FOREX Trading Profits – 4 Tools to Help You Catch the Biggest Trends
Here we are going to look at the art of contrary trading, which if you can trade contrary to the majority at important market turning points, which can give you massive profits but also low risk.
These FOREX trading profits only come a few times a year, but if you simply concentrated on them and caught them, you could enjoy triple digit profits.
Let’s look at how to catch them.
A good place to start is:
Exaggerated moves with a general consensus that the move will go on for ever in the media and from so called experts and gurus.
When you have a move like this start watching your charts.
It’s a fact that strong bull and bear moves collapse when the news is at its most bullish and bearish respectively – human nature has pushed prices too far from fair value and a change is likely.
These moves are easy to spot, if you use the following tools:
Relative strength index
A great contrary indicator.
Look for RSI To be over bought or oversold and watch for a turn up in a bear market and down in a bull market.
% Bullish
Another great contrary indicator when % bullish is above 80% in FOREX markets prices are overbought and when their below 20% their oversold.
Keep an eye on this indicator with the RSI, to spot potential trade set ups.
Looking for entry levels
When you start to see a these indicators indicating a top or bottom; its time to look for an entry in the opposite direction – i.e. a contrary trade.
Do this by watching for support or resistance to form and hold.
Timing your entry
Use the stochastic momentum to indicate price momentum going the other way to the prevailing trend.
Ideally, you want a cross of stochastic momentum to downside (bearish divergence) in a strong bull market, or the opposite set up in a bear market.
The majority will not agree with you!
Not many people will agree with your point of view, but that should not worry you – keep in mind the vast majority are wrong at important market turning points, so its good they don’t!
Great contrary trades don’t come up everyday.
You will probably only see a few of these trades a year, where all the elements come together, but when they do, you will trade with very low risk and huge profit potential.
These are the trades that make the big profits.
If you use the above indicators and don’t mind everyone telling you you’re wrong you can bank some triple digit gains.
Learn to become a contrary trader and have patience and the big profits will come.
FREE ESSENTIAL TRADER PDF'S AND MUCH MORE
On all aspects of becoming a profitable trader including features, downloads and some great FREE Trading PDF's visit our website at http://www.net-planet.org/index.html
Online Forex Trading - 4 Simple Tips to Make Money Fast
Here are some simple tips to help you make money fast in online FOREX trading that are simple to do and will help you build wealth quickly.
So what do we mean by make money fast?
Here we are looking at tools that will help you make triple digit gains annually, which would put you up with the top traders and in the elite 5% who win consistently in online FOREX Trading.
We are assuming here that you know the basics of FOREX Trading so here are your tips:
1. Be realistic
We all want to be millionaires overnight but be realistic.
If you aim for gains consistently of 100% per annum your up there with the best traders in the world.
Don’t be in too much of a hurry; if you are then you will wipe yourself out.
2. Accepting Risk
Most novice traders who trade FOREX try to restrict risk so much that they actually give themselves no chance of winning.
Their stops are to close and GUARANTEE they will lose.
Online FOREX Trading is all about taking calculated risks.
This means if you want to make money fast you should risk up to 10% of your equity per trade.
Many people will tell you to risk 2% but if you’re a small trader trading $10,000 that’s just $200!
This will simply guarantee you’re stopped out most of the time.
3. Running profits
It’s a fact that most traders simply cannot run profits.
Many traders are fantastic at picking market direction but lose because they take profits to early!
This is a major problem.
A trader gets a profit and gets excited, the bigger the profit becomes the more he is tempted to take it before it gets way – eventually, the trade is snatched and banked.
The trader makes a thousand dollars and then sees it run onto to make 15 – 20,000 or more and he’s not in.
If you want to make money do not move stops to lock in profit quickly.
Make sure your stop is far enough back to take into account normal market volatility - You need to take short term swings in equity against you and focus on the longer term.
3. Trading Method
There are many different methods to make money in online FOREX Trading and if you are looking for a method that works well – then a breakout method looking for long term trends is ideal.
The advantage of using a breakout method is you have relatively low risk and great rewards.
4. Patience
If you are trading then you can’t hurry the markets.
They will give you opportunities but they can’t be forced and you can go weeks or months without seeing any.
Learn to be patient and only trade when your system tells you to.
To make money fast you must keep risk low but you must also run profits for all they are worth to emerge a long term winner.
FREE ESSENTIAL TRADER PDF'S AND MUCH MORE
On all aspects of becoming a profitable trader including features, downloads and some great FREE Trading PDF's visit our website at http://www.net-planet.org/index.html
Debts soaring high
The year 2006 saw an alarming rise in bad debts leading to personal insolvencies. A lot many Brits declared themselves as insolvent in the hope of getting an escape from the creditor's pressures. But, most of them don't realise IVAs (Individual Voluntary Agreements) are given only to those who can actually afford to pay the amount stated in the agreement. Though no lender actually wants his debtor to go bankrupt, borrowers seem to take it as rescue from soaring debts.
The number of Brits who have claimed insolvency has reached a record peak of over one hundred thousand. It is assumed that at least thirty thousand people will claim insolvency from now until the end of January and early February'2007. So far from slowing down, if anything the amount of people claiming insolvency is set to rise.
This rise in the insolvencies is because of credit to defaults, especially on unsecured loans. Borrowers take these loans for granted thinking that since the lender has nothing to repossess in case of non-repayment. But, they forget that the lenders can actually move to the court, sue the borrowers and have a CCJ (County Court Judgment) registered against them. This will definitely invite for adverse repercussions as once a CCJ is registered against you, you will find it extremely difficult to avail loans further. This is because many all FISA regulated lending institutions take the help of credit reference agencies like Experian and Equifax to judge the credit worthiness of the borrower. And these credit reference agencies refer the county register to see if the borrower has any bankruptcy or CCJ registered against him.
So should be repaid regularly to avoid such situations like bankruptcy and CCJs. Just to have a glimpse of bad credit situation prevailing in the UK loan market ponder over this fact that in 2006, the number of people claiming insolvency went up by one hundred percent and only forty-five thousand people claimed it in 2005.
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry.
He has done her masters in Business Administration and is currently assisting Chance4finance as a finance specialist. To find a unsecured loans , that best suits your needs, visit chance4finance UK.