DDFX Seminar Today at International Youth Centre, Kuala LumpurSaturday, October 22, 2011
Wednesday, October 19, 2011
EUR/USD Testing Support at 4H TF
This pair is lingering around DDFX Golden Line and Andrew Pitchfork Resistance line.Monday, October 17, 2011
Seminar DDFX 2011
Seminar DDFX untuk pelanggan DDFX.
Anda akan menerima email jemputan dari kami.
Sekiranya belum dapat sila email kami.
Tarikh : 22 Oct 2011 (Sabtu)
Masa : 9:00 a.m - 1.00 p.m
Tempat : Bilik Sakura
INTERNATIONAL YOUTH CENTRE (IYC)
Jalan Yaacob Latiff,
Bandar Tun Razak,56000
Cheras, Kuala Lumpur, Malaysia.
Tempat masih terbuka sehingga 20 Oct 2011
Please call us back
Dear MR ISMAIL SIDEK,
Please call us using the contact us link at the main pages,
www.duitdariforex.com
We update our new interface and having a minor problem
with the payment box.
Regards,
DDFX Team
Tuesday, October 11, 2011
Consumer Confidence Edges Up, Americans Still Pessimistic
The IBD/TIPP Economic Optimism Index improved by 0.4 points, or 1.0%, in October posting 40.3 vs. 39.9 in September. In August, the index had crashed to its historic low of 35.8. The index is 3.4 points below its 12-month average of 43.7 and 4.1 points below its reading of 44.4 in December 2007 when the economy entered into the recession, and 9.8 points below its all-time average of 50.1.
Note: Index readings above 50 indicate optimism; below 50 indicate pessimism.
The IBD/TIPP Economic Optimism Index has a good track record of foreshadowing the confidence indicators put out later each month by the University of Michigan and The Conference Board. IBD/TIPP conducted the national poll of 909 adults from October 1 to October 5. The margin of error is +/-3.5 percentage points.
The IBD/TIPP Economic Optimism Index has three key components, two of which improved in October.
• The Six-Month Economic Outlook, a measure of how consumers feel about the economy’s prospects in the next six months, decreased 0.2 points, or 0.5%, to 36.7. The sub-index was 32.1 when the economy entered the last recession in December 2007.
• The Personal Financial Outlook, a measure of how Americans feel about their own finances in the next six months, improved 0.3 points, or 0.6%, to reach 51.9.
• Confidence in Federal Economic Policies, a proprietary IBD/TIPP measure of views on how government economic policies are working gained 0.9 points, or 2.9%, to reach 32.2.
"Consumer confidence is still in a vulnerable territory, despite its modest improvement in October," said Raghavan Mayur, president of TIPP, a unit of TechnoMetrica Market Intelligence, IBD's polling partner.
“Americans remain glum about their economic future,” said Terry Jones, associate editor of Investor’s Business Daily. “The repeated failure of government efforts to stimulate the economy has left many perplexed and angry at the soaring costs and lack of results. In particular, the lack of any meaningful jobs recovery has created a feeling among many that Washington politicians are out of touch with economic reality.”
The Breakdown
This month, three of the 21 demographic groups that IBD/TIPP tracks were above 50 on the Economic Optimism Index. Thirteen groups increased on the index.
On the Economic Outlook component, all of the 21 groups that IBD/TIPP tracks scored in pessimistic territory. Eleven groups improved in October.
On the Personal Financial component, fifteen of the groups IBD/TIPP tracks scored in optimistic territory. Eight groups declined on the component and thirteen improved.
On the Federal Policies component, all of the 21 demographic groups tracked were below 50. Thirteen groups advanced on the component, seven declined and one did not change.
* * *
ABOUT THE IBD/TIPP POLL
The IBD/TIPP Economic Optimism Index is the earliest take on consumer confidence each month and predicts with 80% reliability monthly changes in sentiment in well-known polls by The Conference Board and the University of Michigan. The IBD/TIPP Economic Optimism Index is based on a survey of 900-plus adults chosen at random nationwide. The poll is generally conducted in the first week of the month.
