Forex Market Opportunities

One of the things that especially rookie traders miss is that the market is driven really by the big money players. The big money players are going to look at a chart like this and back here and I am pointing to February, March and April, 2006. They are going to think to themselves based on fundamental research; based on quant research, based on talking to bankers, based on inside information, based on corporate mergers and acquisitions information, based on money flow that the British pound is going to be significantly higher inside of six to eight months.

They may not know exactly how much higher but they will know a significant. They may have a target let’s say, that is fifteen hundred points away, possibly a little bit less; let’s say twelve hundred points away. You will have to remember that these guys are dealing in terms of five hundred million at a whack. I mean, these are not small positions.

That means that they are trading in five hundred million at a whack which probably means their total position is anywhere from five billion to fifteen billion dollars.

So they are looking at this spot back here and they are thinking to themselves that the British pound is going to be much, much higher. Now think about this. If you’re thinking in terms of six months away; five months away, four months away; looking at an hour chart is not going to have any sort of draw for you. You are not even going to want to look at an hour chart. You are going to want to look at a weekly chart. That’s why I look at the weekly chart to begin with.

The big opportunities that you are going to see come up in the marketplace and believe me, if you get nothing else out of this web conference or the course itself, this is going to be it for the Forex market. The easiest way to tell where the opportunity is looking at where’s the weekly high and where’s the weekly low.

Once you have seen those two points, you know where the opportunity is and that spells literally, money. You are going to know where the big money players are going. Are they thinking down or are they thinking up? So what does that mean specifically? Well what that means very specifically here for the British pound.

Forex Strategies For Hyper Profits

Forex strategies are the underpinning of any good currency trading regimen. There are myriad currency trading strategies as diverse as the traders who adhere to them. Shrewd traders are increasingly doing one thing in common. They are employing sophisticated forex trading software in pursuit of their forex profits. The best of these software packages include a robot which can automatically execute your strategy.

Some strategies are based upon technical indicators. Others are based on macro economic events. Unfortunately, some traders enter the foray with no strategy attempting to conquer the market with supposition and guesswork. The results many of these traders experience are a foregone conclusion. Trading on your own versus software is often akin to a high school team playing the champion professional team.

No matter what the stated strategy, a common phenomenon for many traders is for it to go out the window in the heat of battle. Emotions can often take over foiling the best of predetermined forex strategies. A strategy is only as good as your ability to faithfully execute it. A forex autopilot robot lends an advantage in this arena. It doggedly sticks to its course without being swayed by fear or greed.

Robots do not, at least yet, experience fear or greed. Maybe sometime in the future science will create ones that do, but for now your forex robot obediently follows its instructions and is immune to human weaknesses. Fear often intercedes before an opportune purchase can be made. Greed conversely interferes with a rational decision to adhere to a previously targeted sell point. Traders left to their own devices can identify with these scenarios well.

Money management is another key component of any comprehensive currency trading strategy. Many traders unfortunately ignore this critical aspect of the forex markets. The best trading strategy goes for naught if your account blows up with a few initial large trades. Effective money management prevents putting at risk any more than a small percent of your portfolio on any one given trade. Left to their own devices many forex traders end up violating their own rules.

A forex autopilot robot stubbornly sticks to the set limits and does not deviate based upon exuberance or greed. The same can not be said for many forex participants who trade on their own whims. A robot imparts disciplined to even the most undisciplined traders. It can both assist in strategy formulation as well as acting akin to your forex personal trainer keeping you on the right path.

With the majority of currency accounts today you are able to test and refine strategies using your robot without risking a cent. Most accounts contain a practice mode which enables you to engage in dry runs in simulation mode. Making initial mistakes or refining given nuances of your strategy without corresponding financial risk is quite an advantage. This is especially salient for a novice trader.

Forex strategies are only as good as your ability to effectively deploy them. Automated software goes a long way in this regard. If you are an experienced trader you owe it to yourself to check out the benefits of a robot. If you are new to the forex markets, then a robot can be your guide into the new thrilling forex experience.

