Author: Mike Wright
This week saw gold touch $1,000 per troy ounce, oil trading above 110 per barrel, and the USD/JPY trading below 100 for the first time since 1995. The Yen has appreciated almost 12% against the Dollar since January 1 st of this year.

Equities saw the most volatility this week, with the emergence of near collapses of Bear and Stearns, and Carlyle Capital. The main saving grace was the fact that the Federal Reserve tried to prop up the market on Tuesday, with another 200 billion dollar infusion into the credit markets. Sadly that didn't help companies like Carlyle Capital, which announced on Wednesday that it couldn't come to terms to save its fund, and were now in default of their 16 billion dollar loan.

On Friday after the Euro/USD touched 1.5640, a report was released citing that there was now talk of an official government intervention from the Far East. Upon release this news sent the Euro/ USD down 85 basis points. Last time there was an official intervention was in 2004, when the Japanese government sold more then 100 trillion Yen to boost the exchange from 102 Yen per Dollar to almost 115. Traders are wondering how low they will let the Dollar slide before they start selling Yen this time around.

Next week doesn't get any easier with the FOMC meeting; economists are expecting a minimum of a 50 basis point rate cut. However, rumors that the
cut will be much deeper are beginning to circulate, with some predicting a 100 basis point cut. This could possibly send the Euro/USD into the 1.60 area, which leads into our trade of the week.

A "No touch" with BetOnMarkets.com on the Euro/ USD with an 11 day term, and 547 points to the down side, pays 6% ROI

Article Source: http://www.articlesbase.com/currency-trading-articles/same-old-story-362976.html

Author: Harold Hsu
Choosing an online Forex trading system is not an easy task. Retail traders are basically spoilt for choice due to the prevalence of so-called ‘systems’ that you can easily purchase online.

This being said however, not all such trading systems are made equal. In this article, I will discuss the things you should look out for, before you decide to hand over your money.

Tip #1 - Make Sure There’s An ACTUAL Track Record

There’s no lack of people selling sub-standard information on the internet today, and things are no different in the ‘Forex trading system’ niche. Unfortunately, this means that all kinds of inferior trading systems will be made available to the public, especially those with no actual record of performance.

Instead of proof of ACTUAL returns, many websites will show you ‘proof’ of SIMULATED returns. This means that the owners of such ‘systems’ don’t have concrete evidence of these ‘systems’ working in live trading.

Needless to say, you should avoid these websites like the plague. If the system developers don’t have the confidence to trade live with it, then neither should you.

Tip #2 - Pay Attention To Track Record Losses

When you DO find a trading system with an actual track record, pay close attention to the losses that the system incurred: you’ll need to make sure there are no excessive losses.

A trading system that enjoys a high winning trading percentage is useless if the losses are large enough… so make sure that most of the individual winning trades are larger than the losses.

A general guideline to follow is to look for individual winning trades that are at least twice the size of each losing trade. This way, you’ll at least enjoy a two-to-one win-loss ratio. Successful trading systems all rely on keep the losses small and letting the profits run.

Article Source: http://www.articlesbase.com/currency-trading-articles/online-forex-systems-choosing-a-trading-system-362841.html

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-price-movement-use-this-simple-equation-to-understand-it-and-win-big-363196.html

Author: Harold Hsu
If you’ve spent some time searching the internet for Forex trading resources, chances are that you’ll have come across at least one scam Forex trading product.

On the internet, there are countless scammers that try to tempt their ‘victims’ into buying their latest “trading system” that promises instant wealth. But as ridiculous as these claims may sound, there are people every day who unfortunately believe them.

Before you hand over your money to purchase another Forex trading product, try to avoid websites with these characteristics:

Tell-tale sign #1 - “Guaranteed Profits”

I’ll say this now: any website that promises you guaranteed profits is outright lying.

