By admin | May 26, 2008 - 11:13 am - Posted in Working

If you approach forex day trading by just looking at the 5 minute and 15 minute charts there is a strong possibility your account will evaporate sooner rather than later.

In order to get a feel for the market and an indication of the current trend it is necessary to do an analysis by looking at multiple charts on different time frames starting with higher level charts first.

Rather than having the charts cluttered with numerous indicators and signals which can cause signal paralysis, I recommend just two:

1. MACD (with default settings)

2. 200 EMA (Exponential Moving Average)

Now examine your charts using a top down approach:

  • Daily
  • 4 Hour
  • 1 Hour

As you check each chart take note of these two factors:

  1. Has MACD crossed down or up and is it above or below the water line?
  2. Is price above or below the 200 EMA?

While it is not crucial to have them all lined up on these three time frames for successful forex day trading, if you want to be a cautious trader and go for high probability trades then certainly MACD on the 4 hour chart and 1 hour chart should be in agreement as also should price in relation to the 200 EMA.

The daily chart can be useful in seeing the larger picture and for noting key levels of support and resistance. They stand out on a daily chart so if price is within 100 pips of a crucial level of support or resistance as seen on the daily chart, make a note of the figure.

Then scale down to the lower time frames and see if this level matches with other indicators such as pivot points or Fibonacci levels.

Once you have done this groundwork, NOW you can look at the 15 minute and 5 minute charts for a suitable entry point.

Remember, for successful Forex day trading you need to adhere to the No. 1 commandment: Buy The Dips and Sell the Rallies!

So avoid chasing the market and going with the flow. Instead, wait for price to come the level you want, set your entry order, and let price pull you into the trade.

The Danger With Lower Time Frames

Just concentrating on the 15 minute and 5 minute charts will not give you the bigger picture. You could see what looks like a perfectly good trade and set your stops and limits only to find you get blown out within a few minutes.

By looking at the higher time frame you would probably have seen you were close to a key support or resistance level and either not gone into the trade or adjusted your stops and limits accordingly.

For the novice, Forex day trading can involve a huge learning curve. Include this simple daily top down analysis approach to your trading and protect yourself against making trades you wish you didn’t!

Click here to learn how to use the 200 EMA in a simple yet powerful way:

For a free candle & chart pattern recognition reference tool click here:

For the best free economic calendars plus a free pivot point calculator and Fibonacci calculator click here:

By admin | May 21, 2008 - 11:15 am - Posted in Working

Ah, the day trading profession – it’s the perfect job, right? You can work when and where you want. You have freedom and independence. You answer to no one but yourself. All this sounds great and there is no doubt that day trading can be a very lucrative and rewarding career, but let’s take a look at the cold hard facts. Nearly 80% of those who attempt day trading will fail. Trading accounts are lost every single day because of trading too much, taking illogical risks or just plain ignorance.

Don’t get me wrong, you can make substantial profits at day trading. There are many successful day traders out there that are making a nice living year after year. In order to have the greatest chance of success, there are several mistakes that must be avoided:

1. Trading With Emotion

The single biggest mistake made by day traders is trading with emotion. If you trade with emotion you will lose money – It’s as simple as that. Greed and fear rule the stock markets and these two emotions are precisely what will put you in the hole. Too many decisions when trading are based on emotions, rather than logic. The key here to overcome emotions is that you must have a system in place that picks trades mechanically – this will take greed and fear out of the equation.

2. Trading Without Proper Research

Day trading is a serious business and it needs to be treated that way. Many traders make the mistake of half-hazardly buying stocks without taking the time to complete the proper research. Day trading is for real and the stock market has no mercy for the
unprepared. To be a successful trader you simply must have a carefully planned out system in place for how you go about researching your potential stock picks.

3. Trading With Money You Can’t Afford To Lose

Successful day traders never trade with money that will destroy their lifestyle or family if lost. It then becomes a domino effect and fear will take over trading decisions. The worst possible trading choices will be made and bank accounts will be depleted.

