Monday, June 8, 2009

10 Pips A Day Forex Trading System

A few days back, I had written a post about Millionaire Traders: Ordinary people who made fortunes trading forex. I talked about Hoosain Harneker: The 10 pips a day trader. He just makes 10 pips daily and has made a fortune trading forex over the years. Now you can also practice making 10 pips daily with this simple forex trading system. First practice how to use these indicators on your demo account. Once you get the feel of it and start making 10 pips with each trade than you can switch over to live trading.

Here’s the trading setup, entry rules, stop loss rules, and exit rules of this system. I truly believe it can potentially generate much more than 10 pips a day…but I’m sure like me, you’re probably sick of those unbelievable claims from the self-proclaimed forex ‘gurus’… You know, promises of 1000 pips a day… trillions of dollars overnight… OK, enough of my rants. Let’s get started right away:

Timeframe: 1-hour.
In this system, we use 3 indicators:
1. 5-period Exponential Moving Average (EMA 5) applied to the Close.
2. 12-period Exponential Moving Average (EMA 12) applied to the Close.
3. 21-period RSI (RSI 21)

Entry Rules for Long Trades:
It’s simple. We enter a long trade when EMA 5 crosses EMA 12 to the upside…
AND our RSI 21 > 50.

Entry Rules for Short Trades:
Enter short when EMA 5 crosses EMA 12 to the downside.
AND RSI 21 < 50.
Stop loss = 20 – 30 pips… depending on the volatility of the currency pair. For more volatile pair, like GBP/USD, stop loss = 30 . For less volatile pair, like EUR/USD, use stop loss of 20 pips.

Timeframe: 1-hour
Exit Rules for Long Trades:
Exit the trade when EMA 5 crosses back below EMA 12
Or when RSI 21 < 50.
Or when price stalls at major resistance, trendline, pivot points, Fibonacci projection target.
Or when bearish engulfing patterns or inverted hammer patterns form.

Exit Rules for Short Trades:
Exit our short trade when EMA 5 crosses above EMA 12
OR RSI 21 > 50

How To Reduce Your Risk In Today's Volatile Markets

Ultra-Popular Options Trader and CNBC Commentator "DRJ" Jon Najarian is Back! And he's about to reveal how he's using the latest technology to find certain "clues" in TODAY's markets that are presenting exciting trading opportunities and how you can too. And not only that... He's also going to show you how to reduce and control your risks in this volatile market!

How To Reduce Your Risk In Today's Volatile Markets

In these ultra-volatile markets investors and traders like youare trying to navigate right now, reducing and controlling risks are becoming the most popular topics you want to know more about almost EVEN MORE than how to make huge gains! So that's why we were so excited to hear about a special webinar happening next Tuesday, March 31 at 9:00 PM EDT.

I'd like you to attend, if you can. It will be lead by none other than Jon "DRJ" Najarian, author of several popular books on options trading, former professional options floor trader, popular contributor and commentator on CNBC, and co-founder of optionMONSTER.com and tradeMONSTER.com. The topic of the webinar will be...

"Discover How to Reduce and Control Your Risks in Today's Volatile Markets."

Jon will be joined by Skip Shean, VP of Marketing & Business Development at tradeMONSTER.com. On the webinar, Jon will discuss the state of the U.S. equity and options markets, and the clues he looks for as a professional trader to identify opportunities.

Jon claims that in these volatile markets, using options to control risk makes more sense than ever. And he's going to reveal a few of his strategies and techniques now available because of a new trading platform recently developed at tradeMONSTER.com. This is where Skip Shean comes in. Skip will demonstrate that innovative web-based trading platform, "running it through its paces" to show you how to find some of the best trading opportunities in today's market.So don't miss this rare chance to hear "DRJ" live, and see first-hand the cutting edge technology he's using to find unusual profit-making potentials in this volatile market, while reducing and controlling risk.

Forex History

Forex history starts in 1971 when US President Nixon abandoned the fixed currency exchange rate. During the Vietnam War, US had to increase its government expenditure due to the war. This caused inflation to increase. The fixed exchange rate system than in use in accordance with the Bretton Woods System gave dollar the unique position of being the standard currency for the rest of the world. All the other currencies used to be priced relative to dollars.

The dollar was pegged to gold $35 per ounce. The fixed exchange rate system had become the mechanism through which US inflation was being exported to other countries like Germany. Germany had huge dollar reserves due to its export surplus. It tired to stabilize the DM by selling dollars in open markets. This caused the US dollar to lose value. US faced pressure on its gold reserves that were fast depleting. US was not prepared to defend the dollar and ultimately abandoned the fixed exchange rate letting the dollar float freely in the markets.