You see, even if such a system did exist, chances are you wouldn’t be able to afford it as a typical retail trader. There are many people more powerful and richer than you who would pay to keep this system to themselves. I’m sorry for being blunt, but it’s the truth.

So please, if you’re considering forking your money over for a ‘guaranteed profit’ trading system, close your web browser and as fast as you can!

Tell-tale sign #2 - Signal-Generating Software

This is another obvious scam. There’s no way on earth that any financial market can be predicted using a formula… and yet that’s exactly what these software ‘developers’ claim that their software can do!

Let me just put it this way: if the financial markets could really be predicted using some sort of formula, don’t you think the big investment banks would be using at least a variant of it?

The simple fact that the large institutional traders still have a job - and have not lost it to computers - is because all attempts to use software to predict human behaviour in the market have failed to produce consistent profits.

The Best Way To Trade

Many people don’t like to hear this, but unfortunately the best way to trade is to LEARN how to trade for yourself. Developing your own trading system is a tough, but highly rewarding experience.

Don’t sell yourself short by spending any money on ‘get-rich-easy’ schemes… you’ll be better off in the long run.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-trading-education-avoiding-scams-361555.html

Author: Phil Davies
Manhattan, New York - March 13, 2008 - The R. M. Smythe & Company spring paper money auction on March 20th 2008 will offer 890 lots of paper money at their Manhattan office. One of the more interesting lots of world banknotes will be the specimens of Siam banknotes, in particular the 20, 80, and 100 Tical denominations, are believed to be the only examples know to exist. They once resided in a Paris museum, were purchased by a dealer 15 years ago for $90,000, and recently were owned by the President of the Thailand Numismatic Association.

The spring sale will also include a wide selection of U.S. and World Notes, including; U.S. Large & Small size, 50's and 100's FRN's Small Size Collection, U.S. Small Size Errors, U.S. Fractional Currency, National Banknotes, Colonial Currency, Historic Documents, Confederate Currency and Bonds, Obsolete Currency, Obsolete Sheets and miscellaneous historical items. Some of the more noteworthy lots include:

Lot # 234 - Banque de l'Indo-Chine. [Estimate $100,000 to $125,000] Decree of 21.1.1875 and 20.2.1888. Bangkok. 1) 19.12.1898. 5 Ticals. P-S101. Specimen. Emerald green with printed date. Vignette on left depicting oriental woman holding bamboo shoot seated below "France" holding caduceus. Bank of France style of numeration with serial number 000 and block number 0.0. Value in English and French. Faux magenta watermark of woman. Two engraved signatures. Text in Chinese and Siamese overprinted in black on back. Impeccable condition. Uncirculated. 2) 5 Ticals. Specimen. Similar to first specimen but without date, zero numerals or faux watermark on front. Only one engraved signature. Overprint of Chinese and Siamese text absent from back, but Chinese text in the center is printed in emeral green with the rest of the back. Uncirculated. 3) 6.12.1898. 20 Ticals. P-S102. Brown with reclining Neptune holding trident at left. Back has black overprint in Chinese and Siamese. Zero numerals overprinted on front in black along with the magenta faux watermark. Two engraved signatures. Space left blank for handwritten or affixed signature for Le Caissierde l'Agence. Uncirculated. 4) 7.11.1898. 80 Ticals. P-S103. Light blue with two elephants at left and right pillars, two reclining women with a tiger and a water buffalo at lower center. Overprinting similar to that on the 20 Tical note, and signature block of Caissier de l'Agence left blank. Uncirculated. 5) 31.2.1898. 100 Ticals. P-S104. Red with Vasco de Gama at left and Polynesian man with paddle above dragon boat at right. Sailing ships at lower center. Overprintings similar to those in the previous three lots and signature area of Caissier de l'Agence left blank. Uncirculated. [5]
With the authorization of the Ministry of the Colonies, the Bank of Indochina opened a branch bank in Bangkok on 22 February 1897. The printing of banknotes for use use in Siam was first considered on April 27, 1897, and a series of four values (5, 20, 80 and 100 Ticals) adopted the design of the first series of notes issued for Indochine but with texts and colors modified. Each value has a different design, and there are various dates.

