FOREX, A Trending Market

The Forex market is widely known by its high liquidity and high volume of transactions occurring during most of its long trading week. These characteristics highly contribute to make the Forex market a very trendy market with few trend-less periods during the whole trading period.

But what does this mean to the Forex trader? Mainly this trendy characteristic of the currency markets means that there will be plenty of opportunities for the trader to find profitable trades during the day.

As you start analyzing forex charts you will realize that the market often display’s some very familiar patterns of price movement, this is; trends; and you will notice that once a pattern is established, it becomes the most probable course of future price action until the market changes. Giving you a good forecast of what comes next with the currency prices.

There are two types of markets which will become very important for you to identify and understand; these are: trending and, the less frequent, trend-less markets. Each market type has two specific patterns which you will also notice over time.

A Trending market is defined as a steady, elongated price movements with less than a 45 degree angle with occasional pauses, profit taking, or resting periods.

In a Trending market, you will notice two main and quite evident patterns:

Uptrends – A pattern of higher highs and higher lows.

Downtrends – A pattern of lower lows and lower highs.

There is also the less frequent kind of market, this is a Trend-less market with erratic price movements which are often steep (greater than 45 -degree angle) and cannot sustain and therefore must reverse. Although the movements can move many points in a short period of time, they are constantly and rapidly oscillating with the consequence that they often result in very little net price movement over time.

In a Trend-less market, you will find these main patterns:

Choppy – An erratic pattern of higher highs and lower lows.

Sideways – A narrow pattern of lower highs and higher lows.

While up-trend and down-trend periods will offer excellent trading results most of the time, choppy markets often create stop outs, this is they activate your stops by constantly overshooting your projected resistance level but without never really crossing too far from this level; while sideways markets produce for little in either direction making them hard to trade and to make any profit during these periods.

As always in Forex, your main trading objective is to get into profitable trades most of the time and a trending market is the perfect situation to find this profitable trades by riding the trends until you make your target profit objective of the day.

Forex Day Trading Signal

Traders and investors see the daytrading as a new speculation or diversifying opportunity.

In the past, the tools for day trading were available only to professionals. Matching a method of trading with your personality is the only way you will ever feel comfortable in the markets.

There is no fool-proof daytrading system. Accessibility to the data is a unique and important tool in your trading arsenal.

In contrast with other financial markets where you require the full deposit of the amount traded, in the Forex market you require only a margin deposit.

Your best chance to make money trading is by following the path of the best traders.

Day traders will holdi a stock until it goes up to about five or six cents and then start selling. Before you can put even stellar day-trading ideas to work, you must have a way to get price data to you and your order to the floor.

Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest-rate futures, and commodity futures.

Keep in mind, that it takes approximately $100,000 to day trade successfully and see profits. Daytrading can be fun, but also stressful.

Day traders depend heavily on borrowing money or buying stocks on margin. Day trading is a location-independent activity. People who operate in the day trade markets are known as day traders.

Day trading strategies demand using the leverage of borrowed money to make profits.

Traders and investors see the daytrading as a new speculation or diversifying opportunity. In the past, the tools for day trading were available only to professionals. Matching a method of trading with your personality is the only way you will ever feel comfortable in the markets.
There is no fool-proof daytrading system. Accessibility to the data is a unique and important tool in your trading arsenal. In contrast with other financial markets where you require the full deposit of the amount traded, in the Forex market you require only a margin deposit.
Your best chance to make money trading is by following the path of the best traders. Day traders will holdi a stock until it goes up to about five or six cents and then start selling. Before you can put even stellar day-trading ideas to work, you must have a way to get price data to you and your order to the floor.
Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest-rate futures, and commodity futures. Keep in mind, that it takes approximately $100,000 to day trade successfully and see profits. Daytrading can be fun, but also stressful.
Day traders depend heavily on borrowing money or buying stocks on margin. Day trading is a location-independent activity. People who operate in the day trade markets are known as day traders. Day trading strategies demand using the leverage of borrowed money to make profits.

Automated Forex Signals Simplify The Trading Process

Unless you are already a full-time trader, or unable to access a computer 24 hours a day, it’s difficult to trade forex on a part-time basis.  Many forex brokers and independent companies have developed trading systems that offer forex signals telling the user when to buy and sell.  The execution of a trade could be as simple as pressing a button or making a telephone call.

Forex trading signals usually operate on a mathematical formula and when parameters are met, a signal is sent out via e-mail or phone.  Once the signal is received, it’s up to the user to decide whether or not to take the signal.

