August 31, 2014

Posts Of The Week For 25-31 August 2014

I have come across several interesting articles this week, some of which I forgot to make a note of, but I did manage to bookmark three in particular that you may find useful.

The first is geared towards those people who are new to forex trading because it discusses how to work with a small initial cash reserve, and offers 4 useful tips that you should bear in mind when trading with a small balance, which I consider to be anything between $100 and $500.

The second article is one that was posted online earlier today, and is also aimed primarily at people new to forex trading (although many people could benefit from reading this article) because it discusses 3 signs of a forex trading scam that you should be aware of.

Finally I also found a more in-depth article that is applicable to all forex traders because it discusses some of the reasons why the forex markets could start to become a lot more volatile in the coming months, and highlights some of the key factors that are likely to come into play.

If you would like to stay updated with any more useful articles that I happen to find online, I suggest you follow TheForexArticles on Twitter because I will often post links to these articles or retweet other people's articles during the week.

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August 29, 2014

Zulutrade Has A New Number 1 Signal Provider

We are coming up to the end of August and I have just noticed that there is a new number 1 trader / signal provider on Zulutrade, the leading automated signal service.

Fibotraderchris has been the top dog for a number of weeks now, but he has now dropped to number 2, and in his place is a trader who trades under the name ffddvvxx.

This signal provider has an overall ROI of 872% at the time of writing, which equates to a total profit of 5621 pips and a win ratio of 89%, which is a phenomenal effort.

What's even more impressive is that they have achieved this with a maximum drawdown of just 11%, which is significantly better than the majority of traders on Zulutrade, and his worst ever trade is -139 points, which is a great record.

If you look at their trading record, you will see that they mainly target lots of small gains, whilst keeping their losses relatively small on the rare occasions that they do get it wrong.

Therefore I think it is easy to see why this provider has become the top trader on Zulutrade, and has attracted over 2500 followers and a total of $3m following their every trade.

The simple fact is that they have a very high win ratio and don't take too many risks, which is evidenced by the fact that they have a nice upward sloping profit curve since they first joined Zulutrade, and only a few small blips along the way.

So while I am not in a position to recommend any particular signal provider, I just thought I would examine why this trader has become Zulutrade's top signal provider.

If you would like to have their signals traded in your own account automatically, or would like to trade the signals of any of the other providers on Zulutrade, you can do so by opening a live trading account.

Alternatively you can open a free demo account, where you can test out various different providers and see how this service actually works using pretend money.

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August 28, 2014

A Low-Risk Forex Strategy That You Can Use

If you are looking for a low-risk trading method that employs a very tight stop loss, but is capable of generating some big winning trades, I have come across a simple, but effective strategy this week that may be of interest to you.

I posted a link to this post on my Twitter feed earlier this week, but in case you missed it (which you probably did as I only have around 70 followers so far), the article that outlines this strategy in full can be found here.

This strategy is similar in some respects to my own 4-hour trading strategy that I used for a number of years (although not so much nowadays due to lower volatility). It just uses slightly different settings, which to be fair look a lot more profitable.

The author of this article uses this strategy on the 15-minute charts, and it would appear to be very profitable in many cases because it does get you into a new trend relatively early, whilst minimizing your risk because you will be placing a tight stop loss just below (or above) a key indicator that often acts as an important support level.

When the markets are trading sideways and volatility is low, there is always the possibility that you might get stopped out a few times before you hit on a winning trade.

Nevertheless when you do get a winner, you can potentially bank some huge profits which more than compensate for these small losing trades, and this is even more true on the longer time frames, such as the 4-hour and daily charts, for instance, where you get longer trends and a lot less noise.

You might want to add one or two additional indicators, such as the Supertrend indicator, for example, to filter your trades a bit better, and you might want to look at the longer term charts to confirm the trend before placing any trades, but overall this appears to be a simple, but very effective low-risk strategy that you might want to add to your armoury.