For more information, go to www.tipponline.com
ABOUT INVESTOR'S BUSINESS DAILY (IBD)
Founded in 1984, Investor's Business Daily helps new and seasoned investors safely build financial security.
Using the proprietary CAN SLIM® Investing System and time-tested signals based on a landmark study of over 130 years of market history, IBD provides alerts to emerging high-growth stocks and major changes in market direction. Created by legendary investor and IBD founder William J. O’Neil, the CAN SLIM System has been the #1 growth strategy from 1998 – 2010, gaining 2,487.3% vs. 29.6% for the S&P 500 in an independent, real-time study by the American Association of Individual Investors.*
Investors of all levels use IBD’s flagship newspaper (print and digital editions) and award-winning website, Investors.com, to spot early market trends, screen for winning stocks and get extensive, step-by-step training. IBD also offers investment workshops across the country, and provides both subscribers and non-subscribers with a free year-long investing course through the IBD Meetup program – America’s largest network of Meetup.com investing groups. In partnership with TechnoMetrica, IBD also conducts IBD/TIPP polls, including the nationally-recognized IBD/TIPP Economic Optimism Index. IBD/TIPP was the most accurate pollster in both the 2008 and 2004 presidential elections, according to final FEC-certified results of those elections. IBD is also recognized for its political and economic commentary and is home to editorial cartoonist Michael Ramirez, winner of the 2008 and 1994 Pulitzer Prize.
*The American Association of Individual Investors' independent "real time" study of over 50 leading strategies found IBD’s CAN SLIM Investment System achieved +2487.3% vs. S&P 500 +29.6% for the past 13 years (January 1998 through December 31 2010, AAII Stock Screen).
IBD/TIPP Poll © 2011 Investor’s Business Daily Inc. and TechnoMetrica Inc.
Investor's Business Daily, IBD, and CAN SLIM and their corresponding logos are registered trademarks of Investor’s Business Daily, Inc. © 2000-2011 Investor's Business Daily, Inc. All rights reserved. - http://www.tipponline.com/economy/consumer-confidence-edges-up-americans-still-pessimistic
Never Let a Winner Turn Into a Loser
One of our cardinal rules of trading is to protect your profits - even if it means banking only 15 pips at a time. To some, 15 pips may seem like chump change; but if you take 10 trades, 15 pips at a time, that adds up to a respectable 150 points of profits. Sure, this approach may seem as if we are trading like penny-pinching grandmothers, but the main point of trading is to minimize your losses and, along with that, to make money as often as possible. The bottom line is that this is your money. Even if it is money that you are willing to lose, commonly referred to as risk capital, you need to look at it as "you versus the market". Like a soldier on the battlefield, you need to protect yourself first and foremost.
- High Probability Trading Setups for the Currency Market
- High Probability Trading Setups for the Currency Market
TOP 10 CURRENCY TRADING RULES
1. PLAN YOUR TRADE AND TRADE YOUR PLAN. You must have a trading plan to succeed. A trading plan should consist of a position, why you enter, stop loss point, profit taking level, plus a sound money management strategy. A good plan will remove all the emotions from your trades.
2. THE TREND IS YOUR FRIEND. Do not buck the trend. When the market is bullish, go long. On the reverse, if the market is bearish, you short. Never go against the trend.
3. FOCUS ON CAPITAL PRESERVATION. The most important step that you must take when you deal with your trading capital. You main goal is to preserve the capital. Do not trade more than 10% of your deposit in a single trade. For example, if your total deposit is $10,000, every trade should limit to $1000. If you don't do this, you'll be out of the market very soon.
