Forex Currency Trading-how to harness today's trading technology

Self control and discipline can be nurtured and strengthened over time and are extremely valuable qualities to develop. In this article we'll talk about how these qualities relate to current and projected future developments in the Forex industry.


Manual Forex trading is a time-tested and market proven method for trading Forex. There is no doubt that manual Forex trading is here to stay. Many of the most skilled full time Forex traders prefer this method. The key words here are skilled full time traders.


You see, manual Forex trading can be time consuming. While the process of Forex technical analysis gets a bit easier and more efficient with practice in manual Forex trading it can never be completely eliminated. Manual Forex traders will always need to complete their technical and perhaps equally fundamental analysis prior to executing their Forex trades.


As you know, fundamental Forex analysis has to do with looking at economic indicators within and between nations. Fundamental Forex indicators such as Consumer Price Index, Non-Farm Payroll, Gross National Product, Industrial Production, Producer Price Index, Retail Sales, Balance of Payments and Interest Rates are many of the most common fundamental Forex indicators traders seek to incorporate in their analysis.


Needless to say using both fundamental and technical analysis is quite complex and can be a very time consuming challenge. Except for "news" traders many Forex traders default to primarily using Forex technical analysis.


A prime example of "news" is the Non Farm Payroll announcement. This announcement normally takes place on the first Friday of each month at 8: 30 am Eastern Time. Forex traders who trade the news position themselves in the market to capture as many Pips as possible during the market corrections that take place just after a "news" release. Forex traders who trade the news rely quite a bit on fundamental indicators in making their trade decisions.


New Forex software programs that gather and interpret Forex fundamental indicators have been around for a while and they will continue to improve their accuracy with time.


Speaking of Forex software programs, one of the most rapidly developing forms of Forex software are "Expert Advisors". Forex Expert Advisors (EA's for short) are software programs that operate within your Forex trading platform. So far, the industry leading Forex trading platform for EA's is the Metatrader 4 Trading Platform designed by ODL Securities.


There are several advantages to using an EA. Perhaps chief among these advantages is the fact that the "on-board" programming of the EA eliminates the need for the Forex trader to spend a lot of time doing technical analysis. Once an EA is properly initiated, it will automatically trade a specified Forex pair, or pairs, using a predetermined strategy or Forex trading approach.


This can be a huge time-saver.


With an EA the Forex technical analysis is handled by the Forex trading logic programmed into the EA. The EA functions off or a set of predetermined "rules" which guide its operation. The EA enters the Forex trade when the entry conditions are with and exits the Forex trade when the exit conditions are with. Each EA has a different set of predetermined rules. Each rule is typically controlled by one or more user adjustable "switches". These switches are optimized at the time the EA is delivered to the user and switch settings can be saved as a profile. Once the default switch settings are saved, the user can make changes to the switch settings if they wish. It is important to remember that the best way to determine EA switch settings is through the back testing process.


Back testing is a process by which each switch or set or switches are methodically tested using actual past market data from your Forex trading platform. While back testing takes much less time than forward testing it is still a painstaking and time consuming process but the results can be very revealing and informative. This process will tell you such things as, for example, which time frame (s) and currency pair (s) are the most profitable to trade.


Back testing is absolutely necessary in order to optimize the settings for an EA and as such it is very valuable process but the process is not perfect. Data mismatches can occur during the back test process which can degrade the results somewhat. The source of these data mismatches is not known at this time but it is an industry wide problem and the solution to the mismatch problem is being vigorously pursued.


Even with its flaws, the back test process remains or utmost importance when it comes to optimizing the performance of any EA.


The time saving nature or using an EA coupled with the stress reducing effect that it has on the Forex trader has boosted the popularity of this child or Forex trade automation.


It is just this kind of Forex trade automation that is helping to fuel the explosive growth of the retail Forex market. It is no longer necessary to stay glued to your computer monitor and "baby sit" your Forex trades. Not only that but a properly designed EA can perform functions that even the most skilled and experienced Forex traders find difficult. For example, there are EA's on the market today that can trade multiple currency pairs simultaneously. Other EA's can trade multiple Forex hedge trades at the same time!


We are in the midst of a quiet revolution toward increased Forex trade automation. It is safe to say that the trend toward atomization Forex trade is likely to continue and strengthen over the next several years. Because the advantages of using an EA outweigh the disadvantages, the popularity of using EA's is at an all time high and likely to set new records in the near future.


Even though EA's are reducing the need for Forex technical analysis they are not reducing the importance of self-control and discipline. It is common for Forex traders who are new to EA trading to have an urge to "manual" trade using the EA. This is a mistake, first of all it defeats the purpose of the EA and second it can result in preventable loses.


With EA trading the EA is your Forex trading method. The EA trader is well advised to allow the EA to do its work without trying to manually over-ride it (Plan your trade-trade your plan).


If possible, examine the back testing and forward testing results of an EA before you purchase it. Always demo trade with a new EA to confirm its operation before using it in a live account.


