Looking Down.

We have watched cautiously and have decided to take a dive into the waters of the GBPUSD - going down that is - . After the pair manged a slight cross below 1.5670, it appears we are set for a move to the down side hence have decided to join the ride. We set our stops at 150pips and out take profit at 250pips. Never forget to do so based on what your account size is and your risk appetite.
You may take a leap of faith and follow suite if you choose to but please do not blame us if things go wrong for any reason what so ever. We are only here to help be a guide and not to tell you what to do. You are your own master and no one should tell you how best to make money off the markets.
Take a look at the chart below and make sure you make a sound decisions of your own. Happy trading.

The Week ahead

Indeed yet again it has been quite a while since I last posted on here. Been pretty busy with trying to sort our myself in other aspect of my endeavours. That said, lets take a closer look at what the week ahead and what it may bring us in the forex market. This time I would make a change and move to a different currency pair, that is the GBPUSD. If you have a look at the chat below, you would all see that the pair has been a range trade since 08/06/2012 at an opening of 1.5489.

Looking at it from a fundamental point of view one would expect a major market breakout if the events of the coming week is any thing to by. Official Bank Rate for the GBP would be next week Thursday, by 12pm GMT. There would also be a rate change for the EUR zone as well shortly after the GBP at 12:45pm GMT. The USD is not left out in this series of events as it would be having its non- farm employment change on Friday, 1:30pm GMT.
All these events would call for a major trend change depending on the outcome. I for one expect a reversal at 1.5777 for the GBPUSD if a break to the upside is not sustained. Expect to see the pair tumble downward. If not, then we may be testing previous resistant points at 1.5861. All I should be saying is trade carefully and focus on the long term effects of whatever decisions you make on any trade. Hopefully we'll communicate more in the coming week on any changes. Have a great weekend.

New Quater in View.

So far, the chat below is testing last week's low of 1.3075. Let us expect the eurusd pair to look downward on the long term. In the short term, say today/tomorrows trade would be to the high side. Take a look at the chart below and make out your own assessment. Goodluck!

HOW TO MAKE USE OF TRENDLINES

A “Trendline” as the name connotes speaks for itself. It helps a trader to identity possible pullbacks on both resistance and support levels, for the purpose of making sound trading decisions. Trendlines are not indicators but simple lines you draw up on your chart to help with your trade analysis. When you draw up a trendline, you simply are telling yourself that you are aware of where the trend is coming from and that you are also willing to follow it where ever it chooses to go next. That is my philosophy to trendlines. There is this popular maxim in the world of forex which states that, “The trend is your friend”.

Trendlines when drawn properly can assist a trader in becoming more successful than not on each trade that is taken. It does not matter what time frame you are working with, whether a trader is on a short or long term trade, trendlines will prove to be quite effective as long as one knows the rudiments or basics of the resistance and support principles.

Consider the market movements, as the candle sticks goes up and down in waves on every time frame, appearing to have no meaning to the common man; but to a professional forex trader, a lot of meaning could be made to that same chart. These waves, even though uncoordinated, would always have a particular direction they are heading. It is the duty of a trader, to determine where the support and resistance levels are at –pending on the time frame in use - . Once this is well analysed and the levels mentioned above have been well established, then one could consider taking a position on the direction of the trend; either from top to bottom –from resistance to support- or from bottom to the top –from support to resistance-. These trendlines could be drawn in just two ways. They could be drawn vertically or diagonally.

To have a complete study of trendlines, you would need to have a forex instructor to put you through properly, so you do not end up drawing them up wrongly. We could also advise you to visit this site: www.fxtrendman.blogspot.com /www.trendman3.wordpress.com to drop comments on this topic and ensure to drop your email address, if you desire a full course on trendlines.

Visit: www.fxtrendman.blogspot.com / www.trendman3.wordpress.com for more incisive experience with what you need to know.

Ephraim Archibong is a trader of over four years and counting and is willing to share his knowledge and experience with anyone who is willing to learn.

WHAT IS LONG TERM TRADING AND HOW CAN I GET STARTED IN IT

Long term trading is the trading of a commodity, stocks and or currencies on a trading platform, over a long period of time, by a professional trader in order to maximise profit. That would be my friends, a simple definition of what long term trading is. As long as we have an understanding of the art of the trading, be it the forex market or any other market for that matter, then it would be easy to understand what it means to place an open position over a long period of time.

To trade long term, you would have of course had the knowledge, of trading the forex market first, before even thinking of risking real money to trading on a long term bases. This method of trading is very unpopular amongst many retail forex traders but tends to reward very handsomely when one is on the right track. This is because it demands from traders a lot of patience and endurance for results to play out.

In my books, if you must get started as a long term trader, you would need extra capital than the usual hundred or two hundred dollars ($100/$200). The reason for this is if the market were to make big moves, the money you have in your portfolio should be able to cushion your fall in case it goes against you for some time. Such a trader would need to possess a good level of patience to wait on the analysis they have done on their charts to come to fruition. You would have to made up your mind as to how long you are willing to keep the trade in the event you are in are truly riding along with the trend and what you would do if the trend were to go against your position.

