Monday, July 20, 2015
Forex Tutorial and Free Signals for Beginers: How to find and trade in Profit Zones - Forex
Forex Tutorial and Free Signals for Beginers: How to find and trade in Profit Zones - Forex: 1. Identify the main trend direction 2. Do a top down approach 3. Combine 2 time frames and find one powerful support or resistance area. 4...
Saturday, July 18, 2015
How to find and trade in Profit Zones - Forex
1. Identify the main trend direction
2. Do a top down approach
3. Combine 2 time frames and find one powerful support or resistance area.
4. Draw clean vertical and/or horizontal trend lines.
5. Look for clear setups,entries$ target.
6. Calculate your risk by applying correct money management.
7. Place your trade or trade Oder and the a.p.o.( STOP ) at the right spot.
8. Never expose your trading account to more than 0.5 % until you grow it account by 8-10%.
9. If you make 10% profits from the markets you can expose your account up 1,5%
10. Create and flow your trading plan after practicing until you make consistent profits.
Than do it over and over!
2. Do a top down approach
3. Combine 2 time frames and find one powerful support or resistance area.
4. Draw clean vertical and/or horizontal trend lines.
5. Look for clear setups,entries$ target.
6. Calculate your risk by applying correct money management.
7. Place your trade or trade Oder and the a.p.o.( STOP ) at the right spot.
8. Never expose your trading account to more than 0.5 % until you grow it account by 8-10%.
9. If you make 10% profits from the markets you can expose your account up 1,5%
10. Create and flow your trading plan after practicing until you make consistent profits.
Than do it over and over!
Friday, June 26, 2015
Sentiment-Based-Market
The Argument
for a
Sentiment-Based
Approach
for a
Sentiment-Based
Approach
A
t its core, sentiment is a general thought, feeling, or sense. In free
markets, sentiment refers to the feelings and emotions of market
participants. All of the participants’ feelings toward a specific mar-
ket result in a dominant psychology that is either optimistic or pessimistic.
Every change in price results from a change in the balance between opti-
mism and pessimism. Price itself is a result of where collective psychology
lies in the never-ending oscillation between optimism and pessimism. As
oscillation suggests, the psychological state of a market experiences peaks
(optimistic extreme) and troughs (pessimistic extreme). These sentiment
extremes are what affect market tops and bottoms.
In the 1932 edition of Charles Mackay’s classic
Extraordinary Popu-
lar Delusions and the Madness of Crowds
, Bernard Baruch wrote in the
foreword that “all economic movements, by their very nature, are moti-
vated by crowd psychology.” Baruch went on to write in the same fore-
word that “without due recognition of crowd-thinking (which often seems
crowd-madness) our theories of economics leave much to be desired.”
1
It seems that so many, if not most, of the members of the financial com-
munity seem to forget these basic truths. Analysts, traders, and financial
media members attribute reasons to price movements with an uncanny
ease.
For example, “The government reported a larger than expected in-
crease in the number of jobs created, which supported the U.S. dollar.” For-
get that the same report one month earlier indicated that fewer jobs were
created than expected
...
and the dollar rallied anyway. On that day, the
t its core, sentiment is a general thought, feeling, or sense. In free
markets, sentiment refers to the feelings and emotions of market
participants. All of the participants’ feelings toward a specific mar-
ket result in a dominant psychology that is either optimistic or pessimistic.
Every change in price results from a change in the balance between opti-
mism and pessimism. Price itself is a result of where collective psychology
lies in the never-ending oscillation between optimism and pessimism. As
oscillation suggests, the psychological state of a market experiences peaks
(optimistic extreme) and troughs (pessimistic extreme). These sentiment
extremes are what affect market tops and bottoms.
In the 1932 edition of Charles Mackay’s classic
Extraordinary Popu-
lar Delusions and the Madness of Crowds
, Bernard Baruch wrote in the
foreword that “all economic movements, by their very nature, are moti-
vated by crowd psychology.” Baruch went on to write in the same fore-
word that “without due recognition of crowd-thinking (which often seems
crowd-madness) our theories of economics leave much to be desired.”
1
It seems that so many, if not most, of the members of the financial com-
munity seem to forget these basic truths. Analysts, traders, and financial
media members attribute reasons to price movements with an uncanny
ease.
