An Introduction to Japanese Candlestick Charting Part 4

Stars

These candlestick formations consist of a small real body that gaps away from the real body preceding it. The real body of the star should not overlap the prior real body. The color of the star is not too important, and they can occur at either tops or bottoms. Stars are the equivalent of gaps on standard bar charts

Stars make up part of four separate reversal patterns:

- Morning Star
- Evening Star
- Doji Star
- Shooting Star (Inverted Hammer)

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Morning Star -- this is a bullish bottom reversal pattern. The formation is comprised of 3 candlesticks. The first candlestick is a tall black real body followed by the second, a small real body, which gaps (opens), lower (a star pattern). The third candlestick is a white real body that moves well into the first period's black real body. This is similar to an island pattern on standard bar charts.


Evening Star -- a bearish top reversal pattern and counterpart to the Morning Star. Three candlesticks compose the evening star, the first being long and white. The second forms a star, followed by the third, which has a black real body that moves sharply into the first white candlestick.


Doji Stars -- When a doji gaps above a real body in an uptrend, or gaps under a real body in a falling market, that particular doji is called a doji star. Two popular doji stars are the evening star and the morning star.

Evening Doji Star -- a doji star in an uptrend followed by a long, black real body that closed well into the prior white real body. If the candlestick after the doji star is white and gapped higher, the bearishness of the doji is invalidated.

Morning Doji Star -- a doji star in a downtrend followed by a long, white real body that closes well into the prior black real body. If the candlestick after the doji star is black and gapped lower, the bullishness of the doji is invalidated.

Shooting Star -- a small real body near the lower end of the trading range, with a long upper shadow. The color of the body is not critical. Not usually considered a major reversal sign, only a warning.

Inverted Hammer-- not really a star, but does look like a shooting star. When occurring within a downtrend, may be a turning signal. Body color is not critical.

Final Thoughts and Credits

As traders, we need as many trading tools in our arsenal, and a basic knowledge of candlesticks provides a trader much needed ammunition. Also remember that no matter what the trading tool, no matter how advanced or ancient, it is only effective when put into practice properly. This is, of course, your job as the trader.


Erik L. Gebhard

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

An Introduction to Japanese Candlestick Charting Part 3

Candlestick Reversal Patterns

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Just as many traders look to bar charts for double tops and bottoms, head-and-shoulders, and technical indicators for reversal signals, so too can candlestick formations be looked upon for the same purpose. A reversal does not always mean that the current uptrend/downtrend will reverse direction, but merely that the current direction may end. The market may then decide to drift sideways. Candlestick reversal patterns must be viewed within the context of prior activity to be effective. In fact, identical candlesticks may have different meanings depending on where they occur within the context of prior trends and formations.

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Hammer -- a candlestick with a long lower shadow and small real body. The shadow should be at least twice the length of the real body, and there should be no or very little upper shadow. The body may be either black or white, but the key is that this candlestick must occur within the context of a downtrend to be considered a hammer. The market may be "hammering" out a bottom.

Hanging Man -- identical in appearance to the hammer, but appears within the context of an uptrend.

Engulfing Patterns -- Bullish -- when a white, real body totally covers, "engulfs" the prior day's real body. The market should be in a definable trend, not chopping around sideways. The shadows of the prior candlestick do not need to be engulfed.

Bearish -- when a black, real body totally covers, "engulfs" the prior day's real body. The market should be in a definable trend, not chopping around sideways. The shadows of the prior candlestick do not need to be engulfed.
Dark-Cloud Cover(bearish) -- a top reversal formation where the first day of the pattern consists of a strong white, real body. The second day's price opens above the top of the upper shadow of the prior candlestick, but the close is at or near the low of the day, and well into the prior white, real body.

Piercing Pattern (bullish) -- opposite of the dark-cloud cover. Occurs within a downtrend. The first candlestick having a black, real body, and the second has a long, white, real body. The white day opens sharply lower, under the low of the prior black day. Then, prices close above the 50% point of the prior day's black real body.

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

An Introduction to Japanese Candlestick Charting Part 2

Common Candlestick Terminology

The following is a list of some individual candlestick terms. It is important to realize that many formations occur within the context of prior candlesticks. What follows is merely a definition of terms, not formations.

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The Black Candlestick -- when the close is lower than the open.
The White Candlestick -- when the close is higher than the open.

