Trading in 8 Pairs - Q & A

what's the use of Gann HiLo activator?

That means Bullish when bar forms upper the blue line and bearish if it forms below the blue line.

This blue line is very important. in all pairs, Gann will send PRE SIGNAL before 5EMA crosses 50 EMA.

On the QQE, do you need a 50 line crossover (of the thick solid line) as well as a crossover of the two indicator lines?
On the MACD, do you need to be above the 0 line as well as the bars rising in value?

QQE, blue crossover upward means bullish and the time QQE crossover the MACD is going up and so is momentum. That means get ready to open long position and I suggest that you wait for 5EMA to cross 50 EMA for more safe. This Condition guarantee 100-250 pips bro.

When the price goes against you, you don't have to wait until it hits your SL but you can close it manually as soon as 5 crosses 15. or red crosses yellow, and it would be around -25 pips

What trading session(s) do you enter and exit your trades?

I always check my chart for every 4 hours and some times 10 hours if I have already lock in some profits.

I still wonder what is your strategy to open position on GJ when all the signals are confirmed. It can be difficult to set your SL cause GJ has a wider retracement than other pair. Do you wait for a retracement to enter or instantly enter position when all the signals are ready?

in 4H TF ( bullish trend) you can see that when 5EMA crossed Gann HiLo, at the same time QQE, Momentum and MACD are all crossed up . You may place an order in this point ( especially GJ pairs) and after it reached 50 pips moves your SL to +10 and after it reached 80 pips please lock in 50 pips and let this beast go for another 100, 150 or even 200 pips or retrace to hit your SL

by:cornelius2 at www.forexfactory.com

Trading in 8 Pairs - When to Buy?

BUY

When?
1. the 5 SMA crossed 50 upward that is the first signal.
2. Please check the MACD, the bar must be climbing up.
3. after 15 crossed 50 the signal is 98% bullish.
4. Usually MACD, QQE and Momentum are crossed up at the same time, and that is a signal to upload your weapon.

Please open your buy there with TP1 80 pips and lock profit for 50 pips after TP touched and let the price go to TP2 180 pips.

note :

Patience traders as we are trading in 4h time frame. Noo need to Hurry.

MACD : Please draw a red line in zero line.

Source: by cornelius2, forexfactory Forum.

Trading in 8 Pairs - Part 1

Trading in 8 pairs

Hello traders,

I am trading in 8 pairs with very good result ( between 2.400 - 3.500 pips) a month.

I am not the creator of this method as I combine the system from Vynner, Investor_me and later I add Auslanco system.

I don't do any scalp as I don't have much time to follow the trend minute by minute so I decided to use 4h time frame. No stress and no crossing finger as this system is absolutely trend following.

I have been trying this system for 7 months with very good results or at least I have bought a new car

Recently I am trading in these pairs : GJ,GU,EU,AU,UJ,UChf,UCad,NU and EJ

Remember this traders, we only have 3-5 entry point for every pair a month with approx 80-200 green pips each.

We must patience to wait those entry points so keep smiling.
For newbie, please use money management.

For example :
Small Deposit in September $ 2.000, when AUD gives signal buy you op with max $ 50 and SL 30 pips or when red signal turn to cross yellow.

your income for September should be aprox. : $50 x 300 pips x 8 pairs = $ 1.200. ( 60% Return on Investment). You should use only $50 per pair because sometimes there are 4 signals come out at the same time and that means you need to use $200.

Here the tools you need:

Metatrader4
EMA5 Red
EMA 15 yellow
EMA 50 White
Thanks to Great Vynner for this method

MACD:
Fast EMA 5
Slow EMA 13
MACD SMA 1
Thanks to Great Investor_me for this method

Momentum value 10

QQE :
Thanks to great Auslanco for this last method

Regards.
Cornelius
(source;http://www.forexfactory.com/showthread.php?t=45176)

What is a "Get-Rich-Quick" scheme?

"Get-Rich-Quick" scheme?

A plan which offers high or unrealistic rates of return for a small investment while at the same time promising that such investment is easy and risk -free.

The following "Get-Rich-Quick" schemes are prohibited under the
legislation administered by Bank Negara Malaysia :

Illegal Deposit Taking Activities

Illegal deposit taking is an act of receiving, taking or accepting of deposits (moneys, precious metal, precious stone, any other article etc.) from members of the public that promises a repayment with interest or returns in money or money's worth without a valid license under the Banking and Financial Institutions Act 1989 (BAFIA).

Illegal Foreign Currency Dealings

The following acts tantamount to illegal foreign currency dealings:

- Buying or selling of foreign currency by a person who is not an authorized dealer unless such person has obtained the permission of the Controller of Foreign Exchange under the Exchange Control Act 1953 (ECA).

- Buying or selling of foreign currency by a resident who is not an authorised dealer, with a person outside Malaysia except if the resident has obtained the permission of the Controller of Foreign Exchange under the ECA. CAUTION: Internet Investment Schemes

- Members of the public are cautioned to be on guard against some investment schemes promoted on the internet as these schemes are not licensed or authorized by Bank Negara Malaysia to accept deposits or deal in foreign currency. Such schemes often come in the guise of
attractive investment returns or opportunities involving unrealistic rates of returns with zero to low risk.