So in summing it up, day trading is a great way to make a living and a very lucrative one if you have a system in place and can avoid the mistakes that were discussed above. Just remember to avoid emotion, make sure you have done your research and never trade with money that you cannot afford to lose.

To see how easy it is to make money trading stocks and to get a free trial of a proven system that has consistently produced profits go to . Once you try the system you will wonder how you ever got along without it.

By admin | - 11:13 am - Posted in Software, Working

Several things are needed when it comes to trading currencies online. Firstly, you need a good computer and fast internet connection, secondly you need good technical charts and thirdly you need a good broker (market maker).

I will not tell you which tools to use, but I’m confident that if any of those three items are not working properly, you will have problems. Make sure that your computer is good enough with reliable internet connection which will not let you down in critical moments. You might not know but a poor internet/computer setup could well lose you money if it fails a trade or during a time when you need to enter a trade.

Stick to good chart: The key to good analysis is to have good charts which can display what you need in a very clear visual format without you having to click on icons to bring up information you need. Once more we have lots of good chart providers out there – find the one that best suits you.

Be sure to use a safe, honest broker. About 54% of the online brokers out there are probably neither regulated, safe, or even honest, so better do your homework well. Better watch out for brokers who are not listed (unregulated), do not have any credentials, have a low or zero spread, use very weird marketing tactics etc. You have the choice of using a broker which is part of a listed company, where you know your money is at least part of a bigger conglomerate.

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By admin | May 14, 2008 - 11:14 am - Posted in Working

Today, more than ever before trading has become easy for everyone. Whether you are at your workplace or at home, trading systems are making it easier for everyone to trade on stocks or futures with the click of the mouse. But with so many futures and stock trading systems available, how do you decide on the best one for you? Here is our checklist that will, hopefully, help you make the right choice in future trading systems.

What are the markets the future trading system provided? The choice of futures markets really depends on the ones you are interested in. Generally, you must try to get a trading system that offers trade in all major commodities, as well as currency/forex, and stock index. These commodities include agriculture, energy, oil, gas, coal, and softer commodities like coffee, sugar, besides precious metals.

What reporting features does the software offer?

The reason most people opt for futures trading systems is because these softwares provide accurate reports and analysis. Before you select a futures trading system, you should check if you can access the basic information on futures with ease. The software should be simple, and convenient to use. However, complex reports, analysis on each company, charts, and highs and lows on a daily basis should be the other features of the software.

Be careful of the drawdowns

While many futures trading systems relay messages that customers can make huge profits by investing in certain commodities over a period of time, they conveniently forget to mention that the drawdowns can not be more than the starting capital you invested and most of the time this amount doesn’t last for longer than a year. So, we advice you to look closely on the dollar amount you sign up with and the drawdown as well as the length of time it will last you.

Look for a futures trading system that is easy to use

You don’t really want to add more stress to your life by choosing one of the complex futures trading systems. A trading system should be user friendly and easy to use for people of all ages. A complex trading system will not add value to your experience, irrespective of how good the company providing the system maybe. A completely intuitive system can enhance your experience as well as make it easier for you to invest and make money. So how do you choose the best futures trading system? Ask for a demo. Use the demo to experience the ease of using the system. If the experience is an unpleasant one or if you have to go through a long series of instructions before performing basic operations, don’t waste your time on that particular software; simply look for a different system.

Check the reviews of the systems

A good way to choose an ideal futures trading system for yourself is to read the reviews and testimonials. Not only can you find out how satisfied the users are, but you will also get to know if there are any bugs or issues in the system that may not have been mentioned to you. And while you are at it, check their customer support service feedback as well!

For further information, please visit

By admin | May 10, 2008 - 11:26 am - Posted in Articles

I  placed my property on the market recently so I have had first hand experience of just how difficult the property market is , at least if you are trying to sell. Fortunately we didn’t really have to sell . We were interested in one particular house which had become available. Unfortunately we didn’t get it and like many others have decided  we’ll spend  money on our own house and make it more like the one we were interested in.

