day with examples. The MA intersection technique operates perfectly in certain circumstances, while turning out impotent in others, thus inflicting losses upon traders. No criteria have ever been stipulated by Forex scholars as to entries to be effected pro- or counter-divergence of moving averages.

3. MACD construction and analysis. What sort of secret may one expect from the following statement of Naymans: a subsequent high being lower than the preceding one suggests a bullish trend depletion or even its changing with the same being visa versa under minimum MACD values. Much of a secret, isnt it? I thought it were the MACD operation principle, familiar to any Forex novice. The secret-fancier B. Williams hasnt even taken effort to advise to perform inputs change from 9, 12, 26 into 5, 34, 5 to provide for a lag killer.

Assuming the above, authentic MACD secrets are not paid any attention to by scholar, which fact inflicts losses upon traders. The situation comes into effect, when upon a divergence formation, no trend change is observed with another same-trend wave taking place instead.

Fig. 7. GBPUSD H1 chart as of April, 2005, where MA21 crosses MA55 with slight rise and sharp downturn. (See Note below)

Another example:

Fig. 8. GBPUSD H1 chart as of May, 2005: a divergence with MA10 upward crossing MA21; a brief nudge up to 1.8916 and a sharp downturn. (See Note below)

As different from Nayman and other Forex scholars, well touch in detail upon the ways to detect when MACD is trustworthy as a trend reversal attribute and when it is not.

4. TA classical patterns. One can not help smiling at the author sharing a secret of headnshoulders and double bottom patterns, being studied by beginners at the earliest lectures on Forex.

And here goes a real key secret: in what cases the patterns are indeed indicative of a reversal but in what cases brokers trap TA pattern-fanciers? Is there someone doubting the fact that patterns are known not only to traders, but as well to brokers with their mouths watering to make a rod for the backs of lovers and connoisseurs of the above patterns, just like on the sample chart below:

Fig. 9. GBPUSD H1 chart as of May, 09-11, 2005, a classical inverted H&S (See Note below)

At 1.8871 theres an impetuous upward breakthrough, the Alligator rotating upwards, MACD above zero, MA8 having intersected MA21 upwards, the Williams vaunted Awesome Oscillator signaling long entry, the Accelerator Oscillator pointing up nevertheless, the rate reaches as far as 1.8916 and slips down to 1.8481 by 450 pts.

To be noted: much worth scrutinizing is the phenomenon of Naymans Traders Minor Encyclopedia and Master-trading: secret files purported at understanding why over 90% of traders turn losers after reading the books.

The solution, to my mind, is that the above opuses are but good ABCs OF FOREX thus giving birth to all Naymans merits and demerits.

The guy is primarily awardable for having spared beginners paying USD50-200 to various Forex training courses or academies. Instead, one can download and study Naymans books, whose extracts are, by the way, quoted to trainees during their studies.
Nayman is generally to be expressed gratitude to, because of his having laid out the Forex basic course in a competent, popular and accessible way.

This is the point, I elucidate to every beginner, being introduced to me: first one should scrutinize Naymans books, then only its worth discussing hooks and crooks of earning at Forex instead of loosing.

Nevertheless, there is a chief Naymans self-delusion about his folios really being in no way secret files with no one being able to find anything new to enable oneself to improve ones Forex earnings. These books containing neither unique techniques nor non-standard solutions are famous for the generalization and systematization of what has been the Forex knowledge prior to Nayman.

But this fact is not realized by majority gripped by the Master-trading: Secret Files fascination, who open live accounts and turn losers inevitably.

Shortly upon their pre-mature success on demo accounts these folks hastened to open live accounts and faced losses. But since the Dealers staff managed to convince them in the incidental nature of the above losses, the folks ventured to go live again and did again turn to be deposit killers.

With these facts being proclaimed, I dont hold it appropriate to call any statistics science for help. Any sensible man is to get the understanding of the above losses as not being of an incidental nature.

There could be NO OTHER WAY about it.

The next trader training level comprises books by B. Williams: Trading Chaos and New aspects of exchange trading, where the author propounds his own Forex trading methods along with advertising the other ones, viz. Elliotts.

My book, Secrets Of Craftsmanship Narrated By Professional Trader Or What B. Williams and E. Nayman Have Concealed From Traders is purported at developing of THAT particular school of training traders to practical operation at Forex.

