Open Your Eyes

With revived expectations of a bailout package to be voted on this Wednesday evening, it's not hard to spot some double bottoms and double tops on various charts. Okay, maybe not perfect classic formations, but nonetheless, worthy of note.Obviously, there is no guarantee that the bailout package will be adopted. There is also no guarantee that these formations will complete and activate.However
Forex Autocash Robot is a new Expert Advisors. I am finding that a lot of experts are saying good words about it. Infact there is a website that is having a Forex Autocash Robot Review and an offer.The most talked about point is that this software has not lost a single trade in last 8 years 8 months. This is really amazing. I haven't seen or heard any software that has got 100% of winning trades
Every morning, upon waking, I open up my Forex trading platform and look for any major changes in the world of finance.This morning, for example, I see that carry trades have had a bounce overnight.So what, right?Well, wait a minute here. Bounces represent opportunity. If you look at the 1hr GBPJPY or AUDJPY you'll notice some serious signals. Sure, the CCI, Williams %R and stochastics all

Panic In The Streets

Okay, I'm not going to offer any groundbreaking news, we all know what happened to the so-called TARP program.After the House refused to pass the bill in a bi-partisan manner we saw market participants run for the hills to the tune of a 777 point drop on the DOW. It was quite the day.Did I forget to mention that the VIX closed at a new high? I even think I saw pieces of the sky fall!After all
Even the best Forex traders need to regularly refresh their knowledge and gain new information that is related to the currency trading. There are on-line Forex resources that provide information, news, books, communities, tools and other important advantages to the traders for free. Here is the list of the most useful Forex resources that are worth to be visited daily by every trader: — business and currency news that create the fundamental background for the Forex market. I prefer to browse these news everyday before making any trading decisions. — apart from the usual Forex tools, there are forums that are actually visited by many new and professional traders that share their experience with different trading systems, Forex brokers, expert advisors, etc. — a large Forex community focusing mainly on the technical tools for trading — such as expert advisors and indicators for various platforms (usually, MetaTrader 4). — a lot of useful and free information for all Forex traders, including books, brokers’ descriptions, reviews, articles and other goodies with the new updates almost everyday.

Talkgold Forex Forum — a very popular forum in the past, it still remains a place where many «old school» Forex traders share their knowledge and discuss Forex related issues.

Those are the resources that I visit everyday. If you know some other popular and useful sites for the Forex traders, you can mention them in the comments to this post.

The Less Known Evil of the Leverage

Trading with leverage is extremely popular among the Forex traders. High leverage is considered dangerous because of the risks associated with the fast moving money and poor money management tactics practiced by the majority of the traders. Besides the well known danger of multiplying your losses, there is another evil hiding behind the leverage, which can wipe your trading account easily.

High leverage is advertised by many brokers. Some traders believe that the higher their leverage is the faster they will become rich and the Forex brokers that offer ridiculously high leverage are even praised. But in fact, there is a very practical and mercantile reason for the Forex brokers to offer high leverage — higher earnings.

The higher is the leverage the more money is paid by the trader to the broker in the form of the rates spread. The value of the pip that trader wins, loses or pays as a spread depends on the leverage. With 1:100 leverage a 2 pips spread for the 1 standard lot of the USD based currency pair is worth $20. That’s not a big amount if you have $100,000 account, but if your total trading account is just $2,000? That’s 1% lost despite the fact if you win or lose this position. With 1:10 leverage that spread would worth you only $2. Without leverage the spread payment to your broker would be as low as 20 cents.

Remember that the leverage comes with a price, which is quite high and which is often overlooked by the traders. If you want to learn trading profitably on a real account, try to the leverage as low as possible. Switch to the higher leverage only if you really know what you are doing. Don’t try to become rich quick with the help of the leverage. It won’t allow you.

Shuffle Off To Buffalo

Is it just me or are the Yen based carry trades in stasis?I might be daydreaming, but it seems to me that the markets are just going to wait around until they find out what happens with the 700 billion bailout program.Have you looked at the 1 hour AUDJPY or GBPJPY? Unbelievable!
While the government prevaricates on what best to implement in terms of a housing crisis fix, the details of the TARP proposal, financial markets are in a holding pattern.Nobody wants to simply assume things will go forward as proposed. However, I'm sure nobody wants to stand on the wrong side of a 700 billion tsunami either.Jim Cramer of Mad Money had an interesting viewpoint on how to deal
Last signal of AudUsd failed. AU decided to turn the trend with a single move. Currently working on a short term system. Now I know its really hard, to trade short term but always trade with fixed amount of SL in order to control your loss.