“How to beat the credit crunch” similarly relies on first hand experience. It is written by Toby Hone, a professional property investor. Toby has been in the business for over 10 years and it seems he is the real deal. This is only to be expected from the Taxcafe stable as they have established an excellent  online brand attracting quality tax authors.

The title of the book is obviously topical and has been cleverly chosen for maximum exposure at this time. If marketing wasn’t a factor it could easily have been given any number of titles as in essence it is a how to book. All businesses to maximise profits need to find ways of increasing sales and reducing expenses. This book explores ways in which to achieve this, for instance the author details 18 practical ways to slash property expenses. However, it does do somewhat more than this. Every man and his dog seem to be saying that one of the major problems with the property market is lack of access to funds. The credit crunch is just that. The banks are much more reluctant to lend even to the very credit worthy it sometimes seems.The book deals with ways to overcome the mortgage drought and not only this but how to find the best deals where available.

One of the things that I truly like about this book is that it is not 100 per cent focused on the UK property market. Take it from me that as a UK professional tax adviser marketing online can be a massively frustrating experience. UK tax is specialist to the UK . It doesn’t apply to anyone other than the people on this tiny ( but wonderful nevertheless) island. This means that my presence on the web is relevant for a minute fraction of the worldwide web audience. Thank you therefore Tony for including an analysis of the outlook for the UK property market and a comparison with the US market.

It’s impossible to go through all the topics covered. I would have to rewrite the book. What I can say is this book is certainly not for everyone. It’s not the solution to the credit crunch, the world and everything.It is specifically aimed at property investors and landlords who are looking  at ways to survive and make money during the credit crunch. If you do not fall into any of these categories this book is not for you.

I know that my recent experience in the property market although  not disastrous was not a happy one. It may have been more pleasant if I had read this book at the time.

For a more in depth look at the contents of the book and to get a cool free tax saving report go to my blog

Paul is a UK qualified chartered accountant, and business consultant, working in tax consulting, and an internet marketer. Reprint Rights: You may reprint this article as long as you leave this resource box intact and leave all of the links active, do not edit the article in any way.

By admin | May 7, 2008 - 11:13 am - Posted in Working

Which moving average you use will depend on your trading and investing style and preferences. The simple moving average has a lag in comparison with its couzin, but the exponential moving average may be prone to quicker breaks. Some traders prefer to use exponential moving averages for shorter time periods to capture changes more quickly.

Some investors prefer simple moving averages over the duration of long time periods to identify long-term trend changes. In addition, much will depend on the individual security in question. A 50-day SMA might work great for identifying support levels in the NASDAQ, but a 100-day EMA may work better for the Dow Transports, for instance. Moving average type and length of time will depend greatly on the individual security and how it has reacted in the past.

The initial thought for some is that greater sensitivity and quicker signals are bound to be beneficial. This is not always true and brings up a great dilemma for the technical analyst: the trade off between sensitivity and reliability. The more sensitive an indicator is, the more signals that will be given.

These signals may prove timely, but with increased sensitivity comes an increase in false signals. The less sensitive an indicator is, the fewer signals that will be given. However, less sensitivity leads to fewer and more reliable signals. Sometimes these signals can be late as well.

For moving averages, the same dilemma applies. Shorter moving averages will be more sensitive and generate more signals. The EMA, which is generally more sensitive than the SMA, will also be likely to generate more signals. However, there will also be an increase in the number of false signals and whipsaws.

Longer moving averages will move slower and generate fewer signals. These signals will likely prove more reliable, but they also may come late. Each investor or trader should experiment with different moving average lengths and types to examine the trade-off between sensitivity and signal reliability.

How would you like to discover more about the techniques successful traders use to make profitable trades?

Download them free here:

Ian Jackson is an authority on Day Trading information, learning the hard way – and now he reveals how you can learn the business too, without all the growing pains.