Forex trading companies set eyes on the novices.

Are you looking a Forex trading company, yet you are also new to trading Forex and aren’t sure which trading company is best for you to sign up? Let’s talk about some unique Forex trading companies and the several advantages as well as disadvantages of each one. A first move to take is getting a little background knowledge on Forex in general.

What Exactly Is Forex?

The word Forex is actually a slang term for “foreign exchange” trading. What Forex traders do is to leverage the exchange rate differences of money that is used throughout the world to make a money through trading foreign currency. What Forex trading companies do is hire brokers who end up making trades for investors.

Forex For Beginners

If you are a fresh soul (lol) to the arena of Forex trading, search for several elements in a company that does trading that will assist you in developing Forex trading experience while not end up losing too much money in the process.

Training Account For Free

For those that are beginners in Forex, you should attempt to locate a Forex trading company that allows you to do trading of foreign currency without cost. This is accomplished in many places as a ‘game account’. They let you play with ‘virtual money’ for a trial period of training.

Sponsored by Automated Forex Trading

Some of Forex trading companies are hoping to aquire your Forex trading business, so they make available free virtual $10,000 account that you can experiment with in a simulated Forex trading scenerio. Ten thousand dollars in virtual money is typically enough money to get your feet wet (at least you learn how to operate the software), so to speak, in this type of trading prior to you taking the plunge with your own real actual money.

Forex Education For Free

It is a good idea to take advantage from the Forex training available for free that many companies offer. Some of trading companies make available seminars that are online to present to new investors ways in navigating the Forex trading system.

If you're a do-it-yourself type of person and prefer to teach yourself, you can try an online tutorial; you would be amazed at the amount of information you can learn when watching a short tutorial. If you would rather have an in person experience compared to the isolation of cyberspace, you can also attend a free in person seminar.

Course For a Fee

An additional alternative for learning the Forex trading environment is to spend a fee for these classes. The benefit of these types of classes is that you take away an individualized strategy for your Forex trading account.

Forex Discussion Board And Chat Forums

One of the techniques that many up and coming forex investors use is that of going through discussion boards and chat rooms. These boards have plenty of info in regards to ways to start in Forex trading and some recommendations on which Forex trading companies are available.

Recommendations

Based on some criteria such as free training accounts as well as free educational Forex offerings, you might want to do your research and due diligence into some of these; Signals-Forex, CMC Markets, Forex Systems, GFT Forex, FXSolutions, EToro, and Pro-Forex. You assume full responsibility in your choice of course.

New E-book, Old Topic :)

Hi all,

Just added a new e-book related to Andrew Median Line "Greg Fisher - Median Lines An Emipirical Study Grain Markets 1990 - 2005". It will be a good read, please try it.Thx lads.You can find the file on the e-book section or direct download from here

Wish you all the best.

New E-book

Hi All,

I added an E-book on the E-book section.It's all about Trendline and Pitchfork.It's a good book with a good perspective on it.So I hope it will help u a lot to upgrade your trading art.Should there any question, I will glad to assist u all.Thx

Infomercial stars charged with fraud

By MATTHEW BARAKAT

ALEXANDRIA, Va.

Two self-proclaimed experts at trading stocks who used infomercials and hotel seminars to tout their abilities have been indicted on federal fraud charges.

Linda Woolf, 48, of Sandy, Utah, and David Gengler, 34, of Draper, Utah, passed themselves off as successful investors and persuaded consumers to pay anywhere from $3,000 to $40,000 to learn the "Teach Me to Trade" stock picking system, according to an indictment in U.S. District Court in Alexandria.

Prosecutors say Woolf and Gengler lied or omitted pertinent information about their profits in the stock market and their annual gains and losses during presentations given at hotel seminars across the country. One of Teach Me to Trade's supposed stock trading experts was actually recruited by Woolf from a nail salon, according to the indictment.

Woolf and Gengler also were featured in Teach Me to Trade infomercials. In one, Gengler explains how he doubled a $10,000 investment in one week as the studio audience oohs and aahs.

"Luck has absolutely nothing to do with this," Gengler tells the audience. "This is simply a system. If you can follow the rules ... you can find your financial future."