Hardly will anyone object to the fact that B. Williams will disclose his Forex intimacies free of charge. Neither will he furnish their 100% disclosure after being paid to.

In all his splendor, Williams possessed sufficient knowledge to;

- to share A PORTION of his secrets in his Trading Chaos;

- to share A PORTION of his secrets as a paid training;

- not to share A PORTION of his secrets in the least.

My book, Secrets Of Craftsmanship Narrated By Professional Trader Or What B. Williams and E. Nayman Have Concealed From Traders is also dedicated to teaching how the Williams secret methods are to be decoded properly to ensure successful Forex trading capabilities.
Each of my books 20 chapters is permeated with a common logic aimed at finding relevant discrepancies in literature on Forex and at presenting my personal technique of Forex trading.

B. Williams declares being capable of analyzing tens of currency pairs (of 140-bar history each) that within tens of minutes, but in no way does he explain how to, whereas, I explain, that its feasible for any wide-screen trader, provided my computer monitor being 3-currency capable only (see: Ally and adversary currencies).

B. Williams sings about his magic Alligator, while I disclose and eliminate its pitfalls by, say, adding a MA233 thereto. This arrangement visualizes the whole of the 4 potential currency travel options: up/down above MA233; up/down under MA233.

B. Williams lists a stop-loss to be a safety cushion, whereas I disclose and eliminate its shortcomings by way of alternatively using my own pending orders.

B. Williams hold trades volume to be authentic resistance breakthrough criterion, while I quote reasons by which trades volume turns to be deceptive on Metatrader platforms (thanks to the banks Consortium) and I introduce my own levels true/false breach criteria.
Now, regarding trading on news, I demonstrate the way one can turn a loser if trade like all the others and I offer my own on-news trading style.

(See continuation of this article under name Forex Secret. Forex Literature As A 90-95% Of The Traders Loose Their Deposit. (Part II)

Note:

Full text of this article and pictures of examples http://www.masterforex-v.su/

If you wish to be trained on Trading System Masterforex-V – one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/

Author: Vyacheslav Vasilevich
Article Source: EzineArticles.com
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How to get the best beginner education in Forex is a question Forex beginners consistently ask. Forex trading can be an extremely daunting task. This article will discuss how to get the best beginner education in Forex trading including special Forex tips used by the professionals plus how you the best beginner education in Forex Trading could be learnt in the comfort and privacy of your own home. Keep reading to get access to a Forex demo account of $100,000.00.

Beginner Forex traders frequently become confused and often disheartened when they get started in Forex currency trading. However, there are some very simple Forex tips that will help you on your path to becoming a successful Forex trader.

One of the most important Forex decisions you will ever make is choosing the right Forex broker. There is a lot of competition between Forex brokers and their service is as varied as are their prices. Here are a few tips to follow when deciding on which Forex broker to use. It is a must that the Forex broker that you choose is registered with the Commodity Futures Trading Commission. If they aren’t, and make excuses for why they aren’t, look elsewhere. There is absolutely no excuse for a Forex broker not being registered with the CFTC. It is important to choose a Forex broker that belongs to a reputable company that has been established in the field for a long period of time. If they have some sort of ties to a financial institution like a bank that is even more preferable.

Another important part of your beginner education in Forex Trading is having access to the best and most up to date research tools with real time quotes, charts and reports. Be sure to choose a Forex broker that makes it easy as possible for you to successfully trade as a Forex broker, and also has access to the best and most up to date Forex information at his fingertips. You should also try and choose a Forex broker that has a reasonable spread which is the difference between a Forex buying price and selling price.

It goes without saying that a http://www.Best-Forex-Trading-System-Course.com> beginner education in Forex trading can be costly. Your beginner education in Forex trading is not something that you should skimp on. There are many other ways of cutting costs as a Forex trader but your beginner education in Forex trading will create a solid foundation for you and your Forex trading business. As with many things, you get what you pay for. While there are some Forex trading courses that cost thousands of dollars, it’s possible, with a little research, to find some fantastic, reputable Forex trading system courses for just a few hundreds of dollars. I suggest that you start with that introduction to beginner education in Forex trading while you are getting your feet wet. Of course, your beginner education in Forex trading may be tax deductible so be sure to check that out with your accountant and keep all your receipts.

