University of Forex

My Forex Scalping System

2008-11-12T13:30:00.004+01:00

I have noticed that so many people want to scalp the forex,so I am providing my Forex scalping system for these people.

This systeman efficient system of scalping that works in 1 minute up to 1 day all periods and all Currency

Ema 3
Ema 5
Ema 7
Ema 9
Ema 11
Ema 13
Color yellow

Ema 21
Ema 24
Ema 27
Ema 30
Ema 33
Ema 36
color Green

Ema 55 Color Red

This is how the chart would look like after these emas have been added to the platform.

Entry Signals

Buy When the Group of Ema`s Yellow Breaks above Ema 55
Take Benefit When Yellow Group Touches The Group Green.

Sell When the Group of Ema`s Yellow Breaks below Ema 55
Take Benefit When Yellow Group Touches The Group Green.

If The Yellow group does Pull Back in Ema 55 or In Green Group Buy or sell again

Take Profit
10 Pip in Breaks of Ema 55

And

5 pips In Pull Back

Stop loss

5 Pips

5 Minute Periods

The Good thing is Works with All periods and all the Currency.

Demo trade this strategy before going live with it please.Then drop your comment about it below.

Should I leave my Day Job for Forex trading?

2008-03-26T17:13:00.002+01:00

So many would-be forex traders and newbies ask whether it would be appropriate to leave their regular day job for the newfound forex business,since the latter requires less time and energy and is acclaimed to make much more money than any other business in the world.Well,my reply is-Don't!

I think you should keep on working and trade the forex as well without affecting your job by following a time frame that would require less work on your part.If you have not tried forex,I think it would be rather risky quitting your job for it.

If at all you want to leave your job for full time forex trading,you should have tested and tried forex trading on a demo account and should have been trading it live for up to six months and made a nice profit that surpasses what you earn from a pay-job.

This is the only time I would advise you to sack that Boss of yours.
Before then, you could handle both at the same time,you work and trade.I could hear you saying "that is trying to kill two birds".Yes it is!Though,not at the same time,you could kill 2 birds with a stone.

It's expected that you should have had up to two months of demo trading before going live.Now in order that you should still be able to maintain your day jodb,you only have one choice-to trade from the daily chart.This way,you don't need to leave your workplace to be able to monitor trades or place them.When you trade from the daily chart you only need to check you chart when the day's candle closes and that should be around 11 pm nigerian time(22 hrs GMT.)

Then so many others ask me if they could trade from the daily chart with a very small account balance considering they have to use huge stop loss.

Well,my answer is: "Use money management and you won't need to worry about the number of pips.For a daily chart trade on EUR/USD,you should always use 120pips Stoploss.

Money management is the most important trading decision you could ever make.If you need to learn more about it,click here.Demo trade any thing you learn here for at least 2 months before going live with it(4 months if you are trading from a daily chart.)

Thanks for your attention and Happy trading.

Demark Trading System.

2008-03-26T16:56:00.019+01:00

Using Tom Demark Trend Line can profit on all timeframes down to M15. Scalpers and long term traders can profit from this. Also, you might not wait on a break of a trend line but can trade its bounce.

Introducing a set of breakout qualifiers, a trendline breakout will become an ideal entry price level for a trade in the direction of the new trend. Alternatively, if the breakout fails to meet any of the qualifiers, it will enable the astute trader to trade against the anticipated trend. Here are the breakout qualifiers:

Upside breakout qualifiers

Qualifier 1:
The price bar prior to an upside breakout must be a down close.

Qualifier 2:
The current price bar’s open must be greater than both the current TD Supply Line and the previous price bar’s close and must then trade at least one tick higher.

Qualifier 3:
The previous price bar’s close plus the previous bar’s “buying pressure” must be below the current price bar’s TD Supply Line price level.

Qualifier 4:
The current price bar’s open must be above both the previous two price bars’ closes, and the current price bar’s TD Supply Line must be above the previous price bar’s high.

Downside breakout qualifiers

Qualifier 1:
The price bar prior to a downside breakout must be an up close.

Qualifier 2:
The current price bar’s open must be less than both the current TD Demand Line and the previous price bar’s close and must then trade at least one tick lower.

Qualifier 3:
The previous price close minus the previous bar’s “selling pressure” must be above the current price bar’s TD Demand Line price level.

Qualifier 4:
The current price bar’s open must be below both the previous two price bars’ closes, and the current price bar’s TD Demand Line must be below the previous price bar’s low.