- Investors are reminded that they should only place deposits with institutions licensed or deal in foreign currency with institutions authorised by the Bank. Unlicensed operators may cease operating their business resulting in the investors with no means to recover their investments or seek redress against the persons connected with the scheme.

How To Spot The Scams?

Illegal deposit taking scam

o The person (an individual, a company or an organisation) receives, takes or accepts deposits from members of the public and is not licensed under section 6(4) of the BAFIA;
o The person promises to repay the deposit, with or without interest or returns, over a period of time in the form of money or money's worth, etc.; and
o The person promises to repay the initial deposit upon demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it, with any consideration in money or money's worth (the repayment of initial
deposit is sometimes included in the fixed interest or returns promised).

Warning Signs for Investors

· Illegal deposit taking activities have been disguised and camouflaged in various forms to deceive the public to fall victim to the investment scams, by giving valuable goods as part of the promised returns and camouflaging the deposits as loans to the company;

· Illegal deposit taking activities appear to be able to provide high or unrealistic rates of interest or return over a short period of time as compared to licensed institutions. However, these schemes will not last long;

· The survival of this scheme is dependent upon the recruitment of new depositors, i.e., new funds obtained will be used in paying dividends to the existing depositors. Therefore , the scheme will fail when there is no contribution of funds from new depositors; and

· Initially the depositors may be paid their promised returns. However, the operator would eventually abscond with the moneys collected when he feels that the scheme is about to fail, thus leaving the depositors at the losing end. Illegal foreign currency scam

Foreign currency dealings with a person, other than an authorized
dealer, who has not obtained the permission of the Controller of
Foreign Exchange under the ECA, often:

o Offer investors or members of the public the opportunity to deal in foreign currencies with a principal company (purported to have a valid licence to trade foreign currencies overseas);
o Facilitate the trading of foreign currencies by providing access to the principal company's website and trading facilities via internet;
o Recruit fresh graduates as marketing executives and allure them to get their family members to invest;
o Instruct the investors to deposit the investment moneys into either the principal company's bank account or a third party bank account; and
o Induce the investors to top up their investment ("margin call") or otherwise risk losing their investment.

Warning Signs For Investors

Illegal operators of foreign currency scams will try to entice potential investors with a marketing strategy which promises quick and high returns

· By projecting a professional and reputable image with smart-looking employees, a high-tech office layout and advanced IT facilities where investors are induced to operate their accounts via the internet;
· With tools of the trade, e.g., a news screen showing movements in exchange rates, to give the impression that a professional and legitimate business is being conducted; and
· A business contract is usually entered into between the investors and the company. Such contracts are usually left unsigned by the company. This means no action can be taken by the investors against the company as there is no binding written contract.

How To Protect Yourself From The Scams?

+ Remember the golden rule - if it sounds too good to be true, it's probably a lie;
+ Deal only with licensed financial institutions and authorized dealers;
+ Check with the relevant authority before investing;
+ Don't be pressured or rushed to invest;
+ Be extra careful with investments over the internet;
+ Be skeptical of any investment opportunity that is not in writing; and
+ In case an investment has been made, keep copies of all the investment and communications.

What Should You Do If You Are a Victim of such Scams?

If you have any information pertaining to illegal deposit taking activities or illegal foreign currency dealings or are a victim of such activities or scams you can send details of such information or complaint together with the documents to Bank Negara Malaysia as
follows:

Address:
Unit Penyiasatan Khas
Bank Negara Malaysia
Jalan Dato' Onn
50480 Kuala Lumpur
Fax: 03-26987467
E-mail: upkinfo@bnm.gov.my

We can also be contacted at the following telephone numbers:

Tel.: 03-2691 5090 / 2698 4163 / 2691 0824 / 2692 6482 / 2694 2143

In the trading system based on TRSI/RSI and MACD indicators it is important to find out tht basic pattern "a gold cross", i.e. divergence between RSI and MACD. The system works on 1, 5, 10, 15 and 30 minutes, hours, day and weeks. A recommended time-frame is not less than 5 minutes.

This document contains only the information of educational character and an exchange of trading ideas. Anything mentioned in this document and as your interpretation of the information or diagrams, cannot be apprehended as trading advice. The trade undertaken on the basis of this educational information, is strictly yours own risk.

The Purpose of this document consists in helping traders to study system RSI/MACD, in its all completeness and also to understand, how itself trades on this system. Such by they will spend time at the monitor, studying practical use of this system instead of trying to understand, what principles of work of system. However this document explains only main principles of work of system. Many weeks are required from the monitor to you to seize this system completely. You do not become the successful trader if will not follow all instructions and to not spend long hours at the monitor. Study history and patterns. The basic attention to give do not find fault-low with the price, and to behavior of indicators. The price always is derivative chaos of the market, catching of a bottom and maxi - empty employment. Nobody can predict the price.

This document demands, that you followed your trading rules. It is a unique way at which you become the successful trader. RSI/MACD - very simple system. Rules are very simple. Do not allow lack of the intellectual control to destroy your trade. Concentrate on system, and you will succeed. Instructions will tell All of you, that you should know. Only follow them directly and precisely.

The System is based all on 3 indicators, candles: MACD 12/26/9 Close, RSI 9/3 Close, candles are used as the price indicator, a time-frame - not less than 5 minutes. These are standard adjustments of the combined indicators, on Close - work the majority of traders.

RSI/MACD system basics

To predict - for slaves..., to react - for kings?, the wise man operates in advance! Get Forex forecast!