According to the Securities and Exchange Commission, Woolf and Gengler are unsuccessful traders -- Woolf never declared a trading profit on her federal tax returns and Gengler typically declared losses or no profits. But Woolf pulled in $4 million in commissions for selling Teach Me to Trade products, while Gengler made about $2.25 million, according to the SEC, which filed separate civil fraud charges against the two.

Woolf's civil attorney, Mark Pugsley, said Woolf never recommended specific stocks to students at her seminars, and that the information she provided is unrelated to individual investment choices and therefore not a crime under federal securities laws.

"The SEC's complaint contains a novel theory of securities fraud, and we look forward to challenging it in the courts," Pugsley said. "Linda Woolf is an educator; she does not sell securities."

Gengler's attorney did not return a call seeking comment.

Woolf and Gengler worked as independent contractors, according to the indictment, and received sales commissions of 10 percent to 15 percent from Teach Me to Trade, which is a part of the Whitney Information Network, a publicly traded company based in Cape Coral, Fla.

Whitney itself is not charged, though the indictment says Woolf and Gengler relied on the company's "fraudulent marketing efforts" to entice the public to their seminars.

The charges against Woolf and Gengler, which include wire fraud and conspiracy to commit mail and wire fraud, carry maximum penalties of 30 years in prison.

A spokeswoman for Whitney declined to comment. In its 2007 annual report, Whitney said it was notified in late 2006 of investigations by the SEC and federal prosecutors.

At the seminars, Woolf and Gengler allegedly helped consumers talk their credit card companies into increasing their spending limits so they could purchase expensive Teach Me to Trade training materials.

The seminars also employed "success coaches" who would review an individual's financial portfolio to target wealthier individuals for more expensive sales, according to the indictment.

Whitney estimates about 28 percent of the people who attend its various free introductory workshops -- which also include topics on real estate investing and managing cash flow -- end up purchasing some type of training course.

At a Teach Me to Trade seminar Tuesday at a Hilton hotel in Alexandria, about two dozen people of all ages listened to a presentation urging them to spend $200 to attend a more intensive, three-day session. A welcome screen warned that "testimonial results are not typical. Each student's success depends upon the unique skills, time commitment and individual effort of each student."

Several people stayed for the presentation even after overhearing discussions about the indictment. A few walked out in the middle of the presentation. One man who declined to give his name said he saw an infomercial about the seminar a few days ago but was disappointed that the session focused more on selling classes and software than providing investment strategies.

"I thought they would talk about stocks, but they didn't," he said.

In 2006, the company had earnings of $1.8 million on revenue of $225 million.

------

On the Net:

SEC press release: http://www.sec.gov/news/press/2008/2008-39.htm

Pivot Points – Daily FX Support and Resistance Levels

April on the House -- Let's Ride Along

Dear Folks,

New Month, with some signal.:P Hope you ready to act accordingly when this signal confirmed. Last month was a hectic market situation.I cannot just enter and leave the trade and hope the trend will bring the price to hit my TP. It's just like scalping all the time to me on march.I hope this April bring us some good prosper.A friend of mine said this " Every trade is different. Every trend has a unique length.Trade what is offered. With no expectations." And it's true. :). Good luck mate.Cheers.

Understanding the Discount Rate vs. the Federal Funds Rate

Understanding the Discount Rate vs. the Federal Funds Rate



By S. Wade Hansen, 13 August 2007


The U.S. Federal Reserve (The Fed) has been injecting billions of dollars into the financial markets to maintain liquidity amid rising interest rates. But how could interest rates be rising? Doesn't the Fed set interest rates? The answer is "Yes," but the open market has its say too. Let me explain.



The Fed sets both the Discount Rate and a target, or objective, for the Federal Funds Rate. However, while the Fed can ensure the Discount Rate does not fluctuate throughout the day, it cannot ensure the Federal Funds Rate wilI not fluctuate. The Fed has to walk a fine line in the open market to keep the Federal Funds Rate in line with its target rate.



The Discount Rate is the interest rate at which banks in the Federal Reserve System can borrow money from the Fed at the discount window.