With TD TL, u risk very little trading TL bounces. In fact risking 10 pips is not uncommon for me for a TP of about 20 pips + spread. Pairs I watch (ranked): USDJPY GBPUSD EURUSD USDCHF EURJPY GBPCHF.

Trading Examples in www.forexfactory.com

Source: www.Proforexstrategy.com

My Forex Trading System.

2008-03-26T16:56:00.015+01:00

My Forex trading strategy involves using moving average crossovers as signals to enter either a buy or sell position.Before i teach you the strategy,let me give you some vital pieces of advice that would enhance your trading.
1. Kill your emotions when trading.Be patient for the crosses to occur and when they do don't be greedy.Use money management and stay disciplined.
2. Follow the strategy religiously.Do not add to or subtract from it.I have done almost all the thinking needed to make it this good.
100% Guaranteed
With my knowledge of the forex market,there is no single Technically generated trading strategy that gives 100% right signals.100% right trading strategy remains the quest of so many beginners and that's why most of them would pull out of the forex environment,because,it is not obtainable.There are times when you get false signals from every trading strategy,no matter how good it is.If you want to look for a trading strategy that will give you 100% correct signals at all times with no losing times,then you will forever be searching.But,if you want to get a strategy that gives you 100% guarantee of making a nice profit every month,then,this one is for you.That is my guarantee.
Are you Sure?
How can you be sure I know what exactly I am talking about?
1.The Forex is a trending Market 80% of the time.Which means you have 80% chance of making profit if you follow my strategy.
2.Although,no Strategy can give you 100% right signals,my strategy tried to reduce the losers from the 20% to about 10% losers by my insurance method.You will learn this later.Enough talk,let's get down to business.
My trading strategy
Chart setup
Open a EUR/USD chart
Choose candlestick view
Choose 4hour timeframe
Apply EMA 6(color red) and 9(color blue) to the chart(all with shift=0,apply to close)
Save this template with the name "Ma".
Trade Signals
Entry
When ma 6 crosses above ma 9,you would be opening a buy position.
When ma 6 crosses below ma 9,you would be opening a sell position.
Exit
Close any existing buy position when ma 6 crosses below ma 9,ie when a a sell signal has been generated.
Close any existing sell position when ma 6 crosses above ma 9,ie when a a buy signal has been generated.
Money Management
No matter how much you have invested,the forex is always more than a million times.so you should always take on the lowest risk possible.Use between 3% and 5% money management to determine how many lots you should be trading.This is how to do it:
Assuming you have an account balance of $10,000,and you wish to use 3% money management,then,calculate 3% of that,

3/100 x 10000 = $300.

This is your risk for the trade.The highest you could lose.

Then divide the risk by your stop loss(the number of pips you are using as stop loss.)

$300/70 pips =$4.20/pip

Now,$4.20/pip means a trade of approximately 4 mini lots trade.This is the lot size of the trade you are going to place.
But wait a darn minute.I told you of an insurance strategy earlier on that could turn those losing false signals to winning false signals.So in order to place your trade,you have to involve that insurance.This is how it goes:
Insurance Strategy
Do not place one whole position using the whole 4 mini lot.Rather,divide your position into three:
The first part should be the biggest 50% or more of the total lots.In this case 50% of the 4 mini is 2 mini
The second and the third part should be equal.So you would divide the remaining 2 mini lots into 2,which gives you 1 mini each.
So you would be placing 3 trades at the same time.
one 2 mini lot and two 1 mini lot.All three should have stop loss of 70 pips
The 2 mini lot should have 100 pips take profit.
The first 1 mini lot should have 400 pips take profit.
and the second 1 mini lot should have 1000 pips take profit.
Remember,you close all existing position when the opposite signal is generated.
This way you are protected and 90% of the signals would be in your favour and in profit.
But mind you,no trade except the moving average signals so.Therefore,demo trade this strategy as explained above for a full month,so that you could master it very well,before doing it on a live account.Monitor your trade every 4 hours.So,you don't need to sit and watch all the moves,but make sure you trade all signals.Just check every 4 hours.
Now,one last rule: if a signal is generated by a long candle such that the next candle opens at 50pips or more below/above EMA 9,then wait for a retracement of 30 pips before entering or determine this position and place a Limit pending order at that price.
I have also created a way to use this strategy to build an account so fast and double it that same month.It would be published soon.For any questions or contributions,please drop me a comment here.
Thanks for your attention and Happy Trading.

