In the past, many traders used fundamental analysis as a main basics in their forex trading system. How they trade is they analyze both past and current and economic events or news to predict price movements in the forex market.

It was true that in the past, when there was a release in economic news or events, there were some big movements for the currencies and traders took the opportunities to take advantage of that. They could make some big gains when the movements were strong, but now is a totally different story because those big movements have subside and it’s not easy to trade news. Fundamental analysis is a difficult forex strategy to implement in your trading as it requires very strong knowledge and experience to analyze the enormous and deep data. As if this was not enough, decisions of what is and is not important when it comes to fundamental analysis and whether that certain data is relevant is not easy to be made.

Today, most traders who are successful in forex trading will use the analysis which is widely used and useful, and that is technical analysis. Although in technical analysis, you may find it not much simpler to master them, but it will take you shorter time and easier to learn due to it’s nature and if you can abide by the rules.

It’s always important that you understand the below 3 forex trading strategies for technical analysis:

1. A forex currency price will follow a trend and the trend can be identified by looking at the patterns or history in forex charts. If anyone tells you that he can also profit from counter-trend markets consistently, yes…it can be done, but you’ll need some experience and forex techniques to do it well over a long period of time.
2. The market forces will drive the price up or down by economic news releases, but that is not the most important thing because what can you do even if you know that? Those are tough to predict and we can’t use that as a proper trading technique. But as far as technical analysis is concerned, we know that it is simply the price movements themselves and we will know what direction they are going by judging the action of the price using some forex indicators like MA, support and resistance etc.
3. A currency price not only shows the price history of the past, but will also follow the trend that was in the past. Some very important technical analysis is to use Moving Averages, Bollinger Bands, MACD to keep track of the trend. When the prices come into consolidation, which means there is no trend, you should use a different approach for a different market. You should use support and resistance, breakout strategies etc to analyze the forex market. When the prices retraces, you will use price action and indicators to judge whether are they continuing with the trend.

Many ‘fundamentalist’ or economist still find it hard to accept the principles of technical analysis and believe you cannot predict the price movement as it is a random walk. Nevertheless, the fact that many forex traders are successful in their trading using technical analysis devises that there is no 100% accuracy but rather combining the analysis with strategies like risk to reward ratio, money and risk management to make whole thing work.

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Hi guys, if you are not aware, there is a new ruling from The National Futures Association (NFA) which take effect on May 15, 2009. The ruling will address the practice of “hedging” in forex trading. Hedging is the action of holding both long and short positions at the same time for the same currency pair. Below is what the NFA has decided with the ruling.

[Offsetting Transactions

New Compliance Rule 2-43(b) requires an FDM to offset positions in a customer account on a first-in, first-out basis, thereby prohibiting a trading practice commonly referred to as "hedging." A customer may, however, direct the FDM to offset same-size transactions even if there are older transactions of a different size. Rule 2-43(b) is effective for any positions established after May 15, 2009. Offsetting positions that were established prior to the effective date do not have to be liquidated, but once either position is closed out after May 15, it may not be reestablished as a hedge.]
This is from the NFA notice on 13 April.

The above means that if you try to open long and short positions at the same time for the same currency pairs, those trades will become invalid because the forex brokers will offset those trades against each other, and therefore you are left with no trades open. Some of you might already known that some brokers like Oanda have always been practicing no ‘hedging’, so there is not much changes to those who are trading with them. But for those of you who have been using forex trading systems that needs hedging, then this might be a bad news because other brokers will follow suit of the ruling change.

One thing that most people are not aware of is that now CFTC has been given regulatory authority over forex trading and NFA is the industry organisation that the forex brokers in the U.S. belong to. This means that CFTC and NFA forex brokers are no longer unregulated in the U.S.

Last time I have always been curious and bias about how hedging works in the forex market and I never give forex trading tips related to hedging at all. So now this rule came alive, it does not affect me at all because I never use forex trading strategies that uses hedging. And I never believe in that because it’s complicated to me. My forex trading system is simple, easy to use and profitable. You only have to learn the rules, practice it and make it work in the real trading world. So what about you? Are you using hedging strategies all this while? If you are, then the ruling will really affect you and it’s time that you look for some other strategies to trade the forex. Let me know by inserting your comments at the end of this post on your views for hedging.

