The "95% of all Forex traders fail" Lie!

I refer 95% lie to sentence: “95% of traders fail”. Although this are calculations made by brokers, based on their account history. I suppose those are accounts that were blown out by newbie traders.

Anyway I have to admit that it is true that 95% of account ends up empty within less then three months. But hose who were trading them … were they really traders? I think not, in my opinion they were gold diggers or just uninformed fools.

It happens often that after forex success story in newspaper or magazine, people without knowing anything about forex think: “Hey this is easy way to make money! If that guy in the newspaper made millions, I can make at least few thousands I am not stupid”. I don’t have to tell you how wrong this guy is. He takes loan, and starts trading, within 3 months he has got no money but a big loan to pay.

I believe this are the people who goes by 95% rule. But it doesn’t have to be that way. You can make money, but you have to understand it is not going to happen overnight. Probably not even within two years. But it is possible.

What it takes to become trader? In my opinion the only difference between successful and unsuccessful trader is … experience. All you need to do is trade and get some experience.

But there is something more important. As you may lack successes within this two years it is crucial to believe that you can really do it, that it is possible to achieve success. If you have problem with that then, do yourself a favor and buy Anthony Robbins “Awaken the giant within” great book on positive mindset.

Easiest cash on earth for webmasters

This post is not related to forex trading, but most of you guys have their own blogs or websites where you put your thoughts, analysis or just articles on trading. But most important fact is: you are interested in making money and this is what this topic is all about.

First of all you need to know that i won't be talking about big money, you will probably never earn more then 1 000$ in a month, not even close to 500$.

But the fun part is, all you need to do is place a small banner on your website, that's it!

You will earn 5£ every single month, just for keeping this banner on your website, sounds to good to be true?

Well i also thought this way, but when i reviewed this company i realized, there is nothing to lose.

It is completely free. Free to join and free to earn easiest money online. In my opinion it is a quite decent deal.

You maybe thinking why would anyone possibly want to put a banner on my website and pay for it 5£ a month? But the reality is a bit different, when you signup you have to select 3 pages from your website where their banner will be visible. Then within 48 hours they will review your website, and accept or decline your application depending on your website.

But again there is no risk involved, if they decline your application, so what, you didn't lost a dime!

Join now before they stop accepting new members.

If you are interested in this company here is URL with my referral code, and another one without a referral code, choose whatever you want.

http://www.bucks4banners.net/?aff=11631
http://www.bucks4banners.net/

Detecting trend reversal on Forex

I know that: "How to detect trend reversal?" maybe a thought question with very complex answer but I will try to make my take on it, and keep it very simple and understandable.

So let’s get started, obviously when trying to detect trend reversal on Forex you have to use tools that were designed for it. You can’t predict it with MACD or RSI because they are trend following indicators. Indicators designed to predict trend reversal are … candles. Japanese always traded reversal strategies, European and US traders are almost always trend following traders.

If you don’t know how to interpret forex candles then do a search on web and find some info, reading correctly candles is easy and you have to know it. Although keep in mind I do not recommend using them on charts smaller then 4H.

Of course … relying only on Japanese techniques can be quiet deceptive so we need something more reliable, we need to have an angel. Trend reversal candles can happen anywhere on the chart, will they always mean end of the trend? … No, the really important candles are those which can be found near support and resistance levels. We want to know if this particular level will be broken or not.

Let’s pretend we have reverse candle near support, is it time to buy some lots? Again the answer is NO. Take your time, the next candle should be white which is confirmation that trend was reversed, there can also be consolidation period near resistance level, which is usually another sign that trend is reversing, in this case I would put long order at the resistance of consolidation block.

Where to put stop loss? I put it about 100 – 200 pips below my order depending on situation. I mean if important resistance or support line is broken and price move fast in opposite direction (eg. 100 pips) then there is really no point in holding this position any longer, trend wasn’t reversed.

Well, I hope this helps some of you, but if you are going to use this techniques then keep in mind they apply to longer timeframes! I use it with 1D charts, if you will use it with 15M chart you are going to blow yourself out.

Completely free 100$ for Forex trading!!!

This is something you do not want to miss, fxclub.com gives 100$ to everyone who opens live trading account with them. You thought 5$ from Marketiva was great? Then how you can call this? Awesome? Not exactly.

First of all, i took a look at them and here is what i found:
- Their charting sucks, you can't do intraday trading it is just impossible.
- Their support staff can't speak english fluently - not very professional as for real company.
- It looks like they like ... no they love the game of stop loss hunting - not good also.
- You cannot withdraw free cash, but you can withdraw money you earned, similar to marketiva system

My opinion Russian scams.

