FOREX TRADING TIPS

Just got this info couple of minutes ago.. Really like to share it with all.. happy reading :-)

1. It’s essential to have a detailed trading plan as a part of your trading career. Before you execute a trade, identify the signals or indicators you will use to monitor the trade. Justify your trading plan, and make sure that you have sound reasons for putting on a trade. If you trade good ideas, and avoid making trades on impulse, you'll increase your profits, and feel good about how you are productively using your time to make those profits. Always remain true to your trading plan. Maintain the discipline to control losses.


2. Trade with positive expectations. Winning traders expect to win. They associate trading with pleasure. The pain is only temporary on the way to greater pleasure.


3. Cut your losses early and let your profits run. It’s human nature to take profits quickly (at the first sight) and postpone taking losses. You have to be willing to ruthlessly cut the losses and reposition yourself. This simple concept is one of the most difficult to implement and is the cause of most trader’s failure. Every good trader loses trades. No shame in that, as long as you know why, and you learn from what went wrong. Every mistake is a learning experience. Find out what caused the mistake, and try as hard as you can to effectively see the nature of that mistake. Finding the mistake nature will prevent you from making the same mistake again.


4. Do not base your trading on emotions. Emotional trading is the enemy of success. A wide body of research in behavioral finance shows that traders consider the loss of $1 twice as painful as the pleasure received from a gain of $1. That's why they take more risks to avoid losses than to realize gains. They end up buying high and selling low, contrary to conventional wisdom.


5. When you are just starting out, set your goal at 20 pips per session and stick to it, until you are a grand master at this wonderful business called Forex trading. Begin by focusing on one major currency pair and get to know it well. Major currency pairs are EUR/USD, USD/JPY, GBP/USD, and USD/CHF. Each currency has its own trading personality and rhythm, which must be learned. When you are doing well with it, then move on, and trade the other three major pairs, as you see fit. When you are in learning mode, you will have your hands full trying to figure out what to look for, and how to manage your trades enough so that you don't want to be skipping back and forth between currencies.


6. Keep a log/trading journal of all your trades – both good and bad. Analyze where you went right and wrong, and vow not to repeat those situations that could have been done better. This is all part of being organized as a "professional" trader - with good habits. Much can be learned by reviewing your trades periodically.


7. Always use stops! Protect your capital by using 20-30 pip stops. Stops – ‘stop-loss’ orders are for insurance purposes only. Not for taking profits, however, you can use ‘trailing stops’ to protect your profits as price advances or declines. Mental stops are okay, but not if you are dead serious about using a “disciplined” approach to managing your money. You will lose three out of ten trades. The three losses should be kept to 20-30 pips. Your wins will by far surpass your small losses, and that’s what stop-losses are all about. Don’t be afraid to lose. Even professional batters strike out six out of 10 times. Lions are only successful 20% of the time in their chase for the kill. Professional golfers lose 95% of the time. Professional poker players lose 50% of the time. So, your chances are better at trading the Forex, using my system of course, than in any other venue. Even businesses have “bad inventory.” And, life in general is not always “100%” for sure.


8. "The more I practice, the luckier I get." (Wayne Gretzky) Remember: ‘repetition is the mother of skill’ and the key to success in any endeavor in life, including trading the Forex. The more you practice trade, the more you trade real money, the better you get. Learn the basics and practice these until they become second nature. Persistence is the key. You're bound to get better at something if you do it constantly and don't quit. Don't let the market psyche you out. When you have a down day, just treat it as experience. Lessons learned.


9. The greater purpose of my course is from the philosophy of “Give a man a fish and he will eat for a day. Teach a man how to fish and you will feed him for a lifetime.” We teach you how to fish. For those of you who want the fish, we offer Forex Alert service based on our trading system, which has been back tested for more than a year, has a great track record. We post high probability Forex trade recommendations daily.