The Federal Funds Rate is the rate banks charge each other as they lend their balances at the Federal Reserve to one another.



The liquidity crunch that people have been talking about has been caused by a rising effective Federal Funds Rates, not by a rising Discount Rate. This means that banks are charging each other more than the target Federal Funds Rate of 5.25 percent to borrow on each bank's reserves, respectively. To combat this problem, the Fed has been injecting money into the markets.



The more cash that banks have available to them, the more likely they are to lend. Banks don't make money by sitting on cash. They make money by deploying that cash and charging interest. When the Fed injects huge amounts of cash into the banking system, banks begin lending that money. The natural result of this increased lending is a lower effective Federal Funds Rate because banks have to compete with each other when they are lending the money they have. If Bank A wants to lend more than Bank B, it has to lower its rates, which causes Bank B to lower its rates to keep up---and the cycle goes on until both banks reach the lowest rate at which they can still turn a profit.



A lower effective Federal Funds Rate means businesses can borrow money at a lower rate, merger and acquisition deals can find capital, and hedge funds can borrow money to leverage their accounts. The hope is that lower rates will help keep the economy growing, but only time will tell. We'll have to keep an eye on the Fed to see what else it has up its sleeve.

Credit given to PFXGlobal . Ok folks, economy class dismiss :)

Read Also :
- The Fed With Their Burning Ass
- Bear Stearns Sold, Fed Cuts Rates, Asian Stocks Sharply Lower

Bear Stearns Sold, Fed Cuts Rates, Asian Stocks Sharply Lower

This is the breaking news.One of the biggest and the most storied Investment bank finally collapse.

U.S. banking giant JP Morgan Chase agreed Sunday night to buy rival Bear Stearns, and the U.S. Central Bank cut lending rates to banks - both actions aimed at averting a credit crisis that is threatening to plunge the U.S. economy into recession. Asian markets are sharply lower in early trading on the developments.

The deal made Sunday night values Bear Stearns at about $250 million, far less than the $4 billion market value at the end of this week and signalling a stunning collapse for one of the world's largest and most respected investment banks.

The U. S. Central Bank - the Federal Reserve - is expected to help fund some of the transaction.

The Bear Stearns deal occurred at about the same time Sunday evening that the Fed announced it would cut its lending rate to financial institutions a quarter point to 3.25 percent.

The Fed also said it would create a new lending facility, to take effect Monday, that will allow big investment banks access to short-term loans.

Federal Reserve Chairman Ben Bernanke said the central bank's actions will assure financial institutions that they will have access to funds.

Source:VOA

Dollar Falls to Lowest Since '95 Versus Yen

Dollar Falls to Lowest Since '95 Versus Yen; Bush Cites Decline

By Stanley White and Ye Xie

March 13 (Bloomberg) -- The dollar fell to the lowest since 1995 against the yen after U.S. President George W. Bush said the dollar is ``adjusting.''

The U.S. currency also slid to a record low against the euro as Bush said its decline was not ``good tidings'' for proponents of a strong dollar. It traded near an all-time low versus the Swiss franc before a government report today that may show U.S. consumer spending slowed as record high oil prices sap purchasing power.

``Bush's comments were about as lukewarm as you can get,'' said Brian Dolan, research director at Forex.com, a unit of currency trading firm Gain Capital in Bedminster, New Jersey. ``Some may have interpreted his `adjusting' comment as tacit acceptance that we're in a broad-based dollar devaluation.''

The dollar traded at $1.5535 per euro at 8:27 a.m. in Tokyo from $1.5551 in late New York yesterday. It touched $1.5573 per euro, the weakest level since the European currency's 1999 debut. The U.S. currency traded at 101.49 yen after reaching 101.10, the lowest since December 1995.

The dollar bought 1.0158 Swiss francs, just above a record low of 1.0128 reached yesterday. The British pound was little changed at $2.0267.

Bush also reiterated his commitment to a strong dollar, in an interview with the U.S. Public Broadcasting Service to be aired later today. ``We have a dollar that's adjusting, and I am for a strong dollar.''