However if you are swing trading, and use other software for charting then fxclub.com software then you can try them out, they require only one document with a photo to open an account so it is pretty simple.

So if you would like to take advantage of this free 100$, which they will give, this was double checked by my friend who signed up for their real account here is what you need to do.
1. Go to http://www.fxclub.com/incentive/ and get a pin code.
2. Go to fxclub.com and signup for live account, remember to use your promo code which should be sent to your email address if you correctly completed point 1.
3. Start trading.

Enjoy.

Forex trading video?

Lately i was thinking that there is nothing better then one on one live training, you can ask your mentor questions, he will tell you what you are doing wrong and so on.

However over the internet it is almost impossible to emulate live training session, so i was thinking. Maybe it would be good to record video and show it online. I was thinking about some sort of 5 minutes instuction on how to use trendlines, how to use Andy Pitchforks.

I am not sure but i think that sometimes it is hard to understand method or indicator, just be reading article and seeing a picture. Video will be somewhat like live training.

But i don't know, i would like to hear your opinions on this one?

How to make perfect entry point on Forex

If you find out that you make trades to early and before price starts moving in your direction the stop loss is already hit. The source of this problem is you are probably using to big timeframe. Don’t get me wrong on this one it is not that you need to change it, but you need to focus more on last candles, you are to concentrated on overall picture.

Anyway if you find yourself doing such trades then do not worry, this is easy to handle I had the same issue when I started trading.

Let’s break it down.

First of all your chart interpretations are ok. You make good trades but to early. So next time try this simple strategy.

After selection of new trade, find smaller trend in opposite direction and wait for reversal, when you will be sure that smaller trend is reversed make your trade. Sure you will loose some pips by getting late in to trend, but trust me there is no better point of entering the trade.

But what is the trend reversal confirmation?

Basically it is when you have more evidences that trend is reversed I won’t talk more about it now because this is covered in my other article, besides you probably have some techniques to determine trend reversal on Forex.

ProForex Blog Awarded!

I am happy to announce you that my blog was chosen as one of the top 25 forex blogs on the net! Here is the permalink to the site that awarded my blog www.forexreader.com

My blog is placed as number 12 i think it is reasonable position as it wasn't often updated besides blogs that higher then i am, are the ones that i have learned from, so i advice you to check them out.

What else can i say? This award motivated me to continue this blog with even more interesting forex informations. I will soon write very interesting article on entering and exiting trades. I have got new trading strategy that produces steady results for USD/JPY it will be also published soon.

I will also write some articles on Automated Trading with MetaTrader, i will mainly focus on script and ExpertAdvisors, because as you already know i do not really use indicators. More over i will try to show you how to detect patterns on charts and translate thse patterns into ExpertAdvisor code.

I was also thinking of buying domain and placing there my best articles, it would be good to have those articles available within a click of a mouse, don't you think?

Marketiva platform update

Well they updated their platform few months ago, but i didn't wrote about, mainly because i doubt anyone is using marketiva for charting. But in my Marketiva review i wrote their trading platform lacks functionality such as trendlines, support, resistance lines, fibonacci retracement, etc.

So now they have all of mentioned above tools, although i still do not like their interface which is not user friendly, but this is only my opinion, some of you will probably do not agree with this.

If you would like to read my last marketiva review then here is the link.

Watch out for EA scams!!!

Recently i found forum post at ForexFactory, where author talked about some scammer selling MetaTrader expert advisor, unfortunetly i can't find this post now to give you permament link so i will just tell you what i know about the case.

First of all this "Expert Advisor" costs 25 000$ (a lot of cash) but from what i have heared it isn't worth even 25 cents. So if you recive such offer by spam or something it is best just to ignore it.

Ofcourse if you find offer interesting then you may want to buy it, in this case it is best to do your own due dilligence, search forums, ask questions etc. Do not buy just because advertisment looks good!

Well this is second forex bad news this week, so i guess coming days can be only better .

Stop using HedgeHog!

I have a quite sad news for you, i backtested both hedgehog strategies with MetaTrader which i described earlier and results are not as good as i thought.

More over using HedgeHog you cannot even breakeven it is a fast way to loose all your money. It is interesting because when i backtested it with spreadsheet results where quite good, and i used the worst case scenerio because i was backtesting this strategy on daily bars, so modeling quality was quite low.

Although HedgeHog seemed to be simple and effective strategy, without a big drawdown, so everything should be ok but ... well it isn't.

If you want to try to trade this strategy anyway, then you better try it on demo first and do not use big lots.