EA trading is gaining in popularity by leaps and bounds. EA trading is part of a major trend toward increased automation in the world of Forex. This trend is expected to expand and strengthen in the years ahead.


Being skilled in Forex technical analysis is always an asset but EA trading relies more on the Forex trading logic of the EA than it does the technical skill of the trader.


Self control and discipline are equally important whether you are Forex manual trading or EA
trading. Combine the personal qualities self control and discipline with using a well designed EA and you are on your way to profiting in Forex-the world's largest market.


Disclaimer-This article is for educational purposes only. It is not offered as investment or legal advice. The reader assumes all responsibility for any and all profits or losses incurred by his or her trading activities.


 


Forex Mentor Course - My Full Story

I began my first forex trade three years ago, at this time, information sources of trading available were very limited, I could not get the the suitable information on online forex course for free trading to allow me to begin a live forex trading successfully, all my sources of information and trading strategies were obtained from forex forums posts and the trial and errors of former forex traders and their trading strategies, which were evolved to suit their needs and their potential financial capabilities.


I had a long time with a forex demo account for several months, I did not dare to enter into a real live forex trading, because my capital was very limited, and there were no free online forex courses which I can get to help me in my trading. But one day I landed on a website which sell a forex training course package, this website claimed that the its strategy results in a profit rate around 80% in all cases, I read more on this course enough to to be motivated to buy it, especially its price was very suitable to me ($99 total for the 5 ebooks). Once I got the ebooks, I began reading every single word in them with voracity, and - for honesty - it was the first time for me to read in details about forex money management and risk management and their vital rule in forex trading, but this was all I had gotten from this course, nothing otherwise.


I tried to contact the author of the forex course to query him about several points regarding his training program, and guess what? I did not get any response from him, I contacted him up to 10 times, however I did not hear one word.


This was the lesson #1 I learned: It is not about the training program, it's about the AUTHOR of this program, is he alive man? is he a real forex trader OR: he's just a teacher of theoretical lectures in forex trading!


The lesson #2 I learnt was: What is degree of the technical support provided after purchasing his forex training program? shall I find him when I need him?


After a whole year, I would have left almost forex trading and preoccupied by other businesses, but one day while surfing on the internet, I found by accident the Forex Mentor website, and once landed on the main page, at the first sight I cynically laughed and said to myself: "Another Scam!!"


However, I started reading all the information on his training program and the main idea behind it: Pivot Points. I began once again thinking seriously to return to forex trading, and decided to purchase this program of Peter Bain, but for the first glance, I was disappointed for its high price ($495 for a hard copy on CDs, or $349 of the digital copy). After a short time of deep thinking and trying to decide whether I'll buy or not, I said to myself, I lost in the forex trading in the past several thousand of dollars, let them be several thousand PLUS $495!!


I read every word on the Forex Mentor Website, I collected every information available about the Author (Peter Bain) and his history in the forex and stocks market, I read many independent reviews about this course. Despite of that, The most important factores encouraged me to buy forex mentor course were as the follows:


The Concept of Forex Mentor Trading System


1- The Program Author: Peter Bain, I read a lot more about him on the internet and on his long experience in the area of trading in stocks, currencies, and the large number of successful traders who trained by him who achieved good trading results with the favor of his forex trading advises.


Peater Bain has developed a very successful trading strategy based on Pivot Points, which depends primarily on the concept of support and resistance: When you see price violate a pivot point convincingly, there are automated trading systems out there that automatically kick in and buy or sell, depending upon where price is going. So, in essence, these two factors alone account for why other indicators are left breathing dust. Bar patterns, MACD divergence, different time frame readings, and trendlines are definite precursors to price changing direction but, in the final analysis, where price is in relation to its nearest pivot point, is the big clue. Tie all these indications together, and you are sure to out-fox price's next move.


2- This coach always exists whenever you need him, he provides One-on-one feedback, he believes that every forex trader trainee has different needs and requires special attention, this feature adds high value to his forex training program.


3- Members only forum, where members can talk just about everything related to the Forex market and the Forex training program. This is the most important characteristic of this program, getting in touch with other forex traders add to your learning experiences.


4- Free membership for 6 months ($ 199 value) membership alone equal times the value of this course, after the period of six months, you will be deducting $100 for renewal, through this membership you will receive on a daily basis the following material:


Daily Video Questions and Answers - That's right! I will personally answer your email trading questions via live streaming video. You probably think we've gone off the deep end! But again, we are fully committed to your success! Daily Trading Examples and Reviews - Success by repetition! Everyday, I will illustrate successful forex trading techniques using the most recent trading markets. These videos streamed to your PC put you right in front of the action! No more reading static charts and text. You can watch these videos any time for as many times as you like. Daily Pivot Data for the 6 Major Pairs - We calculate the daily pivots for all the major currency pairs & make them available to you. So you don't have to do the work! Forex Online Pivot Calculator - Fine-tune your forex trading by calculating your own pivot points. Trade other markets using these same pivot point principles. Meet Local forex traders in your area through one of our dozens of local user groups all over the world. Member Discussion Forum - Discuss forex trading strategies and tips with thousands of other like-minded traders from around the world in our member discussion forex forum.


