Free Forex
Training
The best things in life are free. Pro
Financial FX is happy to provide free forex
training on our website. Please check back often as we share trading
ideas, forex trading systems, and forex market commentary to help you
become a better forex trader. Of course our ultimately goal is for you
to become a client of ours either as through our forex training products
and coaching or as a managed forex account participant. Until, enjoy
some free forex training information and sign up for our next
online
forex webinar.
Quick Links -
Trader's Corner |
Trades of the
Month |
Forex Trader Tips
Trader's Corner
May 2007 - The month of May is
traditional the most active month of the year in market volatility and
direction. As mentioned in our newsletter last month, with several
breaks of all time highs in April, May took the back seat in market
action. The key to Forex profits is not just volatility, but the
magnitude of that volatility – the bigger the wave the longer the ride.
We saw very small magnitude moves with little follow through during the
entire month which made for low profit trading.
Click to view the rest of the article
June 2007 - The month of May is
traditional the most active month of the year in market volatility and
direction. As mentioned in our newsletter last month, with several
breaks of all time highs in April, May took the back seat in market
action. The key to Forex profits is not just volatility, but the
magnitude of that volatility – the bigger the wave the longer the ride.
We saw very small magnitude moves with little follow through during the
entire month which made for low profit trading.
The Forex market is
known for its trending modes, yet 30 percent of the time the market does
not trend....
Click to view the rest of the article
July 2007 - The
month of July is always an unpredictable month. Sometimes you find July
as flat as a desert and other times as bumpy as the Rocky Mountains. I
seem to find time to go on vacation during the month of July. I only
traded the first 10 days of the month and enjoyed the rest of the month
off. If you had traded the On Target Trading System (OTTS) during the
month of July you could have made upwards of 800+ pips*. There was a
great deal of movement and we saw a new all-time high on the EUR/USD and
a 26-Year high on the GBP/USD. The market ran very quickly when it
moved, but still left a lot of margin of error for trend traders.
Click to view the rest of the article
August 2007 -
We were glad when the month of August finally
came to an end – boy was it a wild ride. August traditionally is usually
a bit rocky at the beginning of the month as so many traders in Europe
are getting back to work from their holiday. After the first two weeks,
August was looking like a grand slam month with 334 pips in week one and
143 pips in week two we were rolling on the On Target. The Premier
stepped it up as well with multiple daily trades that turned into
instant profits. Then the “Credit Crisis” hit and we saw markets bust
open. Every currency on the books was down as the long-term position
holders dropped their positions by the truck loads.
Click to view the rest of the article
September 2007 -
The Aftershock Hits the On Target - The aftershock of the “Credit
Crisis” in August hit us in the month of September on our On Target
Trading System. We saw a losing week the last week of August and that
trend continued all the way through the end of September. With some very
tight channels and quick trend switches we strived to keep things
together by applying our Money Management strategies and minimizing our
leverage on each trade.
Click to view the rest of the article
October 2007 -
October was the month of the Premier Trading System. The long-term trend
following system caught the wave of the market the last 2 ½ weeks of the
month to put up some impressive numbers of +18 to +36 percent*
depending on your leverage. Believe it or not, the initial drawdown of 6
to 12 percent during the very first week of the month was where we added
most of our additional position through dollar-cost-averaging. During
times of correction prices are cheaper and the old school trading
strategy of buy low and sell high was in play. Once the market corrected
back to the long-term trend we saw profits stack up. The runs on the
Euro against the US Dollar reaching an all-time high almost every week
and the fresh highs on the Canadian Dollar against the British Pound and
US Dollar were key participants in the high returns.
Click to view the rest of the article
Trade of the Month
June - The On Target Trading
System (OTTS) looks for 3-wave moves and captures profits on waves 2 and
3. The Trade of the Month was actually two trades on the EURUSD
capturing profits on both waves 2 and 3, predicting the full magnitude
of each wave move. We made 124 pips on wave 2 and 98 pips on wave 3 for
a total of 222 pips.
Click here to see 4-hour chart.
Click here to see 1-hour chart with Sell entries and price Targets.
July - We did see some great
symmetry in the markets last month. This is a great example of how
accurate the OTTS can be with its low-risk entry and pin-pointed
targets. We got in this trade at 2.0509 buying the GBP/USD. We went
negative on the trade a total of 3 pips before moving into profits. We
predicted the full magnitude of the move within 15 pips or so for a
total pip profit of 165 pips on the trade.
Click here to view the 60 min. chart.
