Page 177 – XTrade

Day Trading Forex Live during Active Market Hours

Day trading forex live during the best market hours results in better risk-reward exposure. Momentum traders use these active hours, so as to avoid false moves.

Day Trading Forex Live during Active Hours

Day trading forex live during the most active market hours is essential to momentum trading. Day traders expecting to ride 30, 50 or 100 pip moves cannot trade at any other time. Trading outside the active time zones results in too much poor judgment due to confusing price action. And it all has to do with trading volume. The average forex rate makes solid moves only during the active hours. Trading the forex market will still be a confusing and extremely difficult task at times. Even within the active trading time zone. Volatility however is clearer, there is momentum and follow-through in every move. So that even if the day traders gets the direction wrong. They can quickly hedge the losing trade with a another trade in the opposite direction, and twice the size. And they can get out at a break-even point, soon enough. Or even exit at a profit, through the hedging trade. Forex day traders use intraday pivot numbers, as defined by various trading theories. These numbers identify price reaction levels, risk levels and sideways trading range. On most days, these numbers are useful and make sense. Even the trading range numbers which define sideways market action are useful. Because the range defined is large, for example it can often be as much as 200 pips. And all the trader does is buying and selling at the levels defining this range. Profits can be seriously big on such days. Day trading forex live during active hours, and especially on news days, results in solid profitable trends.

Day Trading Forex Live Just before And during Active Hours

Day trading forex live just before and during the active trading time zone, is about divergences. If the market seems to trade higher or lower than yesterday’s range. Especially before active hours, where important economic news is to hit the market. Then market price will sweep through yesterday’s close, at least once. By knowing this, traders buy or sell pre-active session price swings accordingly. So if the market drops too much below, or rises too much above yesterday’s close, and news is expected. Then early during the active hours, and definitely before the exact release time, market price will cross through yesterday’s close, at least once. There’s no official daily closing price in the forex market, but the close as defined by daily charts whose time agrees with the active hours of the pair in question. Is in fact a high volume, valid closing price for trading this divergence strategy. In EURUSD for example, any charts provider based in Europe or USA, will have timing which matches the high volume closing daily price on this pair. But an Asian based chart provider may depict a different closing price, which is seen as closing price for Asian and Australian traders. But it is not defined as the close, for implementing the above strategy. The definition of the close has to do with the closing time of the active trading time zone. And active has to do with news and high trading volume. The strategy is perfectly implemented by pair-specific traders, through online CFD trading. The result is average profitability, but with well-below-average losses.

Trading live forex rates is quite interesting because it could potentially offer a more active trading experience, where one has to think and evaluate various parameters. And more activity helps keep the trader mentally active, as opposed to just having to execute a very disciplined, fixed task. Live forex rates create short lived opportunities in market, and trading has to be fast and accurate. But there’s room for doing something slightly different every day. This non-routine trading is interesting because it motivates the trader to evaluate and improve their methods. Thanks to leverage and the linearity of CFDs, traders can trade not just active trading hours, but also inactive trading hours. Flat market action is not really flat, as price still fluctuates several pips up and down. These few pips of market movement are enough to trade for a living. And yet these tiny movements are not even visible on the daily market charts! The whole task of trading as a scalper, in this fashion, is to avoid volatility and breakouts. This is why scalpers work during inactive trading hours. Currencies will always move by few pips, up and down, even when there is zero volatility. This is the less obvious way to trade, but it really works.

Best Trading Online Options Today’s Trader Has

Risk averse traders always put safety of funds before profits. Flexible strategies and hedging losing trades through CFDs are their best trading online options.