10. When you first start out in any particular session, look at the 1 hour chart to get an overall perspective of the trend from one session to the next, and what it’s likely shaping up to be at the beginning of the upcoming new session. Spend most of your time on the 15-min. chart. Only look at the 5-min. chart if you absolutely have to see what’s behind the current 15-min. bar, especially where the bar is elongated, and may have just penetrated a pivot point. In other words, is price reversing course on the 5 min chart, which would obviously not yet be reflected on the 15 min chart? Just keep in mind that 5 min. chart contains a lot of “noise” that will whipsaw you to death.


11. Only use MACD for divergence, not for buy or sell signals. It is a lagging indicator, and as such is useless as a trigger. It is too slow for that in the Forex world. The absence of divergence between MACD and price simply suggests that MACD is confirming that the price trend is intact. Recently, MACD on the 15 was trending up, leading unsuspecting traders to believe that price was headed north. However, price did a u-turn at the main pivot point, and headed south to find the other end of its range at S1. You wouldn't see this sudden shift in MACD, because it is a lagging indicator.

MACD rules on the 15 min chart. Even if MACD is, say, trending up on the 1 hr chart, if it is trending down on the 15 min chart, that’s what you take your cue from. That’s not to say a shift in price direction is not in the works. It just means it’s coming, but not yet. In the meantime, you don’t want to miss what’s happening “in the now,” which is what is reflected in the 15 min chart. If MACD is trending down on the 15 min chart, and price is wanting to go north, price will sooner than later head south as it perhaps bounces off a pivot point, or gets turned around at a juncture caught by one of the other three “tools” you should be using (“reading bars,” MACD divergence, or trendline analysis). Same thing if MACD is trending up, and price is trying to head south.


12. Make sure to take the time to draw pivot points on your 15 min chart, which should be your main focus. This is like the radar screen in the cockpit of an airplane. It is difficult to trade (fly) without points of reference to look at. You don't need to draw them all. They probably won't all fit anyway. At least have those that are close to price action plotted on the chart. You can also plot lines on the 1 hour and 5 min, but you shouldn't be spending much time there, so it may be a waste of time. But, can't hurt. You should also draw trendlines. Where price breaks a trend at a juncture with a pivot point, this is very powerful evidence that price is going the other way. Plot your MACD divergences. The more you see on the screen, the better your trades will be. Draw a line down the screen (on the chart of course) delineating start of session, and where you got your OHLC from to calculate the pivot points for the current session. I think you get the "point," pardon the expression.


13. The 5 min chart is like the trim tab on a sailboat, for you sailors out there. It is small and insignificant, seemingly, but very powerful as it assists in "steadying" the course. Looking at the 5 min every once in a while will give you some insight into what is happening "underneath" the current 15 min bar that is forming. This is important, especially at the end of a run, where price might be trying to do an "end run" or "sneak attack" in the opposite direction to what you're thinking, while you're not watching.

Like I say, don't dwell in "5 min land" as ex-stock traders do. They are scalpers by nature, but will very quickly get scalped by the Forex, as one of my new customers has recently found out the hard way. He now puts a trade on (with stop in place for sure), and goes to the airport to pick up company, or goes outside to clean the swimming pool – only to come back, and see how much money he has made by not obsessing over every little movement. I'm not saying don't pay attention, but what I am saying is too close is too close. Once you catch the trend, and enter a trade because you saw something in "reading bars," MACD divergence, pivot points, trendlines, or price action, let price steer the course, and "wait patiently" for the next event that will cause you to take action. Of course, that action will be taken again because you saw something in "reading bars," MACD divergence, pivot points, trendlines, or price action. If you don't see anything significant, then don’t do anything. Sit on your hands.


14. You should only take trades in and around pivot points – not in between pivot points. That area is NO MAN'S LAND and dangerous territory. Wait for price to make up its mind on direction at a support or resistance level, supplemented by other indications of price direction. Better trades are made in and around pivot points. However, for example, if price is meandering in between pivot points and then does a double top, that would lead me to believe that price is going down. So, there are times when you would want to make your move before waiting for a pivot point to be hit. Of course, there's nothing wrong with waiting for price to do so and then reacting.

