Wednesday, December 28, 2016

Forex Trendy Review – Best Trend Scanner

Name of Product: Forex Trendy – Best Trend Scanner
As it is well known, without knowing the right direction of the pair we're only seeing the half of the picture in this business field.
What is Forex Trendy
It is an online web based cloud computing Forex trading system designed for trending market, scans all currency pairs on all time frames to find the best trend for you. Also, it's a software solution able to recognize chart patterns on all charts every second.
Why You Must Use it In Your Trades?
- Providing an average of 10 accurate signals per day
- Money back guarantee 60 days
- Automated chart analysis for 34 pairs (chart patterns recognition) and the history of completed patterns in real time.
- Audible alerts and Email alerts for new patterns
- Its 70-75% accuracy rate of the signals
- All Forex trading platforms are supported (MT4, MT5, Trade Stations and others).
- Low cost: very low compared to the profits you get, it cost 37$ per quarterly (That’s 12.3$ per month or 60 Cent per day), there are no hidden costs. PayPal, MasterCard, and Visa Card are payment methods.
How to Use This Software?
It's very easy to use; you just get username and password automatically after purchasing the membership, then you just need to log into your member area without anything to install because it’s web-based software. This system is an integrated -Trend following- trading system, that meaning you can conduct your orders in accordance with the signals will you get via SMS or Email from this trend scanner software.
Final Thoughts
Overall, this Forex trend scanner tool has proven to be effective, affordable and efficient for running profitable trades. If you're looking for an easy solution to reduce unnecessary losses, I can highly recommend taking advantage of this amazing tool.
Personally, I purchased this tool a week ago and it has helped me a lot in my trading, so I am completely satisfied with this tool. If you have any question regarding this tool put it in a comment. Also if you already purchased and used it in your trades put your honestly short review.

»»» Visit the Forex Trendy »»»