Lot # 235 - Hong Kong & Shanghai Banking Corporation. 18xx. 400 Ticals. [Estimate $15,000 to $20,000] P-S127r2. Salmon and green front with Chinese and Siamese text overprinted in black. Royal arms at top center. Red-orange back with Siamese text overprinted in black. Two vertical "CANCELLED" perforations. Date of Dec 1895 handwritten in black ink in the upper right margin. Highest denomination reported in the standard catalog. Extremely rare. Has a corner tip fold and some light glue remnant along a margin in the back. Choice AU.

Lot # 247 - Thomas De La Rue. [Estimate $20,000 to $25,000] Presentation album with front and back design proofs for an unissued 1000 Baht note. The purple on multicolored front has a portrait of King Rama IX at the left in Field Marshall's uniform that closely resembles the portrait on the 1 Baht note of the 1953-56ND issue. The back in the right recessed panel has a central vignette showing activities surrounding the major regional products of Thailand: rubber, lumber, fish, and rice. There exist proofs of unadopted lower denomination notes whose backs each separately depict one of these activities. Uncirculated.

This album was once owned by the President of the Currency Board and is believed to be unique. There is minor corner wear on the red album, and some minor foxing on the inner boards, but the essai proofs themselves are bright and problem free.

Lot # 298 - $10. Fr.95B.1863. No.5317. Choice Uncirculated. [Estimate $12,500 to $15,000] A beautiful, fresh note with exceptional colors and paper quality. The only quibble would be a tiny corner tip fold in the upper right that extends only 1mm into the note. Centered perfectly on the back and shifted slightly right on the front. Opportunities to acquire this type in very high grade are becoming few and far between.

Lot # 523 - California Ch.12454. Los Angeles. Pacific NB. $50. Fr.685. [Estimate $8500 to $9500] 1902 PB. No.7 B. 63 Choice Uncirculated. One of the 15 single-digit $50 1902PBs recorded in T&P which all grade about the same as this piece. They are very quick sellers, and supply never keeps up with demand. Great embossing and originality can be plainly seen through the PMG 63 EPQ holder.

Lot # 296 - $5. Fr.70. 1880. No.Z357532. Gem Uncirculated. [Estimate $8000 to $10,000] One of the finest known large brown seal Fr-70 Legals. The embossing and overall originality are clearly discernable through the CGC Gem65 holder. The PMG population report shows two 65s and one 66. A PMG63 sold last year for $9200. This beauty should fetch at least that amount.

Lot # 596 - Continental Currency Counterfeit Detector. Act of September 26, 1778. Pane of $5-$7-$8-$20-$40-$50-$60. [Estimate $4000 to $8000] Blue paper. Counterfeit detectors were printed using the actual plates and distributed to banks and merchants to prevent fraud. The blue color was intended to stop the notes from being filled in and circulated. Extremely rare in sheet form. Three small edge split on the left margin, otherwise Uncirculated.

Lot # 301 - $100. Fr.204. 1863. EF-AU. [Estimate $6000 to $8000] Lovely obverse proof of the $100 Two-year Interest Bearing Note with three coupons attached. Printed on heavy paper. Plate letter A. Dated December 1, 1963. Three small hole cancellations through each signature on the note, and two each through Chittenden's single signature on the coupons. The paper has all sharp corners with two vertical folds, one through the center and one along the border with the coupons. Only two issued examples are known, and albeit not nearly as rare, proofs are very scarce.. The plate letter D proof in VF condition sold earlier this year for $6900.

"Our March 20th sale is going to have several very rare items, but the majority of the lots offered will be exceptional quality banknotes with pre-auction estimates that put them well within range of the average collector." said Mary Herzog, Vice President of R.M. Smythe & Company. "The quality of the World Banknotes we are offering at this sale is extremely high. Collectors of these notes will have an amazing opportunity to purchase some truly wonderful examples."

