Posts by forexchick

People, especially traders, have a tendency to overthink a situation. Overthinking a situation often lead to undertrading, overtrading and ultimately more losing trades than winning trades. This is the main reason you need to have a trading plan. There is a saying “plan the trade and trade the plan.” By knowing how you will react in what situation you will rule out the “should I take this trade” or not syndrome which is the main cause of late entries which has a further problem of increased risk and less profit potential. When you are unsure of what you are going to do, you lose those precious moments when you can comfortable get into a trade. Then once the market starts to move you think “I better get in since its moving how I...

There are many different Japanese candlestick patterns out there. Hundreds of them. It is a bit overwhelming and intimidating because you start to think maybe you are missing out on trades because you don’t know enough candlestick patterns. I used to think that but then I realized I don’t need to learn all of them, I just need to learn the ones that suit my trading style. I am not really concerned about continuation patterns, so I don’t look for those patterns. I like to trade the markets when they have turned from a top or a bottom. So I learned the reversal patterns. I have 14 main reversal candlestick patterns that I memorized and that I look for daily in my trading. They are: Bearish Harami Cross Bullish Harami Cross Bearish Engulfing...

Trading can be compared to many things in life but the easiest thing to compare it to is sports. If you have ever participated in sports you know that you don’t just start playing the sport. Take running for example, you don’t just drive to the place you are going to run, get out and start running. No. You check out the location first, determine the route you will run, make sure your shoes are tied properly, stretch first and most importantly make sure your accompanying music is ready. Before you start your trading day, you need to make sure you prepare. Here is my list of things I prepare for daily: 1. Know what economic data releases are coming out and at what time, are there any scheduled central bank speakers. 2. Know where the previous...

If you are currently the forex markets (or are planning to), there are certain universal rules that you simply need to know to survive. Beyond these rules exist another level of knowledge that very few traders possess. If you are trading the Forex market you need to be very strategic in your approach, or you will get eaten for breakfast. There are literally hundred of sharks out there in the form of highly skilled professional traders, and large banks that are waiting to prey on the individual retail trader like you, who so often have no clue what they are doing. For the professional trader, you are easy prey, and easy profit, and your loss is always their gain. They literally profit on all of your losses, and for them it’s like shooting fish in a barrel....

These are musing a professional trader… The Forex market is not a place, unlike the stock exchanges around the globe. It is a system available online where people and institutions can access and benefit from global decentralized trading of international currencies. In order to facilitate international trading and investing the Forex market enables currency conversion. The Forex market also enables speculation in the value of currencies, therefore making it possible for anyone, anywhere to trade using their own computer and benefit from the fluctuations in the prices.