You do not need to reflect, something to add or invent at trade on system RSI/MACD. system RSI/MACD represents a full set of instructions to which you should follow. It is not necessary to add anything to it. The system is finished, exact and has well proved in a reality during many years.

The majority of traders try to understand all "why" on the basis of which this or that trading system works. I believe it is correct. You should understand, as well as why that you do, works. However it is not necessary so to do at a grade level and development already proved as working trading system since it will not bring additional results. System RSI/MACD just also is such type of trading systems. Study system, trading on it on tools (a demo the account) while be not convinced of all. Study and penetrate in system gradually, not trying to understand all at once. Simply follow instructions, not setting a question why you should operate so. Then you will understand all "as" and "why" the system works.

System RSI/MACD is not similar to one other system. It is simple, finished, exact, clear and unambiguous. It forces to be mistaken much less often, than can seem. In system there are no inconsistent signals. Therefore be not afraid. You should not guess what. Patterns, entrance signals and signals on an output are clear and precisely certain. Simply reject all your doubts and follow instructions.

At testing on Omega TS the system shows 85% of successful transactions.

Indicator RSI has some nuances which it is impossible to explain in this document. They can be mastered only in due course, lead in an expert at the monitor. But all instructions which will be necessary for you, are resulted here and they will help long enough to you while you will not start to trade perfectly.

Danger of inputs-outputs is especially great at average values RSI and the unsteady trend.

I spent about 3 years on testing alive this system, therefore it and became simple, finished and profitable. In system RSI/MACD trading schemes are certain. They will let to you the know when it is necessary to begin trade and to leave it. This everything, that is necessary for you.

RSI/MACD - an outstanding system, because you do not need to think or guess to find out. Simply operate according to instructions. Any other system does not define trading schemes, inputs and outputs also is clear, as RSI/MACD does it for you. Take its advantages. Allow it to make for you all work.

Actually, the majority of other trading systems could be profitable for you if you had a clear and precise set of signals for actions which never would contradict each other. Usually other trading systems use late indicators and cannot provide clear signals on an input and an output. And without a clear and laconic set of trading rules you never can successfully trade. System RSI/MACD will provide you with clear and laconic patterns, signals and instructions. Follow them, and at All of you it will turn out.

One more problem of other systems consists that they mean the reference to too big number of indicators. You cannot trade with use of such big number of indicators because the analysis all of them will simply overload you. You cannot simply fulfill a signal. What for to add to your graphs so a lot of superfluous? Can be because nobody spoke you, to not do it. But now you know, therefore - do not do.

When the system uses too many indicators, it is insufficiently clear, and it is difficult to you to react to signals of an input and an output. Or, that is even worse, you enter into trade, but do not leave it because one of signals shows, that it is possible to remain in the market. RSI/MACD defines clear outputs. There can be no justifications to that you have remained in the market when there was a signal of an output. It is one of remarkable properties of system.

Probably, other systems are less effective because you do not understand, that presence and following to the exact plan of trade - a unique way to trade successfully. So, if you do not have own trading plan, or trade goes not so successfully, study system RSI/MACD to follow for it and to refuse bad trading habits.

The formula of indicator RSI is based on an impulse of the prices for the certain period of time. It is advancing, instead of the late indicator. It advances all other indicators. If to unite it with system RSI/MACD it is possible to win against all other systems of trade.

System RSI/MACD allows you to advance other traders at an input in trade on one or more bar, and also to advance at an output from it, that prevents greater losses. system RSI/MACD protects you from losses and increases profit. Do not spend all for nothing time.

Be focused on instructions. Think of them. Each time, discussing system, you try to expand, eventually, the knowledge and to improve results of trade. You constantly discuss some statements which you have learned from books, brochures, on websites or even have heard from people who, probably, never traded. Be focused only on RSI/MACD and trade under instructions. RSI/MACD deals directly with life cycle of the price.

System RSI/MACD cuts all problems which you could have at trade, - gives a full, exact and clear set of instructions. You "have learned" much about ways of trade from other trading systems or from books, however it has not so helped you. Actually, even injured you. Forget while about all this, find it useless. Only be focused on trade according to instructions, not thinking about what the friend. Do not try to understand, why. The market always moves in the direction, passengers enter and leave according to the intention and destination.

Also it is very important to observe not of absolute change under the account, and for % of change.

"Losses - a part of trade", "Reduce losses, allow profit to grow", "Do not trade against a trend", etc. to you spoke about it hundreds times, however it all the same does not work. Only follow system RSI/MACD which has taken care of all for you. The system defines all the rules necessary for full trading system so you should not think. Everything, that you should - react only to signals, and all will be fine.

RSI/MACD will prompt, when to you to enter into the market, will help to receive solid profits, and to leave the market with small losses. It also will not allow you to trade against a trend. Only follow its instructions that is not difficult. Any other system of trade does not go so far in management of each aspect of trade.

One of improbable secrets RSI/MACD - that the system represents the opportunities not accessible before, and cleans all unnecessary. Thus, at this trading system does not remain unresolved problems. For example, you learned how to trade at the bear flags, gaps and a wedge in many various ways. So, on what way to stop? Probably, each time is necessary a new method? Here in what a problem. And as you have studied many ways of trade do not dare to follow simple rules. Forget all this. RSI/MACD gives new conditions for trade that you have not got confused.

