Trend Following in Forex – Most Traders Don’t, But You Should, It Makes Huge Gains!

Trend following is actually very easy to learn and looks to hold moves which last anywhere between a week to over a year. Of course if you get into the right trends you can make a lot of money so let’s look at the advantages:

Any Free Market Offers Trends

Currencies trend and so does any other free market instrument and they can all be traded the same way and you get bullish and bearish trends so you can make money in any economic climate.

Trade the Reality of Price Movement

Trend following decision-making doesn’t involve prediction, ‘gut’ feelings or “shooting from the hip” and also doesn’t involve studying the financial press. Trend following simple requires you follow a simple set of rules which are objective and allow you to see shifts in price momentum and lock into trends.

It Makes Huge profits

Trend following looks to compound absolute returns. It doesn’t shoot for ‘small.’ or average profits and in times of turmoil in Financial markets, it can make you huge gains.

Take Advantage of Mass Human Psychology

A currency price are just subjective expectations of traders reflected objectively. People’s reactions to markets always remain the same – the majority Follow each other and end up losing. Humans like to be social and conform, even if the group is wrong. When traders follow each other, they get caught up in the crowd hysteria and that means losses. Trend following will always make money because most traders simply cannot think by themselves.

You Don’t Need to Win Many Traders to Make Huge Gains

Trend following, has defined exit rules to control losses on your account and when quickly take losing trades to preserve the capital in your account. The win loss ratio doesn’t matter in trend following. If you hold a trend for week or months, it will cover a lot of small losses. You can have more losses than profits when trend following but the size of your profits, can be sometimes 10 – 20 times the size of your losers so you can see why you don’t need to have a high ratio of winners to losers to make big profits

Following Big Moves Means Low Cost of Doing Business

If you day trade a lot you lose a lot in transaction costs in relation to the profit you are aiming for but in trend following is not so. With this long term method of trading, your cost of doing business is minimal and increases your overall profits.

If You Want to Make Big profits the Good News is This Method is Easy to Learn

You don’t need any fancy systems or indicators to learn this method of trading it can be learned by anyone and also, you have the confidence of knowing its worked since market began. So rather than struggle to make money and make a lot of effort in short term time frames, follow trends via price action and make huge profits like the pro traders do.

Forex Trend Following – A Key Tool Most Traders Don’t Use but Should

If you want to catch the really big trends there is a key tool for FOREX Trend following that you should use.

If you use this tool then you will have a much better chance of catching and holding the really big trends that can yield the big profits of $10,000 or more.

So here it is:

It’s the weekly chart.

Most traders simply use daily charts but if you are after the big trends the weekly chart is essential.

Why?

Quite simply, because it gives you the big picture of the prevailing long term trend.

You can see the weekly charts on many free chart services

Keep in mind that the long term currency trends last months or even years, as they reflect the underlying health of the economy.

By looking at the weekly chart these trends are clear to see and you can then time your entry via the daily chart.

The best set ups for trading are when support and resistance line up on BOTH charts.

You know then that if they hold or if they are broken they are much more significant than simply points on the daily chart.

So the way to catch the really big trends is to do the following:

Look at the weekly chart for the long term trend, then time your entry on the daily chart by looking for important resistance or support.

Once this is done you need to time your entry.

Don’t simply trade on breaks or holding of support or resistance.

CONFIRMATION

Once you have lined up support and resistance on both the weekly and daily chart you need to watch price momentum.

You want price momentum to either be with you on a break of support or resistance i.e. strong momentum or if you are looking for these levels to hold you want to watch for weakening price momentum.

Use these indicators

1. The stochastic

2. RSI

They are great indicators and discussed in our other articles.

If you use them to see and trade with price momentum, the odds of your trade being successful are dramatically increased.

This METHOD

Will ensure you get in on all the big trends, with the odds on your side and help you make the really big profits.

Forex Investing – What the Poor Do, That the Rich Don’t

If you plan going into forex investing, there is one statistic that you need to be aware of: 95% of forex traders end up losing money. I know that’s probably not what you wanted to hear but it’s the truth. Does this mean that you will fall under this category? Absolutely not!

There is one slight difference between the successful forex traders that make 6 figures a year and the trader who crashes their account within a week. The difference is one understands the market and the other is one praying that he is right.

Think about all of the traders that cover their trading charts with needless indicators. If they understood the market, why would they need them? Think about this: An indicator is to be used as a signal for when a trade should be entered and when it should be exited. So in essence, the trader isn’t calling the shots. The indicator is.

To understand the price movements in the market require time to learn about it. But it’s not as complicated as you may think. It’s definitely time better spent doing that, then rushing off to learn a trading system that uses 10 different indicators to signal a trade.

When it comes to forex investing (or any kind of investing for that matter), you’ve got to spend some time educating yourself. You can’t just dump your entire life savings into brokerage account and just wing it. That’s where patience comes in, and unfortunately nowadays, that’s something a lot of people are missing.

Binary Options Broker – How To Choose The Best One

Why one must use professional binary options broker?

Digital options trading is one of the most profitable investment opportunities available in the market today. Since the new market regulations announced in the year 2008, the growth of binary options trading has really catapulted and more and more people are increasing their investments into binary options. Due to the short term investments and higher returns on those investments, Digital options trading has become one of the most popular market investment opportunities.