For example, “The government reported a larger than expected in-
crease in the number of jobs created, which supported the U.S. dollar.” For-
get that the same report one month earlier indicated that fewer jobs were
created than expected
...
and the dollar rallied anyway. On that day, the
headline probably read something like this: Dollar Rallies Despite Down-
beat Jobs Report. These examples are hypothetical, but if you follow the
currency market, you have undoubtedly witnessed similar inconsistencies
in financial reporting. How can the movement of a currency be attributed
to an outside event such as the release of an economic indicator one
month when the same currency and same economic indicator show ab-
solutely no relationship in other months? If a relationship exists only some
of the time, then by definition there is no consistent relationship. Yet, the
majority of market participants base trading decisions on economic indi-
cators anyway. Why? Even though the approach is suspect, it is conven-
tional and popular and humans like to be with the crowd, even if they
are wrong. It is much easier to be wrong in a crowd than be wrong by
yourself.
Baruch also wrote in the foreword of
Extraordinary Popular Delu-
sions and the Madness of Crowds
that:
Entomologists may be able to answer the question about the midges
and to say what force creates such unitary movement by thousands
of individuals, but I have never seen the answer. The migration of
some types of birds; the incredible mass performance of the whole
species of ocean eels; the prehistoric tribal human eruptions from
Central Asia; the Crusades; the mediaeval dance crazes; or, getting
closer to economics, the Mississippi and South Sea Bubbles; the Tulip
Craze; and (are we too close to add?) the Florida boom and the
1929 market-madness in America and its sequences in 1930 and
1931—all these are phenomena of mass action under impulsions and
controls which no science has explored. They have power unexpect-
edly to affect any static condition or so-called normal trend. For that
reason, they have place in the considerations of thoughtful students
of world economic conditions.
2
The last example that Baruch cited, the 1929 stock market crash, may
be on the verge of repeating as I write this book in late 2007. The herding
instinct is a fact of human nature and manifests itself in all our speculative
activities; whether real estate, stock markets, or currency valuations. Mar-
kets move in trends but reverse at extreme levels of bullishness (tops) and
bearishness (bottoms) as English economist Arthur C. Pigou explained:
“An error of optimism tends to create a certain measure of psychological
interdependence until it leads to a crisis. Then the error of optimism dies
and gives birth to an error of pessimism.”
3
This is the rule in all financial markets, where man’s impulse to herd
creates extreme and unsustainable levels that ultimately lead to a reversal.
Markets always overshoot and do not seek equilibrium as the Efficient Mar-
ket Hypothesis (EMH) would have you believe.
beat Jobs Report. These examples are hypothetical, but if you follow the
currency market, you have undoubtedly witnessed similar inconsistencies
in financial reporting. How can the movement of a currency be attributed
to an outside event such as the release of an economic indicator one
month when the same currency and same economic indicator show ab-
solutely no relationship in other months? If a relationship exists only some
of the time, then by definition there is no consistent relationship. Yet, the
majority of market participants base trading decisions on economic indi-
cators anyway. Why? Even though the approach is suspect, it is conven-
tional and popular and humans like to be with the crowd, even if they
are wrong. It is much easier to be wrong in a crowd than be wrong by
yourself.
Baruch also wrote in the foreword of
Extraordinary Popular Delu-
sions and the Madness of Crowds
that:
Entomologists may be able to answer the question about the midges
and to say what force creates such unitary movement by thousands
of individuals, but I have never seen the answer. The migration of
some types of birds; the incredible mass performance of the whole
species of ocean eels; the prehistoric tribal human eruptions from
Central Asia; the Crusades; the mediaeval dance crazes; or, getting
closer to economics, the Mississippi and South Sea Bubbles; the Tulip
Craze; and (are we too close to add?) the Florida boom and the
1929 market-madness in America and its sequences in 1930 and
1931—all these are phenomena of mass action under impulsions and
controls which no science has explored. They have power unexpect-
edly to affect any static condition or so-called normal trend. For that
reason, they have place in the considerations of thoughtful students
of world economic conditions.
2
The last example that Baruch cited, the 1929 stock market crash, may
be on the verge of repeating as I write this book in late 2007. The herding
instinct is a fact of human nature and manifests itself in all our speculative
activities; whether real estate, stock markets, or currency valuations. Mar-
kets move in trends but reverse at extreme levels of bullishness (tops) and
bearishness (bottoms) as English economist Arthur C. Pigou explained:
“An error of optimism tends to create a certain measure of psychological
interdependence until it leads to a crisis. Then the error of optimism dies
and gives birth to an error of pessimism.”
3
This is the rule in all financial markets, where man’s impulse to herd
creates extreme and unsustainable levels that ultimately lead to a reversal.
Markets always overshoot and do not seek equilibrium as the Efficient Mar-
ket Hypothesis (EMH) would have you believe.