At trade RSI/MACD everything, that it is necessary - to find RSI/MACD patterns. System do not interest, that remind price bars, it does not worry, that other indicators or other markets do. Any of these questions. It is focused only that now does your separate market and allows you to trade. This system is simple and consequently very well works.

RSI/MACD stops all doubts which arise at studying other websites, newsletters, books and clauses. Forget all this material. All this while is useless. Think of system, as about a new way of trade.

Unique application of price bars - to define a level for an enter/exit.

At installation of warrants remember that you advance others on 1 and more bar, warrants are better for exposing on a body of the previous candle, the price usually comes back.

Patterns of RSI/MACD allow you to trade very well. Follow instructions carelessly, nothing adding and complicating, and with you nothing to happen.

If you yet do not trust, that trade can be so simple, or are not courageous enough precisely to follow instructions how is told here then you can not read other part of this document. Throw out it, and go further.

(by Ivan Petrov,http://forex-forecast.net)

Application of long/turbo RSI+MACD (Part 1)

Rules of data reading RSI/MACD.

• Week, day, intraday, in intraday to consider day and weeks, that is the general situation in the market.
• To choose a corresponding time-frame.
• The Nobility extreme values of indicators for the chosen tool.
• Each market will have own trend which should not be considered at trade in other market.
• Inertia of the market - the market should cool down or heat up, then there is a consolidation.
• In the price risks, and also a news background and expectations of traders are considered all.

The above picture is a full set of graphs which are necessary for trade on system RSI/MACD. Here three different tools and only one time-frame for everyone. I do not change a symbol of the graph and its time-frame within all trading day in system RSI/MACD. Absolutely everything, that is necessary to us for trade in the market, is on this set of graphs. And we do not pay attention on what another. All is simple.

We use only two RSI the indicator and one MACD at trade. The first is RSI with the period 9, displayed red color (a thick line) which refers to RSI. Another is RSI with the period 3, displayed as red (a thin line), and named Turbo RSI or TRSI. MACD 9 or 8 is displayed navy (a thin line) by color.

Establish the unique graph with the unique time-frame for the tool. At transition to other time-frame it is necessary to consider frequency rate a time-frame in during trading session.

Choose quiet colors. Establish the size and color of the text and any other element of the graph so that they strongly were not allocated. As much as possible allocate both RSI the indicator and MACD. Make their convenient for reading. They are the only thing, that we wish to allocate during trade. Any other information is not important. If something is allocated another besides patterns RSI you will be focused on it and worsen time of your reaction.

Everything, that you need to do within all day is to wait for occurrence RSI/MACD of a pattern. It will be uneasy employment. Good trade - by definition patient. Reconcile to it. We wait for entrance signal RSI/MACD. We enter into trade. We wait RSI/MACD a signal to an output. We leave trade. All simply and definitely, very clearly and well works.

Source:(http://www.forex-forecast.net)

Trading The MACD Divergence

Moving average convergence divergence (MACD), invented in 1979 by Gerald Appel, is one of the most popular technical indicators in trading. MACD is appreciated by traders the world over for its simplicity and flexibility because it can be used either as a trend or momentum indicator.

Trading divergence is a popular way to use MACD histogram (which we explain below), but, unfortunately, the divergence trade is not very accurate - it fails more than it succeeds. To explore what may be a more logical method of trading MACD divergence, we look at using the MACD histogram for both trade-entry and trade-exit signals (instead of only entry), and how currency traders are uniquely positioned to take advantage of such a strategy.

MACD: An Overview
The concept behind MACD is fairly straightforward. Essentially it calculates the difference between an instrument's 26-day and 12-day exponential moving average (EMA). Of the two moving averages that make up MACD, the 12-day EMA is obviously the faster and the 26-day is the slower. In the calculation of their value, both moving averages use the closing prices of whatever period is measured. On the MACD chart, a 9-day EMA of MACD itself is plotted as well, and it acts as a trigger for buy and sell decisions. MACD generates a bullish signal when it moves above its own 9-day EMA, and it sends a sell sign when it moves below its 9-day EMA.

The MACD histogram is an elegant visual representation of the difference between MACD and its 9-day EMA. The histogram is positive when MACD is above its 9-day EMA and negative when MACD is below its 9-day EMA. If prices are rising, the histogram grows larger as the speed of the price movement accelerates and contracts as price movement decelerates. The same principle works in reverse as prices are falling. See Figure 1 for a good example of a MACD histogram in action.

Figure 1 - The above is an example of MACD histogram. Note that as price action (top part of the screen) accelerates to the downside, the MACD histogram (in the lower part of the screen) makes new lows and vice versa as prices turn.

As it responds to the speed of price movement, the MACD histogram is the main reason why so many traders rely on this indicator to measure momentum. Indeed, most traders use the MACD indicator more frequently to gauge the strength of the price move than to determine the direction of a trend.

Trading Divergence
As we mentioned earlier, trading divergence is a classic way in which the MACD histogram is used. One of the most common set-ups is to find chart points at which price makes a new swing high or a new swing low but the MACD histogram does not, indicating a divergence between price and momentum. Figure 2 illustrates a typical divergence trade.