Some of the Best Trading Online Options

Some of the best trading online options for safety of funds, and avoidance of excessive risk include several methods. The risk averse trader has many options to trade the financial markets, and risk can never be reduced below a minimum amount, unless risk-less arbitrage is used. But risk-less arbitrage comes with a lot of work, and limited profit potential, maybe as little as 3%. Traders interested in day trading forex strategies are often put off by the risk involved, and the confusion which dominates the markets. A foreign exchange currency rate can move in so confusing ways, that no rigorously defined strategy can ever deal with it profitably. Tight stop loss orders get triggered in no time. Resistance and support levels make no sense. And too many opportunities are missed at night, just because the strategy in question doesn’t allow holding trades overnight. Many popular trading strategies fail to even show a small profit, through days and days of trading. This is because these strategies are crude and primitive, so much so that it stands to reason that the people who devised these strategies probably never used them themselves. The best trading online options a trader has, are the ones offering greater flexibility and breaking some of the rules of day trading. First of all, the trader needs to know when a losing trade will remain a losing trade, and when it will turn around. Knowing how to do this and this alone, is priceless in day trading. Because temporary losers can be hedged through CFDs and lock the open loss. This can go on for hours or even days. And if the trader knows what they are doing, it will save them a fortune in unnecessary losses. Stops can be used at the same time, and these can be very large stops. These are the best option a trader has for establishing great flexibility.

Trading Online Options for Commodity Traders

Commodity traders face the same problems as currency traders. Except on the longer term trends, where commodities can be easier to figure out than currencies are. Commodity traders’ best options are to focus their primary analysis on the quarterly time frame, and to also use large stop loss orders. They can increase flexibility further by invoking dynamic and scalable hedging. Scalable hedging is whole science all by itself, and definitely worth investigating. This means using the original commodity market of interest, trading in the desired direction (according to the quarterly trend). And then trading small counter moves in the commodity. And hedging losing trades of both directions when necessary. The only variables that need controlling on the part of the trader are trade size and trade duration. Such hedging can be implemented through many, not just the best forex trading platform, as long as the key commodities of interest are offered. Most forex platforms do offer crude oil and precious metals. Moreover, hedging itself can be extended through the related, correlated commodity currencies. As these currencies may be out of phase relative to the leading commodities. Thereby enhancing the power of hedging. Since the well planned profitable trade of correct duration and size, can exceed the cost of the corresponding hedging trade, and vice versa. So the reality is, that classic trading strategies are crude and primitive and will never really work. Most have been invented by people who didn’t know what they were doing at all. And who failed to explore all the trading online options. In the real world, rigorously defined strategies simply don’t work. And the more well defined a strategy is, the more it fails to connect to the volatility of the market. Always remember that currency commodities provide great, smooth leading signals. Which the currencies themselves cannot provide due to having greater volatility.

Another Day Trading Forex System

Introduction to Day Trading Forex System

Price retracement is a concept which works because market price tends to move randomly between key pivotal levels. This constitutes a day trading forex system.

How this Day Trading Forex System Works

This day trading forex system works because market participants never fully agree on direction. And the market in question tends to reverse at these pivotal points. These points are price levels defined by LSS numbers, yesterday’s close and open gaps. Many currency pairs tend to leave open gaps throughout the daily session, especially during the active trading hours. These gaps are later filled, either on the very next day, or days later. A more frequent occurrence is the testing of LSS pivots. Entire forex strategies are based on LSS theory, using both the daily and weekly pivots. The day trader uses LSS pivots much the same way, except that they take into account other factors, specific to that day. News release times identify the exact time when volatility will rise dramatically. Day traders place their trades before and after these news release times. The ones before are counter-trend trades. Whereas the ones after the news release times are in either direction. They simply watch those pivots and expect the market to at least pause moving for a while. Whether it will reverse or break through these pivots depends on the day’s market strength. The LSS based day trading forex system is safer than other systems. Because most other indicators used by traders, are highly inaccurate. Indicators such as oscillators and even chart patterns suffer from poor timing. Other traders use candlestick patterns and high-low point analysis. Candlestick patterns are okay, though one cannot rely on them exclusively, for day trading. Even candlestick patterns are ambiguous, and create confusion. As one zooms in and out on the charts, one candlestick pattern appears as another.

A Better Day Trading Forex System

An even better day trading forex system is one based on all these pivot numbers, as well as the overall daily trend. Learning how to trade forex through these methods, avoids many losing days. Days where the market will simply move with huge momentum, and will reach the most distant LSS pivot. Day traders watching the daily trend know that this is bound to happen on some days. And therefore handle their open losing day trades accordingly. An open losing trade against the daily trend has to be closed, whereas an open losing trade in the same direction as the daily trend, can be left open. Online CFD trading makes it possible to implement this strategy, at low cost, and at below average risk. By allowing you to get the best price possible at those LSS pivot levels. Unlike spot market forex traders who tend to suffer from lack of liquidity, which results in requotes and slippage. Above all, traders need to treat each trading day uniquely, and to expect history not to exactly repeat itself, because it never does. With some research around these LSS pivot numbers one can have a road map during the active trading hours, which many other day traders are oblivious to.