Normally, most long term traders base their analysis more often on news events, -fundamentals- than on the technical aspect or outlook of the currency pair in question. There is a term called “Carry Trade”, in the forex market. Understanding what carry trade is all about can help long term traders base their decisions on interest rate change over a longer term and make good yield. Be advised that if you do not fully know how to implement this carry trade, then it would be hard to make money as you would be risking a lot over something you have not fully grasped. Simply put, carry trade involves buying a currency that pays a high interest rate while selling a currency that pays a low interest rate.

Other issues to consider as a long term trader would be your “risk aversion”. In financial jargon, if you are willing to risk a lot to enter a trade then you could be said to have a “low risk aversion”, but on the other hand if you are not willing to risk much then you could be said to have a “high risk aversion”. When every trader like you has a low risk aversion then such carry trade entry would eventually be very profitable. Do your homework to understand these terms and how to make effective use of them. The advantages of trading long term far exceed short term. If you are not prone to sticking your head into the screen of your computer system for hours, then trading long term may just be for you. If you have good capital and would be prefer to focus on other aspects of your life, then it may be for you. You simply would like to study your chart, assess you risk involvement and consequently take or enter a trade.

In a nut shell all you need to be a long term trader, does not end here, but we strongly recommend that you keep the above mentioned in mind to further strengthen your resolve to trade long term.

Visit: www.fxtrendman.blogspot.com  for more incisive experience with what you need to know.

Ephraim Archibong is a trader of over four years and counting. He is willing to share his knowledge and experience with anyone who is willing to learn.

HOW TO MAKE A LIVING DAY TRADING

Day Trading is becoming highly popular amongst the forex trading community today as more and more forex traders would prefer it to trading long term. Trading as we are all aware of requires an accurate knowledge, of the forex market, which off course once without, could result in a disaster when involved in the real time market situations. One could end up losing an entire account/portfolio, in a matter of minutes without knowing what hit them. This truth is not meant to scare you away but to keep traders both newbie and experienced alike on their toes. So the question would be, “how could you avoid such scenarios, to make a living day trading”.

         SCALPING AND SHORT TERM TRADES

In order to be a successful day trader, you would need to be a good scalper, or basically just making sure that, your open position/positions do not exceed a few minutes to a few hours of the particular day it was placed. To cut it short, you need to place short term trades. In turn, it would require quite a bit of your time, as the market does not stay in one spot for long,-especially in a range bound market situations-.  So you would need to map out for yourself a sort of time table, which should best suit, your schedule. This is so that you do not mix your real life concerns with business. After all, if you must live on it,-day trading- you must give it the much needed attention, only as at when due. Since everyone is different, so obviously, schedule and timing would be as well. Learn to do what works for you, as what may work for another may not work you.

         SCHEDULING AND TIMING

A full time professional day trader, could choose to begin trading, from seven (7am) (GMT) in the morning up until ten (10am) (GMT). Intermittently allowing for an “R&R” should help the brain not get over active and still be able to make good trade decisions, keeping in mind that the brain, can only function effectively for so long. Deciding to trade the whole day is time consuming and would impede other aspects of one’s life if done that way. As a trader you should decide of your own volition when and how long you should commit to trading daily.

         MIND FRAME

Having the right frame of mind is also paramount. This is because getting into a trade when you have other things that bother your mind, when you should be concentrating on your charts, is a sure way to much bad chart analysis that could lead to losses. Do ensure to give it your full attention, if possible have an office/trading room where no one can interfere with your work. Applying what you have been taught with experience in real time demo trading should set you off on the right path to succeed as a true “Day Trader”.

Visit: www.fxtrendman.blogspot.com / www.trendman3.wordpress.com for more incisive experience with what you need to know.

Ephraim Archibong is a trader of over four years and counting and is willing to share his knowledge and experience with anyone who is willing to learn.

HOW MUCH MONEY DO YOU NEED TO GET STARTED IN DAY TRADING

If you are familiar with the term investment, then I am pretty sure you would have already understood, what it means to have a portfolio. Having one may require, - in some cases- a lot of procedures and in others not much but a click away. As long as you have acquired the knowledge of trading the forex market, then all you would need are affordable capital and a portfolio/an account that will enable you trade to maximise profit.

As earlier stated, in some cases, you may require a lot of procedures, while in other cases, you may not be asked to do much and still require minimal capital to achieve this. Many thanks to the heavy competition in the forex world today, you can actually have a small amount to begin your “day trading” adventure. All you need is to affiliate yourself with a good, well regulated broker, that does not require heavy sum of money to open an account with them and you are on your way.

Some of these brokers accept as low as a hundred dollars ($100), on first account opening. Remember that, how you have in your portfolio/account will determine how much you make –if you are that good-. So you are not limited to opening with just a hundred dollars ($100) alone, but as much as you can afford to risk. Off course knowing full well that it is an investment for you. Make sure to check that you broker is well regulated.

Visit: www.fxtrendman.blogspot.com / www.trendman3.wordpress.com for more incisive experience with what you need to know.

Ephraim Archibong is a trader of over four years and counting and is willing to share his knowledge and experience with anyone who is willing to learn.