Catatan Harian Prediksi Forex...: Januari 2010

What is Technical Analysis?

23 Jan 2010

Technical analysis on the prediction of exchange rate movements based solely on statistics and price patterns Simply put, technical analysis is the analysis of the market based on price action. While fundamental analysis looks at economic factors and geopolitical circumstances (such as economic numbers, capital flows, and the major political events), in an attempt to predict exchange rates, technical analysis is based on the statistics and patterns in price movement for its forecastTechnical analysis on the prediction of exchange rate movements based solely on statistics and price patterns Simply put, technical analysis is the analysis of the market based on price action. While fundamental analysis looks at economic factors and geopolitical circumstances (such as economic numbers, capital flows, and the major political events), in an attempt to predict exchange rates, technical analysis is based on the statistics and patterns in price movement for its forecast. Technical analysis has gained popularity in recent history, especially the development of computerized trading continue to develop and active traders continue their strategies to best assess what is happening in the market at any time to refine. In today's marketplace, technical analysis has become an essential tool for every aspiring entrepreneur.
Why Technical Analysis Works •
Extremely popular, and thus provides insight into what many traders do • more clear and less controversial than fundamental analysis • A simple way to make commercial decisions Many traders believe that technical analysis is a self-fulfilling prophecy - in other words, it only works because it is popular and is used by many traders. For example, many technical traders put a 20 days moving average line on maps because the moving average is not statistically significant itself, but because it is a very common indicator used by active traders in all sizes.
The reason is simple: as so many traders make decisions off moving averages and other indicators, then the indicators should be closely monitored because they offer insight into what a strong majority of traders in the market are doing. For this reason, traders focus on the most popular indicators in the business community, and must be used in the most traditional way. This is the best way of tapping into the "psychology" of the market - in other words, it is a simple but highly effective way to understand what other entrepreneurs are and how to move the market because of it. Contrary to popular belief, it is not a study that complex mathematics or computer algorithms. It is rather a study to look at other traders use the same tools to understand what is happening in the market. Below is a list of the most used indicators, all of which will be discussed in the following lessons:
• Key Candlestick Patterns
• Fibonacci retracement
• moving averages
• RSI
• Stochastics
• MACD
• Bollinger Bands
While it may seem intimidating, technical analysis is actually quite simple - often much simpler than fundamental analysis. It requires only an abundance of the two qualities most needed for a successful trader: discipline and patience.
Different Time Frames
Technical analysis tools are valid at all times, but we recommend the daily charts for most of your analysis. Medium-term positions based on daily charts, tables an hour for the use of more precise entry points, have two advantages over short-term positions at 5 or 15 minutes charts. 1) The spread is less important for longer term position. 5 pips of a price target of 20 was a huge obstacle to overcome in the trade after trade. 5 pips from a 100 pip target is manageable. 2) longer term charts are statistically more reliable because they are based on more data.
Indicators have a higher degree of confidence on a daily chart than one hours 15 minutes chart or graph. Trading on a weekly or monthly chart would probably accurate from a technical standpoint than a daily chart would be, but a slower time frame means less accurate access, and the wider stops needed to chart a monthly trade are often outside the capacity many accounts. We recommend as a general rule, do not risk more than 2% of the balance of your account on a single trade, which is difficult with a monthly or weekly chart

22 Jan 2010

A market order is an order to buy or sell a currency pair at the current market price. Thus the FX Trading Station will always show two prices for each currency pair - the price you can buy (also known as the questions), and the price you can sell (also known as the bid).A market order is an order to buy or sell a currency pair at the current market price. Thus the FX Trading Station will always show two prices for each currency pair - the price you can buy (also known as the questions), and the price you can sell (also known as the bid).
Thus the market price of EUR / USD at 1.2200 to 1.2205 - meaning traders can buy the EUR / USD at 1.2205, but would have to sell at 1.2200. These prices reflect the current market prices, and traders who choose to enter market orders would be filled at the rate they see. The main advantage of the market orders is that they provide the trader that he / she will function. The main drawback is that the trader is not the best price they could have been given had they used a different type.
Another drawback - and one often overlooked - is that market orders are more conducive to his reckless and without discipline used. Use with other tasks, such as stop and limit orders, are better suited for helping companies stay disciplined. Entry Orders

• Advantage: more likely that the trader gets the price he / she wants.

• Disadvantage: can not reach the market rate given the trader, and so the operator may miss the opportunity.

All orders are essentially conditional entry orders, they will only be filled if the market reaches the specified rate. Suppose you are trading USD / JPY and the current quote is 120,50-55. You can buy one item to at 120.15, for example, so your order will only be filled when the market reached 120.15. This you may receive a better price. There are two types of entry orders: limit entry orders and stop entry orders.

What is the Margin?