Lots will be available for viewing at Smythe’s offices at 2 Rector Street, in New York City, by appointment only. To arrange for an appointment call R. M.Smythe & Co. at 800-622-1880. For updates on this auction check Smythe’s website at smytheonline.com. This auction will also be conducted with eBay Live/LiveAuctioneers. A complete catalog of all 890 lots including photos and estimates can be viewed online at: http://static.smytheonline.com/ . Select "Current Auctions" in the left column.

Accredited media interested in scheduling an interview to discuss this release or past & upcoming auctions are encouraged to contact Mary Herzog at 212-943-1880. High resolution photos are also available upon request.

About R. M. Smythe & Co.
R. M. Smythe and Co., established in 1880, buys, sells, and auctions coins, paper money, stocks and bonds and autographs at their corporate headquarters at 2 Rector Street in the heart of the Financial District in New York City. To order a catalog, to contact any of the firm’s specialists, or to make general inquiries, call 212-943-1880 or 800-622-1880, or visit the firm’s website at: http://www.smytheonline.com.
Article Source: http://www.articlesbase.com/currency-trading-articles/smythe-march-20th-us-world-paper-money-auction-to-feature-the-only-known-examples-of-siam-banknotes-360980.html

Author: Harold Hsu
It’s no coincidence that more than 90% of retail Forex traders lose money in trading. If you’ve done a little research, you’ll realize why this is the case. As a retail trader, the currency market is heavily geared to make you lose money.

And one of the main reasons why it’s so easy to lose money is because of the proliferation of bad trading advice. There are volumes upon volumes of misleading ‘tips’ and ‘strategies’ splattered all over the internet, none of which are actually useful information at all. They are typically dispensed by people who are not actual traders, or traders who aren’t really profitable in practice. Unfortunately, Many novice traders try to implement the ‘strategies’ given by these people, and ultimately wipe out their trading accounts.

But of course, there are indeed some useful tips and techniques that can be found online… you’ll just have to be able to figure out which ones they are!

Just kidding… I’m going to share one of them with you today.

Understanding the risks of trading

So many people get obsessed with the idea of making money that they often forget to pay attention to how NOT to lose money in Forex trading. They jump into the market without first figuring out the inherent dangers, or how to avoid them.

The risks you face as a retail trader are 3-fold: market risk (other traders), counter-party risk (your broker), and self-risk (your psychology).

While many retail traders are well-acquainted with market risk and self-risk, they often neglect counter-party risk. While it is beyond the scope of this article to examine this issue in detail, it’s important that you, as a retail trader understand the driving motivations of your broker.

What makes your broker money? Do they make money when you profit? Most of the time, the answer is no. In fact, most brokers make more money when you trade more. It doesn’t matter if you win or lose; the more you trade, they more money they make (since they get their income from spreads).

Can you see how they don’t actually have an incentive to help you make money? Instead, it would serve their purpose better if they could make you place MORE trades!

So don’t fall into their trap. Make fewer trades with higher winning probabilities. It’ll serve you better in the long run.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-trader-trading-1-secret-of-profitable-forex-trading-358148.html

Author: Jason Fielder
A "breakout" is when the market suddenly and quickly jumps out of its recently established range to either gain, or lose, price dramatically. Often times a breakout will occur out of a counter-trend market, but this isn't always the case.

In fact, many of the articles you will find about breakouts online will actually be focusing only on breakouts that come out of a counter-trend market. While this is the most common type of breakout that Forex trading systems concentrate on, the other breakouts should not be ignored because they also offer excellent opportunities for a Forex trader to make good money.

When a market is counter-trending, traders are watching a market that is staying contained between a high and low range, but the market is moving sideways. When a day's trading ends up pushing the currency value out of that contained channel, that's a breakout to the upside, and it can go either way, higher or lower. No matter which direction it takes, there is money to be made off of it as long as you're on the right side of the breakout.