With the coming of the floating exchange rates, the foreign exchange markets were established and the forex history begins. Now the exchange rate was going to be determined by supply and demand and the economic fundamentals. In the beginning the size of the forex markets were in the range of like $50-60 Billion a day. Forex markets were accessible to big institutions like banks, corporation, hedge funds etc.

But by 1990s with the advent of the internet, the size of forex markets had grown to $3.5 Trillion. In 1998 Retail Spot Forex Trading opened up to the public. Technology advanced faster in the 1990’s than in the entire century before. That meant for the first time, online retail Forex trading became practical. Certain trading companies quickly created Internet-based Forex trading platforms to provide a way for individuals to buy and sell on the Spot Forex market.

This was a short forex history. With the coming of floating exchange rates, there was lot of volatility in the forex markets. In the beginning people didn't know how to deal with this volatility. But over time new financial instruments were designed that took benefit of this volatility and helped in hedging. Forex options is one of the ways to hedge your currency position. Forwards and futures also help in hedging.

The surprising thing about forex markets is that 90% of the traders are trading for pure speculation. Forex markets are the most liquid markets and are open 24/5 except on weekends. With the collapse of the stock markets last year, forex trading is being touted as the Recession Proof Business of 21st century.

Read my other posts to find out how. I hope you have enjoyed this very short introduction to forex history. It was important for you to realize that forex history is only a few decades old and many economic experts are of the opinion that the floating exchange rate mechanism is not good. Maybe in a decade or two another turning point is reached in forex history.

Bailout Riches

'm sharing this somewhat off-topic resource with you for three reasons...First... Because it could have a major impact on your life.Second... Because I've learned a great deal from this person, and I wanted to share this with you. And Third... Because I have a special affinity for a fellow entrepreneur who started his business on the proverbial 'kitchen table' like I did just 5 years ago.

The only difference is that he went from bankruptcy to Billionaire(and made the Forbes 400) by taking advantage of this special situation...And it's all happening again right now. In a much bigger way...His name is Bill Bartmann, and he's just released a book on the subject that I've had a chance to review. It's an excellent resource, and you can find out more about it (and watch a free video from Bill) below.Just to go directly to Amazon.com below:

Bailout Riches!: How Everyday Investors Can Make a Fortune Buying Bad Loans for Pennies on the Dollar

And order his book. It's under $20...Also see important bonuses listed below. But the information inside could literally make you a fortune, just like it has in the past for Bill Bartmann. Or... it may just mean some extra money for your trading account -- which everybody could use right about now...What's the big deal about getting this book? The last time there was a government bailout of the banks, Bill went from being a bankrupt former street gang member to becoming a self-made billionaire. Bill says the opportunity is even bigger this time around and his blueprint is all outlined in his new book. And the great thing about this is:

--It doesn't require any up-front investment;
--You don't have to know anything about the subject;
--You can start making money from the comfort of your home (Bill started at his kitchen table like I did); and
--You can even do this part-time if you wish.

Why should I order the book TODAY? Bill would like to get to the top of Amazon.com on their 'Best-Sellers' list, even if only for a day (TODAY). So if you get the book TODAY on Amazon and send Bill your receipt, he's piling on these additional bonuses: (Which are all of great value for you, which is another reason I agreed to mail this out to our subscribers).

1. Invitation-only private teleseminar with Bill about profiting from the government bailout of banks. Bill will personally describe how he made a billion dollars the last time this 'special situation' came around. More importantly, he will explain how YOU can get in on this too -- even if you have no money and are working a 9-to-5 job.

2. 1-year membership to Bill's "Billionaire University". People currently pay $1,000 to gain access to these video lessons. As a friend, Bill let me review them last year, and I can tell you they are excellent. If you want to gain access to insights only people of remarkable business achievement can share... this alone pays for your book price hundreds (if not thousands) of times over.

3. Access to Bill's video, "How To Borrow All The Money Your Business Needs". What could be more timely right now when banks aren't even lending to other banks! This is a precious skill that can help you for many years to come. How do I get these invaluable bonuses? It's simple really. First, order Bill's book online right now:

Bailout Riches!: How Everyday Investors Can Make a Fortune Buying Bad Loans for Pennies on the Dollar

Second, check your email for your Amazon.com receipt. Finally, go to this special bonus website. And enter your name and Amazon order number. That's it! Then you'll receive email instructions for all your bonuses. Now, I can't be certain... But as far as I know, no other former gang member and slaughterhouse worker in history has ever become a billionaire...Watch a free video from Bill at Amazon.com here:

Bailout Riches!: How Everyday Investors Can Make a Fortune Buying Bad Loans for Pennies on the Dollar

And Bill's book contains secrets on how to succeed no matter how many challenges you have, which is especially timely in these economic conditions. So I recommend that you pick up a copy of Bill's book (plus the thousands of dollars in extra value bonuses offered above IF YOU ORDER TODAY!). Don't miss out on your chance to get thousands of dollars in free education, from a guy who literally went from bankruptcy to billionairre -- and is ready to show you how he did it using the same techniques that worked for him... and why NOW is an even better opportunity...It's as close to a 'no brainer' as I can imagine.