 


Author: Hatem Serag - For more Tips and Ideas about the Best methods to start trading Forex Successfully please visit my websites: [http://www.eforexcourse.com] - for more details on the top rated forex training courses please visit: [http://www.eforexcourse.com/forexmentorcourse.php]


Forex Options Market Overview

The forex options market started as an over-the-counter (OTC) financial vehicle for large banks, financial institutions and large international corporations to hedge against foreign currency exposure. Like the forex spot market, the forex options market is considered an "interbank" market. However, with the plethora of real-time financial data and forex option trading software available to most investors through the internet, today's forex option market now includes an increasingly large number of individuals and corporations who are speculating and/or hedging foreign currency exposure via telephone or online forex trading platforms.


Forex option trading has emerged as an alternative investment vehicle for many traders and investors. As an investment tool, forex option trading provides both large and small investors with greater flexibility when determining the appropriate forex trading and hedging strategies to implement.


Most forex options trading is conducted via telephone as there are only a few forex brokers offering online forex option trading platforms.


Forex Option Defined - A forex option is a financial currency contract giving the forex option buyer the right, but not the obligation, to purchase or sell a specific forex spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the forex option buyer pays to the forex option seller for the forex option contract rights is called the forex option "premium."


The Forex Option Buyer - The buyer, or holder, of a foreign currency option has the choice to either sell the foreign currency option contract prior to expiration, or he or she can choose to hold the foreign currency options contract until expiration and exercise his or her right to take a position in the underlying spot foreign currency. The act of exercising the foreign currency option and taking the subsequent underlying position in the foreign currency spot market is known as "assignment" or being "assigned" a spot position.


The only initial financial obligation of the foreign currency option buyer is to pay the premium to the seller up front when the foreign currency option is initially purchased. Once the premium is paid, the foreign currency option holder has no other financial obligation (no margin is required) until the foreign currency option is either offset or expires.


On the expiration date, the call buyer can exercise his or her right to buy the underlying foreign currency spot position at the foreign currency option's strike price, and a put holder can exercise his or her right to sell the underlying foreign currency spot position at the foreign currency option's strike price. Most foreign currency options are not exercised by the buyer, but instead are offset in the market before expiration.


Foreign currency options expires worthless if, at the time the foreign currency option expires, the strike price is "out-of-the-money." In simplest terms, a foreign currency option is "out-of-the-money" if the underlying foreign currency spot price is lower than a foreign currency call option's strike price, or the underlying foreign currency spot price is higher than a put option's strike price. Once a foreign currency option has expired worthless, the foreign currency option contract itself expires and neither the buyer nor the seller have any further obligation to the other party.


The Forex Option Seller - The foreign currency option seller may also be called the "writer" or "grantor" of a foreign currency option contract. The seller of a foreign currency option is contractually obligated to take the opposite underlying foreign currency spot position if the buyer exercises his right. In return for the premium paid by the buyer, the seller assumes the risk of taking a possible adverse position at a later point in time in the foreign currency spot market.


Initially, the foreign currency option seller collects the premium paid by the foreign currency option buyer (the buyer's funds will immediately be transferred into the seller's foreign currency trading account). The foreign currency option seller must have the funds in his or her account to cover the initial margin requirement. If the markets move in a favorable direction for the seller, the seller will not have to post any more funds for his foreign currency options other than the initial margin requirement. However, if the markets move in an unfavorable direction for the foreign currency options seller, the seller may have to post additional funds to his or her foreign currency trading account to keep the balance in the foreign currency trading account above the maintenance margin requirement.


Just like the buyer, the foreign currency option seller has the choice to either offset (buy back) the foreign currency option contract in the options market prior to expiration, or the seller can choose to hold the foreign currency option contract until expiration. If the foreign currency options seller holds the contract until expiration, one of two scenarios will occur: (1) the seller will take the opposite underlying foreign currency spot position if the buyer exercises the option or (2) the seller will simply let the foreign currency option expire worthless (keeping the entire premium) if the strike price is out-of-the-money.


Please note that "puts" and "calls" are separate foreign currency options contracts and are NOT the opposite side of the same transaction. For every put buyer there is a put seller, and for every call buyer there is a call seller. The foreign currency options buyer pays a premium to the foreign currency options seller in every option transaction.


Forex Call Option - A foreign exchange call option gives the foreign exchange options buyer the right, but not the obligation, to purchase a specific foreign exchange spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the foreign exchange option buyer pays to the foreign exchange option seller for the foreign exchange option contract rights is called the option "premium."