The only exception to that rule is if you see a trendline breakout or a bar pattern, like price rejection, that gives a clear signal that price is about to reverse course. Price rejection means that a price reversal bar has formed, causing the bar in the middle to have a higher high than the bars on either side of it. The price bar in the middle is essentially a key reversal bar. And, what you have is a "swing change." That is, price is reversing course, and heading south. The same holds true when price is reversing and heading north. You then have the bar in the middle of the three-bar pattern with a lower low than the two on either side, and the one in the middle is the key reversal bar.


15. When price action centers around a pivot point, then take a look at the five minute to see what's going on behind the scenes. Because, you should have been focused on only the 15 min up to the point of price interaction with the pivot point. Now, you want to pay attention to what price has up its sleeve. In the above example (40), price faked out unsuspecting trades when it trended up through the main pivot point, only to tank as it did a price rejection bar on the 15 min chart. Of course, you wouldn't have seen this coming if you were only looking at the 15 min. You would have seen the price reversal on the 5 min, and been ready to head south with price.

If you entered a trade close to a pivot point, or a particular significant bar pattern (like a double top, for instance, or a trendline breakout), place your stop on the other side (but not too close to) the event that caused you to take action. This is because price has a tendency to snap back to that situation that caused it to bolt away from it in the first place. If you follow the 20-30 pip stop rule, but a 33 pip stop on the other side of that event would safeguard you against such a reaction, then so much the better. So, yes the stop rule is 20-30 pips, but within reason of course.


16. Important point here: If price action opens in the upper end of the projected range for the session (all the way up to R2, and beyond) – in other words, in the sell area (that area above the central pivot point) – and there are other suggestions that price is too high (such as a particular bar reading, MACD divergence, or trendline breakout), then price has probably achieved the upper end of its price range for the session. The same holds true where price action opens in the lower end of the projected range for the session (all the way down to S2, and beyond) – in other words, in the buy area (that area below the central pivot point) – and there are other suggestions that price is too low (such as a particular bar reading, MACD divergence, or trendline breakout), then price has probably achieved the lower end of its price range for the session.

The pivot points above the central "Pivot Point" have a "sell" bias, and the pivot points below the central "Pivot Point" have a buy bias. These biases hold true unless price action turns a pivot point's bias from sell to buy or buy to sell – i.e., from resistance to support or support to resistance. Resistance levels (M3, R1, M4, and R2) are levels (or sell zones) where sellers can be expected to outnumber buyers, and push price lower. Correspondingly, support levels (S2, M1, S1, and M2) are levels (or buy zones) where buyers can be expected to outnumber sellers, and push price higher. These expectations are based on my program's interpretation of buyer/seller interaction in the last session. I think you will agree, after close inspection of the results of my pivot point calculations, that price hesitates, pauses, and decides on its course of action in and around pivot points. That's why you should never enter trades in between pivot points, while price is in transit, and in a state of transition.


17. I know my documentation says that the forecast low and high for the next trading session can be M1/M3 or M2/M4. However, trading is shades of gray. It is not a black and white business. The “actual” low and high for the next session could very well be any combination of M1, M2, M3, and M4. It could be M1/M4, M2/M3, or combinations of the other five pivot points. The M1/M3 and M2/M4 calculations are just guideposts, but are not poured in concrete. Price is the number one indicator. It will determine what the low and high are going to be. And one other thing, you should use these forecasts in conjunction with the other three “tools” in your Forex trading toolkit – “reading bars,” MACD divergence, and trendline analysis. In other words, if price has been trending down from the past session into the current one, price is trading at, say, M3, and price is still going down, then M3 may very well be the high for the new session, regardless of the fact that my system may have called for M4 to be the high. So, use the pivot points in conjunction with other three possible signals – “reading bars,” MACD divergence, and trendline analysis. I have seen it happen, as in the example just given, where price was trending down from one session to the next right through M3 at the open of the next session – simultaneous with the formation of a “double top” bar pattern. Well, there you have three indications that price was headed south for sure. And, I believe MACD was also trending down in that particular case. So, that was another clue that the high for the session had probably already been put in.