`Real Trouble'

``The dollar looks in real trouble and there is no obvious resistance level against the euro,'' said Greg Gibbs, a currency strategist at ABN Amro Holding NV in Sydney. ``I don't think you can pick a level for where it will stop.''

The dollar also fell as firms from Citigroup Inc. to Goldman Sachs Group Inc. said yesterday the Federal Reserve's plan to inject $200 billion into the banking system may fail to break the freeze in money-market lending.

The dollar has fallen 3.6 percent against the euro since Feb. 26, when Fed Vice Chairman Donald Kohn said credit-market turmoil and slower growth pose a ``greater threat'' than inflation, driving the euro above $1.50 for the first time.

The collapse of the U.S. subprime mortgage market has caused losses and writedowns of $190 billion at the world's biggest financial institutions, according to data compiled by Bloomberg. Concerted action announced Dec. 12 temporarily eased the shortage of cash in money markets.

U.S. Rates

Traders bet the Fed will cut its rate as much as 0.75 percentage point on March 18 to avert a recession. The likelihood of a reduction to 2.25 percent was 76 percent, according to futures on the Chicago Board of Trade. The balance of bets is on a cut to 2.5 percent.

The Fed's measures are ``not a panacea, more like an aspirin for the dollar,'' analysts led by Daniel Tenengauzer, New York-based head of global currency strategy at Merrill Lynch & Co., wrote in a research note. ``There is a reasonable risk that this Fed move reflects the depth of their concern with U.S. asset markets, not a Fed formula to resolve U.S. asset-market difficulties.''

The dollar may decline to $1.57 per euro this month, according to a Merrill Lynch forecast released March 6.

U.S. retail sales rose 0.2 percent in February after a 0.3 percent rise in the previous month, according to a Bloomberg survey. The Commerce Department will release the data later today in Washington. Crude oil in New York touched $110.20 a barrel, the highest intraday price since the futures began trading in 1983.

The Dollar Index traded on ICE Futures in New York, which compares the currency to those of six trading partners, declined to a record low of 72.20 yesterday and was last at 72.30.

To contact the reporters on this story: Stanley White in Tokyo at swhite28@bloomberg.netYe Xie in New York at Yxie6@bloomberg.net

As reported on Bloomberg website

Chart of the day--it start with a pinbar

Hi folks,

Here is my trade today..a nice profit day..what make this chart so special ? I can tell you that this trade is an opening gate to another level ( I hope ).It's been sometimes I want to do this type of trading.I call this type "building the wealth".Usually I enter the trade then wait until the tp or sl got hit-- yeah sometimes i get out manually depend on the price action signal.And yes after I will try to spot another opp on the other pair and will act on some good setup.So basically enter a trade then wait till it get done by the price or seek another pair.But this trade/chart that I called "building the wealth" is another story..it's a averaging trade, theoretically is adding to a win position.What make it so special? It against all your ego to take out the profit even from the very first open the trade.As the trade mature and the profit float, usually you'll find a million reason to take it out and secure the profit, just for you to see after you take it out the price continue to your favor and you miss the opp :) hell yeah it happen all the time.I manage to open a trade on this pair GBP-CHF with 1 lot and after a nice 85 profit, the market come back to my original position at first and even go against me for another 55ish pips ( my oh my..:) at this moment trader usually say 'shit i should take the first 85 profit..now I have to suffer -55 instead of those profit--lol...I do the same actually but this time I put everything on my desire to take my trading level to another level, My original Sl is on the pin highest and the price only hit 68% of the pin (for those who don't understand what the heck I'm talking about the pin and their setup, do your self a favor and make a quick search on FF jim16 free thread).As the price goes down I added the second lot a moment after the candle open (the big bear candle or 2 candle before the last candle on the Chart Pic), and you know what?? the price even go against me !!..but as I said..PA really help my emotional pain.I see the pinbar, hammer then a spinning on the chart, it's a sign of reversal..or at least retracement...and then the price move to my favor for more than 100 pips ( so now i have 200 pips since 2 lot ), "but again--damn, not again"..the price rebounce and and shake me :).not really shake tho..been facing the same old problem since the very beginning of my trading career.Then the price move down again and this time I add 2 lot with my stoploss on my 2 previous order move to BEP of the first order, and my third order stoploss just few pips above my other stoploss.Then I move my TP to lowest range of the day (well actually few pips above it since you have to understand about bid and ask mechanism in trading).Finally my third trade place on , and the lots getting bigger ( so now 4 lots total), but my risk also reduce significantly , no need for another nerve shaking, the price hit my all tp on 2.0588..total 341 pips :).Nah..im tired already...Im going to sleep but a friend of mine scrap me on orkut..heheheh.Im happy tho.Next target to do a "building the wealth" trading...and do it on longer timeframe.Wish you all the best.Laimas