4. KNOW WHEN TO CUT LOSS. If a trade goes against you, sell it and let go. Do not hold on to a bad trade hoping that the price will go up. Most likely, you end up losing more money. Before you enter a trade, decide your stop loss price, a price where you must sell when the trade turns sour. It depends on your risk profile as of how much you should set for the stop loss.
5. TAKE PROFIT WHEN THE TRADE IS GOOD. Before entering a trade, decide how much profit you are willing to take. When a trade turns out to be good, take the profit. You can take profit all at one go, or take profit in stages. When you've recovered your trading cost, you have nothing to lose. Sit tight and watch the profit run.
6. BE EMOTIONLESS. Two biggest emotions in trading: greed and fear. Do not let greed and fear influence your trade. Trading is a mechanical process and it's not for the emotional ones. As Dr. Alexander Elder said in his book Trading For A Living, if you sit in front of a successful trader and observe how he trades, you might not be able to tell whether he is making or losing money. That's how emotionally stable a successful trader is.
7. DO NOT TRADE BASED ON A TIP FROM A FRIEND OR BROKER. Trade only when you have done your own research and analysis. Be an informed trader.
8. KEEP A TRADING JOURNAL. When you buy a currency or stock, write down the reasons why you buy, and your feelings at that time. You do the same when you sell. Analyze and write down the mistakes you've made, as well as things that you've done right. By referring to your trading journal, you learn from your past mistakes. Improve on your mistakes, keep learning and keep improving.
9. WHEN IN DOUBT, STAY OUT. When you have doubt and not sure where the market or stock is going, stay on the sideline. Sometimes, doing nothing is the best thing to do.
10. DO NOT OVERTRADE. Ideally you should have 3-5 positions at a time. No more than that. If you have too many positions, you tend to be out of control and make emotional decisions when there is a change in market. Do not trade for the sake of trading.
When you in doubt, read the rules...
2. THE TREND IS YOUR FRIEND. Do not buck the trend. When the market is bullish, go long. On the reverse, if the market is bearish, you short. Never go against the trend.
3. FOCUS ON CAPITAL PRESERVATION. The most important step that you must take when you deal with your trading capital. You main goal is to preserve the capital. Do not trade more than 10% of your deposit in a single trade. For example, if your total deposit is $10,000, every trade should limit to $1000. If you don't do this, you'll be out of the market very soon.
4. KNOW WHEN TO CUT LOSS. If a trade goes against you, sell it and let go. Do not hold on to a bad trade hoping that the price will go up. Most likely, you end up losing more money. Before you enter a trade, decide your stop loss price, a price where you must sell when the trade turns sour. It depends on your risk profile as of how much you should set for the stop loss.
5. TAKE PROFIT WHEN THE TRADE IS GOOD. Before entering a trade, decide how much profit you are willing to take. When a trade turns out to be good, take the profit. You can take profit all at one go, or take profit in stages. When you've recovered your trading cost, you have nothing to lose. Sit tight and watch the profit run.
6. BE EMOTIONLESS. Two biggest emotions in trading: greed and fear. Do not let greed and fear influence your trade. Trading is a mechanical process and it's not for the emotional ones. As Dr. Alexander Elder said in his book Trading For A Living, if you sit in front of a successful trader and observe how he trades, you might not be able to tell whether he is making or losing money. That's how emotionally stable a successful trader is.
7. DO NOT TRADE BASED ON A TIP FROM A FRIEND OR BROKER. Trade only when you have done your own research and analysis. Be an informed trader.
8. KEEP A TRADING JOURNAL. When you buy a currency or stock, write down the reasons why you buy, and your feelings at that time. You do the same when you sell. Analyze and write down the mistakes you've made, as well as things that you've done right. By referring to your trading journal, you learn from your past mistakes. Improve on your mistakes, keep learning and keep improving.
9. WHEN IN DOUBT, STAY OUT. When you have doubt and not sure where the market or stock is going, stay on the sideline. Sometimes, doing nothing is the best thing to do.