Why So Many Forex Traders Lose

2008-03-15T09:46:00.003+01:00

Studies have shown that 80% of forex traders lose and Pay 20% that win.Then 95% of those that lose quit after their first loss,leaving only 5% which continue and later join the 20% winners with more experience.
What does these figures portend for would-be forex traders?
The simple way of putting these stats is to say that;
Out of every 100 forex traders,

Only 20 would be in profit
Only 4 lose and continue trying till they are good at it
And the rest 76 would lose and quit trading for life.

The basic question now is:Why would too many traders lose?

This is a big question.But the simple answer is:The 80% that lose trade with EMOTION.

If the reason is that simple,why is it that the 76 lose and quit.Because they fail to adjust and trade without emotion.
Most traders learn forex,practise only for a week or two,load their account and go live,and as expected,with the little experience on their side,they crash and burn.Then quiting seems to be the next best option.No brother!Don't!!Let's solve your problem!!!

Due to the lack of experience,I have discovered two major reasons why they lose:

1. Not following a trading Strategy:
Most traders do not have a trading strategy to follow and as a result,they gamble the forex,entering when they notice a movement in any direction.For instance,when they see a currency pair going up they immediately Buy,and when they see it moving down they immediately sell,without knowing the underlying causes of such sporadic movements.This is purely Emotion at Work,hence these group of traders are called Emotional Traders.They end up joining spontaneously at the end of these sporadic movements,thereby sustaining losses each time and saying things like "Forex is a Game of Luck."No.That is what they are playing-Game of Luck.
Some others watch the market with too many trading strategies,jumping from one to another after a trade that did not favour them.What do they get?A losing Streak,since they may jump into a strategy when it gives a false signal, and jump out when a good one is generated.As we all know,their is no single trading strategy that is up to 90% right not to talk of 100%.You disagree?I think you should do a google search for one of such.The reason is that the Forces that drive the market are countless and since no single person can harness all these forces in placing their trade,we can only tell where the currencies would go on the long run.This is why the Big Dogs are the only almost 100% Right traders in the Forex.They Harness as much of the driving forces as they could and Place a long term trade with their analyses.These set of run-around traders,when they have enough frustration from their losing streak would generally think it's high time they quit.

2. Not Using Money Managemet:Even the richest Central Bank in the world cannot dictate for so long how and where the forex market would or should go by using all the money at their disposal to trade,given the fact that the Forex turns out about $2trillion daily.If this is true,how much do you have in your account that makes you think you would be right all the time,or even at any point in time,thereby using Large lot sizes to place your trades?
An instance would be a trader who has $1500 in his account.because he wants to trade large lots to make fast gains and double account within the shortest possible time,he chooses a very large leverage,say 1:500(This is what I call Leverage Abuse,because that is not to say that Large leverages are bad.In fact,it's the best)and ends up placing 1 standard lot.For such a person,the odd needs to be against him only for 150pips to wipe out his balance or 120pips to get a margin call with a remaining Balance of less than $300.
Money Management is Key.I tell my Forex Students,"You cannot run from using Money Management."
You think I am lying?Let's face it.If instead of trading 5micro lots using money management,you start trading with 1 standard lot,then,soon after just a little loss,you would have lost a large chunk of your money and what next,you won't be able to trade those large lots,in fact it would even be difficult to trade 1 mini lot.And at that time,whether you like it or not,you would have to trade 5 micro lots.Nobody guarantees where the forex goes at any point in time,hence many experts would include disclaimers in their trading signals.So always risk as little as possible.I would always advice 3% Money management to beginners.That way,you need more than 33 straight losses to lose all your $1000.And with my trading strategy,I have not encountered as much as 4 straight losses,not to talk of 33 or more.,nevertheless,I still maintain 3% money management.With such a small money management,over some few weeks(16 weeks to be precise),you could turn $1000 into $22000.
So how do I use money management to tell How Many lots I should be using in a trade?

Assuming you are going to be using 3% just like I do on an account of $1000,then,

1.Calculate 3% of your account balance

3/100 x 1000 equals $30.

That's how much you can afford to lose should the trade go against you.Not more than that,though could be less depending on your expertise or trading strategy.

2.Using the risk you just calculated,Determine how much you would be making per pip.
Just divide the risk by the number of pips of stop Loss you would be using.

$30/70pips equals $0.42/pip.