If you supply a default cash account, you know that money must be deposited for the full amount of the position you are trading, or if you have a margin account for at least half of the position. This was in contrast to the FX market, where only a small percentage of the actual position value must be paid prior to entering the trade.
If you supply a default cash account, you know that money must be deposited for the full amount of the position you are trading, or if you have a margin account for at least half of the position. This was in contrast to the FX market, where only a small percentage of the actual position value must be paid prior to entering the trade.
This small deposit, known as the margin is not a deposit, but rather a performance bond or good faith deposit guarantee scheme to ensure against trading losses. The margin requirement allows traders to hold positions much larger than their account value. Margin requirements are as low as 1% (and as low as 0.5% on the mini-account), which means that for every standard lot size of 100,000 units, you must commit $ 1000. But, if you wanted a $ 100,000 check in the stock market, you would pay at least $ 50,000.
Even in the futures market, you should deposit at least $ 5000 for a $ 100,000 position control. On your trading station you can see that there are two types of margins: useful and used. You use margin is the amount of funds you have committed to existing positions, and your usable margin is the amount of money you have available to commit to new positions. Equity is your account balance plus or minus a floating profit or loss.
Suppose you open an account with $ 10,000. At the moment your balance and equity are both $ 10,000, your usable margin is $ 10,000 and you use margin is $ 0, as you have a box to place. Then buy 7 lots of USD / JPY, which you $ 7000 in equity to maintain. Buy your used margin is $ 7000 and your usable margin is $ 3000. This essentially means that the market losses of $ 3000 for your account falls below the required minimum margin of $ 7000, then the dealing desk closes all open positions can support. This automatic margin call feature prevents your account ever reach a negative balance.

Remember To Control Your Risk

20 Jan 2010

Trading is about risk management first and then on making money. To make money, you must continue to lose control. This means that you reduce the amount you risk of each trade a "reasonable" amount. To do this, you should use a stop loss order. As a rule of thumb (do not you love that?), You should not risk more than 5% of your account value on any one trade. Let's do an example to drive this point home. Let's say you open an account with $ 10,000 and your broker margin requirement is 1%. As usual currency traded in lots (or pieces) of $ 100,000 (1 lot = $ 100,000), this means that for every $ 1000 in your account (1% of $ 100,000), you are able to trade 1 lot of $ 100,000. This also means that a $ 10,000 account, you can trade a maximum of 10 Parties ($ 1000 for each party). In real life, this amount of trade much is too risky. Let us use the equation to see why: Max Lots = (Acct Size x% loss) / Stop Loss Price Let's assume that your% loss (or the maximum amount you are willing to risk per trade) is 5% and that your stop loss is 10 pips, or $ 100 (usually very active traders set a stop from 5 to 10 pips): Max Lots = (10,000 x 0.05) / 100 = 5 plots This means that 10 lots is two times the maximum amount of lots you should trade. Even though I'm like 5% rule of thumb, in reality less this is even better. The lower the figure, the longer you remains in the game. If we would have done the above example with 1% (an amount commonly used by traders strict) instead of 5%, the maximum number of parties would have been 1 instead of 5.

How to be Better Investor?

8 Jan 2010

Sometimes we make decisions regarding our poor investment. That `s why we keep making the same mistakes: to involve our emotions.

Here are some common mistakes that we do:

Greed: Many people can resist the temptation that `s why it is important to have a different account for investment.
Pride, we tend to let the pride of ownership inflate the value of our investments. Like all parents think that your child is the most beautiful, but that is not always the case.
Lust: we tend to jump in when we heard some news, but perhaps it is better not to react so fast, because you can save time and dollars.
Envy: the tendency to want what other investors can lead you to chase stocks or mutual funds, with yields more recent, but it may be a losing strategy.
Rabies: The most damaging mistake that we can do is to make the investment decision, because we are angry. It is better to focus on its portfolio `s best goals of individual investments.
Sloth: you must always watch your investments from scratch, it doesn `t matter if you don` t like something. It `s an issue of intellectual assessment.

The best advice you can receive is to know what you're doing, don `t do business or invest personally like any other work without any emotion.

About Successful Trader

7 Jan 2010

If you want to be a successful trader you need to know 2 things. The first is money management. You've probably heard dozens of times, some of you may also have implemented some form of management in their Lotto EA or trading strategies and I believe it will, just as it is.

In order to perform a proper money management you have to understand what the concept behind the two words is. Eventually you realize yourself that the number of games you intend to trade in your next should not be chosen by a function, the only variable that is how much money you currently have on your account. This can be achieved only with a certain kind of strategies we need to identify and describe first.

The Meaning of Money Management.
A concept is only 2 words: Money and Management.
To manage means to handle. When we talk about Money Management we are talking about money. What we want is to have direct control (management) for the way in which we invest our capital.

Now, when we place an order we have control over its volume (lots) are not included in "money" is directly involved. If we are managing our money with the knowledge, we must be able to translate this book for our currency deposit in order to estimate the potential losses associated with the order.