Figure 2 - Here is a typical (negative) divergence trade using a MACD histogram. At the right-hand circle on the price chart, the price movements make a new swing high, but at the corresponding circled point on the MACD histogram, the MACD histogram is unable to exceed its previous high of 0.3307. (The histogram reached this high at the point indicated by the lower left-hand circle.) The divergence is a signal that the price is about to reverse at the new high, and as such, it is a signal for the trader to enter into a short position.

Unfortunately, the divergence trade is not very accurate - it fails more times than it succeeds. Prices frequently have several final bursts up or down that trigger stops and force traders out of position just before the move actually makes a sustained turn and the trade becomes profitable. Figure 3 demonstrates a typical divergence fakeout, which has frustrated scores of traders over the years.

Figure 3 - A typical divergence fakeout. Strong divergence is illustrated by the right circle (at the bottom of the chart) by the vertical line, but traders who set their stops at swing highs would have been taken out of the trade before it turned in their direction.

One of the reasons that traders often lose with this set up is they enter a trade on a signal from the MACD indicator but exit it based on the move in price. Since the MACD histogram is a derivative of price and is not price itself, this approach is in effect the trading version of mixing apples and oranges.

Using the MACD Histogram for Both Entry and Exit
To resolve the inconsistency between entry and exit, a trader can use the MACD histogram for both trade-entry and trade-exit signals. To do so, the trader trading the negative divergence takes a partial short position at the initial point of divergence, but instead of setting the stop at the nearest swing high based on price, s/he instead stops out the trade only if the high of the MACD histogram exceeds its previous swing high, indicating that momentum is actually accelerating and the trader is truly wrong on the trade. If, on the other hand, the MACD histogram does not generate a new swing high, the trader then adds to his or her initial position, continually achieving a higher average price for his or her short.

Currency traders are uniquely positioned to take advantage of this strategy because with this strategy, the larger the position, the larger potential gains once the price reverses - and in FX, you can implement this strategy with any size of position and not have to worry about influencing price. (Traders can execute transactions as large as 100,000 units or as little as 1,000 units for the same typical spread of three to five points in the major pairs.)

In effect, this strategy requires the trader to average up as prices temporarily move against him or her. This, however, is typically not considered a good strategy. Many trading books have derisively dubbed such a technique as "adding to your losers". However, in this case the trader has a logical reason for doing so - the MACD histogram has shown divergence, which indicates that momentum is waning and price may soon turn. In effect, the trader is trying to call the bluff between the seeming strength of immediate price action and MACD readings that hint at weakness ahead. Still, a well-prepared trader using the advantages of fixed costs in FX, by properly averaging up the trade, can withstand the temporary drawdowns until price turns in his or her favor. Figure 4 illustrates this strategy in action.

Figure 4 - The chart indicates where price makes successive highs but the MACD histogram does not - foreshadowing the decline that eventually comes. By averaging up his or her short, the trader eventually earns a handsome profit as we see the price making a sustained reversal after the final point of divergence.

Conclusion
Like life, trading is rarely black and white. Some rules that traders agree on blindly, such as never adding to a loser, can be successfully broken to achieve extraordinary profits. However, a logical, methodical approach for violating these important money management rules needs to be established before attempting to capture gains. In the case of the MACD histogram, trading the indicator instead of the price offers a new way to trade an old idea - divergence. Applying this method to the FX market, which allows effortless scaling up of positions, makes this idea even more intriguing to day traders and position traders alike.

By Boris Schlossberg, Senior Currency Strategist, FXCM

** This article and more are available at Investopedia.com - Your Source for Investing Education **

What is Fibonacci retracement

Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician Leonardo Fibonacci in the thirteenth century. However, Fibonacci's sequence of numbers is not as important as the mathematical relationships, expressed as ratios, between the numbers in the series. In technical analysis, Fibonacci retracement is created by taking two extreme points (usually a major peaktrough) on a stock chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%. Once these levels are identified, horizontal lines are drawn and used to identify possible support and resistance levels. Before we can understand why these ratios were chosen, we need to have a better understanding of the Fibonacci number series. (For a more in-depth discussion of this subject, see Fibonacci And The Golden Ratio.)

The Fibonacci sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. Each term in this sequence is simply the sum of the two preceding terms and sequence continues infinitely. One of the remarkable characteristics of this numerical sequence is that each number is approximately 1.618 times greater than the preceding number. This common relationship between every number in the series is the foundation of the common ratios used in retracement studies.

For reasons that are unclear, these ratios seem to play an important role in the stock market, just as they do in nature, and can be used to determine critical points that cause an asset's price to reverse

Source:http://www.investopedia.com

Money Management & Trading Habits

Money Management & Trading habits:

Maximum 2% risk per pair -What that means is when you calculate your stop losses your stop loss amount has to be within 2% of your account .If the trade goes against you, the maximum you will loose is 2% of your account. This way it also prevents you from getting panic attacks when the trade retrace against you resulting you close the trade pre maturely.
If your desired stop losses do not come within 2% of your account don’t take that trade. As I always say, you may miss one trade but there are millions more to come.

You always have to calculate your risk every time before you enter your trades.
Your risk to profit ratio has to be minimum 1:1. That means if you are taking a 2% risk on a trade make sure your profit target would be at least 2%.

Always have realistic targets. My aim is 300 % capital growth per year. The lesser your target is lesser the risk of losing your own money. Even if you have 50% capital growth per year you are doing better than 90% of the worlds biggest hedge funds.