It's not a strategy that will win every time, but if you follow the rules and let your winning trades run, possibly moving your stop loss to break-even as soon as possible, then you should be able to make some decent profits in the long run.

Here's the link again if you want to check it out for yourself:

http://jbmaverick.wordpress.com/2014/03/13/my-zero-to-a-million-trading-strategy/

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August 26, 2014

The 3 Markets I Have Traded The Most In August 2014

August has been quite an interesting month because despite the fact that volatility has been low in the previous few months, and August is notoriously quite a quiet month, we have actually had some decent price moves in recent weeks.

However I have just been looking through my trading records, and as I suspected, it is not the forex markets that I've been predominantly trading this month.

The two markets that I have traded the most (by quite a distance) are Crude Oil (US) and the Dow Jones, followed by the GBP/JPY pair, which is a pair that I don't usually tend to trade that much.

The reason why I have focused on these markets in particular is quite simple - these are some of the biggest movers on a day-to-day basis right now.

Whilst some of my favorite pairs, such as the GBP/USD, EUR/USD and USD/JPY pairs, have seen their average daily trading ranges drop quite considerably in the last few months or so, the GBP/JPY is still trading in an average range of 70-80 points every day.

The Crude Oil and Dow Jones markets have been better still because these will often trade in a range of 120-130 points on average every single day.

So there have clearly been plenty of opportunities to make some decent returns trading these three markets in particular.

With the EUR/USD and USD/JPY pairs trading in a range of around 40 points on average, it is obviously a lot harder to squeeze out any profits, which is why I haven't traded them very much this month.

Looking ahead I am hopeful that volumes will pick up across all of the major currency pairs once August is over, but for now I'm happy to trade some of the more volatile markets, particularly as I have been looking to enter a lot more out-of-the-money binary trades just recently.

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August 25, 2014

GBP/USD Analysis For 25 August 2014

It's a bank holiday here in the UK, which means that I won't be entering any trades today. However before I switch off my computer and have a relaxing day off, I just want to have a quick look at the GBP/USD pair because this is at a critical point right now.

I've written quite a lot about this pair in recent weeks because it's suddenly burst into life. For example, I posted about a downward price breakout when the price broke out of a narrow trading range and headed below 1.6800, and then posted an update about a week later which confirmed that this was a valid breakout.

I then posted this article on 15 August that pointed out that the GBP/USD pair has closed below the 200-day exponential moving average (EMA) for the first time since August last year, which was a very bearish signal, and highlighted the fact that the Marketclub trade triangles had just posted a sell signal on the monthly time frame, which is another really negative signal for this pair.

Well since then this pair has continued to fall as it now trades around 1.6580 and despite numerous indicators indicating that it is heavily oversold, it has yet to bounce back.

Despite the weak signals mentioned above, it's still too early to write off the pound completely and start diving into short positions. It could easily trade sideways for a while and move back up towards 1.6700 in the short-term.

However if the 20 and 50-day EMAs (indicated by the green and red lines) cross below the 200-day EMA, which could happen in the next week or two, then it could easily hit some of the key fibonacci retracement levels at 1.6284 (38.2%) and 1.6003 (50%) in the next few months, and could potentially fall to 1.5722, ie the 61.8% retracement level, looking further ahead.

gbpusd25aug2.png

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August 21, 2014

74% Accurate Day Trading Software Is Released This Weekend

This week I've been telling you about some new day trading software from Casey Stubbs that apparently has an overall win ratio of 74%.

Well I have since found out that the name of this software is StrikeTrader and it's being released to the public this weekend.

However the only way to get access to this day trading software is by attending one of the online webinars that are being held over the weekend.

In these webinars Casey will reveal more about the ins and outs of this product (including the latest live results), answer questions from the attendees and discuss his special release offer for everyone that attends. He will also tell you about the performance guarantee that is included with this software.

If you are interested in attending one of these webinars, simply click here to register for one that fits your schedule.

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