The Importance of Highs and Lows in Trading

What this is going to do is it is going to show me very, very quickly where these areas are and how the market relates to that. So right there, what I have done; let me draw this in. What I have done is I have contained this area with two lines. Those two lines are right here. If you are just listening on the phone, this may not be making a whole lot of sense to you but if you are watching the video, it will.

Anyway, now you can see there’s the zone I was talking about. I can see that the market has some reactions in there. Let me erase all of this. Now let’s go ahead and draw in the other area down here, here and here. Now you can see what I did. I keyed in on a couple of points, here and here. I keyed on a couple points here and here. Now I want you to observe what happens to the market. Look at this. Time after time, the market finds support. It finds resistance. It bangs it head. The market participants make decision around these lines so we have to honor that. We have to know that in the future they’re going to do the same things.

I am getting so excited about this stuff because I love it so much. So let’s go ahead and zoom back in. All of the lines are still on the chart. Now let’s look at this in more detail.

These are lines I drew months and months ago back here on the chart. Look at this; weeks on end. Time after time, the market is making a decision as it reaches this consolidation here. It’s even information at the market just blows through it. It blows through again; it blows through again. It’s not that the line failed. It’s not that the theory failed. That’s very, very important information. Let’s zoom in more.

We can see that the market is entering into a place where it can make some decisions. Hopefully you have seen that. I will zoom way in now. Now we can see; we are looking at the last couple of weeks, going back into March. We have got to start really zooming in on our game plan. The reason why I don’t want a lot of information on my screen now is I want to be able to have some distant targets. I want to be able to even as a day trader, look at the marketplace and know that if the market makes a breakout, that I have a potential for a big, big move to the downside. So you can see this line here was left on my chart from literally a year and a half ago.

What does that mean? It means that if the market can get down, it’s going to get down to this level here.

Okay, so if the market is going to break and it is going to make a move, I want to know where my first target is. You can see it is just above 9505. Remember, this is a weekly timeframe. Now as I zoom in; remember I started this whole thing talking about the weekly high and the weekly low. Here is a weekly high. Here is a weekly low. One thing you can notice is that the last one, two full weeks were not able to break through either the high or the low. The reason why that is important is if for some reason big money is not willing to sell lower than this price, but they are not willing to buy above this price either.

Forex Breakout - Jumping Aboard for Giant Breakout Profits

A "breakout" is when the market suddenly and quickly jumps out of its recently established range to either gain, or lose, price dramatically. Often times a breakout will occur out of a counter-trend market, but this isn't always the case.

In fact, many of the articles you will find about breakouts online will actually be focusing only on breakouts that come out of a counter-trend market. While this is the most common type of breakout that Forex trading systems concentrate on, the other breakouts should not be ignored because they also offer excellent opportunities for a Forex trader to make good money.

When a market is counter-trending, traders are watching a market that is staying contained between a high and low range, but the market is moving sideways. When a day's trading ends up pushing the currency value out of that contained channel, that's a breakout to the upside, and it can go either way, higher or lower. No matter which direction it takes, there is money to be made off of it as long as you're on the right side of the breakout.

But breakouts aren't limited just to forming out of counter-trend markets! They can also take place coming out of a trending market. When a market is trending in either direction, there still is a normal range that determines a trend. When the market breaks out beyond the normal range of the trend, that movement is also considered a breakout.

Breakout trading offers opportunity since jumping on the right side of a breakout early offers potential profit in a Forex market. They provide a chance to ride a strong sudden surge of volatility to provide quick and large profits. While breakouts are rarer than other types of market movement, they offer the most money to be made.

This strategy sounds simple, but the problem with playing a breakout is that breakouts are technically unstable, and no one knows how long they will last or when they will suddenly reverse. There are also "false breakouts" where the market appears to be breaking, but isn't.

There are strategies and indicators that that try and pin point a potential breakout. Some of the most popular include:

1. Using pivot lows and pivot highs to determine potential "pivot points" that indicate an upcoming breakout
2. Fibonacci retracement methods
3. Using multiple moving averages

There are many methods to try and find a breakout, and once an identified breakout begins, a trailing stop is one of the best ways to take maximum advantage of this situation.