Long UsdJpy @ 105.20 or better
SL = 50 pip
TP = will inform later.

EU and GU is currently in uptrend mode with EU being the strongest of the two. Correction is coming. Its better to short GU at 1.8622 or better. You have to calculate the risk yourself.

Back To Trading?

During the last few weeks I've been content to play it safe and collect small carry trade positions. However, the markets are starting to act normal, in that they are generally unpredictable but they do seem to adhere to technical indicators a reasonable amount of the time.It might be time to start trading again.Prior to the recent market meltdown I was having some success with my trading and
Apart from being potentially profitable, Forex market becomes more dangerous nowadays. There many scams in the Forex industry and they vary in types and scales. If you want to start trading Forex you should know a lot about such scams to avoid losing your hard-earned money. And if you are the experienced Forex trader you’ve probably already got hurt from some Forex scam and if not — you should also know about Forex scams to avoid them in the future.
  • Forex broker scam. It was very popular several years ago, but its popularity seems to fade now. Usually it’s just some set-up Forex broker site that promises the good trading conditions and offers some basic «bucket-shop» trading simulation to attract large customer base and run away with their money. Just do your research on a broker before depositing money and you’ll be safe from such scams.
  • Forex strategies selling. There are hundreds «successful» Forex trading strategies selling on the Internet. Many traders tend to believe that they can spend $300 on such a strategy and become rich with it. In reality the best thing that money can buy is education. Sold strategies are usually nothing but crap. Not only they won’t make you rich, they will probably make you lose your account margin.
  • Forex e-books selling. Overrated and hyped e-books with a lot of marketing and a little use (if at all) are the actual problem of many industries. Forex e-books selling for ridiculously high prices and promising to tell you «the best kept secrets of the millionaire traders» are nothing but wasted money. You’d better lose that money in Forex trading, trying to find your own strategy and getting some real practice.
  • Scam Forex managed accounts. Some people like the idea of Forex, but don’t like to trade on this market, they prefer to invest in it. That’s where managed accounts come to play. It’s a good idea to have some company or a private trade to trade for you and earn a share of profit. But unfortunately there also scam players here. They will just take your money and disappear. Some scam managers will probably even pretend that they are really trading and will show you some profit, hoping that you’ll deposit more. Don’t fall for such scams, thoroughly research your manager or better invest in some reputable managing company.


AudUsd has made a double top level 3 (thats what I called it). signal should be as follows

Short AudUsd @ 0.8074 or better
SL = 50 pips
TP = will inform later (Its a moving target)
I'm not certain that euphoria is any wiser than panic, but I do know that the Forex world has changed.The Fed, Congress and the Senate were meeting earlier this evening and are putting together what is touted to be a comprehensive plan to solve the ongoing financial crisis. Basically, by creating an organization to buy and then auction off troubled assets, the fear and uncertainty in the markets
Now that the trading week is over I thought I'd write about a few things that came to mind over the last couple of days.Current SituationEveryone is expecting the Fed to come along and put a multi-hundred billion dollar package together with the help of congress. Obviously, this is relieving a lot of the unprecedented pressure on both stocks and various Forex markets. The only fly in the
Knowing your trader’s personality is very important if you want to maintain a healthy, pleasant and, most importantly, profitable lifestyle while working on Forex. People are different and what’s good for one can be bad for other. Some trading methods and techniques will work for the certain kind of traders, but they will fail when you try to use them.

The most notable difference between various trading styles is the frequency of trading. Traders that like action and often «want to do something» perform better when they open several positions per day. Those who don’t like the chaos of the daily trading and like to think a lot before doing something will enjoy the profit from a scarcer trading. There are 4 distinct types of the trader’s personalities by the trading frequency:
  1. Position trader — mostly fundamental analysis driven positions that are opened very rarely — only few per month, often just about 10-20 positions per year. This style doesn’t require constant market monitoring and is recommended for the busy people.
  2. Swing trader — trades more often than the position trader, holding his orders open for the days and weeks. Targets and stops are lower than those with the position trading, but there are many trades per year. This is not a day trading, but it’s neither a long-term trading.
  3. Day trader — one of the most popular types of traders. They trade every day, opening several positions and holding them for a few hours to a day. This style requires a lot of market monitoring and will probably fit only full-time Forex traders.
  4. Scalper — this is the most risky and dangerous trading style. Scalping involves holding a position open just for a few seconds or minutes to gain the small profit from each position. There are dozens of trades each day with the scalping. Almost all brokers prohibit scalping. Another problem with scalping is that the major part of the scalper’s profit is eaten by the broker’s spread.
There some other parameters that can be different for various traders, but the main trading style is the basic difference and the trader that is good with the position trading shouldn’t go for the day trading to remain successful. Try to find out your style as soon as possible and stick with it.