How To Trade Forex?

Many people want to know how to trade forex. Forex trading used to be the preserve of big institutions like banks, corporations, hedge funds and wealthy individuals three decades back. But with the coming of the internet age, forex trading is now available to almost anyone who is interested including individual small time investors like you and me. You only need a good high speed internet connection and a computer to start.

But how to trade forex. In the beginning everything looks complex. It's like learning to play tennis. You have the racket but you don't know how to hit the ball. Well just like in tennis first you need to practice hitting the ball, same here in forex trading. You will need to practice on your demo account.

The best thing for the beginners is open a demo forex trading account. You can easily do that in five minutes. Just go to the website of any forex broker and you can open a demo account. It is as simple as that!

What is a demo account? It is an account where you get real data and real charts and you can open and close trades with virtual money. In other words you will use fake money and practice forex trading. Practice as much as you can. Within a few weeks you will be confident enough to start forex trading on a live account. This is the answer to how to trade forex.

Now many forex brokers use metatrader platform. There are programmers out there who in collaboration with the forex traders have designed forex trading robots that can do trading 24/5 ( don't forget the forex markets are closed on weekends).

Now the best answer to the question: How to trade forex is that you can start trading forex with a robot on your demo account. Learn the settings. You can do that in half an hour. Install the robot on your demo account and let it run for a few weeks. By the way these robots are also known as Expert Advisors.

In a few weeks you will see yourself, how much money the robot has made for you on your demo account. If satisfied, you can go live. if not ask for the refund of the money spend on the robot. How much you have lost? Nothing! Not even a single cent. This is how to trade forex.

On this website, I recommend a robot that comes with a 60 days money back guarantee. Give it a try on your demo account. You will not lose a single cent. This robot can make you more than $100,000 starting from $500. So don't let it pass you by while others make use of it to make thousands of dollars while working from their kitchen tables.

Forex Massacre Is Your Answer In These Markets!

Has your 401(k) been massacred? Maybe you haven’t been paying attention. Maybe you’re too afraid to look. But deep down, you and I both know that the U.S. stock market has taken a huge drubbing in the past few months. People have lost 30 percent and more of their retirement nest eggs in what seems like the blink of an eye. Want to get that money back? Here’s the answer: Forex. It’s nothing to be scared of. In fact, this killer manual (really a complete autopilot trading system) makes it drop-dead easy to make a killing instead of being massacred yourself:

Forex Massacre

Foreign exchange (Forex) trading is simple. It’s all about trading currencies around the world. But here’s where most people get terrified... Forex markets are wild. Always have been. And with the recent international financial turmoil, they’re even wilder. If you don’t know what your doing--and I mean know it COLD--you’re jumping out of the boat into shark infested waters, believe me. That’s why most people never even try. They hear the stories of the huge profits people can make on Forex trades (and those profits are truly obscene), but they think, “I’m not smart enough to do that...and what if I lose BIG money?” I know how you feel. I’ve felt the same way. And that’s why Forex Massacre is so exciting.

This is the only how-to manual you’ll ever need, for sure, but it’s way more than that. Let me explain... A manual is fine, but what you really need is a system that a regular non-genius person with a day job can use to make huge profits fast. I’m not talking about getting rich quick--that’s snake oil, and I won’t sell it. But I’m talking about real,nontrivial money almost from the start. That’s exactly what Forex Massacre is, and I’ll prove it:

*** It’s 100% automated. And by 100%, I mean 100%. You set it up andlet the automated profitable trades come to you.

*** It takes almost no time. You’ll check your account once a week. Really! You don’t have to study charts for hours on end. You don’t have to park yourself in front of your computer all weekend. This is perfect for beginners and 9 to 5 workers.

*** You can start with as little money as you want. There’s no need to plunk down $50 grand to get started. You can star with $50 if you want. And even better...

*** It’s absolutely testable. Set up a demo account that uses pretend money and PROVE the system works before you ever risk any real funds. The system has generated over 90 percent winning trades to date, though, so the proof won’t take long!

Most people never even try Forex trading because they assume it’s too “complicated”. Well, it IS complicated, unless you have a system that takes all of the hard parts out. Forex Massacre does that for you.