Please note that "puts" and "calls" are separate foreign exchange options contracts and are NOT the opposite side of the same transaction. For every foreign exchange put buyer there is a foreign exchange put seller, and for every foreign exchange call buyer there is a foreign exchange call seller. The foreign exchange options buyer pays a premium to the foreign exchange options seller in every option transaction.


The Forex Put Option - A foreign exchange put option gives the foreign exchange options buyer the right, but not the obligation, to sell a specific foreign exchange spot contract (the underlying) at a specific price (the strike price) on or before a specific date (the expiration date). The amount the foreign exchange option buyer pays to the foreign exchange option seller for the foreign exchange option contract rights is called the option "premium."


Please note that "puts" and "calls" are separate foreign exchange options contracts and are NOT the opposite side of the same transaction. For every foreign exchange put buyer there is a foreign exchange put seller, and for every foreign exchange call buyer there is a foreign exchange call seller. The foreign exchange options buyer pays a premium to the foreign exchange options seller in every option transaction.


Plain Vanilla Forex Options - Plain vanilla options generally refer to standard put and call option contracts traded through an exchange (however, in the case of forex option trading, plain vanilla options would refer to the standard, generic forex option contracts that are traded through an over-the-counter (OTC) forex options dealer or clearinghouse). In simplest terms, vanilla forex options would be defined as the buying or selling of a standard forex call option contract or a forex put option contract.


Exotic Forex Options - To understand what makes an exotic forex option "exotic," you must first understand what makes a forex option "non-vanilla." Plain vanilla forex options have a definitive expiration structure, payout structure and payout amount. Exotic forex option contracts may have a change in one or all of the above features of a vanilla forex option. It is important to note that exotic options, since they are often tailored to a specific's investor's needs by an exotic forex options broker, are generally not very liquid, if at all.


Intrinsic & Extrinsic Value - The price of an FX option is calculated into two separate parts, the intrinsic value and the extrinsic (time) value.


The intrinsic value of an FX option is defined as the difference between the strike price and the underlying FX spot contract rate (American Style Options) or the FX forward rate (European Style Options). The intrinsic value represents the actual value of the FX option if exercised. Please note that the intrinsic value must be zero (0) or above - if an FX option has no intrinsic value, then the FX option is simply referred to as having no (or zero) intrinsic value (the intrinsic value is never represented as a negative number). An FX option with no intrinsic value is considered "out-of-the-money," an FX option having intrinsic value is considered "in-the-money," and an FX option with a strike price at, or very close to, the underlying FX spot rate is considered "at-the-money."


The extrinsic value of an FX option is commonly referred to as the "time" value and is defined as the value of an FX option beyond the intrinsic value. A number of factors contribute to the calculation of the extrinsic value including, but not limited to, the volatility of the two spot currencies involved, the time left until expiration, the riskless interest rate of both currencies, the spot price of both currencies and the strike price of the FX option. It is important to note that the extrinsic value of FX options erodes as its expiration nears. An FX option with 60 days left to expiration will be worth more than the same FX option that has only 30 days left to expiration. Because there is more time for the underlying FX spot price to possibly move in a favorable direction, FX options sellers demand (and FX options buyers are willing to pay) a larger premium for the extra amount of time.


Volatility - Volatility is considered the most important factor when pricing forex options and it measures movements in the price of the underlying. High volatility increases the probability that the forex option could expire in-the-money and increases the risk to the forex option seller who, in turn, can demand a larger premium. An increase in volatility causes an increase in the price of both call and put options.


Delta - The delta of a forex option is defined as the change in price of a forex option relative to a change in the underlying forex spot rate. A change in a forex option's delta can be influenced by a change in the underlying forex spot rate, a change in volatility, a change in the riskless interest rate of the underlying spot currencies or simply by the passage of time (nearing of the expiration date).


The delta must always be calculated in a range of zero to one (0-1.0). Generally, the delta of a deep out-of-the-money forex option will be closer to zero, the delta of an at-the-money forex option will be near .5 (the probability of exercise is near 50%) and the delta of deep in-the-money forex options will be closer to 1.0. In simplest terms, the closer a forex option's strike price is relative to the underlying spot forex rate, the higher the delta because it is more sensitive to a change in the underlying rate.


 


Forex Secret - Forex Literature As A 90-95% Of The Traders Loose Their Deposit (Part I)

This delusion globally entails identical aftermaths: 90-95% of traders turn steady to loose their deposits having studied books by Bill Williams, Alexander Elder, Thomas Demark, J. Schwager, et al.


Following the burn down of their first deposit trader's plunge themselves again into scrutinizing Forex scholars, in this manner suffering losses of the second, the third and subsequent deposit. I will hereinafter try to elucidate where from the above regularity grows, so that no trader repeats his forerunners' mistakes.


This statistics is common knowledge: 90% of traders constitute Forex losers... But the figure has always been giving rise to a leviathan of my doubts. It isn't because of somewhat different 95%-5% loser-to-winner ratio quoted in the Van Tarp and Brian June "Intraday trading: secrets of mastership". With 90% quoted universally, there naturally emerges the question, as to whether there is someone capable to check, to specify or to disprove the above figure.
NO ONE IS, besides the directors of largest Western banks providing streamline Forex quotes, but having never raised the issue.