And as you may have known before now,

1 micro lot equals $0.10/pip

1 mini lot equals $1/pip

and

1 standard lot equals $10/pip.

From these,you would deduce that $0.42 would be about 4 micro lots.
That's that about that for now.
For further Enquiries,I could be contacted on +2348068354851

GBP/JPY Trading Strategy

2008-02-21T13:21:00.005+01:00

Known as the beast due to it’s large swings, the pound/yen can be tamed if using a low risk high potential trading strategy. Listed below is a great way to trade this currency pair.

Due to the large swings in this pair, target profits and stop losses may vary based on the traders discretion.

We are looking for the Low and High range between 2:00pm EST and 9:00pm EST. This will be the end of the New York session and the start of the Asian session. Between these hours the currency pair will most likely have a fairly tight range, except on FED day, which can cause some big swings after the rate announcement, so the day after FED rate day may be off the scales.

Once your range has been defined, the next thing you need to do is place buy stop and sell stop orders 6-10 pips outside of these ranges. These extra few pips will work as a buffer for false breakouts. You are looking for around 100 pip target profit and a 50 pip stop loss. The GBPJPY is a beast and can move really quick.

Usually two things will happen.
1. The entry order will trigger reaching your target profit.
2. The entry order will trigger and fall back to your stop loss.

You will run into many days when one of your long orders gets hit, and stopped out only to work out the next time it breaks out of the range. Here is where the system works in your favor. Should the stop loss be hit on the first trade, re-enter the original order, so it has a second chance. Should it work the second time, you have one loss with 50 pips and one winner with 100 pips. This equals a total gain of 50 pips. Depending on where you live, you may have to set alerts so you know when these orders are triggered. It is recommend that you only try a max of two times a night. After it fails the second time, wait until the next day to retry, leaving you with a 100 pip loss.

Try this on demo first until you feel comfortable with this method. A breakout strategy keeps the emotions on the sidelines and can create a nice tool to your trading style.

If You Are Performing Badly In Trading Forex...

2008-02-21T11:44:00.002+01:00

If You Are Performing Badly In Trading Forex....

In a certain case, I discovered a veteran trader was having difficulty in taking the trading signals from his trading system despite having 7 years of trading experience! What led to his situation?

On scruitinising his trading strategy, it appeared that he was adding more and more indicators to his chart to "improve" his trading system. This was a surprise to me because he had been very profitable throughout the years of his trading, and I wondered why he went about trying to add on to his trading system when it was performing so well. The maxim of " If its running well, don't fix it!" seems to ring true in his case.

It was clear that this veteran trader was slowing down in his response to taking the trading signals because of the addition of too many indicators in his trading strategy to provide " a synergistic" signal, which was, in actual fact, impeding him from making instantaneous decisions that was so necessary in his trades. In fact, he was sufferring from paralysis from too much analysis.

The solution ?

Irregardless of whether you are a veteran forex trader or a newer forex trader, take time off to review your trading strategy during your bad patches. Keep to the trading strategy that works for you and KEEP IT SIMPLE. Get to the root of your problem, and if necessary, spend time on a trade simulator and forex strategy builder to renew your trading skills.

If you are like this veteran trader who needed help, I suggest that you study the NO-INDICATORS price action trading method of Avi Frister, a professional veteran trader who has revealed his trading strategies that has proven to be very profitable for him. If you need a powerful trading strategy to help you become profitable in trading the forex market.

Forex Mentor's Advice for Profits

2007-10-30T12:29:00.000+01:00

Plan your trades

Plan your entry/exit into the market.Plan when you will sell for losses.Plan where your maximum profits will be.Professional traders must be discilined.

The Trend is your friend.

Don't ever argue over the trend.When the trend is up, go for a buy.And when the market trend is going down,go for a sell.You'll get no losses as long as you follow the trend.

Focus on your Capital

This is the most important.Do not be greedy considering your capital is on the open.Use only 10 to 30% of your capital;don't exceed 50% of your capitalbecause you can't retain the market's ups and downs and you will in the margin.

Know Whan to stop losses.

If you made a mistake in the analysis,sell it and let that happen.Don't hold on a false hope that the price will go up.This false-hope condition can cause a very great loss.When you re-enter the market, make sure your stop-loss position,and when you have let your money go to take your losses.
Just like the other financial markets,in forex, you'll win and you'll lose,but don't lose till you're broke.

Take up gains when the trade is going up.