More trades you take the more you expose your account for losses. No trader in this world can profit from every single market move.

Patience plays a big part in trading. Take the trades only if you are at least 90% sure of profiting from it. If you are not sure stay away from the trade. Staying on the sideline is as good as winning.

Never trade against the trend. Specially with a high volatile pair like GBP/JPY. It may give you couple of winning trades. But it’s going to get you in the long run.

Always have a trading strategy ... make a habit to stick to it doesn’t matter how desperate you are.

Always trust your strategy but not bloomberg or some statement from citibank. Don’t go with your gut feeling because 95% of the time your gut feeling is wrong.

Your charts are your forex bible. Everything what you need to know about forex is on your charts. You will learn something new everyday from you charts.

Specialize in one or two pairs. Every single pair has it’s own characteristics. No two pairs are the same. Don’t trade all the pairs your broker can offer. If you specialize in one or two pairs very soon you will be able to read the pair like a road map .

Stay away from the ranging markets. There will be enough of trend break outs on this pair than you ever want. Why take any extra risks trying to chase 20 pips on a ranging markets when you can grab 200 pips on a break out.

As Monarc mentioned traders are a greedy bunch. Less greedy once are the most successful once.

Don’t try to chase every single pip or market movement. Have a realistic weekly or monthly target as a percentage of your account . Not the number of pips. If you have already achieved that target stay away from the market. As I mentioned before.. the more you trade there is more risk of losing your money.

The losses are part of the game. Do not try to cover all your previous losses from your next trade. First your trading plan has to include at least 50% of losing trades. Then you can cut down on the number of losing trades while you gain experience and confidence.
When you start you must demo trade at least for the first 3 months to build a trading strategy. Then for the next 3 months trade on a demo account or a micro account and test your strategy coupled with a good money management strategy. When you are fully confident then trade with your real account.

Use minimum account leverage. Don’t abuse it. My recommendation for new traders is maximum one mini lot for every $2500 or one full lot for every $25000.

At last ... remember there is no easy way to become a good consistently profitable trader. No one can become a profitable trader overnight. As everything else in life it takes time, patience lots of sacrifices and learning. Don’t be afraid of mistakes.

It took me 8 months to make my first consistent $100 per week.
Since then making money is like a walk in the park.

(By: Jacko's Forex House of Pleasure and Pain)

Why Do I Trade Forex?

Why do I trade Forex?
Because I am ABSOLUTELY CONVINCED that this is the best "business" in the world.

There are:
1. no rent of offices (that is, NO dealing with Realtors, Lawyers, and government departments...man, what a pain in the ass). Also no office fit-out costs

2. no staff, (man, unless you have had large numbers of staff depending on YOU for their paypacket each week, you cannot know what a huge pain in the ass it is. They ALL want you to solve their problems)

3. No inventory or stock to buy. No shrinkage (theft of stock) and no "slow moving" items. No massive amount of funds tied up in inventory

4. You can "borrow" as much as you want (by increasing your leverage), WHENEVER you want. (Try running a big business and going to the bank for a short term loan for $10 mill...it will take a month minimum). I am trading $10-12 mill all the time and I get it instantly through the brokers by the use of leverage.

5. If the business becomes a hassle for whatever reason, you can shut it down (that is, close all positions) instantly...and re-open (initiate new positions) whenever YOU want to re-open your "business."

6. You can "scale" your business to whatever size YOU want simply by increasing/decreasing your positions.

7. Absolutely minimal paperwork. Simply send your 12 month summary Profit and Loss Statement to your Financial Accountant for tax payment purposes.

8. You can trade from anywhere in the world. My wife and I travel most of the year. (take your laptop or PDA or whatever else they will come up with and trade while sipping a nice drink as close by as your local cafe or as far as some open air cafe in some remote little town in beautiful Italy while you watch a bocce match at the park.)

I could keep telling you more of the benefits of this business, but suffice to say...this is the best "business" in the world. I run a multi-multimillion dollar business from my laptop.

And did I mention that it was exciting and fun????

by: Jacko's Forex House of Pleasure and Pain

The World's Richest Men Have Forex As Part Of Their Investment Portfolios

The World's Richest Men Have Forex As Part Of Their Investment Portfolios
Warren Buffett -
In Early 2005, Warren Buffett
Had $20 Billion Of Berkshire
Hathaway's Investment
Portfolio In Forex Markets.

In The 3rd Quarter Of
2004, Buffett Posted
Profits Of $412 Million.
{From Forex}
Bill Gates-
Bill Gates May Have
Been Following His Friend
Warren Buffett's Advice
As He Began
His Forex Investments.

Bill Gates Was 2006's
.World's Richest Man
George Soros-
George Soros Made His Name
By Earning $1 Billion On
1 Day, In 1992 In Forex

It Is Estimated That
Soros Has Made $7
Billion From Forex In
The 3 Decades From
1969 To 1999!


(Source:http://www.forxprofit.com)

A Beginner's Guide To Hedging: How Do Investors Hedge?

How Do Investors Hedge?
For the most part, hedging techniques involve using complicated financial instruments known as derivatives, the two most common of which are options and futures. We're not going to get into the nitty-gritty of describing how these instruments work, but for now just keep in mind that with these instruments you can develop trading strategies where a loss in one investment is offset by a gain in a derivative.