10. DO NOT OVERTRADE. Ideally you should have 3-5 positions at a time. No more than that. If you have too many positions, you tend to be out of control and make emotional decisions when there is a change in market. Do not trade for the sake of trading.
When you in doubt, read the rules...
Top 10 Currency Trading Mistakes
1. Trading when market has just opened
Within the first several minutes after opening, the market usually moves about or jumps somewhere abruptly. Experienced traders sometimes try to use their knowledge to forecast by the first market movements what trend is possible. But emotions will certainly play tricks with a newcomer. Be careful.
2. Undue hurry in taking profit
Well, you opened a long position. Then, after a couple of days, you saw how much money you had earned and closed the position with joy. But this movement, as you would have gathered later, was just the beginning of a powerful up-trend. So, if you would not haste, you could earn 10 times more money. Use Take Profit orders only on extraordinary occasions, when the resistance level is clearly seen. Normally, it is better to exit the market using Stop Loss and trailing stop.
3. Adding lots in a losing position
This is a reverse example: you opened a long position, but price decreased. You doggedly insist on that "it would still grow, I just opened the position too early" and add by buying more lots. But the price goes on dropping and twice your losses. Remember: You should only add lots to a profitable position.
4. Closing positions starting with the best one
If you have some long positions and the price starts to decrease, you often instinctively try to fix your profit first and only then close losing positions (or let it work until the Stop Loss triggers). This is a wrong tactics: If the whole market decreases, those positions will most probably lose that have already been unprofitable. But you have already had losses on them. This means you should close them first of all. Better positions will not fall so rapidly and, in case of a reversal, they will go up again. So do not haste to close a profitable position.
5. Revenge
A typical situation for a newcomer: A losing position has just been closed - and he or she starts opening new positions enthusiastically to requite the wrongs. This will result in new losses, so do not return to trading immediately after having lost. Rest a little.
6. The most preferable positions
Approach reasonably to your positions: Do not care especially for some of them, for example, for those where you bought at the lowest price - every trader is usually especially proud of such trades. It is clear that you are puffed up with self-admiration, but be careful and do not carry such a brilliant position to zero or even to minus.
7. Trading by the principle of 'bought for ever'
You were working on a relatively short period of time, opened up, and prices went up tremendously. And you say to yourself: "Aha, I've caught the start of a many years' up-trend", and hang this position "for ever". But things do not just happen: you either change essentially for much longer estimation periods or keep standard rules on your standard short period. Rules that will make you enter and quit the market even if there is a really powerful trend. Do not "marry" your position!
8. Closing of a profitable strategic position on the first day
Vice versa, if you trade not within a day, do not close a profitable position on the first day under no conditions. If even the price has been grown to a very high level, be patient: it can be higher tomorrow.
9. Closing a position when alerted to open an opposite position
Many trades with systems of continuous entering the market. These systems are always "inside of a position". This means, closing of a long position means for them opening of a short one. One can use such positions, but they must be closed earlier: the signal to close must be of higher priority than the signal to open an opposite position.
10. Doubts
You should not trade if you are not sure of your previous situation assessment. Having said to yourself "I'm sick with vague doubts", you should better close all your positions and reanalyze the situation. Or go for a walk. The latter recommendation is actual in all difficult cases, by the way. It helps for all diseases - try it yourself!
Within the first several minutes after opening, the market usually moves about or jumps somewhere abruptly. Experienced traders sometimes try to use their knowledge to forecast by the first market movements what trend is possible. But emotions will certainly play tricks with a newcomer. Be careful.
2. Undue hurry in taking profit
Well, you opened a long position. Then, after a couple of days, you saw how much money you had earned and closed the position with joy. But this movement, as you would have gathered later, was just the beginning of a powerful up-trend. So, if you would not haste, you could earn 10 times more money. Use Take Profit orders only on extraordinary occasions, when the resistance level is clearly seen. Normally, it is better to exit the market using Stop Loss and trailing stop.