Forex Massacre

You can use it in any country, 24 hours a day, with very little investment capital. Perhaps most important of all, there is ZERO judgment involved. You set the system up, decide which currencies you want to trade, and let the system find the most likely profitable trades for you. It’ll even execute the trades for you!

You don’t need any prior experience. The manual tells (and shows) you everything you need to know, and the system lets you implement it flawlessly and painlessly. But don’t think “easy” means you can’t make some big profits with this. Take a look at the sales page...

Does $47,460 profit in only 64 days sound pretty good to you?

It sure does to me, and that’s only ONE of the documented successful trades the guys who created this have made. It’s not a fluke either--they make trades like that all the time using this very same system. Get Forex Massacre. How’d you like to massacre Forex instead of being afraid you’ll be killed?

When you head over there, do me one small favor...

Don’t get blinded by the numbers. By all means LOOK at the numbers and be suitably impressed at what Forex Massacre can do. But don’t get blinded by them. You see, most people reject stuff when they think it’s hype. And Forex Massacre is NOT hype. If you look at the gaudy profits from the trades these guys make, you might get the wrong idea. Pulling down $30,250 in a little over two months is downright impressive, but that’s not the point. There are two things to note when you see the profitable trades
they talk about:

1. They’re not flukes. These guys aren’t talking about making a profit every now and then, and they’re certainly not saying you’ll lose $100,000 for every $30,000 you make. That would be insane. This system has a 90% success rate!

2. This isn’t a case of having to work for years to see results like this. I hesitate to say this, but Forex Massacre is...um...easy.

Their system works well, and the proof is in the numbers. You might not see profits like that every time (there are no guarantees in ANY market), but they’re not rare either.

Forex Massacre

But here’s what’s most important...there’s a REASON this system works.

It’s not because the software they give you access to is so great, although it is. It’s not because they’ve found some kind of “black magic” that nobody else knows, although it sure seems like it sometimes. It’s not because the system is so complicated that you need a genius level IQ to understand it, because you do NOT have to be a genius.

The reason the system works is simple--it takes judgment completely out of the equation. Really, do you know why most people lose their shirt in the stock market? It’s because of emotion. They see the market moving around and they buy when they shouldn’t or sell when they shouldn’t.

Forex trading is the same way. People end up losing large amounts of money because of emotion. That’s why Forex Massacre is so great. It saves you from yourself! The system takes all judgment out of trades. It tells you when to buy and when to sell, and does it for you automatically. All you have to do is check up on things once every week and make any adjustments you need to make.

Forex Massacre

There’s no guesswork. There’s no subjectivity. There’s no emotion. It’s just a system that works, based on one clear indicator that gives you over 90 percent winning trades, without having to sweat about it. You don’t even have to watch your trades intraday. Really, you check your account once per WEEK.

Until now, this system has been for pros only. These are the principles they’ve been using to beat the Forex markets mercilessly for years. Now you can do exactly what the pros have been doing. Best of all, unlike other Forex systems you may have seen, you won’t pay a monthly subscription fee. Your up-front price is for a LIFETIME of profitable trades.

If you’ve ever considered Forex, but were too afraid to try, now’s the time to get off the fence and do it. Pick up Forex Massacre with zero risk, try it out and see if you don’t make solid profits quickly. The introductory price will disappear. Get in now while they’re charging ridiculously little for a lifetime of profitable
trades:

5 Forex Mistakes

These are the 5 Forex Mistakes you can commit:

Forex Mistakes: Don't Day Trade

It doesn't work as all short term volatility is random and prices can and do anywhere in a day and you have the odds firmly against you and will lose longer term. Ever seen a day trader with a long term track record of success? No neither have I avoid it and trade longer term trends where you can get the odds on your side.

Forex Mistakes: Don't Try and Predict

Predicting is simply hoping and guessing and won't get you far - trade the reality of price change. No one knows the future and your predictions will end up as accurate as your horoscope!

Forex Mistakes: Don't use Science

Don't believe anyone who tells you markets move to a scientific formula they don't - if they did we would all know the price in advance and their would be no market. Trading is a game of odds - not certainties but you can win if you know and trade the odds. You won't win every trade but over the longer term you can pile up huge Forex profits.

Forex Mistakes: Don't Trade Scared Money

If you can't afford to lose stay away, forex markets are extremely risky and if you are worried about losing your discipline will break down and you will lose.

Forex Mistakes: Don't follow a guru blindly

To follow a forex trading system you must have confidence in it and know how it works or you won't be able to follow it with discipline - if you can't follow it with discipline you have no system at all.

That's sums up the tips for today, the 5 killer mistakes you should NEVER make!