Sunday, June 28, 2015

Why do Many Forex Traders Lose Money? Here is the Number 1 Mistake

  • We look through 43 million real trades to measure trader performance
  • Majority of trades are successful and yet traders are losing
  • Here is what we believe to be the number one mistake FX traders make
Why do major currency moves bring increased trader losses? To find out, the DailyFX research team has looked through over 40 million real trades placed via parent company FXCM’s trading platforms. In this article, we look at the biggest mistake that forex traders make, and a way to trade appropriately.
Why Does the Average Forex Trader Lose Money?
The average forex trader loses money, which is in itself a very discouraging fact. But why? Put simply, human psychology makes trading difficult.
We looked at over 43 million real trades placed on FXCM’s trading servers from Q2, 2014 – Q1, 2015 and came to some very interesting conclusions. The first is encouraging: traders make money most of the time as over 50% of trades are closed out at a gain.
Percent of All Trades Closed Out at a Gain and Loss per Currency Pair
Why do Many Forex Traders Lose Money? Here is the Number 1 Mistake
Data source: Derived from FXCM Inc. accounts excluding Eligible Contract Participants, Clearing Accounts, Hong Kong, and Japan subsidiaries from 3/1/2014 to 3/31/2015 across 15 most traded currency pairs.
The above chart shows results of over 43 million trades conducted by FXCM clients worldwide from Q2, 2014 through Q1, 2015 across the 15 most popular currency pairs. The blue bar shows the percentage of trades that ended with a profit for the client. Red shows the percentage of trades that ended in loss. For example, the Euro saw an impressive 61% of all trades closed out at a gain. And indeed every single one of these instruments saw the majority of traders turned a profit more than 50 percent of the time.
If traders were right more than half of the time, why did most lose money?
Average Profit/Loss per Winning and Losing Trades per Currency Pair
Why do Many Forex Traders Lose Money? Here is the Number 1 Mistake
Data source: Derived from FXCM Inc. accounts excluding Eligible Contract Participants, Clearing Accounts, Hong Kong, and Japan subsidiaries from 3/1/2014 to 3/31/2015 across 15 most traded currency pairs.
The above chart says it all. In blue, it shows the average number of pips traders earned on profitable trades. In red, it shows the average number of pips lost in losing trades. We can now clearly see why traders lose money despite bring right more than half the time. They lose more money on their losing trades than they make on their winning trades.
Let’s use EUR/USD as an example. We see that EUR/USD trades were closed out at a profit 61%, but the average losing trade was worth 83 pips while the average winner was only 48 pips. Traders were correct more than half the time, but they lost over 70% more on their losing trades as they won on winning trades. The track record for the volatile GBP/USD pair was even worse. Traders captured profits on 59% of all GBP/USD trades. Yet they overall lost money as they turned an average 43 pip profit on each winner and lost 83 pips on losing trades.
What gives? Identifying that there is a problem is important in itself, but we’ll need to understand the reasons behind it in order to look for a solution.
Cut Losses, Let Profits Run – Why is this So Difficult to Do?
In our study we saw that traders were very good at identifying profitable trading opportunities over 50 percent of the time, but ultimately they lost as the average loss far outweighed the gain. Open nearly any book on trading and the advice is the same: cut your losses early and let your profits run.
When your trade goes against you, close it out. Take the small loss and then try again later, if appropriate. It is better to take a small loss early than a big loss later.
If a trade is in your favor, let it run. It is often tempting to close out at a small gain in order to protect profits, but oftentimes we see that patience can result in greater gains.
But if the solution is so simple, why is the issue so common? The simple answer: human nature. In fact this is not at all limited to trading. To further illustrate the point we draw on significant findings in psychology.
A Simple Wager – Understanding Human Behavior Towards Winning and Losing
What if I offered you a simple wager on a coin flip? You have two choices. Choice A means you have a 50% chance of winning 1000 dollars and 50% chance of winning nothing. Choice B is a flat 450 point gain. Which would you choose?
Expected Return
Gains
Choice A
50% chance to Win 1000
50% chance to Win 0
Expect to win $500 over time
Choice B
Win 450
Win $450
Over time it makes sense to take Choice A—the expected gain of $500 is greater than the fixed $450. Yet many studies have shown that most people will consistently choose Choice B. Let’s flip the wager and run it again.
Expected Return
Losses
Choice A
50% chance to Lose 1000
50% chance to Lose 0
Expect to lose $500 over time
Choice B
Lose 450
Lose $450
In this case we can expect to lose less money via Choice B, but in fact studies have shown that the majority of people will pick choice A every single time.
Here we see the issue. Most people avoid risk when it comes to taking profits but then actively seek it if it means avoiding a loss. Why?
Losses Hurt Psychologically far more than Gains Give Pleasure – Prospect Theory
Nobel prize-winning clinical psychologist Daniel Kahneman based on his research on decision making. His work wasn’t on trading per se but clear implications for trade management and is quite relevant to FX trading. His study on Prospect Theory attempted to model and predict choices people would make between scenarios involving known risks and rewards.
The findings showed something remarkably simple yet profound: most people took more pain from losses than pleasure from gains.
It feels “good enough” to make $450 versus $500, but accepting a $500 loss hurts too much and many are willing to gamble that the trade turns around.
