plik


ÿþF ORE X TRADE R Avoiding mistakes in forex trading By Abe Cofnas slow down the weakening of his cur- these events, professional traders difficult challenge facing a trad- rency, then we must wonder take cover and see what happens. Aer, and particularly those trad- whether there is fear the opposite The retail trader also should let the ing e-forex, is finding perspective. will happen. In this case, that was market digest such shocks. Achieving that in markets with regu- the outcome as on Dec. 14 the dollar Trading during an announcement lar hours is hard enough, but with vs. the yen surged to a three-year or right before, or amid some tur- forex, where prices are moving 24 high. The Prime Minister s statement moil, minimizes the odds of predict- hours a day, seven days a week, it is acted as a contrarian indicator. This ing the probable direction. Technical exceptionally laborious. is what  fade the news means. indicators during surge periods will When inundated with constantly Often, a bank analyst or trader will be distorted. You should wait for a shifting market information, it is be quoted with a public statement on confirmation of the new direction hard to separate yourself from the a bank forecast of a currency s move. and remember that price action will action and avoid personal tend to revert to pre-surge responses to the market. ranges providing nothing NEWS YOU (DON T) USE The market doesn t care fundamental has occurred. Often, news that might seem definitively bullish to someone about your feelings. An example is the Nov. new to the forex market might be as bearish as you can get. Traders have heard it in 12 crash of the airplane in many different ways  the Queens, N.Y. Instantly, all only thing you can control currencies reacted. But is when you buy and when within a short period of you sell. In response to time, the surge that that, it is easier to know reflected the tendency to how not to trade then how panic retraced. to trade. Along those lines, here are some tips on 3) Simple is better. The avoiding common pitfalls desire to achieve great when trading forex. gains in forex trading can Source: Quote Spread drive us to keep adding 1) Don t read the news  indicators in a never-end- analyze the news. Many ing quest for the impossi- GETTING THE POINT times, seemingly straight- ble dream. Market analysis should be kept simple, particularly in a fast-moving forward news releases Similarly, trading with a environment such as forex trading. Point-and-figure charts are an from government agencies dozen indicators is not nec- elegant tool that provides much of the market information a trader needs. are really public relation essary. Many indicators 0.93 vehicles to advance a par- just add redundant infor- Euro (25 pips x ticular point of view or pol- mation. Indicators should 3-box reversal) 0.91 icy. Such  news, in the be used that give clues to: forex markets more than 1) trend direction, 2) resis- 0.89 any other, is used as a tool tance, 3) support and 4) to affect the investment buying and selling pres- Support at 0.8875 0.87 psychology of the crowd. sure. One tool helpful with Such media manipulation all of these factors is the 0.85 is not inherently a nega- point-and-figure chart (see tive. Governments and  Getting the point ). traders try to do that all Point-and-figure charts the time. The new forex trader must When this occurs, they are signaling are one of the earliest forms of tech- realize that it is important to read they hope it will go that way. Why nical analysis. Now, with technology, the news to assess the message put your reputation on the line, say- they are easier for traders to use behind the drums. ing the currency is going to break than ever before. While point-and- For example, Japan s Prime out, if you don t benefit by that figure analysis is available on several Minister Masajuro Shiokowa was move? A cynical position, yes, but stand-alone programs, most online quoted in a news report on Dec. 13 traders in the forex markets always platforms do not offer these charts. that  an excessive depreciation of the need to be on guard. Read the news A few that do are www.quotespeed. yen should be avoided. But we with the perspective that, in forex, com, www.chartanalytics.com and should make efforts and give consid- how the event is reported can be as www.dorseywright.com. FM eration to guide the yen lower if it is important as the event itself. relatively overvalued. Abe Cofnas is president of Learn4x.com, When a government official is ask- 2) Don t trade surges. A price surge is which provides education for forex traders. ing, in effect, if traders would please a signature of panic or surprise. In E-mail: learn4xtrading@aol.com. Reproduction or use of the text or pictorial content in any manner without written permission is prohibited. 24 www.futuresmag.com February 2002 Copyright 2002 by Futures Magazine Group, 250 S. Wacker Dr., Suite 1150, Chicago, IL 60606 Global Forex Trading. Your partner on every trade. Why Forex? 24 hour access Diversification Dynamic price range Leverage Liquidity  The largest market in the world Why Global Forex Trading? NO commissions 1% margins day or overnight Low initial deposit Immediate processing of fund requests Tight quotes in major markets Over 40 currency pairs offered Live 24 hour dealing desk Free electronic order entry software Free real time charting and news FDIC insured accounts available Regulated FCM status For Introducing Brokers / Training Companies rading spot currencies can be tricky with- " We offer everything from total turn-key Tout the right tools. Or the right partner. forex options for IBs to individual client Fortunately for individual traders, Introducing servicing for training organizations, with Brokers and fund managers, Global Forex the finest customer service in the industry. Trading is the right partner, with the right tools for successful forex trading. For Fund Managers We can help the individual trader " Our dealing rates are truly institutional understand the fundamentals of forex quality for all of our customers. trading, providing you with reliable data " Fund managers can set up unique sets of and unbiased market analysis. Our powerful customer accounts so that DealBookFX DealBookFX dealing software is the most can automatically assign trades based on advanced in the industry. your own pre-sets. In addition, Global Forex Trading has Whatever your trading objectives are, GFT built it s reputation on fair and honest trading has the right tools to help get you there. quotes and superior customer service that Call us at 800-465-4373, or visit us at Introducing Brokers have come to rely on in www.gftforex.com for a FREE demo of servicing their customer base. DealBookFX. For Individual Traders " DealBookFX s exclusive ITX window can actually fill orders at better prices than Call us at 800-465-4373, or visit GFT s already tight 3-5 pip spreads (in us at www.gftforex.com for a major markets). FREE demo account " Market Mentor© market analysis tools, including Turning Point Forecast and Price Direction Index timing tools. email: info@gftforex.com Visit our web site: www.gftforex.com

Wyszukiwarka

Podobne podstrony:
Trading Forex trading strategies Cashing in on short term currency trends
FOREX Systems Research Practical Fibonacci Methods For Forex Trading 2005
Liquidity In Forex Markets
1fta Forex Trading Course
BASIC FOREX TRADING GUIDE Ebook
Douglas E Zalesky 25 Rules Of Forex Trading Discipline
Introduction To Forex Trading
The Interaction Between The Frequency Of Market Quotes Spread And Volatility In Forex
(Forex Trading) Forex Cashback Rebate Money Back
Forex Trading Guide
Trading For A Living In The Forex Market
Trading Forex Predicting Price Movement
Forex and Trading Programs
80 trading strategies for Forex
Forex Online Manual For Successful Trading
Amazing Forex System Explosive Profits News Trading

więcej podobnych podstron