A beginner education in Forex trading should not put your money at risk. The best beginner education in Forex trading would simple involve study, practice, trading. It’s daunting starting out as a beginner Forex trader so it’s best to start out with a demo Forex account. A demo Forex account has a pretend balance that permits the beginner Forex trader practicing the methods learnt and perfecting them, and building your Forex trading confidence, without taking any risks with your own money. This is the ultimate beginner education in Forex trading. You will have plenty of time to gain the Forex experience and confidence you need to make informed decisions and learning how to make lightning-fast Forex trades when you go out into the Forex market on your own.

Author: Karin I Manning
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There are many forex trading software platforms out there – the choices are as endless as the possibilities in trading itself. One of the latest forex trading software programs, the Forex Position Allotment Calculator, from My Forex Edge, LLC, may make the trader’s duties less stressful. The company principals are forex traders who happen to be marketers and software developers. Director Milan Stevanovich says that as a trader, he noticed other traders creating “homegrown” calculators and tracking systems. He established My Forex Edge, LLC with the hopes of creating an efficient platform that included some of the “homegrown” elements of the traders themselves.

The result is a forex position calculator created from traders’ real experience – including successes and failures. The two key benefits of the Forex Position Allotment Calculator are its ability to prevent overleveraging and to remove emotion from forex trading. The Calculator gives the trader a snapshot of account dollars, maximum risk, and dollar risk – all at the same time. With this feature, the trader is able to avoid overleveraging and maintain untouched money.

Forex traders know that 90% of losses are caused by an over-emotional involvement in trading. The Forex Position Allotment Calculator introduces what Stevanovich calls a “set it and forget it” design, in which the trader can set buy and sell prices, stop prices, and limits without having to persistently manage trades. There is no manual writing and inputting of risk percentages with this design, either. The “set it and forget it” feature helps take fear and greed out of trading – and gives the trader a better idea of how to trade more efficiently.

Day traders, swing traders, and position traders are using the new Forex Position Allotment Calculator, according to Stevanovich. He also says that traders, on the average, have increased gains by 25% using the new calculator. Stevanovich adds that because of the input system on the Forex Position Allotment Calcuator package, errors are greatly reduced. “Using the Forex Position Allotment Calculator,” he says, “can save you ten times the amount of an error.” Experienced forex traders know that small mistakes, in addition to emotional trading, can cause large losses.

The Forex Position Allotment Calculator also offers traders something that other systems may not: a lower price. The Calculator package costs only $97 and can be downloaded from the company website (www.myforexedge.net). Stevanovich goes on to say that there are no monthly fees and no renewal fees for users of the Forex Position Allotment Calculator. Forex traders are always on the lookout for software or calculators that will help them master the forex “Holy Grail” – the risk and reward of trading. The new Forex Position Allotment Calculator, according to Stevanovich, allows traders to do just that because they will learn how to be better forex traders, earn greater returns, and maintain a balanced and emotion-free portfolio.

Author: Chris Amisano
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If you are an avid forex trader, you should already know by now how the forex market has grown explosively and profitable it is since the last decade. However for people who do not possess any first hand experience dealing with foreign exchange, trading the forex market part time well could turned out to be one of the most over looked, most profitable part time incomes ever. Besides, the advantage with forex trading is that any individual traders will stand a chance to gain profitable returns from just single investment. The only disadvantage which comes along with forex trading is the potential risk in terms of money management and the lack of right mindset whenever a trading is executed.

In addition, there is also another problem related to conventional forex trading which requires the trader to constantly monitoring their trade in front of their computer screen, which may be time-consuming and inconvenient for all traders who probably have a full 9-to-5 job.

However, this problem has been solved by an elite trader by the name of Dean Saunders, author and creator of the 10 Minute Forex Wealth Builder course. Besides containing some useful information on forex trading, the course also includes 2 revolutionary forex systems that might help to relieve the burden carried by all conventional forex traders regardless of their trading experience.

Another plus point of 10 Minute Forex Wealth Builder is the simplicity of the system interface. After reviewing the entire course, I would say that other forex systems in the market are far more harder to understand and operating, which might seriously put off people who are inexperienced or lacking of technical skills. This is one of the key reasons why I would recommend Dean Saunder’s Forex Wealth Builder system for all beginner and intermediate forex trader.

Why 10 Minute Forex Wealth Builder is Superior ?

Believe it or not trading with a limited amount of time is actually far easier than sitting and watching the charts all day long, this is due to several reasons.