Let's see how this works with an example. Say you own shares of Cory's Tequila Corporation (Ticker: CTC). Although you believe in this company for the long run, you are a little worried about some short-term losses in the Tequila industry. To protect yourself from a fall in CTC you can buy a put option (a derivative) on the company, which gives you the right to sell CTC at a specific price (strike price). This strategy is known as a married put. If your stock price tumbles below the strike price, these losses will be offset by gains in the put option. (For more information, see this article on married puts or this options basics tutorial.)

The other classic hedging example involves a company that depends on a certain commodity. Let's say Cory's Tequila Corporation is worried about the volatility in the price of agave, the plant used to make tequila. The company would be in deep trouble if the price of agave were to skyrocket, which would eat into profit margins severely. To protect (hedge) against the uncertainty of agave prices, CTC can buy a futures contract that allows the company to buy the agave at a certain price. Now CTC can budget without worrying about the fluctuating commodity.

If the agave skyrockets above that price specified by the futures contract, the hedge will have paid off because CTC will save money by paying the lower price. However, if the price goes down, CTC is still obligated to pay the price in the contract and actually would have been better off not hedging.

Keep in mind that because there are so many different types of options and futures contracts an investor can hedge against nearly anything, whether a stock, commodity price, interest rate, or currency.

The Downside
Every hedge has a cost, so before you decide to use hedging, you must ask yourself if the benefits received from it justify the expense. Remember, the goal of hedging isn't to make money but to protect from losses. The cost of the hedge - whether it is the cost of an option or lost profits from being on the wrong side of a futures contract - cannot be avoided. This is the price you have to pay to avoid uncertainty.

We've been comparing hedging versus insurance, but we should emphasize that insurance is far more precise than hedging. With insurance, you are completely compensated for your loss (usually minus a deductible). Hedging a portfolio isn't a perfect science and things can go wrong. Although risk managers are always aiming for the perfect hedge, it is difficult to achieve in practice.

What Hedging Means to You
The majority of investors will never trade a derivative contract in their life. In fact most buy-and-hold investors ignore short-term fluctuation altogether. For these investors there is little point in engaging in hedging because they let their investments grow with the overall market.

So why learn about hedging?

Even if you never hedge for your own portfolio you should understand how it works because many big companies and investment funds will hedge in some form. Oil companies, for example, might hedge against the price of oil while an international mutual fund might hedge against fluctuations in foreign exchange rates. An understanding of hedging will help you to comprehend and analyze these investments.

Conclusion
Because risk is an essential yet precarious element of investing, you should, regardless of what kind of investor you are, gain a fairly good awareness of how investors and companies work to protect themselves. Whether or not you decide to start practicing these intricate uses of derivatives, learning about how hedging works will help advance your understanding the market, which will always help you be a better investor.

By Investopedia Staff, (www.Investopedia.com)

A Beginner's Guide To Hedging: What Is Hedging?

Although it sounds like it might be the hobby of your neighbor obsessed with his topiary garden full of tall bushes shaped like giraffes and dinosaurs, hedging is a practice every investor should know about - there is no arguing that portfolio protection is often just as important as portfolio appreciation. Like your neighbor's obsession, however, hedging is talked about more than it is explained, making it seem as though it belongs only to the most esoteric financial realms. Well, even if you are a beginner, you can learn what hedging is, how it works and what hedging techniques investors and companies use to protect themselves.

What Is Hedging?
The best way to understand hedging is to think of it as insurance. When people decide to hedge, they are insuring themselves against a negative event. This doesn't prevent a negative event from happening, but if it does happen and you're properly hedged, the impact of the event is reduced. So, hedging occurs almost everywhere, and we see it everyday. For example, if you buy house insurance, you are hedging yourself against fires, break-ins or other unforeseen disasters.

Portfolio managers, individual investors and corporations use hedging techniques to reduce their exposure to various risks. In financial markets, however, hedging becomes more complicated than simply paying an insurance company a fee every year. Hedging against investment risk means strategically using instruments in the market to offset the risk of any adverse price movements. In other words, investors hedge one investment by making another.

Technically, to hedge you would invest in two securities with negative correlations. Of course, nothing in this world is free, so you still have to pay for this type of insurance in one form or another.

Although some of us may fantasize about a world where profit potentials are limitless but also risk free, hedging can't help us escape that hard reality of the risk-return tradeoff. A reduction in risk will always mean a reduction in potential profits. So, hedging, for the most part, is a technique not by which you will make money but by which you can reduce potential loss. If the investment you are hedging against makes money, you will have typically reduced the profit that you could have made, and if the investment loses money, your hedge, if successful, will reduce that loss.

(Source :http://www.investopedia.com)

On My Way to Achieve it

3 months ago, I never thought that, this opportunity can bring me JOY..
I was a dream to learn about FOREX, it was in my mind for the past few years..
There many seminars, workshops, bootcamps, ebook and etc in the market.
Finally, in March. I gave my myself a try with one of these classes, just give a try..
Never thought, this will be my final destination towards achieving financial freedom.

After the seminar, I try to trade using virtual money, then start to trade using real money "live trade" at marketiva. Start with $200 within a month manage to make it $400, then its drop till $100. Its okay.. Its just a learning process..
Then, I went to the same seminars for about 3 times plus an on-line coaching, I feel like there will be a bright future ahead of me.
Last week, my Live Fund is about $600, as at today, its gaining till $927..
I truly believe,that I'm on my way towards achieving Financial Freedom, Its Just like A DREAM COMES TRUE....
Thanks GOD.