The Truth Always Held True Even if We Dont Know It

Hi folks,

Below is a post from a fellow trader at the forum.I find it will be very important to every body to read it over and over again, since there is a huge truth behind it and maybe you just dont want to admit it when you facing it on your daily trade.I hope this post will clear up one two thing for you ( and me ).The credit goes to the_wizard of forex factory forum.Ok enjoy then.

-------------------------------------------------------------------------------------------------

Hi everyone,

I would like to comment on becoming a winning trader by cutting losses and letting profits ride because I strongly believe that it is one of the hardest things for a trader to actually do but one of the most vital in becoming successful.

I think it is particulary relevant to people in this thread that are just starting out because James tells us to trade only off daily and weekly bars while we are learning and he also says that once we master that we will most likely neither want or need to use lower time frames.

The problem with this however is that the really good setups do not come along that regularly and when they do, they often require a large stop. As a result, to be consistently profitable over time it is vital that trades are allowed to develop but that losses are cut short.

I originally wrote this in response to a post on FF in which a trader, who wanted to make a living off of just daily bars, said that he had had approximately thirty wins and only ten losses but had wiped out his whole account. It turns out that just three of these trades swallowed all his money because he kept thinking they would turn around.

This trader went on to say that when he had had winners, his reaction was always the same - he would see his position positive and immediately close and take the profit – only to usually end up seeing the market continue in the way he had originally thought it would.

Since letting trades run is a topic Seeking has already covered, I thought it might help people if I posted it here too. I've tried to add some new things, including charts to illustrate my points.

My answer to the trader is as follows:

If you are in a situation where the position you have taken is significantly in profit, take a minute to sit quietly and think rationally. You need to focus on the fundamental thing that your position is now telling you.

You have called the market and you are RIGHT.

We know by its very nature that the market goes up and down so when we are losing we hope at some point it will come back and if we are winning we worry that it may turn and that we may give some, or worse, ALL of our profits back.

I quote from memory of another’s work (I forget the source) when I say that we are "taught" from an early age that:

a) If we lose something it will eventually come back (e.g. If you lose your car keys, not to worry, they WILL eventually turn up)

b) If you see something, take it or you might lose the chance (e.g. If you see money lying in the street, pick it up quickly because it may not be there for long)

This translates into our trading. If our position goes against us, we tell ourselves not to worry because nothing goes one way for ever and it must surely come back. If we are winning, we want to get out quickly because if we come back later, all our profit may all be gone.

The reason it is so hard to overcome this is because it has been "programmed" into us. To be a good trader, requires going against what we have had ingrained from an early age. To put it simply, it requires going against human nature - what our heads and our hearts tell us.

It's been repeated so often it’s boring. And yet all traders that don't make it into the elite 5% suffer a manifestation of the same problem. They are either not cutting losses early or not letting their profits run.

Have you ever wondered why the market always reverses after you get out? Late last year I went long the GBP at around 1.90 targeting a move to $2.

At the time the pound had made an attempt on 1.91 several times and then come off - it was like a barrier and I felt certain that once it was broken it would go straight up to $2. This time I was convinced it would give way under the pressure of constant testing.

However, once I was long, the market began to fall. And I held and I held. Every day that it fell, I moved my stop further back, convinced that it would soon turn.