But breakouts aren't limited just to forming out of counter-trend markets! They can also take place coming out of a trending market. When a market is trending in either direction, there still is a normal range that determines a trend. When the market breaks out beyond the normal range of the trend, that movement is also considered a breakout.

Breakout trading offers opportunity since jumping on the right side of a breakout early offers potential profit in a Forex market. They provide a chance to ride a strong sudden surge of volatility to provide quick and large profits. While breakouts are rarer than other types of market movement, they offer the most money to be made.

This strategy sounds simple, but the problem with playing a breakout is that breakouts are technically unstable, and no one knows how long they will last or when they will suddenly reverse. There are also "false breakouts" where the market appears to be breaking, but isn't.

There are strategies and indicators that that try and pin point a potential breakout. Some of the most popular include:

1. Using pivot lows and pivot highs to determine potential "pivot points" that indicate an upcoming breakout
2. Fibonacci retracement methods
3. Using multiple moving averages

There are many methods to try and find a breakout, and once an identified breakout begins, a trailing stop is one of the best ways to take maximum advantage of this situation.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-breakout-jumping-aboard-for-giant-breakout-profits-360410.html

Author: Monica Hendrix
How did a group of traders with no experience, learn to trade and end up making hundreds of millions of dollars. To find out we need to go back over half a century to one of the most famous trading experiments of all time and see what we can learn.

The Experiment.

Trading legend Richard Dennis had a theory that anyone could learn to trade if they had the right mindset and the right method so he set out to prove his point.

He nicknamed the group the turtles and they have gone down in trading history.

He took a group of people and the only thing they had in common was that they had never traded and had not one bit of trading experience.

The group was a mixed bunch - a female auditor, a boy who had just left school a couple of card players and a security guard to name just a few.

He then taught them in two weeks and gave them some trading money and accounts.

The result is history - $100 million dollars in the first four years and many of these traders went on to become legends.

What You Can Learn

Think about it for a moment - this group is no different to you!

So it means you have the potential to - sure, you may not become as rich as the turtles but the opportunity is there and that's an inspiration.

Secondly 95% of traders lose so what did this group do right?

The answer is they had a simple method and it was so simple anyone could learn it, but that's not the hard part of trading - executing your trading system with discipline is.

Dennis was well aware of this so he made sure the group knew exactly how and why it would work (it was essentially a breakout system) and made sure they had confidence in it.

Confidence is essential to execute a trading system with discipline and keep in mind, if you have no discipline to execute your method you don't have one!

Most traders lack discipline they don't have the confidence to follow a system because they follow others or they get the wrong system and believe the numerous trading myths that are circulated.

Trading success comes from within.

Trading success is down to you and that's what Dennis taught the turtles.

Once you accept this. its getting a system you have confidence in and can follow with discipline which is the key and not following a vendor with a useless system with a simulated track record!

There are no trading secrets - trading is down to you and the ability to control your emotions that was true 25 years ago and is still true today.

You Can Do It Too!

Trading isn't easy and you wouldn't expect it to be, with the rewards on offer but there is a huge difference between something being beyond you and being possible.

Sure, you will have to work at the basics and get the right education but isn't that a small price to pay, for the riches that successful trading can bring?

I hope the story of the turtles inspires you to trade, it inspired me and sure I haven't made as much money as them - but I have been successful and got a lot out in terms of rewards for the effort I have put in.

You can be a successful trader to just have desire and a willingness to learn and your all set.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-trading-2-weeks-education-and-these-novice-traders-made-millions-359582.html

Author: Monica Hendrix
Many traders simply buy e-books from people with no trading experience however for just 20 bucks you can learn from a trader who has walked the walk and made millions - Pit Bull by Marty Shwartz is simply essential reading...

This book is one that will inspire you and its been one of my favorites for many years.