This doesn’t make any sense from a trading perspective—500 dollars lost are equivalent to 500 dollars gained; one is not worth more than the other. Why should we then act so differently?
Prospect Theory: Losses Typically Hurt Far More than Gains Give Pleasure
Why do Many Forex Traders Lose Money? Here is the Number 1 Mistake
Taking a purely rational approach to markets means treating a 50 point gain as morally equivalent to a 50 point loss. Unfortunately our data on real trader behavior suggests that the majority can’t do this. We need to think more systematically to improve our chances at success.
Avoid the Common Pitfall
Avoiding the loss-making problem described above is very simple in theory: gain more in each winning trade than you give back in each losing trade. But how might we do it concretely?
When trading, always follow one simple rule: always seek a bigger reward than the loss you are risking. This is a valuable piece of advice that can be found in almost every trading book.
Typically, this is called a “risk/reward ratio”. If you risk losing the same number of pips as you hope to gain, then your risk/reward ratio is 1-to-1 (sometimes written 1:1). If you target a profit of 80 pips with a risk of 40 pips, then you have a 2:1 risk/reward ratio.
If you follow this simple rule, you can be right on the direction of only half of your trades and still make money because you will earn more profits on your winning trades than losses on your losing trades.
What ratio should you use? It depends on the type of trade you are making. We recommend to always use a minimum 1:1 ratio. That way, if you are right only half the time, you will at least break even.
Certain strategies and trading techniques tend to produce high winning percentages as we saw with real trader data. If this is the case, it is possible to use a lower Reward:Risk ratio—such as between 1:1 and 2:1. For lower probability trading, a higher risk/reward ratio is recommended, such as 2:1, 3:1, or even 4:1. Remember, the higher the risk/reward ratio you choose, the less often you need to correctly predict market direction in order to make money trading. We will discuss different trading techniques in further detail in subsequent installments of this series.
Stick to Your Plan: Use Stops and Limits
Once you have a trading plan that uses a proper risk/reward ratio, the next challenge is to stick to the plan. Remember, it is natural for humans to want to hold on to losses and take profits early, but it makes for bad trading. We must overcome this natural tendency and remove our emotions from trading. The best way to do this is to set up your trade with Stop-Loss and Limit orders from the beginning.
This will allow you to use the proper risk/reward ratio (1:1 or higher) from the outset, and to stick to it. Once you set them, don’t touch them (One exception: you can move your stop in your favor to lock in profits as the market moves in your favor). See an article and video on using Stops and Limits on FXCM’s Trading Station.
Managing your risk in this way is a part of what many traders call “money management”. Many of the most successful forex traders are right about the market’s direction less than half the time. Since they practice good money management, they cut their losses quickly and let their profits run, so they are still profitable in their overall trading.
Does Using 1:1 Reward to Risk Really Work?
Our data certainly suggest it does. We use our data on our top 15 currency pairs to determine which trader accounts closed their Average Gain at least as large as their Average Loss—or a minimum Reward:Risk of 1:1. Were traders ultimately profitable if they stuck to this rule? Past performance is not indicative of future results, but the results certainly support it.
Our data shows that 53 percent of all accounts which operated on at least a 1:1 Reward to Risk ratio turned a net-profit in our 12-month sample period. Those under 1:1? A mere 17 percent.
Traders who adhered to this rule were 3 times more likely to turn a profit over the course of these 12 months—a substantial difference.
Why do Many Forex Traders Lose Money? Here is the Number 1 Mistake
Data source: Derived from FXCM Inc. accounts excluding Eligible Contract Participants, Clearing Accounts, Hong Kong, and Japan subsidiaries from 3/1/2014 to 3/31/2015 across 15 most traded currency pairs.
Game Plan: What Strategy Can I Use?
Trade forex with stops and limits set to a risk/reward ratio of 1:1 or higher
Whenever you place a trade, make sure that you use a stop-loss order. Always make sure that your profit target is at least as far away from your entry price as your stop-loss is. You can certainly set your price target higher, and probably should aim for at least 1:1 regardless of strategy, potentially 2:1 or more in certain circumstances. Then you can choose the market direction correctly only half the time and still make money in your account.
The actual distance you place your stops and limits will depend on the conditions in the market at the time, such as volatility, currency pair, and where you see support and resistance. You can apply the same risk/reward ratio to any trade. If you have a stop level 40 pips away from entry, you should have a profit target 40 pips or more away. If you have a stop level 500 pips away, your profit target should be at least 500 pips away.
We will use this as a basis for further study on real trader behavior as we look to uncover the traits of successful traders.
The Traits of Successful Traders
This article is a part of our Traits of Successful Traders series.
Over the past several months, The DailyFX Research team has been closely studying the trading trends of FXCM clients, utilizing the trade data at FXCM. We have gone through an enormous number of statistics and anonymized trading records in order to answer one question: “What separates successful traders from unsuccessful traders?”. We have been using this unique resource to distill some of the “best practices” that successful traders follow, such as the best time of day, appropriate use of leverage, the best currency pairs, and more. Stay tuned for the next article in the Traits of Successful Traders Series.