Before you enter the market,decide how much profit you will take.When you take the gain you wanted,close your position.Just let the price wander around and don't fall on false hope.

Don't be rational with your feelings.

The most common enemy of traders is greed and fear.Don't let this two overrule you, or be ready to blow up your account.Professional traders don't show their emotions.So,you can't tell if he's taking profits or losing money by looking at his face.

Don't Trade Signals from Anybody.

Whether it's a friend or a broker,don't follow their signals.Trading falls on your own analysis,don't make signal your main concern.

Make a Note.

Write what you bought and sold and write why you had to do that.When you gain or lose,look up the notes again.Your trading skill will develop for the better.

Don't enter the market when you are in doubt.

When you don't know where you are going,try to sit quiet and analyse the market until you are sure.Standing back from the computer monitor is the best way to so this.

Don't exceed your capabilities.

Having 3-5 positions open at a time is normal.Don't open more than this.Opening more than one trade will blur your view of your account,then you will lose control and your feeling will overrule your logic.Then you will start making mistakes.As a beginner,work with only one currency pair.Learn how it behaves and trade it profitably before going ahead to trade other currency pairs.

Good luck in your trading.

Forex Markets & Its Trading Characteristics

2007-10-25T03:22:00.001+01:00

There are a number of reasons why FOREX trading is such a great way of entering the capital markets. Among them we can find it’s easy accessibility thanks to the use of the internet, the fact that currency trading is all commission-free and also the low transaction costs involved.

There is one important characteristic about Forex that makes it what it is. This important characteristic is that there is not a single unified foreign exchange market in the world. Instead of this, due to the over-the-counter nature of currency markets, there exists a number of interconnected marketplaces, where many different currency instruments are traded. What this implies is that there is not a single dollar rate in the world, but different rates, depending on what bank or market maker you are asking a quotation to. In practice these rates are often very close as you can easily find on the web.

As a piece of general knowledge you must learn that the main forex trading centers are placed in New York, London, and Tokyo, but this doesn’t mean they are the only ones; there are other banks throughout the world that also participate. For example, as the Asian trading session ends, the European trading centers open, then the US session, and then the Asian centers open again. This kind of “continuos” market has the advantage that traders can react to news immediately, instead of waiting for the markets to open.

There are many factors that can influence the exchange rate of a particular currency. These rate fluctuations are usually caused by changes in inflation, GDP growth, interest rates, budget and trade deficits or surpluses, and other macroeconomic conditions f the country emitting the particular currency. Also major news that are released publicly can affect the prices of currencies; so many people have access to the same news at the same time that they can shake a currency price really hard.

According to a specialized study, the most heavily traded products on the spot market are: EUR/USD - 28 %, USD/JPY - 18 %, GBP/USD - 14 % and the US currency was involved in 89% of transactions, followed by the euro (37%), the yen (20%) and sterling (17%).

Lazy Trading Robots.

2007-10-25T03:18:00.000+01:00

They say that if you can check a mark in a box you can succeed using the Lazytrading Software. It’s not a secret that every forex trader has the dream of one day finding a mechanical way that can tell them, with a high accuracy, when to enter the markets and when to exit with a nice profit. But for many years this has been just that, a dream.

Recently as I surfed the web I discovered this curious system, the lazy trading forex software, and it catch my attention when I read the statement where the author mentions that he has historically won 76% of the time with his trades. That’s not a perfect record but it’s a very impressive one for any forex trader around. So impressive that I decided to make some more research on this forex software.

I discovered a few things about the lazy trading forex software. One of them is that the amount of time needed to implement this system is not much. It is just matter of checking you computer two or three times a day and see if you have a signal. The signal is given by the software in a simple to read format that will make your trading rather easier than if you had to read through the charts and pin point indicators with not much accuracy. At the beginning it can be a bit confusing to read the signals but you get the use of the software really quick

One more thing that really excited me was the fact that you can use this software with the famous Betonmarkets site. This is the first time I find a software that will help you to become profitable at this great site; that may become a very dangerous site if you don’t know what you are doing.

Forex Trading - Learn Whatever It Takes

2007-10-25T03:15:00.000+01:00

So you have decided that you will try and will start learning what Forex is. As a starter in the currency markets there are a number of lessons you must learn before you can attain the title of "profitable forex trader". So as you move on to download your trading station and begin your journey in the world of forex trading, have in mind that you will have to learn important lessons along your journey.