The Shaven Head -- a candlestick with no upper shadow.

The Shaven Bottom -- a candlestick with no lower shadow.

Spinning Tops -- candlesticks with small real bodies, and when appearing within a sideways choppy market, they represent equilibrium between the bulls and the bears. They can be either white or black.
Doji Lines -- have no real body, but instead have a horizontal line. This represents when the Open and Close are the same or very close. The length of the shadow can vary.

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

An Introduction to Japanese Candlestick Charting Part 1

Introduction…a New Way to Look at Prices

Would you like to learn about a type of commodity futures price chart that is more effective than the type you are probably using now? If so, keep reading. If you are brand new to the art/science of chart reading, don’t worry, this stuff is really quite simple to learn.

Technical Analysis…a Brief Background

Technical analysis is simply the study of prices as reflected on price charts. Technical analysis assumes that current prices should represent all known information about the markets. Prices not only reflect intrinsic facts, they also represent human emotion and the pervasive mass psychology and mood of the moment. Prices are, in the end, a function of supply and demand. However, on a moment to moment basis, human emotions…fear, greed, panic, hysteria, elation, etc. also dramatically effect prices. Markets may move based upon people’s expectations, not necessarily facts. A market "technician" attempts to disregard the emotional component of trading by making his decisions based upon chart formations, assuming that prices reflect both facts and emotion.

Standard bar charts are commonly used to convey price activity into an easily readable chart. Usually four elements make up a bar chart, the Open, High, Low, and Close for the trading session/time period. A price bar can represent any time frame the user wishes, from 1 minute to 1 month. The total vertical length/height of the bar represents the entire trading range for the period. The top of the bar represents the highest price of the period, and the bottom of the bar represents the lowest price of the period. The Open is represented by a small dash to the left of the bar, and the Close for the session is a small dash to the right of the bar. Below is a standard bar chart example.

Candlestick Charts Explained

You may be asking yourself, "If I can already use bar charts to view prices, then why do I need another type of chart?"

The answer to this question may not seem obvious, but after going through the following candlestick chart explanations and examples, you will surely see value in the different perspective candlesticks bring to the table. In my opinion, they are much more visually appealing, and convey the price information in a quicker, easier manner.

What is the History of Candlestick Charts?

Candlestick charts are on record as being the oldest type of charts used for price prediction. They date back to the 1700's, when they were used for predicting rice prices. In fact, during this era in Japan, Munehisa Homma become a legendary rice trader and gained a huge fortune using candlestick analysis. He is said to have executed over 100 consecutive winning trades!

The candlesticks themselves and the formations they shape were give colorful names by the Japanese traders. Due in part to the military environment of the Japanese feudal system during this era, candlestick formations developed names such as "counter attack lines" and the "advancing three soldiers". Just as skill, strategy, and psychology are important in battle, so too are they important elements when in the midst of trading battle.

What do Candlesticks Look Like?

Candlestick charts are much more visually appealing than a standard two-dimensional bar chart. As in a standard bar chart, there are four elements necessary to construct a candlestick chart, the OPEN, HIGH, LOW and CLOSING price for a given time period. Below are examples of candlesticks and a definition for each candlestick component:

* The body of the candlestick is called the real body, and represents the range between the open and closing prices.

* A black or filled-in body represents that the close during that time period was lower than the open, (normally considered bearish) and when the body is open or white, that means the close was higher than the open (normally bullish).

* The thin vertical line above and/or below the real body is called the upper/lower shadow, representing the high/low price extremes for the period.

Bar Compared to Candlestick Charts

Below is an example of the same price data conveyed in a standard bar chart and a candlestick chart. Notice how the candlestick chart appears 3-dimensional, as price data almost jumps out at you.

3a

3b

The long, dark, filled-in real bodies represent a weak (bearish) close ( 3a ), while a long open, light-colored real body represents a strong (bullish) close ( 3b ). It is important to note that Japanese candlestick analysts traditionally view the open and closing prices as the most critical of the day. At a glance, notice how much easier it is with candlesticks to determine if the closing price was higher or lower than the opening price.

"Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic"

EURUSD Looks To Hold

EURUSD looks to hold the 1.4735 high through today's close. This is a very prominent double top and will require a break or reversal soon, but the longer it takes to mark a reversal, the more probable a break becomes.


