The Frontiers Of Trading

By:  Ivan Cavric Many are attracted to FOREX trading after an intense exposure to the massive amount of marketing literature and publicity surrounding this subject. It’s no wonder that the many attractive attributes of FOREX can readily seduce would-be traders into thinking that it is an excellent possibility for a new business. However, novices who have already started to trade may conclude that they have bitten off more than they can chew. A recent survey probed the thinking habits of novice FOREX traders and discovered the following unrealistic expectations: Many novices initially thought that all they had to do was purchase or acquire a FOREX automated solution or trading strategy to achieve success. Many beginners even believe that they do not need to make any real effort themselves to learn how to trade FOREX properly. Did you know that you must utilize good risk and money management concepts as a top priority in  order to provide the maxi- mum protection for your equit...

By:  Ivan Cavric The  DeMarker Indicator (DI)   can be used to help you identify new trading opportunities because Tom DeMarker designed the DI with this purpose specifically in mind. The DI exhibits a number of features that have similarities to those of the indicators designed by Welles Wilder . In addition, DeMarker tried to devise solutions for those problems experienced by many other technical indications when dealing with overbought and oversold trading conditions. The DI was designed to monitor and track the market sentiment of an underlying asset by comparing its current value to that of the preceding time-period. Consequently, you can utilize the DI to evaluate the demand for a particular asset. This action will then aid you in detecting market tops and bottoms. You will discover that this indicator is particularly helpful in identifying new trading opportunities because it does not filter its raw data. The DI has two variations although both have been constructe...

  By:  Ivan Cavric Many novice traders have gambling mentalities which they have acquired from other pursuits such as horse racing. They mistakenly believe that they can transfer their winning strategies from those activities easily across to trading. Some even think that trading should be easier because it does not comprise uncertainties such as a horse breaking its leg or falling ill.          If you identify with this mindset then you must get rid of it as quickly as possible otherwise you will suffer severe financial losses trading. This is because although trading may appear to be a simple two-way bet from initial perceptions, it is in fact a very complex entity. You can gain an understanding of this feature if you realize that the financial markets have an astonishing daily turnover. The question you need to ask is what on this planet is capable of generating such a massive amount of money. The answer is the combined trading actions performed by ...

  By:  Ivan Cavric The most important part of how to make money using the no stop, hedged, Forex trading strategy will now be covered. In the preceding articles in this series I reviewed trading without stops, not being concerned about which way the price moves and places to cash in on profitable transactions. Now I will show how you would make money buying and selling simultaneously using the grid strategy. The no stop, hedged currency trading grid system uses the rule that one should be able to close a transaction at a gain no matter which way the market moves. The only way this is logically possible is that one would have a buy and a sell transaction active simultaneously. Most traders will say that doing this is not recommended but let’s look at this in more detail. Assuming a grid with grid gaps of 100 pips. We are going to use the simplest formation to show the principles involved. This formation is the 100% retracement formation where the price goes up to a grid lev...

  by:  Ivan Cavric One rule of thumb that every aspiring entrepreneur should remember is that to make huge profits, you should know how to do it by yourself—and not rely on other’s efforts. Being independent from other people will help you determine what things are best for your business. Such rule applies on all types of investments, including foreign currency trading, or mostly known as Forex trading. It cannot be denied that Forex is the largest existing market around the world, which is estimated to have an excess of 2 trillion U.S. dollars worth of foreign currencies are traded each day. It is larger than the magnitude of the New York Stock Exchange, which is approximately 50 billion U.S. dollars. Thus, Forex market exceeds all combined equity markets around the world. With such huge wealth circulating around the Forex market, one of your financial goals is to grab a major slice of that $2 trillion average daily turnover in the market. How you will be able to get a sub...

 by:  Ivan Cavric With the amazing growth of the Forex Market, you are going to see an astounding amount of traders lose all their money. Unfortunately, they haven't followed the simple steps I have laid out for you. Go through these steps and give yourself the greatest opportunity to achieve your goals. Have Faith In Yourself To reach the level of elite Forex trader, you must trust in yourself and your Forex trading education. You must be willing to make all your trading decisions, instead of relying on someone else's thoughts or ability (or lack of).   Of course, you will prepare yourself fully before ever risking any money. Accept Your Learning Curve Unless you are a veteran trader, you will lose money trading the Forex market. This is a near certainty. I don't say this to talk you out of trading. In fact, quite the opposite. You will be trading against others that fail to this reality day in and day out. You, however, will not risk a dime until you have learne...

by:  Ivan Cavric How to predict the future by studying the Past - Technical Analysis: The best traders don't discount one or the other but understand that having an understanding how the fundamentals influence market sentiment gives him/her an edge over those traders who don't. In my opinion, TECHNICAL analysis is the easiest and most accurate way of trading the FOREX market. "The number's don't lie" - all available information and its impact on the market, are already reflected in a currency's price. Prices move in trends - the foreign exchange market is mostly composed of trends and therefore a place where technical analysis can be very effective. History repeats itself - over time, certain chart patterns become consistent, predictable and very reliable. The question is SEEING them. PRICES MOVE IN TRENDS The traders who don't believe this obviously have no need to implement a trading methodology on technical analysis. But, research has shown t...