There are many ways to make money in Forex, not to forget there are a million ways to lose money in Forex market. Its an open market design for open competition. Only the smartest will survive.

A little something about Baseline Trader. I have spend more than 2 years looking at charts. I am looking at charts through technical aspect. Meaning, there must be some logical explanation why forex behave the way it is. Looking thru the naked eyes, forex market is unpredictable, wild and hungry. Its like a tsunami wave, destroying everything in its path but then there are wave surfers who make a living out of surfing waves. How is that possible?

Baseline Trader will be based on Fibonacci numbers. Believe or not, Fibonacci is a wonderful mathematical calculation. In the chart there will be short term and long term trade, fib levels, entry and exit, sl level all bunch up in a single chart. Sounds too much but believe me, once you know how to read it, one glance and you know where you are going to be. It is design to be simple yet precise. If you read the chart right, you will always be with the trend and you will always know your exit.

Below is a chart of GJ trade which I took. I like to share with you the chart since willcare is giving signal in the opposite direction. My entry and exit point is based on Fib levels. In the chart the level is not shown since Marketiva doesnt have the indicator available. My full chart is on MT4. Btw, I missed my entry so I will not trade GJ for now. My entry is exactly on the black line.

With the temporary loan facility made available to AIG by the Fed it seems that the currency markets are getting back a bit more appetite for risk.The Yen has been dropping and carry trade pairs have floated erratically to more respectable levels. The real question is how the US markets will react tomorrow. I'm expecting the equity markets, the DOW, to do well but I don't know if the carry

Drawdowns and Money Management

No matter how good your Forex trading strategy is, you will lose some of your positions. There is no such thing as a 100% sure win in trading, so eventually you’ll encounter some loss. This is where the money management kicks in and helps you to limit your drawdowns in order to save your trading account from the complete wipe-out.

The problem with the drawdowns is that if you lose 10% of your account you need to recover 11% of what remains to return to the breakeven point. Losing 20% will require 25% gain over the remaining balance to recover. As you see, if you trade with the percentage risks, recovering from losses is much harder if you lose more. Trading with a little risk ratio is a good idea to prevent such problem from occurring. If you trade long enough you’ll encounter the streaks of losing trades — with 10 losing positions in a row and 10% risk ratio you’ll lose more than 60% of your initial balance. But if you trade risking only 3% of your current balance you’ll end up with 26.3% total loss. You don’t need to be a genius to see that it’s a lot easier to recover after the 26% loss than from 60% loss.

Of course, trading with small amounts of your account doesn’t look very promising, because you decrease your potential profit. But believe me, if you somehow lose 70% of your account — and that’s not a hard thing to do if you risk a big part of your capital with each trade — you’ll have to more than double your leftovers to reach the breakeven point. Remember, that all professional Forex traders (and even professional poker players) always risk only a small fraction of their capital with each trade.

Forex Panic Attack

Well, if it looked like there was some panic last week, it should be very interesting to see what happens during trading this week.I hope you've kept your powder dry! There should be some Forex fire sales happening before long. The tough part is figuring out when the currency markets are finally starting to turn around again.Good luck out there...

Forex Success Formula is Out!!

Forex Success Formula is OutHello everyone..My forex Trading Course is out!! It was launched yesterday and since the launch, the sales are really going well. The reviews of Forex Success Formula are very positiveWhy is that? Thats Because -1. This course contains an amazing swing trading strategy. As you all know I am a big advocate of swing trading. This strategy is really very effective and is
Its been a long time since posted. On 16 July 2008 that is my birthday, a friend of mine call me up and gave me a birthday present. He said that I should short GBP/USD no matter what. Guess what, till today GU has moved down 2500 pips. Talk about a good birthday present. Thanks Abbas.