"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Trend Analysis: Trend Lines and Trend Channels

Trend Analysis: Trend Lines and Trend Channels

Trend is a general direction of the price.

Trend Lines
Prices do not only rise or fall but most of the time they actually move in narrow ranges. So, in accordance with the Dow Theory we can therefore divide trends into three types:

"bull" (or "uptrend") - prices rise;
"bear" (or "downtrend") - prices fall;
"flat" (or "sideways") - prices are in a narrow range. As a general rule, market consolidates prior to a rapid price rise or fall.
First of all, it is very important to determine if the market is uptrending or downtrending (this can be done with the help of trend indicators and trend lines or channels) and if the prevailing trend is strong or weak (with the help of oscillators and charts patterns).

Uptrend line in MetaTrader

Uptrend means that every next bottom is above the previous one, and every next high is above the previous one, so in this case, the trend line is drawn between bottom points. Obviously a trend line created by joining only two points will be less effective than a trend line created by three or more points.

Downtrend line in MetaTrader

Downtrend means that every next bottom is under the previous bottom and every next high is under the previous high, so in this case, the trend line is created by using the highest points.

Any trend (bullish or bearish) must be confirmed by trade volume. Put it simply: when prices move in accordance with the prevailing trend, the trade volume increases; when prices move against the prevailing trend (rebound), then trade volume decreases. Once the situation changes and trade volume during rebounds becomes greater than that during the trend price movement, it is a serious signal that the trend may not be so strong (but it is not the signal to open the opposite position, as there is no confirmation of the trend reversal).

Flat trend line in MetaTrader

A Flat Market means that every next bottom or high is at the same level as that of the previous bottom or high. In this case, the trend line is drawn by joining both bottoms and highs.

With the help of a trend line you can identify the moment when the trend will change. Once a trend line has been broken, chances are that the trend has just changed its direction or its strength has started to diminish.

Sometimes the trend line is broken by a bar low or high, and the price continues to move in the direction of the current trend. There are many methods to define if a breakout is true, hereafter are the most popular :

Trend is your friend - do not open positions against the prevailing trend.
The primary trend remains intact until a change in that trend has been given. Trend line breakout is one of the most important signals that the trend may reverse.
Do not try to open positions against the prevailing trend hoping that the trend is weak and that the reversal point is not far away. In most cases price sweeps through your Stop Loss order and only subsequently does the trend reverse.
A Stop Loss order should be placed below an uptrend line (or above a downtrend line).

Tomas Demark made his contribution to the theory of trend lines. According to his theory, trend is rooted in two critical points through which the trend is drawn. He called these points TD-lines (his name, Tomas Demark, abbreviation). These points are defined at the basis of extreme points.

Channel Lines
Channel lines are a significant part of trend analysis. Channel lines are like boundaries for price fluctuations. To create a channel line, draw a parallel straight line next to the trend line: one of them joins price chart highs, the other price chart lows:

Channel lines are used:

To point out where to fix profits and losses. If there is an uptrend channel, Take Profit order may be placed under the upper line and Stop Loss order under the lower line. If there is a downtrend channel, Take Profit order should be placed above the lower line and Stop Loss above the upper line.
If the price does not touch the upper line of the uptrend (lower line of the downtrend) this signifies that the prevailing trend is weak.

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Trend Analysis: Support/Resistance Levels

Trend Analysis: Support/Resistance Levels


Support and Resistance levels are patterns of classical technical analysis. All trend (channel) lines, reversal and continuation chart patterns are only combinations of support and resistance levels.

Support level is a starting point of an uptrend, and is actually a tangent to the minimum prices. It is commonly thought that when the price falls down to the support level, Bulls (buyers) start to resist against further price decrease thus giving it support. This explains why is many cases the price will bounce back and start rising after having reached a support level.

After several attempts the price may break the support level. Once the support level is broken, it becomes the resistance level:

There is an example of when a support level became resistance in September 14, 2003:

Resistance level is a tangent to the maximum prices:

It is assumed that once the price reaches this level it will not point higher. After several attempts the price may break the resistance level. Once the resistance level is broken it becomes the support level.
Support and resistance levels are very easy to create and they are a very effective method to forecast price behaviour. In order to define if the support/resistance level breakout is true, please refer to the criteria outlined for trend lines.