3. Adding lots in a losing position
This is a reverse example: you opened a long position, but price decreased. You doggedly insist on that "it would still grow, I just opened the position too early" and add by buying more lots. But the price goes on dropping and twice your losses. Remember: You should only add lots to a profitable position.
4. Closing positions starting with the best one
If you have some long positions and the price starts to decrease, you often instinctively try to fix your profit first and only then close losing positions (or let it work until the Stop Loss triggers). This is a wrong tactics: If the whole market decreases, those positions will most probably lose that have already been unprofitable. But you have already had losses on them. This means you should close them first of all. Better positions will not fall so rapidly and, in case of a reversal, they will go up again. So do not haste to close a profitable position.
5. Revenge
A typical situation for a newcomer: A losing position has just been closed - and he or she starts opening new positions enthusiastically to requite the wrongs. This will result in new losses, so do not return to trading immediately after having lost. Rest a little.
6. The most preferable positions
Approach reasonably to your positions: Do not care especially for some of them, for example, for those where you bought at the lowest price - every trader is usually especially proud of such trades. It is clear that you are puffed up with self-admiration, but be careful and do not carry such a brilliant position to zero or even to minus.
7. Trading by the principle of 'bought for ever'
You were working on a relatively short period of time, opened up, and prices went up tremendously. And you say to yourself: "Aha, I've caught the start of a many years' up-trend", and hang this position "for ever". But things do not just happen: you either change essentially for much longer estimation periods or keep standard rules on your standard short period. Rules that will make you enter and quit the market even if there is a really powerful trend. Do not "marry" your position!
8. Closing of a profitable strategic position on the first day
Vice versa, if you trade not within a day, do not close a profitable position on the first day under no conditions. If even the price has been grown to a very high level, be patient: it can be higher tomorrow.
9. Closing a position when alerted to open an opposite position
Many trades with systems of continuous entering the market. These systems are always "inside of a position". This means, closing of a long position means for them opening of a short one. One can use such positions, but they must be closed earlier: the signal to close must be of higher priority than the signal to open an opposite position.
10. Doubts
You should not trade if you are not sure of your previous situation assessment. Having said to yourself "I'm sick with vague doubts", you should better close all your positions and reanalyze the situation. Or go for a walk. The latter recommendation is actual in all difficult cases, by the way. It helps for all diseases - try it yourself!
Monday, September 19, 2011
Buy SMTP Email for serious trader only!
We offer our customer an email system at affordable price.
Just pay USD 1.00/month to use our SMTP email system.
You will get an email: yourpreferredname@solveandwin.com (subjected to your name availability) and 30MB of space.
You have to pay full USD12.00 in order to use it for 12 months.
To order just go to right panel, scroll down and click at Buy SMTP Email via Paypal button OR BUY IT HERE: http://www.ddfxforex.com/order3.php
This email is provided by third party, we will not guarantee the server run time.
Just pay USD 1.00/month to use our SMTP email system.
You will get an email: yourpreferredname@solveandwin.com (subjected to your name availability) and 30MB of space.
You have to pay full USD12.00 in order to use it for 12 months.
To order just go to right panel, scroll down and click at Buy SMTP Email via Paypal button OR BUY IT HERE: http://www.ddfxforex.com/order3.php
This email is provided by third party, we will not guarantee the server run time.
Setting an Email Alert in MT4 Using DDFX
DDFX version 4.0 come with email alert.
This email alert is very curial since it will help part-time trader.
How to setup DDFX email alert?
Open Your MT4. Go to Tools > Option > Email.
Click Enable at the box.
The most important thing is to use SMTP server at the 'From' box.
From our experiences, this email option will not work with Gmail, Yahoo and Hotmail.
Please use others provider. Like us, we register a new domain and use the mail server.
You can use gmail, yahoo, hotmail at 'To' box. Look at the example.
