Learn Online Forex Trading - My trade on 25-May-06

Learn Online Forex Trading - Details of my forex trade on 25-May-06 (Thursday)This is a very interesting trade I placed on USD/CAD currency pair. First let me tell you few things about my trading style -1. I trade on 30Min chart and 5 min. Chart.2. 30 Min. chart is used to judge market direction. 5 min chart I use to place entry-exit points.3. I use moving averages to judge market directions.4. I

Learn online forex trading - Technical Analysis - Candlesticks

Learn Online Forex Trading - Candlesticks PatternsCandlesticks ?? What are they doing in online forex trading? No..I am not talking about the candles that you light at home.Candlesticks is one of the most widely used indicators to check the market conditions. Make no mistake, It is used across all the markets for trading like Stocks, Options, Commodities, futures and Forex trading of course. On

Snap

Hi Forex Nation!!

I have a little tip to help with the dark side of trading.

All traders find themselves from time to time violating some of their own trading rules. There are legitimate times when it is OK for rules to be broken. For the beginner trader, this last rule should never be explored! If are relatively new to trading or you find yourself repeatedly make emotionally bad decisions while you are hanging on to a trade, this tip is for you!

Try this… (Especially if your technical exit has been reached (profit or loss) or you hear that inner voice going “get out, get out and you don’t!!).

When trading, place a large rubber band around your wrist. Anytime you violate one of your trading rules give it a good snap!! On exit rule violations give it 2 snaps!!

That will interrupt your bad thought process and break your habit of violating your plan. No, I am not sadistic, but trust me it will work!!

Happy (Ouch) Trading!!

FX Trainer Financial Services Inc, Creating Success in FX

Power of Full Engagement

A book review….

Hi Forex Nation!!

I have just read The Power of Full Engagement by Jim Loehr and Tony Schwartz. This is good stuff! The book challenges the most commonly held principal that the key to high performance is not through superior time management, but through superior energy management.

The authors focus on both physical and mental energy as they lead you down their theory through a series of real-life examples of past clients. The authors got there start as performance coaches of professional athletes. These athletes spend most of there time practicing their trade, managing their energy and developing mental and physical routines to ensure superior performance at the most critical moments of competition.

The author carries those traits into the corporate world. Recommending that high performance in the business world requires the same approach as an athlete. Managing energy and performance/personal renewal routines translates to peak performance and benefits well beyond your trading station.

I read this book and am now recommending it to you, the Forex Trader. Although this book has no mention of the markets or trading (I think that that is for the good!), these principals can be easily applied to our trading world. We need to be at our peak performance at the moment of truth also.

When we are executing trades is where we need to be at our peak performance. Ensure you are always at your peak during your trading sessions!


Happy Trading!!


Click here for this and other trading enhancement books.

The Da Vinci Forex Code

Hi Forex Nation!!

Did anyone see the Da Vinci code this weekend?? I did! No, I have not read the book, but every time I got on an airplane the past 2 years there was always someone reading this book!

Did you notice the references to Fibonacci all over the movie? I did, and was counting the sequence right along with John Langdon (aka Tom Hanks)! That got me thinking a little more about one of my favorite trading tools and what it all means. So I went hunting for some facts and this is what I found.

Leonardo Fibonacci was the Italian mathematician who was born around the year 1170 AD. His real name was Leonardo Pisano, but was better known by his nickname Fibonacci (“son of Bonnacci”). Fibonacci’s father was a diplomat and his son traveled with him during his formidable years studying mathematics and accounting.

In 1202, Fibonacci wrote Libre Abaci, a book about the mathematics he had learned on the road with his father. That book led to his famous number sequencing when measuring the ratios for which rabbits reproduce.

His sequence 0,1,1,2,3,5,8,13,21,34,55,… is that each number is the sum of the two preceding numbers. The interesting thing is that each of the successive numbers is equal to 1.168 of the prior number.

Check this out!

When looking at this geometrically you find that when you measure a triangle by 1.00 as the hypotenuse the opposing side ratios are .786 and .618. Hey, I have seen those ratios before!

When we make .786 the hypotenuse than the opposing side ratios are .618 and .486. No way!!

If we make .618 the hypotenuse then the opposing side ratios are .486 and .382. Right on!!

The Fibonacci ratios that I always focus on in my trading are:

Retracements:
38.2%
50.0%
61.8%
78.6%

Extensions and Expansion:
61.8%
100%
127% (note that INDU turned almost on this extension last week!!)
162%

Want some more or have you had enough? I thought you would want one more example of FIBOs in nature!

Look at your own hand:
You have...
2 hands each of which has ...
5 fingers, each of which has ...
3 parts separated by ...
2 knuckles

All Fibonacci numbers! How about this, the bones in your finger are all in Fibonacci ratios to each other too! Is this just a coincidence or not??

OK, OK I think I just gave everyone a headache. You are all probably thinking that I need to get away from my trade station more often! Bottom line is that you don’t really need to know the details of Fibonacci’s life or all the examples in nature.

The bottom line is that we all know how important these ratios are to our trading and it will pay huge dividends to learn how to apply these principals to our trading!!

Happy Trading!!

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More information on trading with Fibonacci can be found at FX Trade Central or Fib Master!!
If you have not checked out my Lens or don’t know what a Lens even is click on the links below and you will be on your way!!

Forex Journey Lens

Success in FX Lens

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