It always amuses me when novice traders buy over priced e-books from traders who have never made money yet for a lot less, they can pick up investment classics like this and were talking a trader who has walked the walk and made Millions.

It's worth it For This Alone!

One of the best bits of the book is the "The Pit Bull's Guide to Successful Trading" in 30 pages, for those seeking a quick insight into Schwartz' success on the markets these pages are great. Schwartz outlines the tools and market analysis services he uses and some of his techniques.

An Insight from a True Pro

In Pit Bull, you get an idea of how Marty Schwartz became a champion trader.

He outlines how he struggled before getting some breaks that have now made him into the millionaire trader. Schwartz tries, to teach the reader how to apply some of his formula to make them successful.

It's Amusing To!

If you enjoy books on trading that are interwoven with the story of someone's life you will love this book. The book makes you sometimes laugh out loud, his language is crude and he constantly brags about his gains, so what you get is Buzzy Shwartz as he is - totally honest and talking straight.

The story of Buzzy Schwartz is fun to read and will motivate you to become a trader.

Schwartz provides advice for those who hope to become successful traders and some of ideas rubbed off on me and some will influence you to. Whether you believe all the author has to say or not, (and many won't) this book is hard to put down and you will soon race through its 320 pages.

In all a great book, from a true champion trader and one that anyone serious about making money in the markets should read.

Article Source: http://www.articlesbase.com/currency-trading-articles/essential-trading-books-pit-bull-learn-from-the-best-359581.html

Author: Monica Hendrix
- How to use technology to make your trading easier and more efficient

- Explore technical analysis and discover how to use charts with greater accuracy

- Learn how to confidently spot the highest probability trades

- Learn the Secrets of disciplined trading the key to being successful

- Find out how to develop, test, and build a trading plan that fits your personality

- Find out how back testing, optimization, and evaluation can help you improve

The book is packed with of examples, downloadable code, and worksheets and everything in the book is simply designed to help you set up and run a trading business, make it successful and keep it that way.
If you have ever wanted to be a successful independent trader then - Make Money Trading: How to Build a Winning Trading Business, will point you in the right direction.

We all know that trading can be learned by anyone but 95% of traders lose. In most instances it's because they don't have a plan and the discipline to follow it and that where this book can help and for under $30.00 it could be the best money you ever spent.

Article Source: http://www.articlesbase.com/currency-trading-articles/make-money-trading-how-to-build-a-winning-trading-business-359580.html

Author: Giselle Sanchez
An expert advisor is simply a piece of code written in the MQL4 programming language which, once installed on your MetaTrader 4 Forex trading platform, has the ability to automate the opening and closing of trades on your behalf. It is a piece of code that includes a set of rules based on what, how and when to trade. It also allows you to adjust stop loss, take profit and trailing stop levels according to pre-defined parameters.

Every expert advisor is different. Every EA - its own animal. But they all serve the same purpose: to eliminate inconsistency - a fault that characterizes most traders.

How An Expert Advisor Works

Once installed and enabled to run, an EA will usually first check if there is enough equity in your account to open a trade. If there isn't, it won't run.

If there is enough equity in your account, the EA will on each tick of the currency pair(s) that it is assigned to trade on, run through it's rules and codes and verify that the trade entry criteria have been met. Alternatively, if open trades already exist, it will check that an exit (stop-loss or take-profit) criteria has occurred. If it has, it will automatically exit the trade for you.

To work, the computer that is running your expert advisor (and trading platform) must be kept running all the time while the forex market is open. If you ensure that your computer is running 24x5 - all you have to do is sit back, relax and let it do its thing!

Programming A Strategy Into The Expert Advisor

An expert advisor can be designed to trade many different strategies. They can include grid strategies, hedging strategies, martingale and reverse martingale strategies, trend following strategies, correlation strategies - you name it. Additionally, you can choose to combine one or more strategies together.