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Hi guys, that day we have discussed 2 of the factors that can affect your forex business success. If you have missed that you can refer to that post over HERE. Today we’ll look at the remaining 2 factors of how a forex trading system can bring success to you and how it should be done.

3. Network With Forex Traders - Although trading may seems like a one man show, but in truth, you may need some reliable forex friends or partners to talk about the market conditions. It will be good that if you and your partners share the same forex trading system and talk about the same forex strategy. This means that everyone is using the same system and can remind each other of their trades. Imagine if you are trading using the system yourself and no one is using it. You met with difficulties, unable to understand why does it happen this way, losses pile up and then eventually you give up on yourself. But if you have partners who can trade together using same set of forex trading strategies, then you can encourage each other in times of difficulty and help each other out. Therefore, it will be good that among all of you who are using the same forex trading system, one or 2 of you are really good in it and when some weak or inexperienced traders encounter problems, you can solve it easily.

4. Creating Your Own Forex Trading System - For newbies in forex trading, it’s understandable and acceptable that most of them are always looking around for forex trading tips, new methods, new trading systems or strategies to help them to profit in the forex market. We do not try to penalize them because they are new and do not really know how the market actually works. That is why I come in, setting up this blog, giving people the right education so that they can trade correctly and profitably If you have been trader for months or years, but still cannot make a consistent income from the market, you really have to reevaluate on your actions. Is it you are trading the wrong way, too impatient or what? What I suggest to many traders is that once you can profit using the forex trading system that you got it from somewhere, but still not really that comfortable with the trading timeframe or style, then it’s time you consider creating your own system by modifying others’ systems. This is integrating your knowledge with the current resources to make the system suit your lifestyle. This is important because the trading system follows you the rest of your trading career and you want it to be at your finger tips.

It may seem like it’s a mountain to climb when you just started trading, but when confidence starts kicking in, patience and emotions starts to be in control and some experience has built in you, then you may be soon over the steep learning curve and begin a new life of trading.

For those people who has not tried out my forex trading system, you can get my f.ree forex ebook with tips that tell you how to look for accurate forex trading signals, strategies and many more. So get your copy today. If you’re new here and like what you read, please subscribe to my blog feed or sign up for free email updates .

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We are back to look at how you can get some good forex trading advice on the internet without having to spend tons of money for it. If you have missed the first part of this forex trading guide, you can refer to it by clicking HERE. I hope you have already digested what was in the first part of the post because we are going to continue to look at the 2nd part below.

Like I have said earlier, while you can find some free forex education online, you will have to make sure that it is the right and useful education for you and not just junk. There is one piece of forex trading advice that I want to give you and you must make sure that you bear in mind ok? Now this is simple if you hear me saying this. Majority of traders failed is because they lack of trading discipline. How do you train up to have discipline? I know it takes time to build confidence in your forex trading system, but you really need to follow it as that will train you to have more discipline.

So when it comes to forex trading advice, there may have some websites like mine, but you may not find their support as good as mine I’m not trying to promote myself or something, but if you have read those testimonials that my members have sent to me, you will realise that I’m really serious to help those traders who are not so successful in trading yet. By communicating through emails, I can point out their mistakes and give them advice on how they can improve their trading skills, this is something precious that you will not want to miss right…and somemore you do not have to pay anything for my advices This trading blog is for everyone, so you can feel free to read my blog as often as I’ll be posting technical analysis and some good forex trading tips that you will find it useful.

Are You Happy And Satisfied With My Support So Far?

So guys, if you find my tips and advice helpful to you so far, please post some comments below this blog with something like ‘Yes, I found it useful to me and it earned me __ pips so far’, and also tell me what I can do to improve my service ok? Thanks friends

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Hey guys, I hope you have profited from this EUR/JPY trade yesterday too. If you didn’t read my post on my forex trade which I have done yesterday, then you can refer to it HERE . It was quite an easy trade as this pair was very trendy the whole day due to the positive reactions of the stimulus plan. The global stock market was very bullish yesterday and therefore the Yen pairs like EUR/JPY, USD/JPY etc are on a rise. Above is the forex chart on which I have closed my trade.