Source: http://www.dailyfx.com/forex/fundamental/article/special_report/2015/06/25/what-is-the-number-one-mistake-forex-traders-make.html

Monday, February 20, 2012

Moving average and Trend line strategy

This is very effective system it will suitable for all financial markets including Forex

Requirements:
MA 14 (Simple+ Close) default setting
Zigzag indicator from Meta trader
Trend Line

The system is suitable for small TF (15 TF is the best)

Steps:
1) Zigzag indicator (default setting) = Red












2) Moving average 14 (Simple MA , Close) = Blue













3) Trend line based on two tops or bottoms = Yellow













Entry place : after Broke the trend line (it is better to waiting till retesting before entering)












Stop lose : above the candle which was crossed (penetrated ) by MA14 (See above chart)
Take profits:
TP 1: at the last support (bottom) in case of short position or
at the last resistance (top) in case of long position
TP2: Double Stop lose(if the distance between the Entry place and stop lose was 50 pips , our second take profits must be 100 pips)


The best pairs: any pairs include EUR+JPY Like( EUR USD, EUR JPY, GBP JPY, USD JPY, CHF JPY, GBP EUR .....etc).

Good Luck

Saturday, February 4, 2012

Secret Doji Method

Introduction:
This is a very simple strategy, yet one of the most reliable setup iَ ve ever seen.
now i am going to share this powerful trading system, i am sure a lot of people out there are eager to arrive to the place i am in now.

as we know Japanese candlestic charts are the best type of other MT4 charts.
but unfortunately new traders give it top priorty in the trading.

at the first :
letَs to see Doji candle shape:












Typical examples of Doji candlestick:











the first condition of the system is : identify 2 Doji one after one as you see in the following chart:












Second condition:
marked the upper and lower borders of those two Doji as you see in the following chart:

















The Third condition :
place 2 pending orders , One in case market breaks the upper border of the Doji (One pip is enough) and One in case of breaks the lowerborder of the Doji



Stop Loss:
above the Doji upper border in case of short (sell)
below the Doji lower border in case of long (buy)


Take profits:

there are tow methods:
1) TP is equal of SL (70% winning trades)
2) The best method : Enter with to lot , set your first TP as equal SL, and the second TP double SL.



















The best Currency pairs:
the ones that involve the USD
all YEN crosses (EUR JPY, GBP JPY, AUD JPY  etc).

Good Luck

Saturday, January 28, 2012

Powerfull Strategy (Trade with the Trend)

Steps:
Draw Daily trends:



Down trend , so we will enter Sell Only.

Then open 4H TF:
Draw Fibo level:


wait till Reversal candlestick forming (Hammer+ Inverted hammer +Doji+ Shooting Star) Only:


Then enter at the next candle(Sell) , and set your SL above High of the Reversal candlestick +5 pips :



How to set your TP:

Enter Sell with 2 lot, you must closed your first lot (double SL)
Your second TP : using Fibo Expansion at (FE 50 ) as you see in the following:

Good Luck
Good Luck

Trade with Fibo Levels Only

Strategy based on Fibo levels Only (0 , 38, 50, and 76).
Time frame: 4h and daily Only.
Pairs: all
How to trade:















1) draw fibo level from High to Low (the last high pre- Broked trend, and the first Low after Broked trend).
2) Enter sell from : 38 and 50 and 61
3) SL: 76 Fibo level.
4) TP: 0 Fibo level.
Very important :
Broked zone Must be above the 38 fibo level(Broked zone= Blue horizontal line).
Good Luck

Saturday, January 21, 2012

500 pips Daily using BB only

Time frame: 1 H
Pairs: all
Indicators: Bollinger band ONLY.

Steps:
open the chart ( 1 h frame).
Place a vertical line at zero Candle.
modify settings of Bollinger from 2 to 1.5 and placing them in the chart.
Place horizontal lines starting from the intersection of the upper Bollinger line with a candle zero.
place horizontal lines starting from the intersection of the lower Bollinger line with a candle zero.


HOW TO TRADING:
entry BUY if:

1- Price broke through the line of the Bollinger lower down and closed above
(Opening the bottom line and closure the top of the line).
2- Penetrate the upper line from the bottom of the Bollinger horizontal line to the above.

entry SELL: (Vice versa).

TAKE PROFITS:
1 - in the first case :
The upper line of Bollinger in the case of BUY and the bottom line of Bollinger in the case of SEEL.
2- In the second case 20 pips only.

STOP LOSSES:

Half the value of Take Profit.



Chart:








Two Chances:
1) Buy >>>> Enter with -
2) Buy >>>> Enter with +


Good Luck