Posts Tagged ‘ losses ’

Thomas Long, on Friday January 21, 2011, 9:22 am EST

Expecting big gains in Trading can lead to big losses.

Many times I hear from new traders who state that their goal is to make a certain number of pips every day. while it is important to establish goals in any endeavor, any benchmarks should be geared around your improvement as a trader and not about what you expect the market to give you. I have seen many new traders who while looking for at least 20 pips a day, end up losing big in an effort to reach this plateau.

The problem is that the market environment can change to the point where there are many days where solid trading opportunities just cannot be found.

So the new trader puts on a trade that they normally would not even think about. If that trade becomes a loser, they now have to win that loss back and then another 20 pips before the end of the day. You can see how this can turn into a nightmare after a couple of questionable setups end up as losing trades in the same day.

I think a better goal is to strive to be profitable every month.

If you end up with $1 more in your account at the end of the month from the beginning of the month, give yourself a pat on the back for being profitable. it is a series of monthly gains that can result in big returns. but you must treat trading as a business instead of a get rich quick scheme and keep your expectations realistic.

The DailyFx Trading course can help by offering some excellent material on Money Management, including four different videos on the subject. the course is free for live FXCM clients and can be found at this link:

DailyFX Trading course

The login is the same you use to access your live FXCM account. good luck with your trading!

DailyFX providesforex newson the economic reports and political events that influence the currency market.

Learncurrency tradingwith a free practice account and charts from FXCM.

Keep Your Expectations Realistic

Michael Wright, On Thursday January 20, 2011, 10:48 am EST

The CADJPY extended its five day decline, but looks poised to continue its southern journey as technical indicators paint a bearish picture for the pair. indeed, the Bank of Canada held its key overnight lending rate at 1.00 percent in January for the third consecutive meeting. as the statement trailing the rate decision suggests that tightening is unlikely to take place in the near term, traders should not rule additional losses in the loonie. Thus, the recent break below the 20-day moving average in the CADJPY will now form as key resistance for the pair. All in all, remain short from 83.50 and look to move down your stop to 82.62 in order to lock in some Profits; open target. At the same time the USDCAD looks poised to continue its northbound journey as well. I am long from 0.9897, and will move up my stop 0.9950; first target at parity.

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Meanwhile, the break above the descending 4H channel in the AUDNZD is showing signs of life as the pair broke above its 100-day moving average, while daily studies slowly recover from oversold levels. I will stay long from 1.3005 with a stop at 1.2970 and a first target of 1.305. a break above 1.305 exposes the 1.316 area.

DailyFX providesforex newson the economic reports and political events that influence the currency market.

Learncurrency tradingwith a Free practice account and charts from FXCM.

Remain Short CADJPY From 83.50; Stop at 82.62; Long AUDNZD, USDCAD

Ilya Spivak, On Sunday January 16, 2011, 10:36 pm EST

Strategy: short at 1.3315, Targeting 1.2867

Weekly Profit / Loss: -437 pips

Total Profit / Loss: -29 pips

We initially sold EURUSD at 1.3315. Last week, we revised our stop-loss lower to the break-even level as prices met our initial objective at 1.2969. This proved premature as prices reversed sharply higher to erase the previous week’s losses, rising to retest the range top in place since December at the 50% Fibonacci Retracement of the 8/24/10-11/4/10 advance (1.3435). while strictly speaking the daily close above 1.3315 ought to have triggered the updated stop-loss, we know that blind compliance with trading rules can be as detrimental as not having those rules in place to begin with. In this case, last week’s rally has not materially changed positioning, with a Star candlestick hinting that the range top is likely to hold once more. As such, we will remain short, moving our stop-loss back to its initial position to be activated on a daily close above 1.3499. the soft target has been updated to 1.2867, the latest swing low.

To discuss these strategies with other traders, please visit the Candlestick Forum

To receive future articles by email, please contact Ilya at ispivak@dailyfx.com

DailyFX providesforex newson the economic reports and political events that influence the currency market.

Learncurrency tradingwith a free practice account and charts from FXCM.

EURUSD: Stay Short Below 1.35 Figure

There are a lot of people who refer to Forex trade software so they manage to use the best strategies and pieces of advice and as a result deal the best way on the market. At the same time it is necessary to mention the fact that quite rarely people face losses in that case. however, it is still necessary to be ware of the fact that because of the fluctuations of money this business can be quite risky. in any case you have to take into consideration the fact that with the help of application there appears a chance to minimize all of the losses.

What is more, it is very important that all of the users are knowledgeable in that subject. With the help of the applications user gets all necessary knowledge. however, all of these applications serve to forecast the situation on the market and after that they will know for sure when it is the best time to buy or sell. What is more, you have to understand that it is necessary that application has metasystem. It is believed to be the most advantageous. If you refer to the best applications then there is no doubt that you will get access to the best plans and strategies. It means that users will be ready to deal in the long and short term. You have to be aware of the fact that success will come only then when you will understand when it is the best time to trade.

In case the user wants to follow one trade only then he is advised refer to long-term strategies. Short-term strategies have to be adopted if the person deals in numerous trades. Every Trader decides what type of the strategies he has to follow. That is very important moment. Users are recommended to look for the applications that provide them with long and at the same time short-term strategies. At the same time it is important when the program contains all of the currencies of the world. What is more, it is very important if the application is flexible.

Make sure you take into consideration the fact that there exist a huge number of the scams in the world of foreign exchange. in case users are interested in buying Forex trade software then it is important to approach reputable companies. At the same time you have to realize that applications that have been around for a long time are believed to be really reliable. some people manage to make really big money with the help of forex automated robot. Pay attention to all of these moments and there is no doubt that you will manage to reach success after some time of using all of these applications.

For those who want to earn on the forex trading – please check out this site with important tips.