Forex Trader Tips
What about Fundamental Analysis?
Most of the time we talk about Technical trading strategies and
systems. The On Target Trading System and other trading systems used and
taught by myself, Richard Ottley, use technical analysis exclusively in
making trading decisions. What about Fundamental Analysis? Does it have
the potential of creating consistent profits over time?
Click to view the rest of the article
Making Money with Support and
Resistance Levels - Part I
“Look both ways before you cross the street,” is a phrase that we
all heard as a child and now is a phrase that I say constantly to my own
children. Why do we say this? Because we want our children to look for
the potential dangers in front of them as well as those behind them. The
same principle can be said with the forex market, but instead of looking
for cars we are looking for support and resistance lines. Levels of
support and resistance are what gives the markets shape and form. It is
what keeps price from just drifting to the ends of the earth. Now to
understand why these levels create shape to the markets you need to
understand how they came about. We will cover the reasons why in this
months tip and we will cover the what’s and how to make money from
support and resistance levels in our next months tip.
Click to view the rest of the article
Making Money with Support and
Resistance Levels - Part II
Looking Both Ways Part 2 – Last week we talked about how support and
resistance lines are create. Now let’s explore a few ways to make money
with these levels.
The first is Profit
Targets. The majority of traders trade on emotion and close their trades
when, “They have made enough money.” The problem with most traders is
they have never made enough money. Just like Las Vegas, they stay in the
game too long and give back all their profits to the house. Using
support and resistance lines as levels to take your money off the table
is a consistently winning strategy. What I like to do is to look for a
close level of support/resistance for my Target 1 and then look at a
further away support/resistance for Target 2. Once I hit Target 1, I
take half of the lots off the table realizing profits, and then I allow
the other half to ride toward Target 2. To conserve capital and
eliminate the risk of loss, I will bring my stop loss up to breakeven or
even set-up a trailing stop. Remember when you are in Buy trade you are
looking for the next level of resistance to place your targets and if
you are in a Sell trade then you are looking for the next level of
support.
Click to view the rest of the article
Money Management
We have
talked about it before and we will say it again, “The most important
part of your trading strategy is Money Management.” The dead bodies that
the wild moves left behind last month was do to lack of wise Money
Management. I spoke to several people that have been trading for years
and they got slaughtered in the month of August, losing up to 80% of
their accounts. The problem with most traders is they think that Money
Management is just placing a stop loss. That is part of the story but
only the beginning. In the next couple of Trader’s Tip reports, we will
share with you the whole picture including:
-
Placing a correct stop loss
-
Lot Sizing according to risk
-
Playing the bench
-
Liquid Money Management™
Check back next
month as we talk about placing a fool proof stop loss. Happy Trading!
A Losing Month
After a month like this it is wise to step back and analyze your
trading. Understand that to participate in the forex market long term
you are going to have losing months. The goal is to not let the losing
month detour you from trading your system and plan into the future. The
Fear and Greed Factor will destroy your trading if you let it. Yes, you
lost, but if you used proper money management you should still be in the
game. I have traders all the time tell me that they are “sitting out for
awhile.” This I highly suggest against! Why? Well, does Tiger Woods sit
out a few golf Tournaments when he doesn’t finish in the top five in one
tournament? Absolutely not! He is back on the green working out the
kinks in his system of golf and so must you as a forex trader – get back
in the game and work out your kinks of trading. Now, don’t take out your
frustrations on the market, but rather resort to our learning
philosophy, “Learn, Simulate, Trade, Profit.” Go back, analyze your
strategy and trading rules, review them in your mind. Simulate a few
months of trading data, including the losing month to see if there was
anything that you could have done better – learn from it. Then get back
in the game to Trade and Profit. Endurance is more important than
returns. If you have a good trading system, like the On Target and
Premier Trading Systems, then you simply need to trade your plan and get
back in the game. If you do, you will look back and that losing month
will be dwarfed by consistent trading profits.* Happy Trading!
Diversification
Diversification is the key to any successful portfolio over the long
term. The investor’s greed is shown when he/she only wants to invest in
the highest yielding investment without analyzing why one is higher and
why one is lower. By diversifying in two great strategies, like the On
Target and Premier, that each have different goals and objectives, you
reduce the risk of loss during unpredictable markets. When the market is
good, all accounts are making money. The key to diversification is to
maintain capital growth even during bumpy markets. Don’t put all your
eggs in one basket. Diversify between currency pairs and also trading
strategies for long-term capital wealth. Happy Trading!
|
