People have began to take notice of Peter Schiff especially since last year 2008 where his predictions and forecasts  unfolded in the form of economic crisis.  The guy has been right time and time again.  Fellow traders, do take note of what he has been saying all along!

Double and even triple tops/bottoms are very common in the daily markets.  The more times currency price bounces off these support and resistance lines, the stronger they are.  This also means that if a triple bottom support is broken, also known as a breakout, the price is likely to go even lower than when a double bottom support is broken.  The same theory applies to resistance.

But do take note that there are often false breakouts, whereby the support/resistance is broken only for an instant, and immediately retraces back to the opposite direction.

Important point: The forex trading candlestick patterns are more consistent in a chart of a higher time frame than that of a lower time frame.  There is too much “noise” on a lower time frame that renders inconsistency for technical analysis.

Here is the the video for forex trading – Candlesticks. Enjoy!

Fibonacci ratios has to be in your arsenal for forex trading if it already isn’t.  Enjoy!

Success in Forex trading comes easily to many people, yet for most others, making consistent profits from forex trading seems like an impossible task.  If you have ever wondered what the reasons really are that differentiates successful traders from unsuccessful ones, below are three classic forex wisdom that you MUST adopt.

1.  Trade with your mind not with your heart. One of the greatest causes of the downfall of a trader is none other than emotional trading.  When a forex trader trade with emotions, destructive factors like greed, fear and revenge mentally often seep into the trade.  These factors will cause the trader to trade irrationally, making bad decisions based on a mind clouded with negative emotions.  The same theory applies that someone who is angry will tend to make impulsive decisions.  Leave your emotions out of your trades, and you WILL see an improvement in the quality of your trades.

2.  Always have a plan. As the saying goes, “Failing to plan is planning to fail”.  When making a trade, know exactly which points to cut your losses and take your profits.  This way you can analyse your risk-reward ratio and decide if the trade is worth making.  Forex trading is no different from gambling if you enter a trade without a plan.

3.  Stick to the plan. Once you have made your trade in forex trading, sticking to your plan for the trade is crucial.  The reason is this.  If your plan was well thought out, then whatever happens to your trade (if it hits your stop loss or take profit), the outcome is ideal.  The worse mistake is to shift your stop loss lower when it is about to be hit.  Doing so will surely create the possibility of you suffering a massive loss,  which would in turn stir negative emotions in you, causing you to make even more unsound decisions, and the trouble simply snowballs from that point onwards till your account is wiped out.  So do yourself a favour by always remembering to stick to your plan.

By incorporating these three points into your trading, you are minimizing your risks for huge losses, while at the same time building the potential for making huge profits.

—

What is the hoo-ha with forex trading?

The debate on automated forex trading vs manual trading has raged on for decades. Both camps have built up in forces over the decades, with neither side willing to budge. What people really want to know is this, “Which forex trading system makes you more money?”

What differentiates a successful trader from an unsuccessful one lies not in the forex trading system, nor the amount of capital one starts off with, but mental factors and discipline. A successful manual forex trader trades by his system religiously, even when the going gets tough. He knows that there is nothing to change in his system, for in the long run he will surely be profitable because he has tested and fine-tuned his system.

On the other hand, when a trader suffers a loss, there is a very high tendency to lose confidence in his forex trading system. This is especially so when the trader lacks the patience and confidence needed to “perfect” his system, and he starts trading based on emotions and not with his mind. This is called emotional trading. Emotional trading is what every trader MUST AVOID at all cost. The consequences are as disastrous as cheating on your wife. All it takes is one moment of folly of not cutting losses early, letting them pile up, and the next thing you realise your account is wiped out. Most forex traders, no matter how experienced, have been burnt like this at least once in their lifetime.

What an automated forex trading system does is precisely to remove this factor of emotions, and to take away the hassle of having to monitor your trades constantly all day long. But some people just don’t trust their money being in the hands of an automated forex trading system. This is understandable.

The fact is, many of these systems are back-tested and tested live to be highly profitable. Many large global investment companies use these systems to great success, even in times of economic turmoil. The key here is to be able to filter out these highly profitable automated forex trading systems among the many scams out there.

Once you get your hands on one of these gems, your financial freedom is set.

—

You see, not many people can afford to say that they are making tons of money consistently but yet have a great amount of time to spend doing things they love, hobbies, or family time.  Most people get caught up with the rat race, with 8-5 jobs that leave them feeling imprisoned.  I personally have been drained by that routine before, until I found out about forex trading and started investing my time in it.

That was the turning point of my life.

I am proud to say that I am living comfortably now, with a great deal of freedom to do the things I love.  If you have ever wanted to break out of your choking routines and schedules, and live a life of freedom, then these are 3 steps that WILL lead you there.

1. Understand what Forex trading is and how it can lead you to financial freedom.  You will realise that the rat race isn’t the only way to achieve your goals, that there are so many other ways out there as long as you are willing to give yourself a chance to explore.

2. Seek out Forex trading solutions that work for you. There are 2 kinds of traders – those who use automated systems and those are trade manually, depending on one’s temperament.  Both have their pros and cons.

3. Stick to and improve upon the system that works for you.  Watch the profits roll in.

It cannot, and SHOULD NOT, be anymore difficult than that.

—–