WHY? Because should this statistics be published, there will be sharp and ultimate decline in number of those chasing easy profits from the world Forex market. Otherwise banks would not keep mum in advertising purposes. Neither would they be silent if losers constituted at least by few points less than 90%. In any advertising, customer attraction is ensured by quoting beneficial maxima and non-lucrative minima. This has always been, is being and will always be a universal practice.


As a conclusion, 10% Forex winners is a maximum result among traders. It's them, who have understood Forex market absolutely simple truisms and who attained steady daily earnings in amounts being gained by others within years or even the whole of life.
Certainly, those are to be recollected, who in late 80s were the first in the ex-USSR to grasp laws of commerce and who began accumulating their initial stock. The rules used to be so simple that presently any schoolboy or a first-year student can show the way the capital might have been easily scraped up and augmented on the USSR debris and in the course of market relations being established in the post-Soviet space.


I do exactly allow for the fact that through the years a new generation will be laughing at the way we are now incapable to comprehend the laws, where under currency rates either spike up or fall down, all of a sudden.


With this provision, those seeking fast money at Forex have a much greater time limit than the ones engaged in capital building in the post-Soviet space (Forex market is incommensurably greater than that in the ex-USSR), but not to the extent thought by many.


By now trends are thoroughly less numerous than they used to be 10-20 years ago. By way of taking a glance the charts history You are in the position to understand the way traders used to earn under 20- 40 pts spread, commission and slippage. A trend was followed by a trend at that epoch.


AND WHAT'S NOW? Nowadays many of traders are impotent to gain under 3 pts spread without commission and slippage.


Thus, this book is intended for those willing to perceive Forex market laws.
In order to get understanding of the way 5-10% of successful traders obtain profits, let's at the outset analyze the reasons and the way the outstanding 90% of traders suffer losses. The 90%-figure looks scaring, to say nothing of 95% or 98%. It occurs despite the amount of literature on the issue equals to hundreds of fundamental books, written by authors, having gained capitals expressed by means of more than 7-digit figures (G. Soros, B. Williams, A. Elder, T. Demark).


Thus, the above minimum of 90% of smart, well-read, broad-knowledged people:


- scrutinize the really great traders' heritage;


- open accounts with Forex Broker's and banks, start trading and...


- loose funds up to complete rout!


AND WHERE'S THE LOGIC? The answer springs to mind by itself... There's something wrong in the literature (by the way, recognized throughout the world, where the deposit-killing statistics is as disappointing as it is in our country) so long as its studying yields such oppressive results.


STRANGE? No, rather natural, than strange on account of the following:


1. Being a great trader is not indicative of everyone being a great teacher.


2. Multitude of rules elaborated by scholars 10-40 years ago, has grown obsolete, since the Forex market is changing.


3. The scholars HAVE NOT revealed ALL the secrets even WITHIN THE FRAMEWORK OF THE THEN


FOREX, therefore by now their advice and recommendation turn out either obsolete or naive.


Thus, once one's advice and recommendations bring every 9 of 10 market participants to loose their money in each country, where one's books have used to be published and have enjoyed all sorts of hosanna in the press, THEN ONE IS NONE OF A TEACHER.


Naturally, no trader will reveal his professional secrets to the full. But when studying Forex literature one gets astonished by a negligible extent the above secrets are "confided" at all, with a book on Forex containing 99% of common truth and 1% only of useful novelties. But should one train up even several thousands perspective traders, one will in no way burden oneself with competitors, due to the Forex market huge sale nature. Beyond a shadow of a doubt the above traders are really great. You may agree or not, but anyone, having earned USD1 bn or more, deserves being named "great". So, one's books should be published as memoirs. I am not attaching any irony hereto, since these persons have acquired gains by virtue of their minds and labor, as opposite to Rockfellers, who inherited their fortunes or to Russian oligarchs, who either stole or got their capitals dirt-cheap from state authorities.


Hopefully, understandable is the difference between such editions and manuals for beginners.


G. Kasparov, say, is far from writing manuals for chess beginners, since the job can be better completed by others with this fact not at all undermining Kasparov's being a great chess player. And his advice and recommendation is sure to be of interest rather to a close circle of grand masters, than to those having touched the chess for the first time.


Actually Kasparov is but to be respected for not being tempted by the lust for fast money, by virtue of his name in the chess world and by way of cooking up manuals for beginners.


At Forex, by contrast, and for some reason, everyone deems oneself a teacher, which fact results in millions educated people worldwide leaving stock market being disappointed, angry with an inferiority complex life-time pursuit.


And hence, the unanswered question for them: is that all a fraud or not, since gains are midget, whereas losses are titanic?