After finish setting the email, click Test and check your MT4 journal like below,
Friday, July 29, 2011
GBP 29 July Asia
GBP still in bullish momentum since it above the DDFX BullBear line.
It also fail to break the trend line.
Thursday, July 28, 2011
Abuse of Refund Policy
Since people like to abuse our refund policy, we already implement a special code in the system.
Certain function will expire within 2 months.
It will need a special code to unlock it. We will email that to user.
Thank You
DDFX Sales Team
Certain function will expire within 2 months.
It will need a special code to unlock it. We will email that to user.
Thank You
DDFX Sales Team
Wednesday, July 27, 2011
Version 4.0 is now Available!
Simple and Easy. Get it now at www.ddfxforex.com
All existing user will get their updates soon by email.
Regards,
DDFX Team
The World Best Forex System
Please Give Us sometime
I promise yesterday we will distribute version 4.0 to our client.
Please give me another 1 day.
Some thing has to be corrected before we start to distribute it.
I also have to clean the list of client since there are people getting free by refunding.
regards,
anomaht
Please give me another 1 day.
Some thing has to be corrected before we start to distribute it.
I also have to clean the list of client since there are people getting free by refunding.
regards,
anomaht
Friday, July 22, 2011
22 July Market Gauge - GBP/USD, Asian Session
Market with continue bullish if break 1.6340. Continuation pattern formed.Thursday, July 21, 2011
21 July Market Gauge - GBP/USD, Asian Session
GU is in range trading moving around 1.6000 - 1.6200.
Latest Resistance is around 1.6165/66 and Support at 1.6066
For breakout, please consider to let the price break 1.6200 (Long) or 1.6000 (Short)
Overall trend for now is ranging.
For range trade, it seem like price hit resistance and going down, consider short until it reach 1.6050.
Back to Basic
I will learn FX from beginning again. Just to refresh my mind. May be i can get something new, who know!
Anomaht
Anomaht
Wednesday, July 20, 2011
Please contact us
If you did not receive your product or having a problem to download please contact us immediately.
We will response within 5 min - 24 hours.
Regards,
DDFX Sales Team
www.ddfxforex.com
We will response within 5 min - 24 hours.
Regards,
DDFX Sales Team
www.ddfxforex.com
Testing Version 4
Version 4 will be release soon.
All existing customer will get their update free.
Since we have a request from a lot of customer/ ddfx user
Version 4 will have 'email alert function'.
So you can go any where, sleep soundly or do some thing else... not just keep staring at the monitor.
Hope this "email alert" will solve your problem.
Regards
DDFX Team
All existing customer will get their update free.
Since we have a request from a lot of customer/ ddfx user
Version 4 will have 'email alert function'.
So you can go any where, sleep soundly or do some thing else... not just keep staring at the monitor.
Hope this "email alert" will solve your problem.
Regards
DDFX Team
Tuesday, July 19, 2011
Saturday, July 16, 2011
Auto Download is available Now!
Auto download is ready for ddfxforex.com.
If you counter any problem please contact us directly by visiting to our contact page
DDFX Sales Team
If you counter any problem please contact us directly by visiting to our contact page
DDFX Sales Team
Dear All
If you buy DDFX from ClickBank and did not receive the products within 24 hour, please contact us immediately.
Use the contact form at http://www.ddfxforex.com/contact.php
regards,
DDFX Sales Team
www.ddfxforex.com
Use the contact form at http://www.ddfxforex.com/contact.php
regards,
DDFX Sales Team
www.ddfxforex.com
Friday, July 15, 2011
ClickBank Approve DDFX
DDFX now join ClickBank communities....Buy DDFX at 79.00 today or join the affiliate program. We give our affiliate 47% commission.