When it got down to around 1.85, I closed out. Not because I thought it would go any lower but simply because I could no longer take the pain of losing. And what happened? The market turned at almost exactly that point and only a few weeks later it was trading at 1.98 - a full 800 pips up on my original entry. (see GBP/USD chart)

Now whether I am right or wrong I will tell you how I see this in my head. I see it as the market having to turn because all the amateurs like me have held their position for so long, past so many logical places to get out that finally the pain is FORCING them to bail out. And once the weak having been shaken from the tree, the market is ready to move up again. As I said, this may be wrong, but this is how I like to view it.

So how do you overcome this?

Pick a point before you place a trade that, if the market hits, proves you are WRONG in your analysis. If you see, for example, a double top, and want to go short, place your stop a little way above the double top.

I have done this before, shorted at what I consider a top, only to see the market move up through it. Rather than close, I would then move my stop further and further away with the reasoning, this climb cannot go on, its got to fall...it's just a market fake out...it will come down.

But here is the point: Who cares if it comes down an hour later? Or the next day? Your reasoning is that the double top is the turning point. If the market trades through it, you are WRONG. This is NOT the top.

What if it was only a fake out and the market then plummets? You likely end up frustrated. What if it wasn't and you keep moving your stop back? Well that's a quick way to the poorhouse. And I know which of these outcomes I think is worse.

Remember, the market has a way of frustrating every trader but the greatest traders are flexible. If you are wrong in the short term, close your position and wait on the sidelines where you can see clearly and wait for the market to move in the direction you thought it would.

Timing is everything when you are trying to make a living do this. If your timing is wrong, then get out. Sometimes the market may give you another chance but you can bet the time you need it to most, is the time you will get dragged out.

This may make you laugh but it took me, personally, just over two years to realise this simple truth: You have no control over the market. You cannot influence where it goes. The market doesn't know who you are; it doesn't care who you are, what you have or what you could lose. It goes where it goes and you either ride it or you get carried out.

So, that's how you should cut losses. How about letting profits run?

For me, a key thing to remember is NOT to look for reasons to exit a trade once it is going well.

I did this a few months back with the GBP/JPY. The trend overall was firmly up but it had suffered a rather sharp pullback over a few days. Then it had bounced at an EMA that I use and began making its way back up. So I got in based on this DAILY bar and near the end of the day it was up just over 100 points. Now I became enamoured with this 100 point gain. I had a considerable amount of money on the table and as such I started seeing reasons to exit.

Suffice to say, I found what I thought was a good one - the stochastic was overbought on the HOURLY - it was running along steadily just above the overbought line. So, out I came. Then, in the Asian session, the price steadied and while it did this the stochastic came slowly down to oversold and then began to turn up, even though the price has suffered almost no pull back.

The next morning the market was up strong again and just a few days later it was up 1,000 ticks on my original entry. (see GBP/JPY chart)

For me, the emotional pain I felt at being in it, then exiting and missing the massive move, was the same as, if not worse to just having LOST in the first place.

I spent five months trading from home and gradually lost all my money. Looking back, that one trade could have been the difference between me being still at home trading for a living and where I am now - which is back in the daily 9-5 in an office doing a job I hate.

So, of utmost importance - remember why you entered the trade in the first place. With price action you can do this by STICKING TO YOUR TIMEFRAME. If you took a pin on the daily, do not get shaken out by a pin in the opposite direction on the hourly.

Sometimes you learn something when you least expect it. I actually had an epiphany of sorts when my girlfriend who knows absolutely nothing about the markets at all said to me: "Everyone has different reasons for doing things - they all play the game a different way."

This is the reason why the market goes up and down. Everyone is buying and selling based on different thought processes. Different strategies. Different methodologies.

But your reason is based on YOUR methodology so forget the other players. Let the market guide you.

In my opinion, a 20 tick pullback in a 100 tick move up is not a sign that the move is reversing. It is natural and it is inevitable. Consider the other market participants. In the short term they may want to scalp a small move or they may be hedging and therefore taking a position for another reason UNRELATED to profiting. These buyers and sellers will cause temporary fluctuations in price but actually exiting a good trade should be done when YOUR reason for entering is WRONG not just because it is suffering a temporary setback.

Let's look at price action since that is what James teaches.