I am recalling the book titled "The Alchemy of Finance" by G. Soros (the one I've read in early 90-s). I admit, it's interesting, instructive..., but it is all narrated in so an inarticulate and tangled manner. As indicated in the foreword by an American investor, the theory has hardly been understood by few only.


So what's the use of writing in such a manner? A theory may generally be complicated to any extent, BUT IT MUST BE wrapped in a simple, clear and understandable wording.
You are welcome to attempt to read the above book once You have time to. Shortly, the Soros reflexivity theory of the countries' cyclic development may easily bear a couple-sentence confinement:


1. Following liberation from totalitarian yoke, a country is granted credits, then, there is a rapid growth and flourish of economy.


2. As soon as the above credits are to be paid back, a country's economy faces a natural recession.


Is it as difficult? The question may be addressed to a schoolboy (to say nothing of an American investor): when should those countries' companies' shares be purchased and when they are to be advantageously sold in order to acquire maximum profit? What's going to happen in case one is too late to sell the shares, shortly exhibiting an impetuous growth in price?


Propounded long before, the Soros theory has been entirely corroborated in August, 98 by the dismal practice established in Asian and Pacific countries and later in Russia.


There still is another question: how inarticulate should Soros have been to enable his theory to be grasped by few only?


The second part of the book is not worth retelling. Reading its original is sure to be much more instructive with my annotation leaving no conundrums therein.


The theory is permeated by Soros's strategy: enter long on what's shortly going to enjoy price growth with a 100% probability and "pull out" Your money along with profits before the companies enter crisis, thus facilitating bankruptcies thereof.
This is the way I clearly lecture my students on Forex-related complexities, thus conveying my logics to them. Despite its own complexities (news, TA, corrective actions, etc.), Forex is essentially reduced to a very simple truth: at a certain moment one should not be late with going long or short on a currency with "tertium non datum".


And when asked if the Williams Alligator needs something to be added thereto, the majority of my students reply "Yes!", indicating what exactly is to be added.
I'll present a detailed vivisection of the issue in a separate chapter by way of proving that the Williams Alligator is but 50% effective.


Fig. 4. H1 EUR chart as of April 12, 2005. (See Note below)


The Alligator's jaws display upward opening with a fractal formed at 1.3006. According to Williams, one should enter long one point higher, i.e. at 1.3007. Upward motion continues extra 11 points. Then the rate sharply swivels to fall down by 170 pts.
Another example.


Fig. 5. H1 EUR chart as of April 22, 2005. (See Note below)


Please, figure out 1.3094, 16 pts above the previous fractal, following the Alligator upward opening. Thereafter, a sharp down swivel covering 140 pts.
Hundreds of similar examples may be drawn. But what are the implications?


With the Alligator's mouth opened, 50% of entries should be pro-Williams while the outstanding 50% - counter-Williams (i.e. vectored opposite to the Alligator mouth opening). When embarking on Forex, You must possess clear knowledge of the difference between either of the above 50%-portions. Otherwise..., You are doomed to loose even if You follow Williams's technique, let alone other ones.


Even my students are in the position to advise what is to be added to Alligator in order to realize proper entry vectoring. Least of all would I want this example to be taken as a personal criticism of Bill Williams, whose contribution to the Forex theory is a significant one. And the majority of traders, like me, used to begin earning after studying HIS books. But not to go astray..., even without any addenda Williams managed to make a tremendous fortune, since a skilled trader (moreover being the Alligator's father) is capable to differentiate between a steady travel and a pullback, or, say, a flat, or, visa versa, a trend low for the entry to be vectored oppositely. It is all fairly understandable for an experienced trader. But what about beginners as regards their interpretation of a flat, a recovery or a trend change?


These folks are sure to require assistance, especially, in information not presented in literature on Forex.


Without this knowledge a trader will never perceive the ABCs of stable daily earnings. But why the Forex scholars do not clear out the issue? This query is to be addressed to them, not to me. While reading these opuses, I am getting horrified at the fact that we are being foisted expensive high-sounding titled books, which are not going to ever teach a trader how to attain profits at the market.


Let's open one of them (E. Nayman's "Trader's Minor Encyclopedia" and "Master-trading: Secret Files") to get the understanding of the way almost all the books on Forex are written and supposed to have the price of USD20-100.


You may agree or not, but the name looks very beautiful and pretentious: "Master-trading: Secret Files", 320 pages of sheer secrets...


HOWEVER, I HAVEN'T FOUND ANY SECRETS THERE! You are welcome to discuss an argue Yourself:


1. "The interrelation between fundamental factors and exchange rate dynamics" being a detailed story of how a country's macroeconomic growing, benign rumors trading and political stability promote the exchange rate growth.


A "valuable" secret to be practically encountered in any Forex edition. But below is a real FA secret (not paid any attention to by Nayman): why does currency use to reverse against its country's economic news? A whole chapter here will be dedicated to the issue.


2. "Construction of two moving averages on a single chart and twin combinations thereof". The author furnishes a "wise" recommendation: entries should be made in the direction the MAs diverge (adding secretly that the most effective MA combination is 21, 55, 89, etc., as per Fibonacci).