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

2009 Federal Holidays

This page starts with U.S. Federal Legal Holidays because on these datesmany government offices, banks and businesses will be closed. Followingthat list many other popular holidays & observances are listed.
United States Legal Federal Holidays

Federal Legal Holidays 2009

• January 1, 2009 (thursday): New Year's Day [Jan. 1 every year]

• January 19, 2009 (monday): Martin Luther King Day [3rd monday in Jan]

• January 20, 2009 (tuesday): Inauguration Day [every 4th year]

• February 16, 2009 (monday): Presidents Day (observed) [3rd monday in Feb] note: Presidents Day is also Washington's Birthday (observed)

• May 25, 2009 (monday): Memorial Day (observed) [last monday in May] July 3, 2009 (friday): federal employees extra day off for July 4th

• July 4, 2009 (saturday): Independence Day [July 4th every year]

• September 7, 2009 (monday): Labor Day [1st monday in Sept]

• October 12, 2009 (monday): Columbus Day (observed) [2nd monday in Oct]

• November 11, 2009 (wednesday): Veterans' Day [Nov. 11 every year]

• November 26, 2009 (thursday): Thanksgiving Day [4th thursday in Nov]

• December 25, 2009 (friday): Christmas Day [Dec. 25 every year]

Federal Legal Holidays 2010

• January 1, 2010 (friday): New Year's Day [Jan. 1 every year]

• January 18, 2010 (monday): Martin Luther King Day [3rd monday in Jan]

• February 15, 2010 (monday): Presidents Day (observed) [3rd monday in Feb] note: Presidents Day is also Washington's Birthday (observed)

• May 31, 2010 (monday): Memorial Day (observed) [last monday in May]

• July 4, 2010 (sunday): Independence Day [July 4th every year] July 5, 2010 (monday): federal employees extra day off for July 4th

• September 6, 2010 (monday): Labor Day [1st monday in Sept]• October 11, 2010 (monday): Columbus Day (observed) [2nd monday in Oct]

• November 11, 2010 (thursday): Veterans' Day [Nov. 11 every year]

• November 25, 2010 (thursday): Thanksgiving Day [4th thursday in Nov] December 24, 2010 (friday): federal employees extra day off for Christmas

• December 25, 2010 (saturday): Christmas Day [Dec. 25 every year]

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

How to Choose A Trading Platform That Suits You Best.

Hi Again !!!

I have just posted 2 video tutorial on 2 seperate trading platform which is widely used by Forex traders....

Hopefully you can decide which is the best platform that suits your trading needs...as for me, my personal favourite is the marketscope 2.0 as I find it more easier to use, as it's click & bid order is done directly from the charts....

So decide for yourself which is better cause at the end of the day...it's all about making money...



"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Forex Concept

Forex is the abbreviation for foreign exchange, refers to the foreign currency or the foreign country currency expresses which can be use in the international settlement payment means and the property, mainly it includes the credit instrument, disbursement voucher, the negotiable securities and the foreign exchange cash and so on.

The International Monetary Fund defined Forex as the international creditor's rights which a country has, no matter this kind of creditor's rights are express by the foreign currency or expressed by the standard currency.

Exchange Rate
Exchange rate, also known as the exchange price, it refers by a country currency being express by another country currency, or it is also the price ratio between both countries currency, generally it is being expressed by using the price proportion of both countries. For instance: USD/JPY=105.40, is being expressed a US dollar equal to 105.40 Japanese Yen, US dollar is also known as the unit currency, the Japanese Yen is known as the price currency.

In the foreign exchange market, the exchange rate is demonstrated by five numerals, for example:

Euro/US dollar: EUR/USD 1.3325
US dollar/Japanese Yen: USD/JPY 104.95
Pound/US dollar: GBP/USD 1.9337
US dollar/Swiss Franc: USD/CHF 1.2303

The exchange rate smallest change unit is, namely a final one-figure number digital change, is called an exchange rate basic point (Pip), abbreviation exchange rate spot, for example:
Euro EUR 0.0001
Japanese Yen JPY 0.01
Pound GBP 0.0001
Swiss Franc CHF 0.0001



"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Forex Glossary

American-style option An option contract that may be exercised at any time before it expires.

Ask The quoted price at which a customer can buy a currency pair. Also referred to as the 'offer', 'ask price', or 'ask rate'.

