By Nial Fuller

Forex trading is one of the few professions that require less and less personal time the better you get at it. Many traders fail to recognize this and end up over analyzing every piece of data and every indicator they can get their hands on. The trick to this business is finding an effective method that fits your personality and your schedule. The beauty of trading is that if you choose to trade off daily or weekly charts you can spend as little as twenty minutes a day looking over charts and deciding on trade setups or exit points. For a number of very curious reasons many beginning traders fail to recognize this and falsely believe that more time spent analyzing every time frame will result in more money made, often however, this leads to the exact opposite result.

Generally when traders refer to “higher time frame” charts they are talking about four hour, daily, weekly, or monthly charts. As you move up in time frame what ever method you are using to trade the forex market will generally become more accurate but will generate less signals. Trading higher time frame charts lends itself very nicely to the method of price action analysis. The problem with using indicators on higher time frame charts is that often by the time the indicator(s) generate a buy or sell signal the move is over, this is why many traders that only use indicators to trade get whipsawed and blow out their trading accounts.

When you trade higher time frames off of pure price action you really get the best of every world because you allow yourself the ability to get in on big moves right as they break but you still are getting accuracy and reliability that a higher time frame provides. When you know how to read price action a four hour, daily, or weekly chart will take on a whole new look to you. Price action analysis on higher time frame charts supplies you with a unique market perspective that lets you analyze what the big players are doing in the forex market. Once you learn how to spot a few consistent price setups on a naked price chart you will come to see that the market inherently tells you everything you need to know to profit consistently.

When you learn to trade higher time frames charts with price action analysis you can take a short look at the charts every day after the session close and know exactly what you are looking for. If your specific price setup is not there then you simply wait until tomorrow or for the next four hour bar to close out. Traders who start using lower time frames to trade off of often end up seeing signals that are really just noise and as a result of this they end up over-trading and blowing out their accounts before they really ever give themselves a chance to learn the ropes. Stick to the higher time frames and use as few indicators as you can and you will be on the right track to correctly analyzing the information naturally supplied by the forex market.

About The Author

Nial Fuller is an Expert Forex Trader , He Has been trading Price Action Strategies in the Forex Market for almost a decade, He Also runs A Forex Education and Training website for Aspiring Traders.

By Nial Fuller

Emotion is the enemy of success in the forex market. The more emotional you are in how you react to and think about the market the more money you will inevitably lose. Overly complicated trading methods breed confusion and frustration which in turn breed a whole host of emotional trading mistakes. By implementing a simple yet effective method to trade the forex market you provide yourself with the ability to gauge your own emotional state more objectively.

Objective management of one’’s thoughts and actions while interacting with the market is the main ingredient that separates consistently profitable traders from all others. On the surface and to the beginner, trading seems very easy and profitable. The paradox of trading lies in the fact that it is actually relatively easy to guess near-term market direction, however it is inherently easier to second guess your actions in the market and let the emotional part of your brain override the logical part. There are so many different methods to trade the forex market that are overly complicated and so much data to digest that you can easily find yourself wondering if your method is effective or if you should learn a new one. All markets generate information about what has happened, what is happening, and what might happen next. An effective trading method will provide you a consistent perspective to make sense out of all of the information generated by a market.

By learning to trade using price action analysis you give yourself a unique perspective that allows you to make sense out of the information generated from a price chart. This is paramount in simplifying your mindset towards forex trading. By employing a simple yet effective method like price action analysis you can more easily keep your emotions in check and provide yourself a framework to solidify self-discipline around. Traders often find out after trying to analyze numerous indicators on their charts or predicting economic reports that they are essentially distorting reality and trying to trade the markets in a foggy haze. Once you subscribe to the method of price action analysis and give it a try you might just feel like you are taking your first real breath.

The natural tendency to think making money in the forex market should be academically difficult or that the method you use to analyze the charts should be intensely complicated is a big reason why many aspiring traders never achieve consistency. The odd thing about trading is that it actually is not that technically difficult at all. Most traders defeat themselves at this game or never really get started down the right path with their forex trading. You have to believe that it can be simple; making money from trading forex only requires self-discipline and a consistent yet effective approach. Simplicity in your trading method will spill over to the psychological aspect of trading and this will help you achieve long-term success. Price action analysis is one of a very small amount of trading methods that will help you remain calm and level headed while navigating the labyrinth of market information that is now so widely available.