Regards,
DDFX Sales Team
www.ddfxforex.com
Regards,
DDFX Sales Team
www.ddfxforex.com
Friday, June 24, 2011
Important Notice to All Potential Customers
Please be INFORMED that our site (ddfxforex.com) has been submitted to ClickBank for Approval. Any one wish to buy please buy it here, go to the right site, scroll down and you will find the ORDER NOW button.
THE ORDER NOW BUTTON WILL BE DELETED AFTER WE GET APPROVAL FROM CLICKBANK TO PUT DDFX IN THE CLICKBANK MARKETPLACE.
This act is done to protect our affiliates.You are welcome to becomes our affiliate after we get approval from ClickBank.
Have A Nice Day
Anomaht
THE ORDER NOW BUTTON WILL BE DELETED AFTER WE GET APPROVAL FROM CLICKBANK TO PUT DDFX IN THE CLICKBANK MARKETPLACE.
This act is done to protect our affiliates.You are welcome to becomes our affiliate after we get approval from ClickBank.
Have A Nice Day
Anomaht
Wednesday, June 22, 2011
DDFX with ClickBank
We are migrating to ClickBank... For the moment if you want to place on order, please do it after June 2011 or please contact us direct.
Thank You
DDFX Sales Team
www.ddfxforex.com
Thank You
DDFX Sales Team
www.ddfxforex.com
Thursday, May 12, 2011
Kursus FOREX DDFX Kini Kembali untuk Anda!
SEMINAR FOREX DDFX AKAN BERMULA PADA JUN 2011. KEPADA PELANGGAN YANG BERMINAT KOS SEMINAR SATU HARI INI IALAH RM350.00 (termasuk makan dan minum). Kelas terhad kepada 20 orang/sesi.
SEBAGAI MENGHARGAI PELANGGAN, SEMINAR FOREX INI DISEDIAKAN PERCUMA KEPADA PEMBELI PAKEJ DDFX. ANDA JIMAT RM350.00! (Tiket dan peta lokasi akan dipos sekali dengan Produk DDFX. Pelanggan DDFX sebelum ini juga akan diberikan tiket percuma...nantikan email dari kami!)
Masa: Setiap Sabtu (9:30 a.m - 4:00 p.m)
Lokasi: MTDC-UPM Serdang atau Bukit Rahman Putra Sg. Buluh
Lokasi: MTDC-UPM Serdang atau Bukit Rahman Putra Sg. Buluh
Thursday, March 31, 2011
Friday, March 25, 2011
Thursday, March 24, 2011
Creating a trading plan
A trading plan is a must. I would be will to bet that virtually all successful traders have one. However, most new traders have no plan. In fact, I bet most new traders barely even have actual reasons for entering a trade. Imagine that you are planning to loan money to a new business as an investment. Could you picture yourself lending money to this person if they had no business plan and said they were going to start their business based on "their gut"? Of course a person would never be able to start a business by relying only on their gut. However, plenty of new traders start trading in exactly that manner.
Creating a trading plan is actually relatively easy. There are several core requirements that make up the plan. In my opinion, the main components of a trading plan are:
Wednesday, March 23, 2011
Staying Patient with Open Positions
Entering a trade is an important step in the trading process. It is wise to have a predetermined entry, stop, and profit target(s). However, picking the proper enter is not the only key to experiencing trading success. Even with a planned stop and a planned profit target, any seasoned trader knows it is possible to lose money even if the entry was at the perfect point and the profit target was at the perfect point. This gap between what the result of a trade result "should be" and what the actual results are can be significant, especially for novice traders.
So why does this gap exist between what returns "should be" and the actual results? I believe a critical cause of this phenomenon is the refusal of traders to be patient once they enter a position. Many traders feel that they should always be doing something when they are trading. Others feel that they want to continually update their stop and profit target to gain an extra edge. These feelings become dangerous when managing an open position, because it leads to mistakes that could be avoided by patiently sitting tight. Traders experiencing this feeling are prone to making several trading mistakes, which will be outlined below.