Forex expert advisors can trade breakouts, news announcements only or they can be scalping expert advisors which aim to secure small profits as soon as they are avaliable. An expert advisor can be programmed to do whatever you like - the possiblilities are truly limitless.

Classic EA's look to trade bounces off of support and resistance and reversals. They enter trades when a high probability setup looks like occuring. Many expert advisors come with trailing stop losses - a feature which helps you lock in profits.They can also be programmed to monitor market conditions for reversals and then close your trade immediately when these conditions are met to lock in profits as well.

More advanced EA's can trade multiple pairs simultaneously or monitor multiple timeframes at once, giving you a wide range of options in picking a market trend - something that would take you hours if you had to do it manually.

The type of EA you choose to trade with should sit well with your overall trading style. Playing around with its risk-settings while it is trading live will give you a better feel for what it does well and you will learn it's characteristics better. If you understand what it is doing, you will have more confidence in it to ride out a bad performing patch while you continue to monitor and play with its stop-loss and take-profit levels.

While the point of forex expert advisors is to automate your trading decisions and improve trading consistency by taking emotions out of your trading, you still must pay attention to what the expert advisor is doing. This is especially relevant if your expert advisor is automatically set at a wide stop-loss of say 100 pips or more.

Conclusion

Understanding the strengths and weaknesses of your Forex Expert Advisor is paramount if you intend to trade with them in live market conditions and with real money. There are various different types of Expert Advisors available today for the Mt4 platform and they are restricted only by the creativity of the programmers who design them.

Article Source: http://www.articlesbase.com/currency-trading-articles/what-every-forex-trader-ought-to-know-about-expert-advisors-359046.html

Author: Jason Fielder
Trend trading is where the big money is in the Forex market. While there is money to be made in counter-trending markets, there is only so much that can be made when the market is essentially moving sideways.

Trading when the market trends is where there is the opportunity to make (and if you're on the wrong side without a stop-loss, possibly lose) major money.

A market goes into a trend anytime there are more buyers than sellers or more sellers than buyers over a prolonged period of time. This trend can be with prices going up (more buyers than sellers) or down (more sellers than buyers). There is money to be made regardless of which way the trend goes, since all trading is done with pairs.

Figuring out the best way to trade trends involves knowing extensive technical analysis, so having a proven and profitable trading system helps immensely. Without a prove and profitable trading system, it's very unlikely that over the long run, you will profit from Forex trend trading.

While there are all sorts of technical tools for analyzing trades, the simplest way to spot a trend, or what might be the beginning of a trend, is to watch and see if each time period's high keeps getting higher, indicating the market is steadily trending up in price, or if each period's low continues to get lower, indicating a downward trend in price.

If you decide to use bands to help your trend trading, remember that a basic rule when using bands is to wait and see when the high price penetrates the upper band. This is your signal that an upward trend is about to start. You want to buy when that price penetrates the upper band and go long, with a trailing stop loss. There's a good chance the market will make an upward trend that a long position can profit from.

When the price penetrates the lowest band of your corridor, you want to sell and go short, watching the market for any confirmations on any further trends, counter-trends, or pivot points that indicate a trend reversal.

The basic goal of trend trading strategies is always the same. While you don't want to be the first to test the market, once a market trend reveals itself: join the move early!

Then hold your position, making as much money as possible, until the trend reverses and then get out. This is where using a trailing stop loss can help maximize the profits you earn from any market movement.

Trend trading is where the big money is at, and recognizing and getting in on trends early will make you a very happy (and wealthy) trader in the Forex market.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-trend-trading-the-early-bird-gets-the-cash-357913.html

Author: Kelly Price
The above describes the theme of a book by Melvin Pasternak and it tells you the best 21, of over 100 candlestick patterns which you can see or use on a forex chart. If you love candlestick charting or you want to learn, this book is a good place to start and at just $20.00 it's a steal.