Base Currency For foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. For example, in a USD/JPY currency pair, the US dollar is the base currency. Also may be referred to as the primary currency.
Bid The quoted price where a customer can sell a currency pair. Also known as the 'bid price' or 'bid rate'.

Bid/Ask Spread The point difference between the bid and ask (offer) price.

Call A call option gives the option buyer the right to purchase a particular currency pair at a stated exchange rate.

Counterparty The counterparty is the person who is on the other side of an OTC trade. For retail customers, the dealer will always be the counterparty.

Cross-rate The exchange rate between two currencies where neither of the currencies are the US dollar.

Currency pair The two currencies that make up a foreign exchange rate. For example, USD/YEN is a currency pair.

Dealer A firm in the business of acting as a counterparty to foreign currency transactions.

Euro The common currency adopted by eleven European nations (i.e., Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain) on January 1, 1999.

European-style option An option contract that can be exercised only on or near its expiration date.

Expiration This is the last day on which an option may either be exercised or offset.

Forward transaction A true forward transaction is an agreement that expects actual delivery of and full payment for the currency to occur on a future date. This term may also be used to refer to transactions that the parties expect to offset at some time in the future, but these transactions are not true forward transactions and are governed by the federal Commodity Exchange Act.

Interbank market A loose network of currency transactions negotiated between financial institutions and other large companies.

Leverage The ability to control large dollar amount of a commodity with a comparatively small amount of capital. Also known as 'gearing'.

Margin See Security Deposit.

Offer See ask.

Open position Any transaction that has not been closed out by a corresponding opposite transaction.

Pip The smallest unit of trading in a foreign currency price.

Premium The price an option buyer pays for the option, not including commissions.

Put A put option gives the option buyer the right to sell a particular currency pair at a stated exchange rate.

Quote currency The second currency in a currency pair is referred to as the quote currency. For example, in a USD/JPY currency pair, the Japanese yen is the quote currency. Also referred to as the secondary currency or the counter currency.

Rollover The process of extending the settlement date on an open position by rolling it over to the next settlement date.

Retail customer Any party to a forex trade who is not an eligible contract participant as defined under the Commodity Exchange Act. This includes individuals with assets of less than $10 million and most small businesses.

Security deposit The amount of money needed to open or maintain a position. Also known as 'margin'.
Settlement The actual delivery of currencies made on the maturity date of a trade.

Spot market A market of immediate delivery of and payment for the product, in this case, currency.

Spot transaction A true spot transaction is a transaction requiring prompt delivery of and full payment for the currency. In the interbank market, spot transactions are usually settled in two business days. This term may also be used to refer to transactions that the parties expect to offset or roll over within two business days, but these transactions are not true spot transactions and are governed by the federal Commodity Exchange Act.

Spread The point or pip difference between the ask and bid price of a currency pair.

Sterling Another term for British currency, the pound.
Strike price The exchange rate at which the buyer of a call has the right to purchase a specific currency pair or at which the buyer of a put has the right to sell a specific currency pair. Also known as the 'exercise price'.

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough"

Dealing Spreads

These are some of the basic infomation that is usually taught when you sign up for any Forex courses, knowledge that may to some make them feel like a true Forex broker.

Useful information is courtesy of dbfx Trading.

Example of Margin Calculation

Another basic infomation that is usually taught when you sign up for any Forex courses...

Profit and Loss

Another basic infomation that is usually taught when you sign up for any Forex courses...

Decimalized Pricing

Another basic infomation that is usually taught when you sign up for any Forex courses...

Rollovers

Another basic infomation that is usually taught when you sign up for any Forex courses...

Best Hours to Trade Forex

Since the Forex market is open 24 hours a day, a trader can’t track every single movement on the market. It’s crucial for a trader to know when he can expect high volatility, so that he can implement his strategy on the most effective way. If you’re trading using daily charts, the best period to analyze Forex is around 5pm EST because that’s the rollover period. If you’re trading on shorter time frames, you must know when you can expect more volatility.


The most important Sessions on Forex are:

The Asian Session (7pm – 4am EST) – During this period, you can successfully day trade especially if you trade the yen. USD/JPY is a good choice if you plan to trade on this session. This period is not as volatile as the US session or the European session, but it’s possible to trade it and achieve a good performance;

The European Session (2am – 12pm EST) – This is one of the best periods to trade Forex. Since most of the dealing desks of large banks are located in London, the majority of major Forex transactions are completed during this session. During this period you can implement a successfully strategy on any currency pair.