If you are looking for forex managed account business – get more info about this service and forex investment.

Article Review Site » Use The Best Forex Trading Applications

John Kicklighter, on Thursday January 13, 2011, 8:22 pm EST

How many times has this happened to you: you avoid a trade that doesn’t meat all of your well-thought-out trade criteria only to see it shoot in the direction you were expecting. this happens to me frequently; and it seems to have happened in excess to me this past week. the biggest issue that I have been encountering is that there are great trade setups; but I don’t want to use limit entry orders as it would require warping the trade or potentially jumping into a false move. this has kept me out of successful trades on GBPUSD, GBPJPY, EURAUD, EURJPY, EURCHF, EURGBP and others. Many that suffer just such an issue would react by dropping this particular rule. However, I won’t be doing that. not taking certain trades overnight with limit orders is a condition that I came to for a reason. Besides, this was a lesson learned the hard way – with losses and bad trades in the past. I’m not exactly the most disciplined person; and this was something learned over time.

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On the other hand, there is always some level of flexibility that we need to maintain in trading (even automated trading requires tweaks to the system or changing around to a different system for different market conditions). Adapting with EURUSD, I am putting aside concerns about picking tops and taking weekend positions. A reduced size EURUSD short from 1.3335 with a 100 point stop and first target is a setup that is based on the belief that the rally this week is far more aggressive than market conditions should warrant. That being the case, an overextended move meets common resistance to encourage a pullback (not necessarily a reversal).

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The similar time frame for yesterday’s AUDCHF setup played out relatively well. A 50 point first objective proved sufficient at 0.9605 to be hit and then subsequently hit a trailed stop at break even on the remaining half. AUDCAD has its own trailed stop at 0.9925 that is still stainding – but for how long? USDCHF similarly is waiting to see a second objective (loosely targeting 0.9850/9900); and may even be good for a short-term range swing. USDJPY is still setting its long-term sights on a rough sea; while the shorter-term CADJPY has quickly tripped back towards its stop around 83.10 (this was taken hastily on reflection – it was my own rule to wait for that Fib and 200-day SMA to give way).

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Keeping an eye out, there are a few opportunities out there. most interest is GBPJPY approaching its larger channel top now around 132.25; and AUDJPY aching to put in that long-awaited reversal below 82.

DailyFX providesforex newson the economic reports and political events that influence the currency market.

Learncurrency tradingwith a free practice account and Charts from FXCM.

Tons of Opportunity but Rules are Holding Me Back

MiV investments inc. (“Company”) is not an Investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. the analysts and employees or affiliates of Company may hold positions in the stocks or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities. the Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company’s website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. in addition, the indicators, strategies, columns, articles and all other features of Company’s products (collectively, the “Information”) are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company’s website are for educational purposes only. such set-ups are not solicitations of any order to buy or sell. accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

MiV Investments inc. collects personal information on this site. To learn more about how your personal information is used, see our Privacy Policy.

Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners and the owners retain all legal rights. the use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by MiV Investments inc.

© 2009-2010 MiV Investments inc. All Rights Reserved. | Privacy Policy | Terms of Service.

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In fact, all people actually utilize some Forex trading software to have an access to the best existing trading strategies and also advice whilst trying to deal on this kind of modern market. For sure, a big number of various users have certainly reported to suffer several losses at the moment when utilizing the application. Besides, a big number of individuals also suffer amazing losses if they are operating their business with no application. Without any doubt, this kind of business can definitely be quite risky because of the true fluctuations of money on a regular basis. moreover, some applications just like that surely assist in minimizing the actual losses.

Well, without or with the application, all users have to be quite knowledgeable in this type of subject. and so utilizing this application is going to let all Forex traders to become much more knowledgeable. Thus the real and main function of this application is studying all trends in the forex market, so that forex traders are aware of when exactly to sell and also when particularly to buy. In fact, that application which has so called meta trader system is obviously suggested to be the best and the most advantageous.

For sure, the best applications are going to offer a big number of trading strategies and plans. But the principle and main focus of every application is on those strategies which can really be implemented in both the long and the short terms. and so all forex traders are capable to deal in the long and the short terms. However, the true success actually comes if these forex traders understand the best time for trading in the long term and the best time for trading in the short term as well.

Well, long term trading strategies are quite essential and important when forex traders want to follow just one trend. But those forex traders that actually deal in many trades are going to adopt some short term trading strategies. Besides, those traders which would rather not suffer some long term losses need to follow a big number of strategies and not only one trading strategy.

moreover, all traders need to search for those applications which really offer short term and also long term trading strategies. Of course, the expert advisory program has to contain and include all the foreign currencies of the world. and flexibility in this application is very crucial to the actual success of the forex traders. and finally, as it is the case in all kinds of business, a big number of scams definitely exist in the modern world of the forex trading. That’s why forex traders should approach only reputable companies when they want to purchase Forex Trading Software.

It is a must to gather as much info about Forex as possible. Because this info will help you not to lose much money on Forex trading or Forex investment.

Surely not a single piece of knowledge can be rock solid guarantee against losses, especially on Forex market, but sometimes even one Forex books can be of big service to you.

Forex Trading Software And Applications

MiV investments Inc. (“Company”) is not an Investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. the analysts and employees or affiliates of Company may hold positions in the stocks or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in Trading securities. the Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company’s website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company’s products (collectively, the “information”) are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company’s website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. accordingly, you should not rely solely on the Information in making any investment. rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

MiV Investments Inc. collects personal information on this site. To learn more about how your personal information is used, see our Privacy Policy.

Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners and the owners retain all legal rights. the use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by MiV Investments Inc.

© 2009-2010 MiV Investments Inc. All Rights Reserved. | Privacy Policy | Terms of Service.

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