As you may already know trading currencies is one of the most profitable activities you can choose and one that won't ask you for an MBA, not even a college degree. You can have any background and no office if you want. You only need a computer and a reliable internet connection to access the Forex market; though you should be willing to learn more than the basics about this thing called Forex if you really want to succeed.

When you first start out it won't be strange that you may make a lot of mistakes, that's why you should start using a "demo account" so you'll have all parts of the learning experience a beginner should have. Do this and you will come out of your beginner learning experience as a consistently profitable trader.

So what's that first lesson you must learn when you enter the world of forex trading? The lesson is this: all those who want to become successful forex traders must have the accuracy and "market feeling" that will allow them to cut losses early and let the winning trades run for as long as possible. Forex is all about timing. As a corollary, you should never forget about using "stops" in your trading career. They are your "life savers" in the occasions when you will have to sail through rough waters in the forex markets.

Online Forex Trading

2007-10-25T03:12:00.000+01:00

All you need is the Internet, some time - and you're doing online Forex trading. That is why Forex will rank the top choice for you if you are an Internet marketer and wish to create a newer source of income-to create personal wealth within a short period of time. If you are new to the world of technology, internet or online trading, it would be recommendable that you considered taking an online Forex trading class.

The market does not have one specific place of trade like many of the other markets do, for this reason alone is why Internet, fax, or telephone performs most of the trade. You can easily learn all the basics of trading for free by just doing a simple Internet search on the terms; Forex trading or currency trading. The Crucial Key For Internet Marketers Moving Into Trading: It is crucial that you get this understanding at the very onset, if you are an Internet marketer wishing to move into Forex trading, shares or commodities trading.

A computer with Internet access, a funded Forex account with foreign currency exchange broker, and a trading system should be sufficient to get things started. If you take a peek at some of the Forex chat forums on the Internet, you will see enthusiastic newbie traders making the same mistake. A computer with Internet access, a funded online account with foreign currency exchange broker, and a trading system should be sufficient to get things started.

With the ease of Internet access, transaction in Forex can be done in anytime regardless on your location. There are also many courses on the Internet, just be careful when choosing which ones to purchase. On the Internet, you can come across numerous games and simulations while learning the techniques involved in Forex trading.

In the Forex world, order execution is all-electronic and because you'll be trading via an Internet-based platform, instantaneous execution is routine. The market is open 24 hours, can be accessed anywhere in the world with an Internet connection, and can be the ultimate tool for building wealth.

How to Scalp Effectively in Forex Market

2007-10-25T03:09:00.000+01:00

Scalping for small profits is one of the most popular strategies in Forex trading. Scalpers rely on trading regularly and taking consistent small profits. They usually liquidate their trades on the same day. However, the problem with this strategy is that it has the tendency to turn you into a compulsive gambler (especially for beginners). Why did I say that? There are various reasons for leading a new scalper into a compulsive gambler. When a trader turns into a compulsive gambler, he/she will be doom for failure. In this article we will take a quick look at the 2 common reasons for that and discuss on tips to scalp efficiently;

1. Addiction to Random Profits

Most newbie thought that they can make some quick profits by taking small profits in the Forex arena everyday. They enjoy the random rewards from the market, which may turn into an addiction. It is just like teaching your dog to perform a task and randomly rewarding it every time a task is done. In this way, there is no way your dog can know when it will be rewarded. As a result, there is no reason for your dog to quit doing the task, even without being rewarded for doing it.

2. Trading for Revenge

There is a common saying among scalpers; "Trade for today, not yesterday". Many newbie try to recoup their money back after their losses a few hours ago. They cannot swallow a loss or losses and became mesmerized with their fond memories of their past winnings. They keep thinking on how to win back their money, which tends to cloud their judgment on the market. They begin to fantasize opportunities in the market to enter a trade. This will eventually lead to their emotional attempt at revenge that is doomed to failure.

Tips to Scalp Efficiently

1. Determine the direction of the day by first looking at the daily chart.

2. Using candlestick studies, trendline or pivot points to enter a trade in the hourly chart.

3. For the above it must be use together with support and resistance.

4. Trading on continuous trend has a higher probability of success.

5. For contrarian trading, always enter at a better filled price or average your lot size to enter the trade

6. Scrape your trade if you do not feel comfortable after the point of entry or it takes too long for the trade to go in your direction.