About The Author

Nial Fuller is an Expert Forex Trader , He Has been trading Price Action Strategies in the Forex Market for almost a decade, He Also runs A Forex Education and Training website for Aspiring Traders.

By Philip Birchley

There are many approaches to trading profitably but there are just two broad categories of analysis; fundamental and technical analysis. But which is right for you? Or maybe both are?

The shocking truth about profitable analysis revealed:

Basically the aim of this article is to shed some light on these approaches so that you can use what’’s better for you. Let’’s take a glimpse at fundamental analysis first.

Essentially fundamental analysis is based on factors including economic data of countries for FOREX trading, the financial statements of stocks, competition from rival securities, the strength of the sector a stock trades in, supply and demand and news stories. Next we”ll look at the basic assumption of fundamental analysis.

Fundamental analysts believe that over the short term market prices become out of balance to where they should be. In other words prices are not at an equilibrium price often, but eventually markets” prices will gravitate to the correct price. Obviously they buy what their analysis says is cheap and sell what is expensive. Next we will glance at technical analysis.

Essentially technical analysis is based on chart patterns of market price and volume. So what’’s the key principle of technical analysis?

Technical analysts believe that market prices already take into account all related information and that historical price and volume patterns repeat themselves. So technicians look for trends to trade in the same direction as, trading ranges and other proven patterns that will swell their trading accounts.

News stories can result in sudden large moves in markets but generally fundamental reasons for trading can cause you to be on the wrong side of the market for some time, with markets often overreacting and moving in seemingly the wrong direction according to the fundamental reasons. Therefore, personally I prefer to let price charts tell me what to do, afterall, that’’s what pays us.

At the end of the day as it’’s price that pays you, in my opinion if you”re bullish (up) or bearish (down) on a market for fundamental reasons, it’’s important to at least time your entry and exit points to trades using technical analysis. This is an approach many of the best traders use unless you”re a very short term news trader.

About The Author

To get your totally free technical analysis chart patterns trading eBook Killer Patterns and free WizardTrader.com mini-course just visit http://www.wizardtrader.com/ or send a blank email here wizardtrader1@aweber.com Both created by trader Philip Birchley who passed the SFA Futures exams.

By Nial Fuller

In the trading community we often hear such axioms as “the trend is your friend” or “ride the trend until it ends”, but how exactly do we accomplish such seemingly self-evident claims? Often once we start trading with real money we realize that what seems like it should be easy is rather like chasing a balloon on a windy day. We then start to doubt ourselves and look for a new system or another indicator or throw more money into our trading account.

Often the problem in finding and identifying market trends is a lack of simplicity and or flexibility in our trading method.Take off all indicators and whatever else you may have on your charts. All you need to identify and ride trends is the ability to spot price action setups and draw horizontal lines.

By making horizontal lines at important market turning points as they occur we can focus on the levels that matter the most. I have developed a trading method around these horizontal levels that shows you specific price pattern setups to watch for at these areas. Most traders spend too much time looking at what they think is a price pattern but is actually just market noise. By knowing specifically what to look for on a price chart you can save yourself a ton of time and money and get right to the point.

Riding trends is a matter of finding the “hot points” in the market, once you find these levels you mark them with a horizontal line and then watch for price action to occur. You want to leave these horizontal lines on your charts for as long as possible because as Steve Nison likes to say, “old support becomes new resistance”, this means the same levels tend to see action over and over.

A common mistake amongst beginning traders is to think that when a trend is greatly extend this is the time to get in. Physically and emotionally it makes sense because you feel good about entering when the trend is strongly extended. However, professional traders have learned that these are the precise times the market is due for a correction.

I divulge in my forex trading course how to pick the best times to enter a trend and what to look for at market swing points. Trading is a contrarian game, which is a great reason to learn from someone who knows the road to profits well. I provide an easy to understand and profitable method for trading the forex market, that if combined with a dose of discipline on your part might be able to make the difference in your trading results. I have been working on and perfecting my unique way of trading using price action for years now. All you have try to do is block out all the confusing and overly complicated trading materials out there and let yourself believe in common sense and logic.

I know when you first start out trading the natural tendency is to over-think it and it make it more complicated than it is. I promise you though that over-complicating trading is a sure-fire way to blow out your trading account. So allow me to show you a unique market perspective and teach you the price action method that I have perfected after years of market analysis.