I will be posting a short term trading strategy soon. I called it Baseline Trader. It is a short term trade strategy couple with a good money management will give you good result. It is because the high win trade ratio.

In the mean time just sit back and enjoy my birthday present
Before you switch to your own Forex trading system or the one that you’ve bought from someone else, I’d suggest you organizing the process in such way that you’ll be able to keep up with your strategy and track your success honestly. Developing a trading system is a hard process, but keeping to it without falling to emotional trading is even harder. Here is a list of the steps I recommend doing when you find your system:
  1. If your strategy uses technical indicators directly or there are indicators that can help you spot entry/exit points exist, write them down and add them to the chart. Avoid adding indicators that are not used by your system.
  2. Write down and open in your trading platform the timeframes on which your system is tested. Don’t try trading on the timeframes that don’t work with it.
  3. Define your entry and exit conditions — whether they depend on indicators or something else, those should be definable conditions. Avoid using something else except your system’s guidelines in your trading.
  4. Before each trade, calculate the position size depending on the risk that is tolerable with your strategy. This will help you with money management and will save you from overtrading or gambling.
  5. Follow your strategy writing down all your profits and losses. Be honest with yourself. If you avert from your initial strategy, try to record that too.
  6. Keep to your system without changing it for a significant amount of time. Try to see its weak and strong sides when you have enough statistics on your hands.
Over three years that I’ve spent trading Forex I developed many trading strategies. The majority of them were crap, but many of the strategies were unjustly abandoned by me, because I’ve failed to use them correctly — continuously modifying the system, «cheating» myself and forgetting to record statistics killed more than one successful strategies.

Forex Carry Trade Bottom?

I'm probably never going to try to call a bottom, but I will point out that there is a difference in behavior since the recent panic drop. Now, we see the Yen based carry pairs bouncing off a resistance point instead of simply dropping as if they are in free-fall.What am I doing about it?I'm glad you asked. My current trading activity involves playing with a bit of a gridding strategy. When

Using Support and Resistance in Forex

Support and resistance is the one of the most popular and widely used methods of technical analysis in Forex. It’s simple, easy to understand and doesn’t even require any additional analytical tools except the bare chart of the currency pair. Support and resistance levels form when the price action creates the distinct peaks and plateaus on the chart. Support level acts as a barrier for the rate that falls, while the resistance is the level that prevents rate from growing farther. Buying when the resistance is broken and selling when the support level is broken is an easy Forex technique that made thousands of traders rich. If you plan to trade using support and resistance, don’t forget these important facts:
  1. When the support level is broken it becomes a resistance level, the vice versa is also correct.
  2. Breaking the support and resistance levels isn’t an exact math. False breakouts are possible.
  3. Real breakouts are usually marked with a bar closed below/above the support/resistance level.
  4. Check your charts on the different (larger) timeframes. Some important support and resistance levels can only be seen on the long-term charts.
  5. If the rate bounces off the support or resistance that level becomes stronger. The stronger support and resistance level is the more profit can be gained when it’s broken.
Concluding all that was said above I should also warn you that using support and resistance in your daily trading will become profitable over the time as this method requires a lot of real experience and becomes more powerful with each trading success or failure.

Carry Trade Panic Selling?

Did anyone notice the panic selling out there?All kinds of carry trades unwound several hundred points in a very short period of time. Speculation in the Forex news rags suggests that losses due to the falling stock exchanges forced people to unwind their carry trades to cover their margins.In any case, after days of regimented downward movement, the sudden fallout represented a panic moment --

EURAUD Head And Shoulders?

Are you a Forex carry trader?Don't look now but the EURAUD has completed two out of three components of a head and shoulders pattern on the hourlies.You might want to be on the lookout for this over the next several hours. If it activates it could spell a nice downward move for this carry pair.

Carry Trade Accumulation Strategy

As I haven't seen this forex tactic expressed anywhere else I thought I'd blog about it and share it with my small readership.Are you familiar with trailing stops?This is when you set a stop loss some number of points below the current price and then allow that stop loss to float when the price moves in a profitable direction. Well, I'm not going to talk about stop losses, but the idea is
I see people in various forums asking what the best rate of return is for professional forex traders.What kind of question is that?Do you want an annualized answer based on a great trading day? I could boast a fabulous rate of return if I did that, but it wouldn't be meaningful.How about an annualized rate of return for a trader's best month? No? Maybe some arbitrary consecutive twelve month