There are a lot of mixed reviews on forex signal service providers.  To be truthful most signal services work, it’s the individual that fails to follow the system.  Even though you are not deciding when it’s a good time to buy or sell, your emotions can still get in the way if you are coming off of a losing streak.  It is however possible to weed out a lot of the losing signals if you are able to identify the overall trend.

Some companies claim to make 20% per month using automated trading systems.  I’ll be the first to say that these systems do exist; it’s just a matter of testing the different trading software’s out there to see which ones work and which ones do not.

When seeking out a reliable source of forex signals be sure that their data is back tested and the company has a proven track record.  Most systems will offer a trail period that enables you to test the system before committing to their service completely.  Prices for these systems can range anywhere from $15 to $500 per month depending on the quality of the signals.

If a novice trader is lucky enough to find a personal forex trader that manages a small group of people and their money this can sometimes be even more profitable then the large forex signal service providers.  However, finding reliable forex traders and trusting them with your funds are hard to come by.

In my personal opinion, there is nothing wrong with using forex signal providers given you do not have time to trade for yourself. However, taking a bit of time to learn how the forex market reacts to news and events will greatly enhance you trading profits.

Day Trading Robot

A day trading robot? Gee Wiz! Sounds like science fiction, right? It did to me just a few years ago. I would have never imagined that such a thing was possible. First of all, I came from a school of thought that believed nothing could be programmed to trade the markets successfully. I strongly believed this and argued with anyone that crossed my path. “No automated day trading system could tackle the stock market; impossible!” or so I thought. I also said to myself, “How could a computer program successfully factor fear and greed [the emotions that move the market] into an equation designed to extract consistent short-term profits from the market each and every day?” Well…,

…the bad news is that there really isn’t a robot to day trade stocks. Sorry to burst your bubble.

But…the good news is that there is one that day trades currencies (you know, the great forex market that I love and have bored you over and over with throughout this website?).

No folks; this is not “Forex Made Easy.” This is “Forex Made Easier”- An automated day trading system that NOT ONLY comes with a highly sophisticated set of conditions to enter and exit the market, but one that also pulls the trigger (that is, executes the trades) for you, using proper money management without which day trading is doomed to failure. [If you have not read why I strongly believe that the forex (short for foreign exchange) market is the purest and best market to day trade in the world, go to the currency trading section of this website]. This automated system is also known as Forex Robot or FX Bot (for frequently asked questions about the trading robot, click here).

Yes day trading fans. This day trading robot (or bot) not only finds the trades, it takes advantage of them when it finds them.

When the forex trading robot was presented to me for the first time, it was difficult for me to accept the whole concept. I got to admit, I was pretty skeptical. If the explanation wouldn’t have come from the best two money managers and traders I know (and personal friends of mine), I wouldn’t have even listened. But after a while, I was sold. “You, Dan? Mr. Day Trading Tutor?” – “Telling us that you believe in a day trading robot after writing an endless amount of information about how people could learn how to day trade, how much you believe in day trading, how you have helped day traders in the past, etc., etc.?”

Whoa, whoa!!! People, don’t get so exited. All of these things are still true. There are people that will learn how to day trade successfully and become successful traders. I am still involved on a very limited basis on the training of some day traders. But there are also many people out there that will never succeed as day traders and others that, after having tried it, will realize that it is not for them.

This is the truth; plain and simple. And even if the day trading robot wouldn’t have existed, this would have still been reality. The FX robot is just something extra that I feel can help not just unsuccessful traders, but also investors who can add something different (a new component) to their investment portfolios; and believe me, this is completely different than any investment I have ever seen before.

I created Day Trading Tutor to give you the reality of trading. Well, talking about the trading Bot is an extension of this goal. Since it exists and can help you, I must tell you about it – period!

Ladies and gentlemen; I am sorry if I sound really exited about this trading Bot thing – so exited it made me that I even became part of it in order to be able to offer it to my clients, friends, and family members (read “How are you involved in the day trading Bot and are you doing it just for the money?” below. I like to be very clear about the things I say. It makes me sleep peacefully at night. The thing is that I haven’t been part of a great project like this for a long, long time. The money managers and traders that designed and monitor the day trading robot on a daily basis have become personal friends of mine in the last few years. They are great guys and exceptional traders. They have been top-ranked in the past in the forex money management industry. I don’t like recommending traders or money managers to people, but this is an exception.

The robot program rocks!