The pseudo-secret nature of the above recommendation underlies the fact that any MA combination (should it be 21+55, as the author's; 10+20 as in many Western trading systems; 5+8+13 as per B. Williams or 1+21 as used by numerous traders) yields the same results.


Ok. It all looks great. However, E. Nayman et al., seem to have circumvented the MA intersection chief secret, through which traders suffer constant losses: a "lighter" MA has crossed a "heavier" one, say, upwards, but... thereafter there is sharp downturn resulting in the MAs intersection again.


Fig. 6. GBPUSD H1 chart as of April, 21-26, 2005. (See Note below)


A fivefold reciprocating crossing of MA 21 and 55. You are welcome to calculate traders' losses.


Now, let's call it a day with examples. The MA intersection technique operates perfectly in certain circumstances, while turning out impotent in others, thus inflicting losses upon traders. No criteria have ever been stipulated by Forex scholars as to entries to be effected pro- or counter-divergence of moving averages.


3. MACD construction and analysis. What sort of secret may one expect from the following statement of Nayman's: "a subsequent high being lower than the preceding one suggests a bullish trend depletion or even its changing with the same being visa versa under minimum MACD values". Much of a secret, isn't it? I thought it were the MACD operation principle, familiar to any Forex novice. The secret-fancier B. Williams hasn't even taken effort to advise to perform inputs change from 9, 12, 26 into 5, 34, 5 to provide for a lag killer.


Assuming the above, authentic MACD secrets are not paid any attention to by scholar, which fact inflicts losses upon traders. The situation comes into effect, when upon a divergence formation, no trend change is observed with another same-trend wave taking place instead.


Fig. 7. GBPUSD H1 chart as of April, 2005, where MA21 crosses MA55 with slight rise and sharp downturn. (See Note below)


Another example:


Fig. 8. GBPUSD H1 chart as of May, 2005: a divergence with MA10 upward crossing MA21; a brief nudge up to 1.8916 and a sharp downturn. (See Note below)


As different from Nayman and other Forex scholars, we'll touch in detail upon the ways to detect when MACD is trustworthy as a trend reversal attribute and when it is not.


4. TA classical patterns. One can not help smiling at the author sharing a secret of "head'n'shoulders" and "double bottom" patterns, being studied by beginners at the earliest lectures on Forex.


And here goes a real key secret: in what cases the patterns are indeed indicative of a reversal but in what cases brokers trap TA pattern-fanciers? Is there someone doubting the fact that patterns are known not only to traders, but as well to brokers with their mouths watering to make a rod for the backs of lovers and connoisseurs of the above patterns, just like on the sample chart below:


Fig. 9. GBPUSD H1 chart as of May, 09-11, 2005, a classical "inverted H&S" (See Note below)


At 1.8871 there's an impetuous upward breakthrough, the Alligator rotating upwards, MACD above zero, MA8 having intersected MA21 upwards, the Williams vaunted Awesome Oscillator signaling long entry, the Accelerator Oscillator pointing up... nevertheless, the rate reaches as far as 1.8916 and slips down to 1.8481 by 450 pts.


To be noted: much worth scrutinizing is the phenomenon of Nayman's "Trader's Minor Encyclopedia" and "Master-trading: secret files" purported at understanding why over 90% of traders turn losers after reading the books.


The solution, to my mind, is that the above opuses are but good "ABCs OF FOREX" thus giving birth to all Nayman's merits and demerits.


The guy is primarily awardable for having spared beginners' paying USD50-200 to various Forex training courses or academies. Instead, one can download and study Nayman's books, whose extracts are, by the way, quoted to trainees during their studies.
Nayman is generally to be expressed gratitude to, because of his having laid out the Forex basic course in a competent, popular and accessible way.


This is the point, I elucidate to every beginner, being introduced to me: first one should scrutinize Nayman's books, then only it's worth discussing hooks and crooks of earning at Forex instead of losing.


Nevertheless, there is a chief Nayman's self-delusion about his folios really being in no way secret files with no one being able to find anything new to enable oneself to improve one's Forex earnings. These books containing neither unique techniques nor non-standard solutions are famous for the generalization and systematization of what has been the Forex knowledge prior to Nayman.


But this fact is not realized by majority gripped by the "Master-trading: Secret Files" fascination, who open live accounts and turn losers inevitably.


Shortly upon their pre-mature success on demo accounts these folks hastened to open live accounts and faced losses. But since the Dealers' staff managed to convince them in the incidental nature of the above losses, the folks ventured to go live again and did again turn to be deposit killers.


With these facts being proclaimed, I don't hold it appropriate to call any statistics science for help. Any sensible man is to get the understanding of the above losses as not being of an incidental nature.


There could be NO OTHER WAY about it.