I did not trade too many lots for this forex trading pair and did not close it at different times because I was caught up with other stuffs to deal with yesterday, or else will have made bigger profits. Anyway, I’m always satisfied with the profits that I have made with my forex trading system , regardless of how much the profits are..and you should be satisfied with whatever profits you made too! Since the pair was smoothly along with the direction of my trade, it hardly came close to my stop loss of 30 pips and continue to rise from my entry price at 131.74. My profit target just below the R2 level at 132.44 was hit in a short period of time and I have made 70 pips !

If you remembered what I mentioned yesterday, I said that even if EUR/JPY hit my target profit at R2 of the daily pivot, it will still have the momentum to rise even further. True enough, the pair even broke the R3 level which means that it was on a real bullish run. From my technical analysis point of view, EUR/JPY still have the strong momentum to rise on the upside. From the Fibonacci drawn from 169.95 (23 July ) high to 112.06 (21 Jan) low, this pair have reached 38.2% and may approached the next resistance of 50.0% (141.01). On the downside, break of 125.72 may suggest that the pair has resumed the major down trend.

If you have not got this forex trading system from my f.ree forex ebook, please download it and see if it is suitable for your trading. Besides that, there are many other forex trading tips, forex trading strategies that are beneficial adding to your forex education. If you’re new here and like what you read, please subscribe to my blog feed or sign up for f.ree email updates .

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(Click On The Image To Enlarge)

Hi guys, this trade is my first forex trade of the month and it made a great start! For the past one week, the forex market has been consolidating for EUR/USD, and that’s why I turned to EUR/JPY instead. At the same time, today the global stock markets have been on the upside due to the meeting of Group of 20 leaders to discuss the stimulus plans. In the Asian trading sessions, the stocks have been already rising at a fast rate. When the European session started, the global stocks kept rising and in turn pulled up the Yen pairs like EUR/JPY, USD/JPY etc.

From the forex trading chart above, we can see that EUR/JPY is trendy on the upside with the black EMA crossed up the blue EMA, the price is also above the golden colour EMA too. I bought this pair at 131.74, already this pair is above the R1 of the daily pivot and have a good chance of reaching R2. So I have set my stop loss to 30 pips and profit target at just below the R2 level of 132.44.

From what I see, there may be a strong momentum for EUR/JPY to rise even further after it reaches the R2 level. This is supported by the fibonacci levels of 61.8% at 131.41 (when I draw from 24 March high to 30 March low). This was not shown in the forex chart above but you can draw it on your charts to verify. There was a convergence of the 61.8% and R1 of the daily pivot, therefore it suggests that this pair may be resuming it’s uptrend. Let’s see what is the result for my trade later. If you have not got my forex trading system, and my f.ree ebook with plenty of forex trading tips, forex strategy etc, please download a copy HERE .

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(Click On The Image To Enlarge)

Hi guys, have you been doing well in your forex trading this week? If not, please leave a comment at the end of this post on what problems you are facing, or you can email me too. We will look at the forex market conditions for EUR/USD today and below are my analysis for the pair with the forex charts above.

There was a new low in place at 1.3112 on the 30th March. From the forex charts above, we can see that the price was also supported by the golden colour 200 EMA. Although the pair broke through the channel between 1.3730 and 1.3418, the market conditions remains neutral in EUR/USD and seems like there are more consolidation to be seen. However, the intraday bias remains on the downside as there is a minor resistance of 1.3417. There seems to be a triangle (brown colour) and the price is waiting for a break out. If the pair falls below 1.3112, it will suggest that the fall from the high of 1.3737 has resumed. Break of 1.2990 will confirm that rise from the low of 1.2456 has completed and may retest the support. On the upside, break of 1.3418 may indicate that rise from 1.2456 is heading back into the consolidation channel and may reach the higher target of 1.3855 (61.8% fibonacci).

In the bigger picture of forex trading, recent development suggests that EUR/USD may still be bounded by sideway consolidation and at this moment, we can’t confirm that the rise from 1.2456 has completed. EUR/USD may still extend it’s rise to 1.3855 and above. However, upside should be limited by the high of 1.4719 resistance and then down trend may resume from there. On the downside, if the pair goes below 1.2990 support, it will confirm that rise from 1.2456 has completed.