A good day trading forex system is one that offers trading through preparation, by looking at the day’s expected trading range and pivotal levels. Moreover, the daily chart and even the weekly chart are both relevant to day trading. Not all day traders agree on this. But it is proven that one day or another, the intraday support or resistance will be something to do with the daily or weekly chart. After all, the market is made of all kinds of participants, having different objectives and time frames. But they all trade and can make new trades during active hours. Multiple time frame analysis only needs to be done once a week, and it will be relevant for the entire trading week, It’s not something that traders have to do every day. So it is wise to pay attention to the daily and weekly charts. A day trading forex system should look more into the big picture, and less on what happened yesterday. Yesterday’s data may be somewhat relevant, but the new day will certainly make something new happen, which will defy yesterday’s expectations. Various classic day trading methods are flawed or outright wrong, especially those defining support and resistance. It’s better to stick to humble LSS pivot analysis for the day, and handle market momentum accordingly.

Safe Foreign Exchange Currency Trading Online for Beginners

Safe foreign exchange currency trading online for beginners is all about account survival and low stress. It is still challenging even with a small account.

Foreign Exchange Currency Trading Online for Beginners

Foreign exchange currency trading online for beginners is about seeking safety and building confidence. Beginners are often delusional about trading forex, as there is so much misinformation around. They want to learn forex trading to achieve their financial goals in life. The problem is that you cannot do that straightaway. The goal of trading success has to come first, before of any financial gain motives. Traders should refrain from such greed, and should somehow decouple their trading from their personal finances. Foreign exchange currency trading online for beginners often ends in failure. And it is exactly because of allowing their personal finance needs to make trading decisions. Out of an urge to earn money here and now. But beginners who take a serious, slow approach, know that there is no free lunch. The market will likely allow you to win money, at times when you don’t really need it. It’s a paradox, but it is true. It makes sense though because when one doesn’t need money desperately, they are more relaxed. And less likely to overlook false trading signals, traps and losing trades. As they say in the markets, desperate money never wins. So all beginners need to take trading seriously, but also lightly, kind of like running small business on the side. Not as their wallet. Another thing with beginners, especially young ones, is that they are emotionally attached to material things, such as cars. And this very desire of wanting to buy this or that car, for emotional reasons. Once again sabotages trading. Traders are unlikely to succeed in trading unless they really like working with market data and volatility. They are also unlikely to succeed if they follow generic trading tips and money management rules.

Foreign Exchange Currency Trading Online for Beginners with Patience

Foreign exchange currency trading online for beginners having patience, is a realistic task. Nobody likes being patient for too long, but good things do come to those who wait. The forex market doesn’t care about your real necessity to win money, or for that car you want to buy out of passion. So patience is important in trading, as is willingness to accept failure and losses. Beginners who know what is CFD trading, and use CFDs effectively, take things one step further. They accept failure and losses, but instead of using massive stop loss size. And a passive approach to accepting losses. They use CFDs to hedge many of these open losses. Hedging is very linear, accurate, and it offers enough stress-free time to think about the market. Through such patience and courage, even beginner traders can avoid big losses, and save their trading accounts. There is no reason to insist on a trade idea gone wrong, the market will not turn around any time soon. Rigid trade opinion is a bad habit many traders have, but markets as you know do not have rigid opinions on any trend.

Foreign Exchange Currency Rate of Change

Foreign Exchange Currency Rate Explained

A foreign exchange currency rate of change tells you how fast a currency pair moves. But two identical rates of change can be due to totally different factors.