First, many traders are prone to taking a loss by manually exiting a position early. Let's say that our trader has entered their position and has a stop in place. So far so good. But the position starts going against the trader. They get scared and exit the position with a market order just before the pair closes in on the stop. In their head they think that they just saved a little capital because the pair was probably going to get stopped out anyway. However, that tiny amount of money they may save is nothing compared to the amount of profit they could earn if the pair reversed and went to the profit target. Looking at this from a risk:reward perspective, it is not worth gain a few extra dollars while giving up the potential for a large profit. The goal of stop placement should be to put the stop where the trade is "wrong". Therefore, if the trade hasn't reached the stop, it should be considered "wrong" yet. Therefore, why would anyone prematurely liquidate their position?
Second, many traders are prone to taking a gain by manually exiting a positing early. Again, let's say that our trader has entered their position and has a profit target limit in place. Again, so far so good. The position is going in their favor, but then it starts reverse and head back to their entry. The trader gets scared and exits the position for a tiny profit while thinking to himself that no trader every has gone broke taking a profit. Well, of course, that is a ridiculous statement. Think of it this way: if a trader won 99 straight trades for a profit of $1 each and then lost $10,000 on their 100th trade, does it matter that their winning percentage was 99%? Of course not, because they lost more on balance than they won. Taking profits prematurely may feel good on an individual trade basis, but usually it leads to a poor p/l in the long run. Once a trader has figured out their profit target, that should be the target to shoot for.
Tuesday, March 22, 2011
Probabilities in Trading
I often hear beginning traders speak as if they know what the markets will do next. In reality, experienced traders usually speak in probabilities and typically have some form of analysis to back up their opinion. No one can say that a particular currency pair (or other financial instrument) will move to an exact point with absolute certainty. In fact, I feel it is naive to think that anyone can predict the direction of a currency pair with absolute certainty over a given period of time. Sure, sometimes you could be correct if you boldly predict that a pair will move to X level with absolute certainty. However, there will be other times when the market doesn't go your way. That is why we must deal with probabilities, because no one knows for sure what will happen next in a given currency pair.
The reason we can never know where a currency pair with absolutely certainty is that the markets move based on the will of every market participant. Let's suppose that someone stated "the EUR/USD will definitely rise to point X, before falling down to point Y". They are saying that know exactly what every market participant (or trader) is thinking, how each of these participants plans to act, and how each participant will respond to the actions of every other participant. Needless to say, no one could ever have that information.
Monday, January 31, 2011
kopikar2008
kopikar2003 please provide us with valid email address. Other customers please check your spam box if you did not receive DDFX in your inbox.
Our Team now is trying to make an automatic download ready by Mid February 2011.
Regards,
DDFX Team
www.ddfxforex.com
Our Team now is trying to make an automatic download ready by Mid February 2011.
Regards,
DDFX Team
www.ddfxforex.com
Sunday, January 30, 2011
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First, we have to define our trading objectives. Why are you trading? What is your end goal? Most new traders have completely unrealistic goals. For instance, a new trader might wan their $10,000 investment turn into $100,000 in their first year. While this is possible, it is highly improbable. These unrealistic expectations kill off a lot of traders before they ever had a chance. I think breaking even in the first year is an admirable goal; many traders do not do that. If a trader makes 20-30% on their initial investment in their first year, that is outstanding.
Next, we have to determine the basic outline of how to get there. What currency pairs (or other financial instruments) will you trade? This sounds simple, but it is easy to get off track by not defining this. I am in favor of utilizing as many pairs as you can comfortably manage, but I would not waste time with illiquid, choppy pairs. Other traders love choppy pairs. It's up to you. You also have to determine when you will trade and how often you will trade. Are you going to be a day trader or hold positions for a longer period of time? Your schedule and responsibilities may have some impact on that. But it is important to define these basic ideas to begin to form some consistency.
cont' reading...