Like I keep saying, trading is "shades of gray." Nothing is always black and white in this business. Trading is as much an art as it is a science. That all said and done, when price does encounter a pivot point, you can see that that point has a powerful influence over price. So, always be on the alert for that next point of interaction with the next pivot point, as it will have a distinct bearing on what happens next.


18. I recently had a customer ask me what to do when price had headed north through all the pivot points for quite a run and lots of money in the bank, stalled at R2, and then continued its journey north. Answer: R2 is normally resistance. When price penetrated R2 headed north, and couldn't fall back through R2, R2 became support. It was a buy signal when price decided to continue its trek north. Remember, price is King. It will go where it wants to go. You must follow its lead, even if it already has put in quite a tear in one direction – even beyond its average daily range. It will keep going in that direction if it wants to. Remember, currencies trend well. Don't buy too soon, don't sell too soon. Wait for convincing evidence that it has made up its mind. In this case, price played with R2, but never punched down through it with any sort of notion that it wanted to reverse course. Once it made up its mind to continue the journey north, all you had to do was follow suit. Don't fall prey to oxygen starvation at high altitudes like R2. Trust your indicators. Do what they tell you. This isn't about falling for your gut feeling that price has gone "too far" up. It could go even further – a lot further, in this case – if it wants to.


19. I was recently asked how many signals he should wait for before pulling the trigger. There are just five things you have to watch out for, and be "patient" for set-ups to occur. Don't just pull the trigger because you "think" it's time to do so. Wait for bona fide "signals."

Here are the five clues you have to take direction from: "reading bars," MACD divergence, pivot point breakthroughs/tests/violations, trendline breakouts and the price. Price is the number one indicator in the sky. It will tell you where it wants to go. Let it point the way. It's like playing cards. Wait for it to reveal its "hand." You just have to be patient and wait. It's called "following the leader." That's all it takes to succeed in this wonderful business called Forex trading. No other bells and whistles or toys are required, contrary to what you may have learned before. The hardest part for you will be to "unlearn" everything you knew about trading before. Just give your head a shake, and it will go away.


20. Now, how many of these should fire before you engage your trade? Well, certainly, one is enough to set the tone, but all the more convincing where you have a couple or more all lining up and saying the same thing. For example, recently the Euro was in a downtrend from the session just ending, entering the new session still in a downtrend, when price did a double top at the nearest pivot point as the new session started. Well, there you have three things telling you what to do – go short, of course. We had the downtrend, the double top, and the double top banging its head up against the pivot point. Lots of evidence that price was southward bound. I think you get the point. An analogy here: If you're sitting in your car at home waiting to go to work in the morning, and you are waiting for all the street lights to turn green on the way to work before you start the car, you will never get to work. So, the more green lights the better, but one is enough to get you going.

Unfortunately, you will not always get all the signals you need to pull the trigger. After all, this is as much an art as it is a science. You cannot always be 100% sure that you are doing the right thing. If you wait forever to get all your ducks lined up, you may wait a long time. My favorite analogy goes something like this: Pretend you are sitting in your garage at home wanting to go to work, but you are waiting for all the street lights along the way to turn green before you pull out of the driveway. Guess what folks? You'll never get to work. Same with trading. Sometimes, you just have to make an educated guess (based on the currency trading strategy recommendations contained at this site) and go with it. You won't always be right, but this isn't about being right. It is about making a decision, sticking with it, and reversing course if you have to. Accept getting stopped out as God's way of kicking you to a higher level. Just one more step to success.


21. Patience – wait for the right market conditions before trading. There are times when it is wise to stay out of the market (and observe from the sidelines.) Only react to bona fide signals provided by the five indicators talked about above "reading bars," MACD divergence, pivot point breakthroughs/tests/violations, trendline breakouts and the price.

Some days the best trade to take is no trade at all. There is nothing that says you have to trade every day. If you don’t see any good trading opportunities, then don’t trade. Wait for those "perfect set-ups" to make your move.


22. Trendlines are very powerful. Price WILL change direction when it breaks the trend, regardless of what other indicators may be telling you. So, draw them, and let them be your guide. REMINDER: In an uptrend, as long as the trendline holds, buy the dips. In a downtrend, sell the rallies. In an uptrend, don't look to go short EVER! In a downtrend, don't look to go long EVER! Plain and simple.