Pasternak claims that by Knowing these 21 formations traders can gain a trading edge. There are those that occur most often and are more reliable and there are those that are warning signs of turning points.

Why are Candlesticks Such a Great Trading Tool?

The reason lies in the fact that they paint a picture on a chart.

This give you a more visual illustration of human psychology than a bar chart ever can. Candlestick charts bring human emotion to life right before your eyes and that's a good advantage to have, to initiate new positions or as a warning to cut and run!

A Deep Insight into Human Psychology

The answer can be found in the clear and straight-forward nature of the candlesticks themselves-offering traders the ability to see the bigger picture.

Continuation patterns, reversal patterns, emerging trends, bottom and tops -- all of these insights come together in a way that other charting systems just can't compete with.

The book explains the following:

* About the candlesticks (21 formations) every trader must know by name

* Discover the candlesticks that occur most often

* Learn about the candlesticks that will immediately affect your trading decisions

* Find out how to increase your accuracy and trade with greater confidence.

Candles combine well with other tools of technical analysis such as support and resistance, moving average, and indicators such, stochastics, RSI, ADX and MACD to name but a few.

I think paternick's choice of candlestick patterns is excellent and if you like the idea of candlestick charting, or are trading with them already, then this book will appeal to you.

Candlestick charts have been used for thousands of years and it's only in the eighties that they became popular again and let's hope that they stay popular. There fun, easy to use, can give you a deep insight into human psychology and if you are using forex charts - that's just what you need.

21 Candlesticks Every Trader Should Know, is 128 pages, an easy read and at a price of just under $20 it's a bargain.

Article Source: http://www.articlesbase.com/currency-trading-articles/21-candlestick-formations-every-trader-should-know-357870.html

Author: Kelly Price
This is one of those books that is an essential for all traders we all know technical analysis can work and forex charts are a great way to make money - but which 7 chart patterns consistently make money? That's the subject of this book and its essential reading for trader's both novice or pro.

Omni Trader founder Ed Downs reveals the 7 best formations and the reasons why.

What attracted me to the book was some of the chart formations he picked and saucer formations caught my eye.

When I first started trading 25 years ago, I used saucers as a cornerstone of my trading arsenal and still do - but how many traders use them today, or even know what they are?

Not many, yet it's a powerful formation and learning to use it correctly, is worth the price of this book alone.

7 Chart Formations for Profit

I personally don't agree with all his chart patterns (6 of them I do though!) but the book itself is a great idea and most of the chart patterns I have been using for years and they have consistently made me money too.

The book covers the following formations:

Support and Resistance, Trend line Break and saucer formations Fibonacci retracements gaps -breakaway, measured, exhaustion, volume climax, volume trends and consolidation patterns - flags and triangles.

An Under Rated Formation!

I found all the above interesting, helpful and informative and in addition to saucers liked his view on gaps. I love trading gaps; many traders hate them and think it's dangerous to trade them. I have always made money with them and learned something new from Ed Downs ideas on them.

Applying knowledge for Profit

Downs doesn't just share his info on the chart formations, he also goes into detail on how to spot the formations and profit from them using correct market timing.

The books also shows you how to Master money management techniques-including setting Profit Targets, Stop Loss levels and how to determine the risk/reward for each and every, trading signal you place.

Today, traders don't want to just trade chart formations, there seen as old school by many - but there not.

We all know human nature is constant and this means that certain chart patterns repeat and repeat. Some of course are more reliable than others and this book tries to give you the best ones and how to make money from them.

Personally I liked 6 out of the 7 and gaps and saucers, I have used for years yet the book taught me new things about these chart formations and also gave me a greater insight into the others discussed.

Get this book - it's not strictly a currency trading book and is applicable to all traders.

Get 7 Chart Formations That Consistently Make Money and will find that your increased profitability will pay for the book in just one trade. A great book for any traders library.

Article Source: http://www.articlesbase.com/currency-trading-articles/7-chart-patterns-that-consistently-make-money-357867.html