Traders Success
We had heard many times that if we want to win in Forex must never risk more than 2%. Be ', which allows you to keep in mind and we will see that it works.
What you do is just to quantify it is much more than 2% of capital and avoid the risk more than the sum time next time you open a position ... Sounds stupidly easy ... so why not you done?

If you want to win you must be willing to lose
At a first glance can say: win = good, missing = bad.
Following this reasoning is driven to believe that loss prevention is a good starting point for the long journey to becoming a successful Trader.
These strategies do not use Stoploss and let the losses grow until the market is finally back in their favor and the position becomes profitable.EAs developed on those strategies usually show very good profits and not losses at all (win relationship is usually more than 95%). This behavior is still stable for a relatively short period and when the loss is unexpected and is great ... sometimes a single series of losses is sufficient to exhaust the account empty. And 'the typical mistake of beginners who try to code his first Grail. There.Systems like this was working well until the market has a strong tendency in one direction, but it becomes very dangerous when the trend disappears or changes of direction.
Ignoring the loss is certainly not the way to go if we want to see our capital growth in the long / term, medium term.
We want our strategies to be able to survive in the toughest conditions you can find out there so you want to avoid using a system that works only for short periods, introducing the risk of losing much of our capital, when the things go wrong.

There Is No Safe Trading without Stoploss
Before coming to describe how to implement Money Management in a practical way, it's worth remembering something that kills a large number of beginners and experienced traders Traders.Many without the use of SL is difficult. That the codes tend to think that an EA will take care of everything, after market close and open positions babysitter ready to quit when things go wrong. Nothing could be further from the truth when they place a heavy truth.In SL I do not know when the position will close when the market turns against you ... actually you can not be certain that it will be closed to all! How can we expect then to manage your money with the knowledge?
A strategy that does not use hard Stoploss CAN NOT 'implementation of sound money management!
Level of SL are always chosen by looking at the current market conditions, the so-called price action. Who uses a fixed SL (say, very common 20 or 50 pips) probably has a very narrow view of the market and trade in general. SL, in fact, must be large enough to avoid being swept away when the market retraces back at you ... but not too large or you would have a very limited performance compared to the risk that's on the market.
As a general rule:
you want to have a lot of support / resistance levels as possible between current prices and your SL
This will ensure that, if the market turns against you has the ability to slow down and get back in the right direction before hitting your SL.

I hope we can help you achieve your goals and understand a little 'more about Forex and how to trade in it.

Things that money has cost us what we do

5 Jan 2010

There are somethings that money has cost us what we do, not paying attention, here are some of them :

Credit Card: Make sure you want to get the best rates and deal, stop paying more. If you do not receive a change in fair agreement for another company.
Debit Card: If you pay by debit card please be sure to write down the amount so you know what they have in you account, and will not pay for rejecting controls. It also makes it easier to track your money.
Ingnoring bank charges: Make sure you know what your bank is charging and try another bank that will not charge their office or not.
Investing in the right things: Create a weekly to-do list of your financial decisions (saving and spending) and then prioritized in terms of bang-for-the-buck over time.
Expenditure, without goals: if the money spent, but don `t why and where you need to pay attention to your spending habits and change them if necessary. Don `t waste your money.
Track spending: knowing exactly where your money is going.
Exercise: think this will help my finances, you notice that when you exercise to reduce your medical bills, so get moving and get a healthy lifestyle.

some mistakes when we use credit cards

1 Jan 2010

There are a number of errors we credit that really affect our credit score and cost us money to see what they are:

Late Payment: Even if you just too late for a few minutes it will cost you extra, interests and more.
Paying only the minimum: Credit cards holding that the time you pay the debt. It will not necessarily affect your credit score, but that does not mean that a good practice. Send in only the minimum payment "is certain to keep you in debt longer, and you go to one heck of a lot more in interest to pay," says Francis.
Buy on a card just for the rewards: It won `t affect your credit score, but you can get in a lot of debt without you noticing. Be careful with your shopping.
Missing a payment of: Not only will you be hit with fees, interest and other penalties if you miss a payment, but you'll probably see a rise in your interest.
Having too many cards: "There is rarely a good reason to get a new card if you have a general-purpose card, a rewards card and got a low interest rate card," says Cunningham.
Maxing a map: This really affects your credit score, because they evaluate how to manage credit. "It means you are not saved enough money to cover unexpected costs.
Playing the game transfer: It is not a good game to transfer credit from card to card, they just see how much debt you have.
Debt Arrangement Plans: Besides bankruptcy, debt settlement is the worst thing you can do to your credit score, "says Francis.
Getting a Cash Advance: You may feel like free money, but the truth is something else: You probably have a fee associated with the advance, and you'll probably pay a higher interest rate than you would using the map associated
Using a map on a pinch: When the refrigerator went on the fritz or the furnace conked by mid January, you may not have the resources to fund the immediate replacement. Fitting the bill on a credit card - and pay quickly over a few months - is a pretty solid option, says Cunningham.