About The Author

Nial Fuller is an Expert Forex Trader , He Has been trading Price Action Strategies in the Forex Market for almost a decade, He Also runs A Forex Education and Training website for Aspiring Traders.

By Nial Fuller

Price action analysis is the most efficient and logical way to trade the forex market. Using this technique to trade the market will enable you to focus more on your own self-control and money management schemes which as any professional forex trader will tell you are far more important than analyzing every economic release or technical indicator. Price action strategies work really well in the forex market due to its high liquidity and 24 hour trading hours. By learning a few well defined and time tested price action strategies you can learn to spot price setups in real time on any time frame in the forex market. Contrary to popular belief you do not need a complicated method to analyze the market. All you need is a trading strategy that gives you an edge in the market that when combined with discipline and money management will bring you consistent profits over time.

Imagine sitting down at your trading desk at the end of your work day and looking over the daily charts of your favorite forex pairs and knowing exactly what to look for. You don”t need to interpret multiple lagging indicators and read the Wall Street Journal every day. All you need to do is learn how to read what the price chart is telling you. By knowing a few solid price action patterns to look for you can just sit and wait for the perfect setup to form and then pounce on it like a Tiger waiting in ambush for its prey to walk by. Most beginning traders are like a baby Tiger that doesn”t know how to hunt yet. They run at everything that moves expending all their energy and by the time the easy prey comes along they are too tired to get it or miss it all together. Forex trading is the same way. You can waste your money on stupid trades that aren”t any better than flipping a coin or you can sit and wait for your defined setup to form and then jump on your trade with cautious confidence.

By knowing what price action strategies to look for and which ones work the best you give yourself some huge advantages over other traders. By not overtrading and preserving your trading money until a high probability setup comes along you will grow your trading account much quicker than if you were to enter a bunch of random trades out of emotion. By knowing what to look for in the market you can spend less time wondering what you should do while sitting at your trading desk and more time living life. Many forex traders that use price action strategies only look at the forex charts once a day for thirty minutes or so. They know what they are looking for; if it is not there then they wait for the next day. This is a much less stressful and more consistent way to trade. Price action strategies are great for the person who does not have a lot of time or that doesn”t find it particularly entertaining to sit and stare at price charts for hours.

While you can never control the market, price action strategies will give you a perspective on the market that allows you to discern garbage market noise from real profitable setups. Knowing what you want the market to look like before you enter will save you much time and frustration from over analyzing every little market movement or piece of data. I have generally found the less traders look at their charts the more profitable they become. The natural tendency is to do the opposite however, which is partially why so many traders lose all their money. Price action analysis is the best way I have found to trade the forex market and has clarified my view of the markets as well as saved me countless hours of precious time.

About The Author

Nial Fuller is an Expert Forex Trader , He Has been trading Price Action Strategies in the Forex Market for almost a decade, He Also runs A Forex Education and Training website for Aspiring Traders.

By James Woolley

It’’s important to point out first of all that coming up with a winning forex strategy is not easy at all. However the minority of traders who do manage to come with a profitable trading method will often stick to this strategy as long as it continues to make money, which can be a problem in itself.

The reality is that a lot of strategies will generate profits in the short-term, but in the long-term they will often struggle to consistently make money. This is because market conditions change quite a lot during the course of the year, and some strategies simply cannot adapt to these changing conditions.

For instance some trading methods rely heavily on markets that are trending strongly upwards or downwards. So therefore if the major currency pairs suddenly find themselves trading in a narrow trading range, the system will often start losing money. This is particularly true if there are a lot of false breakouts.

So that’’s one major reason why you need to try and create additional strategies. Another main reason is because there are times when your existing system may not create any decent trading opportunities at all. This means that unless you have some additional trading methods you can use, you are going to find yourself staring at your computer screen bored out of your mind.

This is something I experience myself because my main trading method (which uses the 4 hour and daily charts) doesn”t generate trading opportunities every single day. In fact sometimes it can go several days without generating any decent set-ups.

As a result of this I started creating additional strategies that I could use during these quiet periods. More specifically I looked for strategies I could use to trade the short-term charts such as the 5 minute and 15 minute charts.

Thankfully I now have several different strategies available to me, and they have proved to be invaluable during the last couple of years. I don”t necessarily use them that often (because I often trade stocks and commodities during the day as well) but when I do they often produce some decent returns.