The U.S. Session (8am – 5pm EST) – This is another great period to implement your forex strategies. Volatility is good, and you can expect good volatility on any currency pair. The European and U.S sessions are the most important ones on Forex, so you can trade between 2am and 5 pm EST and get good intraday swings almost every single day. Between 8am and 12pm EST we have the U.S. session and the European session at the same time. This is the best time of the day to trade Forex. Volatility is good in all currency pairs. Some of the most important economic releases appear during this period, and this brings good opportunities for Forex traders almost every single day.

How to choose a good broker?

Before trading Forex you need to set up an account with a Forex broker. So what exactly is a broker? In simplest terms, a broker is an individual or a company that buys and sells orders according to the trader's decisions. Brokers earn money by charging a commission or a fee for their services. You may feel overwhelmed by the number of brokers who offer their services online. Deciding on a broker requires a little bit of research on your part, but the time spent will give you insight into the services that are available and fees charged by various brokers. Is the Forex broker regulated? When selecting a prospective Forex broker, find out with which regulatory agencies it is registered with.

Besides, a good broker will provide you the following:

1. Low Spreads. In Forex trading the spread is the difference between the buy and sell price of any given currency pair. Lower spreads save you money.

2. Low minimum account openings. For those that are new to Forex trading and for those that don’t have millions of dollars in risk capital to trade, being able to open a micro trading account with only $250 (we recommend at least $1,000) is a great feature for new traders.

3. Instant automatic execution of your orders. This is very important when choosing a Forex broker. Don’t settle with a firm that re-quotes you when you click on a price or a firm that allows for price slippage. This is very important when trading for small profits. You want what we call a WYSIWYG (pronounced wiz-ee-wig) broker! This means you want instant execution of your orders and the price you see and "click" is the price that you should get...WYSIWYG = What You See Is What You Get!

4. Free charting and technical analysis Choose a broker that gives you access to the best charting and technical analysis available to active traders. Look for a broker that provides free professional charting services and allows traders to trade directly on the charts.

5. Leverage Leverage can either make you super rich or super broke. Most likely, it will be the latter. As an inexperienced trader, you don't want too much leverage. A good rule of thumb is to not use more than 100:1 leverage for Standard (100k) accounts and 200:1 for Mini (10k) accounts.

Keep a Trading Diary

Keeping a detailed trading diary is what makes you grow as a trader. This is what allows you to learn from your experience. Good traders usually have great trading diaries while bad traders simply don’t care about them.
On your trading diary, you should annotate all your trades as well as describe all the reasons that made you take the trade. You should also annotate your pace of mind when you entered the trade and during the trade. Was there any economic release while you were holding a trade? If so, annotate it on your trading diary. The technical indicator that you were using gave you an exit signal, and you ignored it? Well, don’t be ashamed. Write it on your trading diary, and learn from your mistakes.
All traders make mistakes. The difference between winners and losers is that winners tend to learn from those mistakes. Losers prefer to forget about them…
If you want to be a winner, you’ll need to build a great trading diary and make it as much detailed as you can. You can even take some chart snapshots at the moment you entered and exited the trade and post them on your trading diary so that, in the future, you can see the reasons why you made your decision about a trade. In the future you can read your trading diary and learn about some mistakes that you made.

Myths about Forex Trading

If you have experience trading stocks and think you can simply apply your knowledge on Forex and make money, you’re going to be disappointed. The Forex market is much more complex. Firstly, the Forex market is open 24 hours a day. This may not seem a big deal but it’s a significant difference in relation to the stock market. As the Forex market is open 24 hours a day, this brings more complexity to a trader. If in the stock market you have periods of higher and lower volatility, in the Forex these differences are even higher.
Many stock traders think the Forex market is easy because it is open 24 hours a day. They think they can trade whenever they want and make their quick bucks. Truth is you can make money in Forex. But for that, you need to have a deep knowledge about this market.
The indicators that work in stocks don’t always work in Forex. The Forex market is more complex and, this way, the indicators that you use on stocks don’t work so well here.
Brokers are another huge difference between stocks and Forex. In the Forex market, due to the lack of regulation, a lot of Forex brokers don’t act in their clients’ best interest. It’s a lot more difficult to find a good Forex broker than a stock broker.