Knowing the Ins and Outs of Chandelier Exit

Have you ever heard of a stop placement strategy that trails stop based on previous 'high' points? It is called Chandelier exit as it hangs down from the high point or the ceiling of our trade, just as a chandelier hangs from a room ceiling. The distance, which is usually calculated from the high point to the trailing stop; could also be calculated in dollars or in contract based points. However, the value of this trailing stop moves upward very promptly as higher highs is reached. Read more.

Taking Advantage Of A Weak U.S. Dollar

Between 2003 and 2008, the value of the U.S. dollar fell compared to most major currencies. The depreciation accelerated during 2007-2008, impacting both domestic and international investments.

The impact of the rise or fall of the U.S. dollar on investments is multifaceted. Most notably, investors need to understand the effect that exchange rates can have on financial statements, how this relates to where goods are sold and produced, and the impact of raw material inflation.

The confluence of these factors can help investors determine where and how to allocate investment funds. Read on to learn how to invest when the U.S. dollar is weak. Read more..... by Tina Carleton

HAPPY NEW YEAR 2009

Forex Trading Rules

1. Emotional control is at the heart of good trading.
2. Cut losses with the most strict discipline
3. Make good decisions and winning will take care of itself.
4. When you lose, don't lose the lesson!
5. When in doubt, get out.
6. Keep your risk/reward profile in check.
7. Avoid scheduled news.
8. Consider your account size for appropriate trading.
9. Get a charting program that allows you to build watch lists, sort stocks, and draw trendlines.
10. Scale out of winning positions as they work for you.
11. Don't dig yourself into a hole early in the day or in your career.
12. Trade with a blend of anticipation and confirmation.
13. Evaluate your results at least monthly.
14. Finally (perhaps most important), always be patient.
15. Invest on the side that is winning
16. The objective of what we are after is not to buy low and to sell high, but to buy high and to sell higher, or to sell short low and to buy lower.
17. Capital is in two varieties: Mental and Real, and, of the two, the mental capital is the most important.
18. Markets can remain illogical far longer than you or I can remain solvent.
19. To trade/invest successfully, think like a fundamentalist; trade like a technician.
20. Grow Slowly But Strongly "Pip-Machine"
    

Article Source: http://www.fxarticles.info/forex-basics/forex-trading-rules.html

Forex Scalping & Scalping Methods

Forex scalping is one of the most used and highly demanding forex trading strategies nowadays. In the Forex scalping methods, trading is done over shorter time frames and profits are taken after relatively small moves in the market.

Since the time that the position is exposed to the market is shorter, small profits are taken more frequently in Forex scalping methods. Therefore, it has less chance of facing the market events that may cause the price to go against the trade.

Forex scalping method of trading is different from other traditional forex trading methods where the profits are allowed to run and losses are cut shorter.

When somebody is scalping the market he/she is not looking for the big move of the markets; instead he is looking for the small moves in his favour that will result in significant gain without any risk or insecurities involved in waiting for big move.

Forex scalping is nothing but playing with spreads. In the Forex scalping method a currency is bought at the Bid price and sold at the Ask price to gain the bid ask difference.

This procedure is profitable in the case even when the Bid and Ask prices don’t even move. Traders even pay market price for any currency because they can make profit by doing that as well. The Forex scalping method normally involves establishing and liquidating a position quickly, usually within minutes.

People who are expert in forex scalping methods of trading are the markets makers or specialists who are into maintaining the liquidity and order flow of a product of a market. These forex market makers can have superior execution speed as an insider. They also have a greater knowledge of trading and actual market situation due to their information gathering capacity.

Scalpers are only exposed in a relatively short period. They do not hold overnights. So, the exposure they get is lower than other trades while the risk is also less in this type of trading. Here are some of the factors that affect Forex scalping:

1. Liquidity: Scalpers like to trade in more liquid market since they can make thousands of trades a day to add up their small profits offered on each trade.
   
   
2. Volatility: Stable forex market attracts forex scalpers. If the prices don’t move throughout the day, the scalpers can still make profits by placing their orders on same Bid and Ask and can make thousands of trades. They do well in trade, as they don’t have to think about sudden price changes.
   
   
3. Time frame: The scalping method of Forex trading is done on a very short time frame. People even make profit from the market waves that are too small to be seen even on the one-minute chart. Therefore, the more the number of moves during the day the scalper can make more profits.

Forex scalping is very easy to follow if you know the basics of forex scalping method of trading and have a Forex Scalping Platform to help you scalping various currencies. The whole secret is to get in and get out of the market as quickly as possible.

Article Source: http://www.instantforexincome.com/forex_articles/forex_scalping_methods.html