So the point I want to get across is that you shouldn”t necessarily rely on a single trading method when trading the forex markets, even if it does appear to be profitable. It’’s always nice to have a few additional trading systems you can fall back on, particularly if you plan on trading a number of different time frames.

About The Author

Click on the following link for free forex tips and strategies, including the exact 4 hour trading strategy that James Woolley uses himself to trade the markets:

http://theforexarticles.com

By Tom K Kearns

People who get into the forex trading have many options for trading. It helps to check out two different options that can be used among forex trading systems. It will be useful for you to check out these two options before trading.

Before you choose one of these systems you should look into what a trading system will do. It works to help you make trades in accordance with prior currency value data. What happens here is that various guidelines and parameters are used for setting up trades. This is so you can trade in accordance with predicting where you feel a currency pair’’s value will go. As a result you can increase gains and reduce possible losses.

First there is the mechanical system. With this system your trades will be based on prior trading data. It will see how values for currency pairs change according to your parameters. After this it will find times when these pairs can be bought or sold. The previous data regarding these pairs will be used.

What makes the mechanical system notable is its automated quality. You would not need to trade these pairs yourself. Instead you can use a program on your computer to handle the trades. As a pair gets to parameters or prior successes that you favor it will buy the pair. As a result you will not have to guess what will happen before trading.

Next there is the discretionary system. With this you will trade currency pairs according to changing values. You will be able to be flexible with the parameters for trading that you use. You can change them as the trading session continues. In fact you can use any limits you want when trading as often as needed.

This system is a manually operated system. Unlike a mechanical system a discretionary one works with trades that you create. Everything done here is of your own doing.

When choosing one of these systems it helps to look into your past experiences in this trading field. If you are new to the field or have little prior experience a mechanical system is best. As you move along you may feel that you can handle trades on your own. At this point you can use a discretionary system if you choose.

It will help to look into these systems with your psychological values in mind. In many cases a person may be too nervous to make a trade. This is why the mechanical system is used by some people. A discretionary system can work for those who are disciplined and are comfortable with what they are doing. Either way the system you use should be based on the discipline you have for trading.

When entering the forex trading world you will need to check out these forex trading systems. You can choose a mechanical system that automatically takes care of trades to your needs. A discretionary system that involves adjustable controls can be used too. It helps to see how these two options work before trading.

About The Author

For more information on autotrading the forex market or third party signal providers please visit http://www.automatedforextradingsystems.com .

By James Woolley

I got an email a short while ago from a reader of my blog that wanted to know whether or not forex trading was a good business opportunity. I thought this was quite an interesting question because I had never heard forex trading talked about in this way before. However if you search online you will often find the terms ”forex trading” and ”business opportunity” discussed in the same sentence.

I don”t necessarily believe this is a good thing because it is giving people the wrong idea about forex trading. It is not really a business at all. You are not buying or selling any products or services. You are simply trying to make money from speculating on which direction the various currency pairs are going to move. The more the price moves in your favour, the more money you make.

Describing it like that makes it sound like a form of gambling, however it is not pure speculation because you can put the odds in your favour by using technical analysis to help you find winning positions. Furthermore if you create a trading system which applies certain technical analysis rules (which places probability firmly on your side), it’’s possible to make consistent profits in the long run.

However it’’s dangerous to classify forex trading as a business opportunity, because it’’s more of a profession. Indeed it could also be regarded as a skilled profession because out of the thousands of people who take up forex trading, only a tiny majority of these people will make any money at all. Most will lose some, if not all of their trading capital.

Furthermore unlike many businesses, which you can often set up in a short period of time, forex trading requires an awful lot of time just to learn the basics. Then once you”ve done that, you need to try and come up with a profitable trading system, which is extremely difficult to do. Indeed a large number of traders will never manage to come up with a winning system.

Even if you invest in one of the commercial trading systems, or pay money for a forex signals service or a forex robot, for example, you may still struggle to make any money. This is because despite some of the appealing sales pages which promise huge profits, many of them will end up losing money in the long run.

So the point I want to get across is that forex trading should not be referred to as a business opportunity. It is more of a profession than anything else, and it’’s a very challenging one at that.

About The Author

Click on the following link for free forex tips and strategies, including the exact 4 hour trading strategy that James Woolley uses himself to trade the markets:

http://theforexarticles.com