Succceed in the Forex Market

By: Brian Aulay

1) Knowledge - As we all know already that Knowledge is power without Knowledge is just like working without getting paid. Get your Free FX Power Trading Course value @ $500! This ebook alone would teach you how to become a successful forex trader!

2) technical and fundamental analysis - be prepared to trade and analyse the the chart and look out for the news annnouncement. Don't ever trying to spot market tops and bottoms you'll certainly get wrong as market is not predictable. Nobody can point the tops and bottoms perfectly and consistently even however good you are. Trade news & calendar reports, i.e jobless claims, (un)employment data, trade balance, budget deficits, productivity, Univ. Michigan Sentiment, PPI, CPI, FOMC, interest rates, Greenspan comments, consumer confidence, leading indicators, GDP, inflation, money supply, government intervention, IMF and/or World Bank intervention. News & Reports Tools: Shirmeyer economic calendar, Bloomberg TV and web site, Reuters.



3) learn to manage risk - stop losses quickly let profits run. Limit your lossses to only 15 - 30 points and make sure to ride your winning to at least three folds of your limit losses points. For instance if you were to risk your losses to 15 pips make sure you ride your profits to at least 45 pips if you're risking 30 pips make sure you ride your profits up to 90 pips. if you apply this method you could be right only 50% of the time yet still make money in the long run!



4) follows the trend - always remember trend is your friend and trade only when market begin to trend don't ever go against it.

5) Time frame - look out for higher time frame and trade the 1 minute chart. Price directions are much much clear when you use this method for instance if you were to trade daily chart look out for smaller time frame such as 1 minute chart or 15 minute chart. There are 60 bars of 1 minute chart and 4 bars of 15 minute chart to contained in 1 hour bar chart and there are 24 bars of 1 hour bar chart to that of daily bar chart. By figuring out this smaller time frame your're certainly on the right side to predict the future market directions.



6) The best trading time -
a) London opens at 8 am GMT or 3am EST. Closes at 4 pm GMT or 11am EST. The most active pairs during this session are EURUSD with 39% of the trading volume, GBPUSD with 23%, USDJPY with 17%, USDCHF with 6% and USDCAD with 5%.

b) Europe opens at 7am GMT or 2am EST,Closes at 3 pm GMT or 10 am EST.The European session is the most volatile session most of the time.

c) New York Opens at 1pm GST or 8 am EST.Closes at 8pm GMT or 3pm EST. New York is the second largest forex market place. The busiest time is 8am to noon EST. News releases can result in a volatile market. Trading activity usually winds down after the U.S. afternoon trading period.

d) The Tokyo session opens at 1am GMT or 8pm ESTand closes at 8am GMT or 3am EST.Sometimes volatility is low and sometimes good moves occur. The USDJPY is the most active pair with 78% of the volume followed by EURUSD with 15% and EURJPY with 5%. UK is on British Summer Time which is one hour ahead of GMT.UK, Europe and USA are on Summer/Daylight Saving Time until Sunday 29 October 2006.



7) knows the indicators: All of these indicators i.e. moving average convergence divergence (macd), fibonacci retracement levels, moving averages, ATR, RSI, momentum are absolutely important without it your chances of winning the market are absolutely slim it's just like travelling without a map.

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