23. I was asked recently about multiple lots – in other words, buying or selling more than one lot at a time. You can either "load up the boat" at your entry point, or you can go at it one at a time – adding additional lot(s), as price moves through each successive pivot point, as it "reaches" for the end of its range. If you are confident that you are "with the trend," and are using good money management techniques, then there is nothing wrong with taking more position(s) along the way. Or, you can do both – load up to begin with, and buy/sell more, as price progresses through pivot points in its tear to the finish line. Don't bail too soon. Remember, currencies trend well (especially the major trend), and price knows where it wants to go. Let it take you there. Use the "five" indicators – "reading bars," MACD divergence, pivot points, price and trendlines analysis to make your trading decisions. Reading bars includes spotting double, or even triple, tops and bottoms. That’s all you need for this market. Be a technical bigot. Focus on pure technical analysis, and avoid funnymentals. Even news is factored into price action, so you don’t need to be up on it each and every nanosecond.


24. If you are trying to catch the major trend that unfolds during the London hours, but are afraid of getting your entry point figured out correctly, wait to catch the next entry point, as the Euro "reaches" for its average daily range of 76 pips. The next entry point will occur in and around the next pivot point that price passes through. Or, you may catch price as it tries to retest the pivot point it just went through. That way, you won't run the risk of getting in too early, when the trend tries to unfold in early trading. Sometimes, price fakes you out, and goes in one direction for a while, and then reverses course, before finally picking its direction. My favorite saying is, "He/she who procrastinates wins." What you are giving up, of course, are those initial pips of the trend, which may amount to, say 30 give or take, but you are more sure of capturing the remaining 46, as the major trend of the session matures.

The major trend for the Euro usually starts revealing itself as the London hours kick in. Up to that point, price may "bait and switch" you into thinking it is going one way, when in fact it is setting up to go the other way. It can easily fake you out, before the London hours start to unfold. So, be patient and wait. Look for clues coming out of the previous session as to where price might be going ultimately. Did you see a "head and shoulders" pattern? Did you see a triangle pattern? Do you see price trending in any one direction over a period of time? Do you see any divergence in MACD (on the 1 hour and 15 min charts)? Do you see any channels, where price is looking to break either way? Play Sherlock Holmes. A little bit of detective work will go along way before you dive into the new session. Like the Boy Scouts say, "Be prepared!"

Don't get hung up on reading bars when you think you have caught the major trend. Once the trend is unfolding, you then look for a place to enter - around a pivot point. You look to reading bars to signal a change in the direction of the major trend. A double top in a downtrend means nothing. A double bottom does. So, a price rejection bar or double bottom in a major downtrend would signal a short-term reversal, and that's all. But, once you see the major trend unfolding – say, on the short side – you pretend you don't know how to spell the word long. Stick with the overall major trend that is unfolding. These comments relate specifically to the beginning hours of London trading, which is when the major trend reveals itself.


25. At first, if you are fearful, don't trade until you see what you consider to be an ironclad set-up that you are familiar with – an easy one. That may mean waiting out a session or two, but that's okay. There's no rush. I find with some people they seem to have to prove something to themselves or someone else. Some people think they have to scalp all day long for some reason that is beyond me. After all, you are in control. Take your time. Relax. Enjoy it. Sooner or later, you will see a bona fide set-up that you recognize, and bingo you're in. When in doubt, do nothing. When there is no doubt, do something, do anything – pull the trigger.


26. If you are having trouble with your entry points, I suggest you try waiting until you see a hammer or a spinning top, and then pull the trigger. You may wait a long time, but at least you will be sure of getting a good entry point, as these particular candles are powerful precursors to a shift in price direction. Have a look at any chart and see how many of these candlesticks you can pick out. You might be surprised at how many there are.