First you are usually not around to watch the trade play out, this eliminates the greed and fear factor which is a huge problem to many new traders who exit too early due to fear of losing the profit they already have or being too greedy and holding on too long for more profit.

Second, it is a well-known fact that the larger the time frame is, the more reliable the signals are to trade. Due to the fact that you are trading the longer term charts, you have cut out a lot of the noise in the market. This noise is what many traders try to day trade spending 8-12 hours a day in front of their pc and even then they are still losing money.

In 10 Minute Forex Wealth Builder, Dean Saunders recognizes the above scenario as well as the essence of time to any forex trader and thus he has included two very unique and special systems to the buyer which will accomplish just that. However, the only requirement is that as long as the user can spare 10 minutes a day on the evenings then they are all set to start trading forex and slowly building their trading account and wealth, all by using 10 Minute Forex Wealth Builder.

What are the 2 systems in this package ?

There are 2 types of systems; the first one being the Breakout System while the second system centers on Swing Trading method.

Here are the summary for both systems.

A) The Breakout System:

This forex system relies on price action for entries into the market with the trend. Dean Saunders states that this system is a secret to trading forex successfully and requires only 10 minutes each evening to trade.

For more details, user can find in-depth explanations about this system on page 38 of the forex builder course.

B) 10 MFWB Swing Trader

Similar to the Breakout System, the Swing Trader System requires just 10 minutes to initiating the first trade. This system is all about taking high probability swing trades and consists of 11 pairs of profitable currencies.

Further details can be found on page 55 of the course.

For both systems, Dean Saunders has included comprehensive step-by-step video tutorials so that all buyers of 10 Minute Forex Wealth Builder can learn and copy the same strategy that allows Dean to produce an average of 300 to 400 pips in every trades.

For people who are doubtful about the reliability of these systems, your worries will be significantly reduced as the systems provide you with the actual proof of its existence with its Live Trade Demo.

The uniqueness of these two systems is the use of no indicators at all. Utilizing both Breakout and Swing Systems and following the 11 currency pairs, the trader will receive around 2 to 3 trades a week.

Click here for more details on how you can boost your trades by ten-folds with Dean Saunder’s 10 Minute Forex Wealth Builder.

Author: Ashley D.
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There are many folks out there today that would love to become full time traders and day trade online for a living if possible. After all anyone with a brokerage account and a connection to the Internet can day trade stocks, options, futures, commodities or forex currencies online from the comfort of their home. For what it is worth, it is way easier said than done.

In order to become a successful day trader and make a living from day trading, a person must be prepared to put in the hard work, time and effort required to succeed as a day trader. A trader has to master all the skills reqired to be successful. The biggest skill to be mastered is in the form of emotions and it is probably the hardest of all to come and master. That is why it is always better to learn day trading from a mentor who has been trading for a while. A mentor is always the preferred route compared to just reading some books on trading or buying a black box system. The training received from a mentor can be expensive but invaluable at the same time. One must always look at the background of the trading mentor before choosing one.

It is always a smart idea to start trading with money a trader can afford to lose. Paper trading works well too, but lacks in the strong emotion building process required to be successful as a trader. A trader must always use risk capital to succeed at day trading for a living. Using money kept aside for immediate day to day expenses or money borrowed from a credit card is a recipe for disaster. Scared money never wins the trading game.

A day trader must keep a track of all the trades placed in a journal. This journal must be updated on a daily basis. This will help the day trader immensely as he will learn from his mistakes and always keep working on getting better. A day trader has to keep his expenses low to make money in the long run. To do so, he must wisely choose his trading software, broker and his Internet Service Provider. A day trader must also learn to read the market well and know when to take trades and when to stay out. Following other traders or gut instinct can have negative consequences on the day trader as well as his account. It is always better to trade well as per the rules set out and come back to fight another day than to lose it all in one day.

It is possible to make a living at day trading if all the rules are laid out in a trading plan by the trader and followed religiously by the trader.

Please visit the Invicta Trader Inc. website to learn more about the Watts Online Trading System from Ryan Watts of the Watts Trading Group and see how it can be used to profitably scalp, day or swing trade stocks, futures, forex or any other liquid market and any time frame. It is the only online trading system out there that we believe offers a lot to traders who want to succeed at online futures trading, currency trading or even forex trading for such a low price.

Article Source:http://www.articlesbase.com/day-trading-articles/online-commodities-and-forex-currency-day-trading-for-a-living-1494961.html