Investors can trade 24 hours and 7 days a week in the binary options market. At the same time, there is a harsh reality behind this type of investment. One must have thorough knowledge about the current market trends to get higher returns on their investments. Plus this market is highly dynamic and volatile in nature which indicates a strong need to keep constant eyes on the latest news and worldwide market happenings. This is where a reliable and professional binary options broker platform can help investors to make easy and reliable trades automatically.

How to Choose The Best Binary Options Broker?

Due to the continuous rise in the popularity of binary options trading opportunities, there is a growing demand for reliable and professional binary options broker platforms. Unfortunately, there are several digital options scams present in the market which try to sell the investors unreliable and untested binary options broker platforms. This can cause severe losses to the traders due to the lack of professional and reliable binary trading software.

While selecting a reliable and professional digital options broker program, one must inquire about the following features and requirements that every successful binary trading software possess.

Important Binary Options Broker Features you Need to Keep In Mind

1.) Simple and intuitive user interface – Professional and reliable binary trading program offers easy and simple to handle user interface that saves lot of time and headache for traders. There is usually no need to invest extra time to learn new features and controls of the program. Most of these programs are web based and users do not need to download or update the trading software on their own PC. Users must be able to use the program easily whenever and wherever they want. User friendly and interactive controls are the most important ones which we must observe while selecting the right binary options broker platform.

2.) Ability to invest into multiple assets – Reliable and professional binary trading software offers varieties of assets for the investment purpose. A trader should be able to invest into different types of market assets from forex, indices to stocks and commodities. One must pay attention to the ability of the program to invest into all of the available market assets to gain maximum profits from the trades.

3.) Availability of appropriate expiry periods – Some binary trading brokers provide weekly expiry periods while some provide hourly and end of the day options to their investors. To gain maximum control on our trades, it is important to select the binary trading software that provides maximum expiry periods.

4.) Maximum payout percentage – Professional and popular digital options brokers provide maximum payout percentage to their investors. One must look at the binary trading platform that can offer minimum 75% to 90% payout percentage for every won and lost investment. For every unsuccessful trade, there must be minimum 5% to 10% returns to the traders.

5.) Varieties of languages offered – To become more convenient with the usage of the binary trading software, it is essential that the language of the program must be your own mother tongue. There are some professional binary options broker platforms in the market that offer varieties of languages from English, Arabic, Spanish, Russian, Turkish, etc.

6.) Minimum initial deposit requirements – One must be able to open binary trading account at the website for free and no need to provide initial deposits. Look for those binary trading platforms that provide free registrations and minimal deposits.

7.) Varieties of payment options – Professional binary options trading platforms provide varieties of payment methods such as Paypal, bank transfer, credit card, etc. Look for such binary or digital options broker that offer multiple forms of payment withdrawal options.

8.) Higher bonuses – Some digital options broker offer up to 25% bonuses to their traders that also depend upon total turnover and initial deposit amount from the traders. Look for such trading platforms that offer higher bonuses to their users.

9.) Top notch customer support – High quality customer service is equally important to get timely support and assistance during all types of trades. Professional digital trading brokers and platforms always provide customer support in varieties of languages and via multiple platforms such as email, live chat, and telephone support.

Learn Forex Trading to Gain the Knowledge Required to Become Profitable in the Currency Markets

I am positive you’re not considering entering the currency markets as a social activity to fill up your day with something interested to do. If you’re like everybody else that participates in the FX industry, you here for one purpose, to make money and the more the better. The first step to obtaining your goal is of course to learn Forex trading so you possess the knowledge required to understand how to become a positive income producer thanks to this business.

Are you aware of the fact, that the Forex markets are an extremely highly leverage form of investing and trading. In fact, the stock markets are not even in the same league when it comes to providing margins to its clients. A typical stock brokerage firm will provide a margin of one to one. In other words, for every one dollar in your account, you can purchase two dollars of stock.

A typical Forex brokerage firm will provide margins of fifty to one, one hundred to one and even two hundred and fifty to one. This means for every one dollar in your account, you can control two hundred and fifty dollars of currency. This sounds great doesn’t it, and it is when that currency is increasing in value. But, if that currency is decreasing in value, then your account can be wiped out rather quickly when you’re utilizing those rates of margins.

Do you know that the use of margins is actually loans to you? I have news for you; businesses don’t make loans without charging interest. Starting to get interesting isn’t? Are you aware of the fact that they are trading and investing techniques and methods that if perfected and utilized properly can make those extreme levels of margins provided to you, work for you instead of against you?

Have you heard the terms, hedging, forward contract or option contract? All of what I have mentioned above is taught in any highly thought of currency course online today. If you don’t understand everything I mentioned and the proper methods to take defensive actions to protect yourself against there consequences, I will put this bluntly, you have no business even investing one dollar in the Forex market.

There are multiple currency classes where you can learn Forex trading online. Many of these have been on the market for years and there teaching and presentation material is simply exceptional. It only takes a little while to review these programs for yourself and find one that meets your needs. And who knows, maybe that class will enable you to inform your tax account that you are now in a new higher bracket, That would be nice, wouldn’t it?