27. Position trading - using a longer timeframe, taking cues from the 1 hour chart. They also believe that signals that occur on that chart are more powerful than those on the 15 min. For example, a signal on the 1 hour would have more weight than an indication on the 15 min. Basically, what they are saying is that you should wait on a trade for confirmation on the 1 hour chart before pulling the trigger, unless of course you see an ironclad setup on the 15 min chart. That doesn't mean to say you can't experiment on your own. If you do and find something that works for you, please let me know, and I'll share it with the rest of the gang.


28. Every once in a while, I would encourage you to step back from the daily intraday action, and have a look at it from 30,000 feet. Sometimes, we can get too close to it, and not see the trees in the forest. On the daily chart, if you plot trendlines and look for divergences, you will learn a lot about where price is going to go "next." Of course, that's what we all want to know, right? Not only do trendline breakouts and MACD divergences tell a "big" story, but where a daily bar closes will offer up a clue as to where price will likely go in the next session. Study the chart, and you'll see what I mean.

For those of you who don't know what this is all about, the little line pointing off to the right of a price bar is the "close" for the daily session. The little line pointing off to the left is the "open" for that session. In the Forex world, the close of one session automatically becomes the open for the next session, as this is a very liquid market, and there are no gaps in trading.


29. I had somebody ask me why I waited until 03:00:00am New York time to make my move, in the mean time missing potential in advance of that timeframe. The answer is quite simple. That is when London trading kicks in, and that is generally the busiest session on the Forex. You will notice that is when the Euro usually starts its major trend to find its average daily range of 76 pips. Those pips are usually put in within the first 12 hours of trading. Check it out for yourself. It happens each and every day, over and over again.


30. When to trade – average range for different hours of the day is listed at the link : http://www.forexmentor.com/protect/tradingtimes.html

The most active trading hours are when the markets overlap. For example Asia and Europe trading overlaps between 2:00am and approx. 4:00am EST, Europe and the United States overlap between 8:00am and approx. 11:00am EST. All of the major currency pairs trade actively during New York and London session. Major currency pairs are: USD/CHF, GBP/USD, EUR/USD, USD/JPY. These are the busiest times during the market because there is more volume when two markets are open at the same time, whereas during the Asian hours the trading activity tend to peak for pairs such as the GBP/JPY and AUD/JPY.


31. Don't get hung up on drawing the pivot lines on each chart. You can simply print off the Excel spreadsheet and have it handy for reference by your screen. All you really want to know is where price is in relation to the nearest pivot point.


32. Beware of holiday situations like the long July 4th weekend. Trading tends to be thin, and it is difficult to produce meaningful pivot points. Best to just go golfing, and forget about it. There's nothing that says you have to trade every day. Get a life.


33. Marathon runners have only one thing on their mind when they are running – to cross the finish line. They NEVER look back. Same with trading. You should focus on surviving for the long haul. Sure, you will stumble and fall, but pick yourself up and carry on. Winners never quit, and quitters never win.


34. Your self-esteem will grow the more trades you make. You will not always be right. You will make mistakes. That's only normal when you are first starting out, and even after you have been at it for a while. Don't beat up on yourself when you fail. Just say to yourself, "Next!" You must move on. If you are using wise money management techniques, like 20-30 pip stops, you will survive to see another trade. This is all about preserving staying power. Don't second-guess your indicators (remember, "reading bars," MACD divergence, pivot points, trendlines, and price). You wouldn't dispute the dials and gauges in a plane, or you'd crash and burn. So, why doubt what your indicators are telling you. You must believe in them, and take "action" when they tell you to do so. Have the courage to do so. And never listen to anybody else. Close your ears when you are trading. It’s you and your currency. You have nobody else to turn to. So, do it. Stay away from negative people. Don’t talk to anybody about this business, unless they are as dead serious about it as you are. Otherwise, they will drag you down. Save your bragging rights for later. The Forex will take you down if you try to become larger than life. And, finally, focus on success. Be careful what you think about. Your thoughts will mould your actions and outcomes. If you are committed to the end result being successful, then you will get there. If you are always fearful, that affects your psyche. When you stumble and fail, just pick yourself up, dust yourself off, and get on with it. Don't be intimidated by a mistake, or a wrong decision. You will get better at this, especially if you keep a journal of all your trades, and study it to death. Be a professional. Be prepared.


