hassanmahya2000's Blog

So you decided to make full time leaving from foreign exchange market? Or you are going to supplement your income from here? You have set up yourself with proper broker available. I believe you spent hundred of hours in front of PC trying to put together all maths and physics involving currency market. Now you watching business news in the morning paper and following CNBC channel to be on the top with latest information from exchange market. You trading your demo account trying to figure out how to make it all work? So? Does it? No?

Face the fact that in currency market all is possible and there is no golden rule to follow. There are so many aspects to consider that you will need at least another head to set this puzzle together.

But do not worry there is a hope that can make it work.

Signal solutions for forex trading. People who traded forex for a long time and developed their own systems to enter and exit with profit strategies. They will share this knowledge with you for varieties of prices from usd49 to usd499 a month for those precious information. Problem is which one will suit you best. Are they scams? How do I know?

For medium advanced forex trader is almost impossible to choose proper forex signal system, which is not a scam, or at least not profitable. There is bulk of forex signals providers out there. They all offer their signal solution to trade currency with success.

Advice is that you will have to establish what type of trader are you? Do you want to trade quickly or maybe over the days or weeks? What losses can you manage and how much money you want to invest.

As long as you know al that it is a time to pick up signal trade provider.

Few things worth researching are: performance, service offered and rewievs of the signal. Search on forum for another users of the product you are interested in and ask for comment. Every profitable system should be up on collective2 with real track performance. Look for service offered. You will quickly find out that only few offer free trail-option to try signals before you pay. Demand performance evidence.

But while doing all that hard work choosing your automat forex signal system remember that you will have to totally follow it without exceptions to make most out of it. Any even small innovation may have dramatic results in your own gains.

Remember that your future profits will depend on your signal provider so calculate carefully and make smart decisions.for more go to:

http://theforexers.blogspot.com/ 

I have seen the hedged grid system been used successfully (and highly unsuccessfully) over the last few years. Unfortunately the failures tend to discourage traders from taking advantage of this great system. I have found that the failures are mainly due to ignorance, impatience and greed (common reasons for trading failure).

In a nutshell the grid system uses the following methodology. You start by buying and selling a currency. When the price moves a predetermined distance (grid leg) you cash in the positive leg, leave the negative leg and buy and sell again. Sooner or later the system goes positive and you would then cash in when it is positive.

This is a brief summary of the content of our free hedged grid trading course available on expert-4x.com. Please refer to this course for more details of how money is made. The attraction is that the system is reasonably mechanical, can be programmed and does not take much supervision as exclusively entry orders are used.

Money is made when the price retraces 100%, 50%, 33% at various levels. This starts looking like a strategy that supports the Fibonacci concept. The grid system is also based on the nature of the market to trade sideways 80% of the time and to trend 20% of the time.

The dangers are that what if the price does not retrace and continues to trend. The Grid system can not make money in a trending market – full stop. One has to realize that. You therefore need Strategies to minimize damage during these periods:-

Firstly I have found that the biggest mistake made by traders is that they select a very small grid leg sizes e.g. 20 to 30 pips. This is a recipe for disaster. The trick is to use big leg sizes between 150 and 300 pips. What this does is that it sometimes turns a trending phase into movement in a sideways market. I would typically use 300 pips for the GBPJPY and 150 pips for the EURUSD for instance.

Secondly there is no rule that says that the legs have to be the same size. So I change my leg sizes in trending markets to be even bigger. If I started with 150 for the 1st leg I would go to 200 for the 2nd leg and 250 for the 3rd leg etc. This makes sure that I am carrying less loss making transactions in a trend.

Thirdly – sometimes it is wise to increase the number of lots with the trend compared to the numbers against the trend in a good trend. However be aware of having the same number of sell and buy transactions. All you will have done was lock in your current status in a 100% hedge.

Fourthly – This is the biggest change and most important one that I personally have made in my grid trading strategy. Always cash in all your transactions when your system is positive and when the price reaches the end of one of your grid legs. By cashing in you are reducing the risk of carrying negative lots in a trending market. This also gives you an opportunity to re-assess the market conditions.

Fifthly:- Cash in a start again is always an option. One of my strategies is to cash in all my open positions when the 3rd leg of my grid is reached and start again. Experience has taught me that this is a short term pain that goes away very quickly and is soon forgotten.

People that have traded the grid system will immediately see how the above approaches will reduce the risks of exponential losses building up in a strongly trending market. Please feel free to contact Mary McArthur at marymcarthur@expert4x.com for clarification on any items discussed above. She has numerous examples of successful applications of grid trading

This article is part of a series and many more will follow on Grid trading, money management and Forex Trading Strategies.

The Source: http://theforexers.blogspot.com/ 

Losing money in forex?

Every one has his days when no matter how well he has planned out his trades, he may find some of his trades not performing to what is planned. It is only natural for one to feel upset, but for the follower of a forex trading system, making money or losing money from that trade is not the paramount objective.

Why is this so?

For the trader who employs a forex trading system, he can still face the losing trade with a smile, because he has had followed through the trading signals in a disciplined way, and it is only when a trader follows a system, he can be sure of keeping his losses small and to live to trade again another day.

By using a forex trading system, the trader can have a cool head, and can face his trades rather unemotionally. He can execute his trades following pre-determined price levels of initial stop loss, trailing loss and computed and projected price profit.

He knows his tolerable level of loss, his threshold of pain - and of course, his risk to reward ratio even before he trades.

Now when a trader has a trading system and follows through the trading plan, making profits is a natural result when he makes a correct trade. But when his trade is wrong, his forex trading system will very quickly show him that the direction of his trade is wrong, so that he is out of the game fairly quickly.