7. Stop trading for the day if you have 3 losses in a row

Sebastian Sim

I'm a 31 year old Singaporean. Who started my trading journey since 2004. Now, I focus mainly in Stock Options, Forex and Unit Trusts(Mutual Funds) Investments. I've started a site The Trading Zone - a site about trading pyschology, Forex trading, investments and other topics that interests me from time to time.

Free Forex Training

2007-09-10T13:57:00.004+01:00

If you were told that should you trade Forex full time for one year,you can afford to live in this kind of house

and even ride on this level

and not have to worry about anything but where to spend your next holiday

Will you resist learning it free of charge?
In February
An overwhelming number of people indicated interest for my last free forex training session.I expected a rush but not to the extent that it came,so,I responded with my free training which was satisfactorily appreciated.
Now
As a means of helping others who might be interested in learning how to trade the Forex and make much more money than their job could offer them, I designed a ONE-ON-ONE Practical and Live training package for each one of you individually or even as a group if you so choose. In order to enable me organise each person's lecture without affecting another person's,you can notify me of your interest to be trained by sending a mail to the email address provided at the tail end of this page.

I am aware you know that this training I am offering you is what others are paying N 10,000 for a group seminar or even as much as N 35,000 for a one-on-one training. So then you will ask

Why is yours free?

Well, the best answers to this question are:

Other programs out there are just what they are called - "SEMINARS".In other words they are only eye-openers, not training in the real sense of it all. Most people attend it, but cannot see any difference.Seminars are for the smart guys.I have tutored so many seminar attendees who could not even place a trade,not to talk of analysing,yet these people paid N15,000 for seminars.
I want you to save the N 10,000 or N 35,000 that you would have paid for seminars and use it for your live trading. Or what's the use if after attending the seminar you are left with nothing else to trade with. I did not attend even a free seminar to learn Forex Trading.
The 3 hours used for these "seminars" (which is really what they are) will not be enough for many people to understand the totality of Forex. When we start the training you will testify to this fact. Although I'm not saying Forex Trading is difficult; I will also not say it is that simple and can be learnt that fast.
After the seminar you are advised to practise before trading live and you are usually left on your own to do so. And what if you were not able to do that successfully?

So, on the long run, you have

Spent N10,000 (or N35,000 for one on one ) for a seminar, and,
Probably not learnt much because of the short period involved,so,
You had to pay extra N 100 per hour at the cafe to practise what you have not learnt.

But then is it really free?
Yes! Considering that others charge you N35,000 for one-on-one,you will only take care of 10 hours browsing time for the training which costs about N800 and my transportation to where you are located.Total of which would be N5000. I think it is free.

So, what do I do in order to participate?

Remember, anyone and everyone could order for my free services which is delivered on first-come, first-serve basis. Which means the first to mail me his contact details is the first person to receive the lecture.

You have nothing to lose at all.After learning you could practise on a demo account before using your money to trade, and I guarantee that you will want to appreciate me when you have seen the result of my free training after 2weeks from end of training when you might have been earning real cash.

If you are interested,text your Full Name, E-mail address AND Phone Number to nairatree@yahoo.com

How To Draw DeMark Trendlines

2007-09-10T13:57:00.001+01:00

Trendlines are the first tool that any forex trader must know how to plot on their charts in order to better assess the direction of the market at any point in time.

Open your trading platform and set the view to candlestiicks.Don't apply any indicator on the chart

Now,before we start off on how to draw trendlines,I need to define some basic concepts.

An uptrend is observed when price is making higher highs and higher lows.

To better understand this,draw a zig zag line diagonally up,from left to right, on a sheet of paper.The peaks of these zigzags represent the highs and the troughs represent the lows.

A downtrend is observed when price is making lower highs and lower lows.

To better understand this,draw a zig zag line diagonally down,from left to right, on a sheet of paper.The peaks of these zigzags represent the highs and the troughs represent the lows.

Drawing DeMark Trendlines

Swing high and swing low (also called cycle high and cycle low) refers to the following:

In An Uptrend: A swing high is the wick of a candle that is higher than the wick of the candle to the left and right.

In A Downtrend: A swing low is the wick of a candle that is lower than the wick of the candle to the left and right.

Obviously the more candles to the left and right that are higher in a swing low or lower in a swing high makes the swing or cycle more significant.

An uptrend is where price is making higher highs and higher lows. A downtrend is where price is making lower highs and lower lows.