A popular (if not the most popular) model used to trade foreign ex-
change (FX) among retail traders is based on economic indicators. Under
this approach, a trader will buy a country’s currency if the news of that
country is considered good. If the news of a country’s currency is consid-
ered bad, then the trader sells that country’s currency. This model assumes
that EMH governs markets because it assumes that market participants
will make objective trading decisions based on rational thought (buy if the
news is good and sell if the news is bad). However, market participants do
not make objective trading decisions based on rational thought; they make
subjective trading decisions based on emotions. If you have ever traded
FX, then you know this because you have witnessed a currency rally that
followed a worse than expected jobs report or an increase in that coun-
try’s trade deficit. Still, the news was explained in order to rationalize the
market movement. If explaining the news in order to rationalize the market
movement proves too difficult, then the market move is often attributed to
a “technical” correction or something similar.
This is not to say that news and economic releases are unimportant.
It is imperative that you know
when
the releases occur because volatil-
ity spikes during these times as a great number of traders are involved in
the market. Sometimes the correct move is to fade the initial reaction. For
example, you are a sentiment-based trader and your analysis indicates that
sentiment is turning from a euro bullish extreme. After a supposedly bullish
euro new release, the EURUSD spikes 50 pips, right into a resistance area.
Your bigger picture analysis suggests that the best move is to sell this rally.
Sure enough, the EURUSD retraces all of its post news release gains within
a few hours.
How do we know for certain that herding occurs in financial markets
and particularly in FX? This book is dedicated to proving that it does oc-
cur in FX and to showing how you can take advantage of it. If markets
were truly governed by the EMH model, which is the foundation for more
conventional approaches to trading FX (such as the economic indicator
model), then why do most news headlines and stories about a currency ap-
pear when that currency is at an important top or bottom? Why are those
headlines increasingly optimistic as price rises and increasingly pessimistic
as price declines? Why do more speculators buy as price increases and sell
as price decreases? This last reality runs contrary to traditional economic
supply and demand models that demand decreases as price increases. The
only explanation for such behavior is that speculators are not thinking ra-
tionally when they make trading decisions. If they did, then a greater num-
ber of traders would buy low and sell high. What really happens though is
that most buy high and sell low. The result is that most traders (probably
90 to 95 percent in FX) lose money and only a select few make a lot of
money. If you understand this concept, then you can exploit it and be one
of the few that does make money
change (FX) among retail traders is based on economic indicators. Under
this approach, a trader will buy a country’s currency if the news of that
country is considered good. If the news of a country’s currency is consid-
ered bad, then the trader sells that country’s currency. This model assumes
that EMH governs markets because it assumes that market participants
will make objective trading decisions based on rational thought (buy if the
news is good and sell if the news is bad). However, market participants do
not make objective trading decisions based on rational thought; they make
subjective trading decisions based on emotions. If you have ever traded
FX, then you know this because you have witnessed a currency rally that
followed a worse than expected jobs report or an increase in that coun-
try’s trade deficit. Still, the news was explained in order to rationalize the
market movement. If explaining the news in order to rationalize the market
movement proves too difficult, then the market move is often attributed to
a “technical” correction or something similar.
This is not to say that news and economic releases are unimportant.
It is imperative that you know
when
the releases occur because volatil-
ity spikes during these times as a great number of traders are involved in
the market. Sometimes the correct move is to fade the initial reaction. For
example, you are a sentiment-based trader and your analysis indicates that
sentiment is turning from a euro bullish extreme. After a supposedly bullish
euro new release, the EURUSD spikes 50 pips, right into a resistance area.
Your bigger picture analysis suggests that the best move is to sell this rally.
Sure enough, the EURUSD retraces all of its post news release gains within
a few hours.
How do we know for certain that herding occurs in financial markets
and particularly in FX? This book is dedicated to proving that it does oc-
cur in FX and to showing how you can take advantage of it. If markets
were truly governed by the EMH model, which is the foundation for more
conventional approaches to trading FX (such as the economic indicator
model), then why do most news headlines and stories about a currency ap-
pear when that currency is at an important top or bottom? Why are those
headlines increasingly optimistic as price rises and increasingly pessimistic
as price declines? Why do more speculators buy as price increases and sell
as price decreases? This last reality runs contrary to traditional economic
supply and demand models that demand decreases as price increases. The
only explanation for such behavior is that speculators are not thinking ra-
tionally when they make trading decisions. If they did, then a greater num-
ber of traders would buy low and sell high. What really happens though is
that most buy high and sell low. The result is that most traders (probably
90 to 95 percent in FX) lose money and only a select few make a lot of
money. If you understand this concept, then you can exploit it and be one
of the few that does make money
Saturday, June 6, 2015
Pin-Ber Trade
How to trade Pin-Ber.its really not easy.So please Tray to long time frame find a pure Pin-Ber and then make a trade for profit your trade.
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