If you have not got my forex trading system that is provide in my f.ree ebook, please get it now as there will be tons of forex training, education and forex trading tips that you can pick up.

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Hi guys, I know everyone who wants to succeed in forex trading thinks that they will only be successful if they have something special, which many people will call it the ‘holy grail’. Well, I hate to repeat this for so many times when people asked whether I have a forex trading guide that can win 100% of the time. My answer here again will be no, I do not have it and I do not think anyone has it. If you want to be a successful trader, you don’t really have to go until such extends to search for the strategy or system. All you need is a mentor or coach who can give you free forex trading advice. On the internet, you can find plenty of them and of course this blog here is one of them

A common mistake made by many beginners is that they think they can buy success in forex trading by buying a trading system or strategy for $67, $97, $147 etc. Even if there is some forex trading advice sold on the internet, you have to judge whether it’s really worth the money and not some marketing gimmicks.  If at any time you will need to pay for those forex trading advice, how do you decide if it’s good? Some forex tips here..  Look for a real time track record and a money back guarantee. If you don’t get both, then don’t buy. This involves your hard earned cash, so you should do some research on the products that you are interested in.

You can find plenty of stuffs and education related to forex trading on the internet and they are free. Here are some of the topics that you may want to look up and study more on them.

1. Technical Analysis - You can find information on chart formations, candlesticks patterns, fibonacci numbers, support and resistance and many more that are used in many forex trading strategies. These mentioned technical stuffs are very important if you are a chartist or technical trader, and can be combined to become a powerful forex trading system.

2. Technical Forex Indicators - Most of the traders will trade using their favourite technical indicators and you should too have some in your trading system. However, do not flood your charts with lots of indicators because large quantity of them will only give you more restrictions to your trading. When you draw your charts with trendlines, chart formations etc, you will also need some timing indicators which include Stochastic, RSI, MAs, MACD etc. There are many more besides those that I mentioned, but in general, they are good enough for entering the forex market.

That’s all for today and we’ll look at how you can get some good forex trading advice on the second part of this post tomorrow. If you have not have not got my ebook with tons of forex training, forex education and a profitable forex strategy, get it now for fr.ee that is originally worth $67! Have a nice day!

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This is the second part of the post of how to win in forex trading using the right forex trading strategy . If you missed the first post of forex education with the first 3 secrets, you can find it by Clicking Here . We will continue the rest of the forex tips below.

4. What is the current condition of the forex market? Before you take in any forex trading signals, you have to be sure what conditions is the market showing, trendy or choppy. You can use indexes such as the Asia/Pacific, Europe and Dow Jones Industrial Average as tools to evaluate the market. Most of the time, the movements of the market are based on what the current economy is performing, and that will be the basis for traders to make a decision.

5. Are you mentally alert or stressful? In forex trading, it is very important that you maintain a calm and fresh mind before you even start to look at the charts. Do not trade when you are tired or stressed as there is a high tendency that you will make some mistakes and put your forex investments at risk. Without the right mind, you won’t be able to concentrate well even if you are using one of the best forex trading systems .

6. Do you have a stop loss or target to exit a trade? One of the biggest mistakes that forex traders made is trading without a stop loss. I have stressed many times that every position must have a stop loss but till now, there are many of my members still trading without setting a stop. Are you one of them? Without a stop loss, do you know that you can wipe out your trading account very easily? The problem with those people who do not set a stop is because they do not want to loose, and I mentioned that forex trading  definitely will have losses. And that’s how professional traders live their lives. It is how you manage your losses and not how you try to avoid losses. Never have a huge stop loss unless you are doing swing trading. Even so, 50 to 80 pips will be a good guide.

7. Do you know when to enter a trade? After knowing when to cut your losses, it is important that you enter a trade with good timing especially if you are doing intraday trading. If you do not have a good forex strategy, you can look for some online trading software which provides accurate forex signals that you can follow. For me, I use oscillators like Stochastic and RSI intensively because they are the main forex indicators for my trading system. Timing is important if you have a tight stop loss, as you would want to catch the trade early but at the period where there is a higher winning probability. I know this is not very easy for a beginner, but practice makes perfect!

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