Drawing DeMark Trendlines

Drawing Trendlines In An Uptrend

Examine the bottoms of the candles on your chart and identify the most recent candle wick that is lower than the candle wicks to the immediate right and left of it.

Look left on the chart, and identify the previous low candle that has candle wicks higher to the immediate right and left of it which is lower than the current low candle.

Now draw a line from the current lowest candle to the previous lowest candle (drawing from right to left).

Now take the end of the newly drawn line which stops at the current low candle and extend it forward some distance (drawing from the present position to the right).

Drawing Trendlines In A Downtrend

Examine the tops of the candles on your chart and identify the most recent candle wick that is higher than the candle wicks to the immediate right and left of it.

Look left on the chart, and identify the previous high candle that has candle wicks lower to the immediate right and left of it which is higher than the current high candle.

Now draw a line from the current highest candle to the previous highest candle (drawing from right to left).

Now take the end of the newly drawn line which stops at the current high candle and extend it forward some distance (drawing from the present position to the right).

You have now drawn a Tom DeMark trendline.

This can now be a reference point for future price action. It will often be observed that price will come and check this level. If it breaks through, it can mean a change in direction, the significance of which will depend on the time frame being used.

Trendlines drawn on 5 minute or 15 minute charts have much lesser significance than trendlines drawn on higher time frames such as the 1 hour, 4 hour, or daily.

Caution Required

Much Forex information extols the virtues of trendlines as an indicator of possible future price action.

Mr. DeMark certainly has made this a science and his detailed approach to drawing trendlines is certainly more accurate than just drawing general trendlines along the bottoms and tops of trends according to the way the eye sees.

However, trendlines in themselves do not indicate where high probability trades can be taken.

It is important to use a variety of indicators before pulling the trigger. Examining previous levels of support and resistance is probably far more significant in determining where price is likely to hesitate that watching trendlines.

However, they can be useful. If you find a key support or resistance level also coincides with a Fibonacci retracement or extension level which is also at an intersection with a trendline, then you have built a reasonably solid case for a trade.

Use this Forex information on DeMark trendlines wisely, with caution, and it can be another useful addition to the Forex day trader's toolkit!

FOREX Intro 101

2007-09-05T13:08:00.000+01:00

What is Forex?
Simple!
Forex = Foreign Exchange market
FOREX is an international foreign exchange market, where money is sold and bought freely.
In its present condition FOREX was launched in the seventies, when free exchange rates were introduced,and only the participants of the market determine the price of one currency against the other through demand and supply.

Where is the Forex Market located
The forex market is not a physical place or central exchange.It is an over-the-counter market where buyers and sellers including banks,corporations, and private investors conduct business.In other words, the foreign exchange market, or FX market, is a network of financial institutions and brokers in which individuals, businesses, banks, and governments buy and sell the currencies of different countries.
They do so in order to conduct international trade, invest in foreign countries, or speculate on currency price changes". (Federal Reserve Bank of New York)
The simplest definition of foreign exchange is the changing of one currency to another.

Forex is the Richest on Earth.

Of course it is!Even the world's richest trade the Forex.
The Forex market is huge and is the largest financial market and most liquid in the world.
In September 1992 The Wall Street Journal estimated
the trading volume at $1 trillion per day.
Today, it is believed to have grown
in excess of $1.5 trillion per day.
In comparison to the daily trading volume averages
The Foreign Exchange market is :
5 times the volume of the U.S. Treasury Bond market ($300 billion/day)
150 times the volume of the entire U.S. equity market ($10 billion/day).
xxx times the volume of the entire Nigerian stock Exchange( )

According to the IMF, on the whole the volume is over 1 trillion dollars a day, and on some days it reaches 3 trillions.
About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies
into their domestic currency.
The other 95% is trading for profit, or speculation.This is where we the small traders belong.
The next lesson will be out on Friday, 7th September 2007.

Welcome to Forex University

2007-08-25T16:34:00.001+01:00

You are welcome to the University of Forex.I am well aware that you may have heard the word "FOREX" but did not understand what it meant.Or,you may not have heard of it at all.This is why you are here to learn how people of your age are making thousands daily by just trading for few minutes or hours on the internet.I will be updating this site regularly by adding a new topic on the concept of Forex trading.By the time you complete your course here at the University of Forex,you will have become an expert trader,just as I am and make money.Remember,even though it's a University,you need not pay any Fees.It's totally free on the Web.Just write down this web address so you could visit any time you wish to.once more I say Welcome on Board.
Happy learning.