What a Foreign Exchange Currency Rate of Change Tells You

The foreign exchange currency rate of change tells you how fast a currency pair is moving. Whether the trend is picking up steam or not, and more. On pairs such as EURUSD. The rate of change combined with detailed separate analysis. Both on the Euro and the US dollar, can identify false moves. So that the trader can trade against these deceptive trends. Forex trading strategies can be based on rate of movement analysis. And even more so on the hourly and four hour chart of such currency pairs. Because these charts capture and illustrate rates of change in a nice way. When fundamental data in the market points to a particular direction. And the market moves too slowly in the opposite direction. It is a call for looking to get into the direction of the fundamentals. No matter what price seems to be doing from a technical perspective (breaching trendlines, 200 bar moving averages etc). If the rate of change is too fast on the other hand, it can again signal a false trend. It always depends on the short term fundamental outlook. But generally speaking, trends that last long, tend to develop a medium kind of rate of change on the price. So that the trend appears to be at around 45 degrees, as seen on some time frame (4 hour or longer time frame). The foreign exchange currency rate of change can be further used, if more patterns are taken into account. And are checked against fundamentals. We know that the market is not always right and deviates from its destiny. But fundamentals are right, and it is fundamentals that set that destiny for the market to follow.

Foreign Exchange Currency Rate of Change and LSS Pivots

LSS pivots are used as pivotal numbers where price will react somehow. These can be daily, weekly or monthly. The foreign exchange currency rate of change tells you how price moves through these pivots. Generally, very fast movements signal false trends. And suggest that the breached LSS pivot in question will soon be breached again from the other side. It is better to view LSS pivots as reaction levels, and not as support or resistance. Because support and resistance theories appear to be always right, no matter what market price does. Hence being of no practical use. But reaction numbers are all about momentum, and detecting false moves. All through observing the rate of change and the individual currencies making up a currency pair. The FX exchange rate of movement factor, is really insightful information when checked against other data. Because markets tend to make fast false moves, usually because of brief panic, and unsubstantiated concerns. Which in turn trigger traders’ stop loss orders, thereby accelerating the move. In other cases, sharp movements occur right after a big movement day, because of forced margin liquidation. Because brokers are forced to liquidate many open losing trades all at once, as their clients cannot meet those margin calls. The market moves sharply on that day. But it doesn’t change trend. So it is a false move. Traders maintaining sufficient funds in their accounts through correct money management practices. Can access their CFD trading platforms without problems. And are able to enter the market right when the false move is about to end. And as the market comes back to normal trading levels, they profit from the move. Paying attention to rate of change, fundamentals impacting each currency involved, LSS pivots, and watchful trading, is the key to success.

Assessing a Trading Online Course

What to Expect from Trading Online Course

A trading online course may seem to promise too much, and it may even seem to good to be true. But most traders are wise enough to detect big fake promises.

Assessing the Performance of a Trading Online Course

If a trading online course promises to introduce you to the basics of forex. And to help you learn forex trading, then there’s no reason to be suspicious. This kind of teaching is quite realistic. Since it doesn’t promise to make you a profitable trader in a few weeks time. Big promises include claims to the effect of we will teach you this and that, and you will be highly profitable soon, as to trade for a living etc. These promises cannot possibly be real, especially if the course somehow seems to guarantee these claims. Good trading courses will have basic rules, and flexible advanced trading rules. So that the trader can get away from extreme discipline and start create their own unique trading style. If the course allows for creativity at a personal level, then it may in fact be very good. However any trading online course promising quick success through the teaching of generic forex strategies. Is bound to be stretching the truth, to exaggerated claims. Generic trading strategies never worked, and never will! There are entire theories on forex trading which are wrong, and are based on false assumptions. Fibonacci theory is one of them. Many other such theories are based on oversimplified interpretations of support and resistance trendlines. While trading on forex news is another area where one will find many false ideas and methods. A good trading course shouldn’t include these methods at all.

What a Good, Advanced Trading Online Course Should Offer

A good trading online course on more advanced trading should deal with news trading and volatility. It should also deal with money management, and the use of large size stops. Especially if the objective is beyond day trading and allows for holding trades overnight. Tight stops will not work at all, so they must be avoided by all means. Some course deal with the principle of probability, for each individual trade specifically. So that the trader can assess the market, and various open trades. Assessment of probability is possible in a number of ways. It all boils down to carrying out simple tasks, such as measuring time, price, and looking out for known causes of false breakouts. There’s no need for advanced statistics, where the sample is a huge number of trades. Probability as defined by a method based on intuition, simply leads to a binary outcome. Such as either to close that open trade or to leave it open. If traders can master that concept of probability while they want to learn how to trade forex, then they will be much better. And they won’t need Fibonacci analysis or any other nonsensical theory.