Here is a quick strategy to utilize near round numbers in the forex market (and likely other markets as well) to hopefully extract a profit. A round number occurs every 100 pips. 139.00 and 141.00 are examples of a round number in the EURJPY ; 1.3600 or 1.4100 are examples in the EURUSD. These levels often […]
Opportunity Cost is what you forgo by taking the course of action you chose. Opportunity cost affects traders in multiple ways. For example, if you are spending your days trading and constantly losing, or only making a very small amount, you are giving up the opportunity to make more money doing something else (a job). […]
Trend analysis is a very valuable tool and at the heart of many strategies in use today. In a previous article, Introduction To Trend Analysis, I described the underlying trends that drive the markets such as the secular, primary and secondary trends. The secular trend is a measure of the economy and society as a […]
3 Ways to Use Moving Averages in Your Trading A moving average (MA) is one of the simplest trading tools and can help new traders spot trends and potential reversals. Here’s an introduction to the moving average, as well as three ways to use it. Moving Averages The Simple Moving Average (SMA) is the most […]
Making sense of trends and time frames is an often confusing task. At any one time, in any given time frame, multiple trends can be at play. There are long term secular trends, shorter term primary trends, still shorter term secondary trends and yet shorter still near and short term trends. Adding to the confusion […]
Lots of trades on the radar right now –here is a sampling of a few I am already in, and some others I am waiting for. GBPNZD The GBPNZD is bucking up against a strong resistance level and providing potential short entry, especially with the false upside breakout earlier today. Watch the spread on this […]
Getting a Job as a Day Trader Day Trading from home and starting out with a small account isn’t the only option for those that want to day trade…as a career. While it is a viable one, and I do it now, I didn’t start out that way. In 2005 I had just finished university, […]
Whether you’ve heard it before or not, trading should be treated like a business. After all, you are starting out with some capital and devising a plan to make money off that money, hopefully enough that you can live off. Trading isn’t easy, but neither is running a business, which is why most business and […]
An all to easy pitfall for new and old traders alike is the failure to recognize the difference between a tool and strategy. A tool can be used for a strategy, strategies use tools but they are not the same thing. Failing to understand the difference between the two is a sure way to achieve […]
Many traders try to trade breakouts, but many of those breakouts fail resulting in a losing trade. A failed breakout is when the price moves beyond a former high or former low, making it appear like the price is going to continue to run in that direction. Instead, the price quickly reverses, trapping a bunch […]