I am often flabbergasted at some very broad claims of some traders who condemn day trading systems and relegate them to the garbage bin. When you look at forex trading systems, review them quickly by peer recommendation whenever possible. By peer recommendation, I mean you can ask existing traders their experience on the trading system, and how they are doing with it. Posting to the numerous reliable trading forums will allow you to receive some independent reviews fairly quickly. At the same time, my personal experience, and that of many other professional traders is that day trading can be profitable, though it is never easy to day trade. Otherwise, how is it that so many day traders are able to earn their income day trading the short swings of the market daily for a living? So it is important for you to have a broad view of forex trading systems if you are contemplating of learning or purchasing any trading system that relates to day trading.

If you ever wish to trade successfully, whether you day trade or swing trade, it is important that you have a trading system that will allow you to approach trading in a disciplined manner. It is only when you are a disciplined trader that you can see consistent large gains and small losses.

The Source: www.TheForexers.blogspot.com 

By Ye Xie and Bo Nielsen

May 12 (Bloomberg) -- The yen and the Swiss franc weakened as a rally in stocks and speculation the worst of the financial crisis is over encouraged investors to buy higher-yielding assets funded in Japan and Switzerland.

Japan's currency dropped versus the dollar for the first time in six days after bond insurer MBIA Inc. reported a narrower first-quarter loss than some analysts estimated. The euro rose the most against the yen since March as President Jean-Claude Trichet of the European Central Bank said its current interest rate policies will keep inflation in check.

``People are trying to take more risk and selling the yen across the board,'' said Hidetoshi Yanagihara, senior currency trader at Mizuho Corporate Bank in New York. ``The worst of the crisis may be behind us.''

The yen decreased 1.4 percent to 161.48 per euro at 4:06 p.m. in New York, from 159.21 on May 9. It was the biggest one- day decline since March 18. Japan's currency dropped 1 percent to 103.93 per dollar, from 102.87. The euro increased 0.4 percent to $1.5538, from $1.5482. The Swiss franc was down 0.7 percent to 1.6229 against the euro and 0.3 percent to 1.0445 versus the dollar.

South Africa's rand advanced against all of the major currencies on speculation Johannesburg-based MTN Group Ltd., Africa's biggest mobile-phone operator, may soon be bought by a foreign company. The rand increased 1.4 percent to 7.6237 against the dollar and 1.1 percent to 11.85 per euro.

Trichet on Inflation

The euro rose against the yen and the dollar as Trichet said in a television interview on Sky TG24 in Milan that the bank's ``present monetary policy stance'' will contribute to achieving its goal of maintaining price stability. The ECB left its main refinancing rate at 4 percent on May 8, saying inflation will remain ``high'' for some time.

The 15-nation currency also got a boost on bets oil near the record will add to inflation pressure in Europe, according to Matthew Kassel, director of proprietary trading at ING Financial Markets LLC in New York. Crude touched the all-time high of $126.40 a barrel before trading at about $125.

The yen dropped 2.5 percent versus the rand, 2.4 percent against the real and 1.5 percent against Norway's krone as the rally in stocks boosted speculation that investors will increase carry trades, in which they get funds in a country with low borrowing costs and invest where returns are higher. The target lending rates of 0.5 percent in Japan and 2.75 percent in Switzerland compare with 11.75 percent in Brazil, 11.5 percent in South Africa and 5.5 percent in Norway.

Stock Gains

The Standard & Poor's 500 Index increased 1.1 percent as MBIA said it has enough money to cover claims from the credit- market crisis, which has caused the world's biggest banks to post $329 billion in losses. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, speaking at a conference in New York sponsored by UBS AG, said the capital markets crisis sparked by last year's collapse of the subprime mortgage market is about 75 percent finished.

Futures on the Chicago Board of Trade show an 88 percent chance the Fed will hold the target lending rate at 2 percent at its next meeting on June 25, up from 82 percent odds on May 9. The balance of bets is for a cut of a quarter-percentage point. There's a 10 percent chance of an increase to 2.25 percent in September. The central bank has lowered the fed funds target 3.25 percentage points since September.

``It's doubtful that the Fed can afford to cut more,'' said Benedikt Germanier, an analyst at UBS AG in Stamford, Connecticut, in an interview on Bloomberg Television. ``We are short on the euro-dollar. Our three-month forecast is $1.47.''

Bullish on Dollar

Traders in the futures market have turned bullish on the dollar versus the euro for the first time since December 2005. The difference in the number of wagers by hedge funds and other large speculators on an advance in the greenback versus the euro compared with a decline, known as net longs, was 21,315 on April 29, figures from the Commodity Futures Trading Commission in Washington show. There were net-short positions in each of the previous 123 weeks. Net longs were trimmed to 12,512 on May 6.

Since touching the all-time low of $1.6019 per euro on April 22, the dollar has rallied 3.5 percent on reduced bets the Fed will lower borrowing costs. The dollar gained momentum as policy makers said after cutting rates on April 30 that ``substantial'' reductions since September would help foster growth. The dollar added to gains after the Labor Department reported on May 2 that U.S. employers eliminated fewer jobs in April than economists forecast.

``It's not going to be an express train toward a much stronger dollar, but it will trade stronger slowly and gradually,'' said Jeff Gladstein, global head of foreign- exchange trading at AIG Financial Products in Wilton, Connecticut. ``The U.S. is not going to have as deep a downturn as everyone initially portrayed.''

To contact the reporters on this story: Ye Xie in New York at Yxie6@bloomberg.net; Bo Nielsen in New York at bnielsen4@bloomberg.net.

The source: http://www.bloomberg.com/apps/news?pid=20601080&sid=aLKaHHrGYi3k&refer=asia