35. I can remember when I first learned how to trade. I had my mentor sitting right by my side each and every step of the way. Then one day he upped and moved, and changed cities. He actually moved to a remote and secluded island to get away from city life. Nice move for him, but it left me in a state of panic. How could I possibly survive on my own? I can tell you, ladies and gentleman, that I really learned how to trade when I had to do it on my own, and those were real drops of sweat rolling down from my forehead all over my face.

This is about you and the market, and you mastering your innermost psyche. Anybody can learn to trade the Forex my way. But, what will get you every time is that little inner voice doubting your every move. And, then there's fear and greed that will bite you real hard too. It's the psychology of your mind that you must master. You must become disciplined and patient to a fault. You must react only to bona fide signals, which I teach here. Otherwise, you would be better off heading out to your local casino, and taking your chances there.

Getting back to going solo without an instructor at your side during each and every step of the way, I recall a friend of mine telling me how he learned to fly. After several practice flights with his instructor in the cockpit with him, they landed back at the airfield, and the instructor turned to Pal and said, "Now, it's your turn to take it up. I'm getting out. You're on your own buddy." Talk about anxiety and stress. Well, Pal took off and landed all by his little 'ole lonesome. But, he was pale and his knees were knocking when he got out of the plane back at home base. He has soloed ever since. It's his passion now. There's something about being able to do it yourself, without a partner holding your hand all the time. It's called "confidence boosting." If you can fly or trade by yourself successfully, there probably isn't anything else in life you couldn't do equally as well. Actually, Navy pilots who land on aircraft carriers make the best traders. But, that's another story for another time.

I can tell you my friend learned more about flying in that one solo session than he did all the times his instructor went up with him. Same with trading. You can do it. Just believe it so. Dedicate yourself to becoming a master at it. Analyze, read, study, and think. Ask questions. There is no such thing as a stupid question. Become passionate about your trading. Don't think of it as a get-rich-quick scheme. Do it because you love it. Do it as if you would do it anyway, even if you weren't making money. There has to be an element of fun in it for you. If it's all work, and no play, well you know the answer to that one.

Don't get me wrong. I am here to answer your questions whenever you need my help. I am dedicated to your success, and your happy times with your family. Nothing would give me greater pleasure than an email from you telling me how this has turned your life around, and that you are now happily making money trading the Forex my way.


36. You need to get to the point where, when you look at a chart without any visual aids, you see indications as to where price is going. This has to become "second nature." At that point, you can trade with ease. And, your stress level will go down, because you will be in control of the market, not the other way around. This only comes with practice, day after day. This takes patience, and staying power. You must hang in there until you get it. Winners never quit; quitters never win.


37. The Forex is not about gambling. It is about running a business, where there will be gains and losses. Your every effort and constant struggle should be to get a grip on those times when price goes against you. You are in charge. You can get the upper hand on price by trading "smartly," and using good money management techniques. You won't win every time. But, with my system, you should come out ahead seven out of 10 times. Forex trading requires adherence to a set of currency trading strategy rules, which I have set out at this site. The trick is to limit your losses to small ones, and let your profits rise.


38. Chart pattern recognition really does work folks. If you care to educate yourself, head on to www.chartpatterns.com


39. Recommended reading:

Japanese Candlestick Charting Techniques – Steve Nison
Trading In The Zone – Mark Douglas
Disciplined Trader – Mark Douglas
Trading To Win – Ari Kiev
Trade Your Way To Financial Freedom – Van K. Tharp
The New Science Of Technical Analysis – Thomas R. DeMark
The Trading Game – Ryan Jones




40. Forex trader resources:

COT Data from Barry Lee http://www.cot-futures.com/cot/index.htm
Forex news site http://www.bloomberg.com/news/commentary/fxfea.html
The Forex market news, information, charts etc. http://www.fxstreet.com/
World trading hours map http://www.forexmini.com/images/tradinghours.gif
Time zones including a time zone calculator http://www.timeanddate.com/worldclock/
World time zones and day light saving information http://wwp.greenwichmeantime.com/