If I enter on the break of a daily pin bar, (with a stop loss of say 100) I EXIT either when:

a) The daily bar gives me a sign the move is over and that signal is then CONFIRMED e.g. Signal may be another pin that appears, confirmation would be the break of it

b) My original stop is hit.

If I get in a trade and the market is up 300 ticks on the first day, I still have my stop loss where I could lose 100 if I get hit when the new session starts.

Each day I will trail my stop depending on the price action of the previous session. If you are long and in profit and then a bullish outside bar develops, then place your stop just underneath that bar because a reversal back underneath it means the trend is not as strong at the moment as you had thought.

But always try and remember – simply being UP is not a consideration for getting OUT.

Some people take these signals and close on the FIRST DAY because they have made a killing. Just think for a second - You are trading off a daily bar. You've had just ONE go in your favour. Try this. Look at a massive trend that you would like to have caught. (I've attached one for you - see the Dow chart) Look at a possible entry such as the double bottom, or any of the many swing lows. Then count how many daily bars made up the rest of the move, from bottom to top. Now consider exiting on the first one that shows a profit.

Of course some people don't like to play this way. They like to take profits or they like to scale out as it moves their way. This is all well and good if there is a valid reason other than "this has gone really far." If you trade with the trend (and in forex the markets are renound for trending better than in other markets) you can capture a very large move simply by not being so quick to exit.

I would add finally, that it is always an eye opener when you read about how other traders have managed positions. If you research some of the best and highest earning traders in the world and follow what they did on the charts you will find as I did that if you took the same position, the moment you would look to exit is usually the moment that they are looking to ADD to their position.

Look at the traders that made a killing in the incredible fall that happened in Natural Gas futures. Go and look at a chart of that market. (see Natural Gas chart) On a daily you wonder how anyone that saw it didn't get rich. It's straight down. But then imagine being actually in it and seeing a sharp two day spike up from all the bargain hunters. Most, if not all of the people reading this, would, if honest with themselves, be long gone, patting themselves on the back for their profit even as the market turns and falls through the floor.

So to sum up: Have the strength of your convictions.

There are some traders that aim to take 10 pips a day and that is fine. If that is your style and you are consistently profitable then by all means do that. But if you want to trade off daily charts and make a living and if you consider that a stop on a daily chart may be 100 ticks or more, don't be rushing for the exit when you make 50.

This is not to say that any trader should hold blindly. But try and be logical. Look at price action and let it tell you where the market is going over the time frame. And remember the other participants in the market.

There is always a tug of war in the market but someone is going to win...and if you are patient, that someone may be you.

CONTINUATION PATTERNS

CONTINUATION PATTERNS

Rectangles

Rectangle-bullish in an up trend

When market is flat, draw a line through the highs and a line through the low. Buy when the market closes above the straddle. Sometimes, there will be a bull trap and the market will break back into the rectangle and below the support line.




Rectangles- bearish in a downtrend

Sell when price breaks below support and closes below support.




Ascending Triangles
Ascending Triangles in an uptrend-bullish

A formation in which the slope of price high and the slope of price lows are converging to a point. The resistance line is parallel to the bottom edge of the chart while the support line is upward sloping. Place a buy order on a break up and out of triangles. However, if the pattern fails, sell when the market breaks out below the triangle.




Descending Triangles in a downtrend--bearish

The defining characteristic of descending triangles is the pattern of declining highs and a series of equal lows. This combination of points can be connected to form right angle triangle. The hypotenuse should be sloping from higher to lower and left to right. An illusory double bottom invites one last batch of weak hands to buy and just before a sharp break signals major selling. Sell when price breaks out and down. Descending triangles are amongst the most reliable off all technical pattern because both supply and demand are easily defined.




Symmetrical Triangles

Symmetrical Triangles in an up trend -bullish

A symmetrical triangles is a formation in which the slope of price highs and lows are converging to a point. Support and resistance are sloping. Symmetrical triangles are formed by rallies and sell-offs, each smaller than the last. As time moves on an even is imminent. The move will be explosive. Place a buy order on a brake up and out of triangles but the price could go in the opposite direction.



Symmetrical Triangles in adown trend -bearish

Place a sell order on a breakot below the triangle.





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