The next trader training level comprises books by B. Williams: "Trading Chaos" and "New aspects of exchange trading", where the author propounds his own Forex trading methods along with advertising the other ones', viz. Elliott's.


My book, "Secrets Of Craftsmanship Narrated By Professional Trader Or What B. Williams and E. Nayman Have Concealed From Traders" is purported at developing of THAT particular school of training traders to practical operation at Forex.


Hardly will anyone object to the fact that B. Williams will disclose his Forex intimacies free of charge. Neither will he furnish their 100% disclosure after being paid to.


In all his splendor, Williams possessed sufficient knowledge to;


- to share A PORTION of his secrets in his "Trading Chaos";


- to share A PORTION of his secrets as a paid training;


- not to share A PORTION of his secrets in the least.


My book, "Secrets Of Craftsmanship Narrated By Professional Trader Or What B. Williams and E. Nayman Have Concealed From Traders" is also dedicated to teaching how the Williams secret methods are to be decoded properly to ensure successful Forex trading capabilities.
Each of my book's 20 chapters is permeated with a common logic aimed at finding relevant discrepancies in literature on Forex and at presenting my personal technique of Forex trading.


B. Williams declares being capable of analyzing tens of currency pairs (of 140-bar history each) that within tens of minutes, but in no way does he explain how to, whereas, I explain, that it's feasible for any wide-screen trader, provided my computer monitor being 3-currency capable only (see: "Ally and adversary currencies").


B. Williams sings about his magic Alligator, while I disclose and eliminate its pitfalls by, say, adding a MA233 thereto. This arrangement visualizes the whole of the 4 potential currency travel options: up/down above MA233; up/down under MA233.


B. Williams lists a stop-loss to be a "safety cushion", whereas I disclose and eliminate its shortcomings by way of alternatively using my own pending orders.


B. Williams hold trades volume to be authentic resistance breakthrough criterion, while I quote reasons by which trades volume turns to be deceptive on Metatrader platforms (thanks to the banks Consortium) and I introduce my own levels true/false breach criteria.
Now, regarding trading on news, I demonstrate the way one can turn a loser if trade like all the others and I offer my own on-news trading style.


(See continuation of this article under name Forex Secret. Forex Literature As A 90-95% Of The Traders Loose Their Deposit. (Part II)


Note:


Full text of this article and pictures of examples http://www.masterforex-v.su/


If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/


Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market

Beginner's Guide to Forex and Automated Forex

Forex, or foreign exchange trading, is growing by leaps and bounds. It is becoming as popular (if not more) than the stock market, and Forex traders are discovering small fortunes every day! If you're new to Forex, you might find it to be confusing at first. Use the quick beginner's guide to Forex below to learn more about Forex and automated Forex.


What is Forex?


Forex is the act of trading various currencies from around the world. The Forex market started in the 1970s, but has in recent years caught on like wildfire in the stock market world. Forex trading systems record about USD $1.5 trillion in transactions every single day!


The goal in Forex trading is to make a profit when currency values increase or decrease within a currency pair. You will trade only when you expect the value of a currency to increase. In a currency pair, when the currency you bought increases, then you must sell the other currency to make a profit. An open trade, or open position, is a type of trade in which you have already purchased or sold a currency pair, but have not yet bought back an equivalent amount.


The five most significant currency pairs in Forex right now are USD/Yen, Euro/Yen, Pound/USD, Swiss franc/USD, and the Euro/USD.


To get started in Forex trading, you will create a Forex account through a Forex broker. Then, you will need to create a Forex trading strategy that works best for you. The strategy you choose should be tested using a practice account if possible before you start investing your real money. This will enable you to become familiar with Forex trading without risk.


Advantages and Disadvantages of Forex Trading


Forex trading offers a number of advantages. It offers more chances to make short-term profits than the stock market because money moves faster in Forex. The trading opens and closes within only a few seconds, so money can be made quickly. Also, Forex trading is easier to monitor than the stock market because you are only keeping up with currencies, not hundreds or thousands of companies.


There are a few disadvantages as well. Forex trading is risky as is the stock market. Because trading occurs so frequently, Forex trading requires constant monitoring throughout the day to enjoy maximum benefits. Those who don't have time to monitor their Forex trading might lose more than they gain.


Automated Forex


With a new Forex trading system called automated Forex, you can enjoy the benefits of Forex without continual monitoring. Automated Forex is accomplished through trading software. The software monitors the Forex market for you by receiving Forex signals from trading systems and by using daily charts to analyze trends in Forex 24/7. The creation of automated Forex was based on a manual technique that has been used successfully by trading experts for years.


Automated Forex software is available from a number of companies online and offers you the advantage of around-the-clock trading. With these easy day trade signals, your automated Forex software will be able to trade for you while you're away and while you're sleeping. You never have to do the trading yourself, and you don't have to worry about it constantly when you're away. It's like having an expert advisor system in your own home or office PC.


Forex trading can be lucrative for you if you study the system and find a great strategy. Use online resources and helpful automated Forex tools to get started right away!