HYIP MISTAKES 5

Getting greedy
Making money with HYIPs isn't really the problem. It's keeping the money in our pocket that becomes difficult.

The temptation to reinvest every single cent to keep our profits growing is so great...

I remember a program that was paying 5% a day for 30 days. Every day I would wake up, check my egold account to find a nice little deposit. A couple of weeks pass and things are looking good, so I reinvested all of my profits. This goes on for about 3 months. By this stage I've grown my investment with this program by reinvesting all the profit. Now I can sit back and reap the rewards.

Unfortunately (you guessed it) the program stopped paying.

Obviously I got a bit greedy and wanted to multiply my profit quickly. As mentioned before a better approach might have been to reinvest half of the profit and take the rest to invest elsewhere.

Taken From :

http://www.hyipmistakes.com/hyip-mistakes.html

HYIP MISTAKES 4

Mistake 4: Not getting your original spend back quickly
I'm sure you've heard this a number of times before. Always get your seed money back as soon as possible.

Given the fact that most HYIPs tend to fold within 6 months, this does make sense.

Figuring out when to start withdrawing your profit is more of an art than a science.

For example, should I deposit a large amount and start withdrawing straight away? Or deposit a small amount and start withdrawing after one month?

This really depends on how long you think the HYIP is likely to last and how long it takes to get your original spend back.

To date, all HYIPs tend to either slow right down: like one of the original cyclers that has been around for 2 years and now has a 200 day+ cycle time; or they go out of business within 6 months.

Side Note: I believe some HYIPs have good intentions but fail to manage the business side of things correctly so they close shop. I don't believe all HYIPs that disappear are scams.

Given the empirical evidence it's best to plan your strategy based on the worst possible scenario.

A rule of thumb that I've heard thrown about is to withdraw your original investment as soon as possible then from there on keep half the profit and reinvest half.

I believe having a clear monthly plan is key to being successful with HYIPs. At the start of every month I ask myself the following question:

"What If one of my main investments goes under this month... will this be a problem for me?"

Based on the answer I can decide how much I should withdraw, how much I should reinvest and what new HYIPs I should join.
(article taken from www.hyipmistakes.com)

HYIP Mistakes - part 3

Mistake 3: Focusing on individual programs instead of the overall plan

I think everyone (including myself) have their favorite HYIPs. Those HYIPs that pay us regularly and we feel comfortable with.

Maybe their web site color is our favorite color! Or they've worded things in a way that sings for us.

But every time I find myself focusing my spends on one particular HYIP I remember a piece of advice that I once got: "Focus on the overall plan and not on individual HYIPs".

To me this is a fantastic philosophy for managing a HYIP portfolio.

When you think about it, putting our faith in one, two or three individual HYIPs doesn't make any sense given the nature of these businesses.

So taking this philosophy I would much prefer to have 10 programs paying me $100 each to a total of $1000 than having 2 programs paying me $500 each.

It would be even better to have 30 programs paying a little bit each.

Obviously it's a lot harder to find 10-30 solid programs instead of focusing on 2 beloved HYIPs. But to me focusing on the overall picture and building multiple income streams helps me sleep at night.

source:www.hyipmistakes.com

Mistake 2: Not testing the withdraw function

Mistake 2: Not testing the withdraw function

Has this ever happened to you: you've invested in an attractive HYIP, your profit is growing day after day, everything is going nicely ... until you decide to withdraw some of your profit.

Either the withdraw function doesn't work at all, or your withdrawal is forever pending.

After I make my initial test spend with any HYIP I do a test withdrawal. I don't invest any more funds until the withdrawal is successful.

(this article is taken from www.hyipmistakes.com)

HYIP Mistakes -part 1

Mistake 1: Spending too much too soon
This is probably the biggest mistake I've made in HYIP land, and the one that taught me the most.

I'd been in HYIPs for around 9 months. Things were going strong, my confidence was growing and one of the programs had just paid out a very nice profit.

In my excitement I invest all of this profit into a single HYIP that I found in the top of one of the rating sites. It's been rated in the top 3 for the last 6 months. Everyone was writing rave reviews about it. It looks and smells like a sure thing, so why waste time making a small spend?

Not even 7 days later and the warnings started to come. By that stage I could see my investment drifting away.

That investment had taken me over 4 months to earn. Within a few hours of receiving it I was able to give it away. That's a pretty good effort eh.

The experience gave me a real good wakeup call. Up to that point I'd been putting large chunks of my investments into individual HYIPs.

That's when I realized what people meant by "test spends"... ahhh. So you spend a little bit, and if they pay you, THEN you spend the rest. What a novel and practical idea.

After gaining more experience with HYIPs I realized that a single test spend isn't enough. Some HYIPs will pay you for small spends, but when it comes to real (larger) spends you won't see a cent of profit.

And you can't rely on rating sites feedback because sometime they get better treatment from HYIP admins!

So now a days I spend a little at a time gradually building my active balance.
(this article taken from: http://www.hyipmistakes.com/hyip-mistakes.html)

Forex..oo.. forex

I can make money when the market moves up, and you can make money when the market moves down. However, when the market doesn’t move at all, I'll have a very tough time trying to make money and probably will end up losing money.