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Risk Appetite Returns & Associated Chart Patterns Print
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Monday, 26 April 2010
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USDJPY:
The Dollar Yen trade, also known as the “Carry” has become a measure for risk appetite. There are several types of buyer in the market. You have buyers who believe what they are buying will appreciate and you have those who borrowed, or shorted a currency and now wish to buy it back to cover their short. Regardless of the reason, buyers drive price appreciation. However, buying to cover, is vastly different from buying to hold. Buying to cover is a means of removing risk from one's portfolio whereas shorting is a statement of risk taking, or reentering ones original position. Very often, when a reversal in sentiment occurs in a short time period, a chart pattern develops to help guide a trader with respect to entries and exits. On the chart below we see risk aversion followed by buyers returning to the market as they view the market to be oversold. Risk taking returns to the market and sellers create new weakness (in the JPY) as traders rush to get back into their original position.  What we just described is a  pattern known as a Head & Shoulders formation.

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Risk Appetite Returns & Associated Chart Patterns Print
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Monday, 26 April 2010
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bforex is a world leading foreign exchange broker established on an entrepreneurial vision to provide FX traders with simple and intuitive interaction with the Forex market. We are highly valued by our customers due to our expertise in providing traders with unrivalled execution speed, 24 hour assistance, tight spreads, superior exchange rates, commission free trading and a cutting-edge trading platform.

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Developing a Trading Plan Print
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Wednesday, 08 November 2006

Do you want to be in the top 5% of investors? Quick - grab a pen and paper and get writing. A trading plan can provide you with the sound framework that you need to succeed in the sharemarket. 

In this article, Louise Bedford highlights what to include in your plan, when to enter and exit your position in the sharemarket and the key to managing risk.

 

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Are There Optimum Indicator Parameters? Print
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Friday, 20 October 2006

A question asked by both professional and private traders alike

I have been training traders for around 15 years and perhaps the most frequently asked question of all goes something like: "What parameters do you use for your moving averages?"

My sincere and honest response is that I don't use any in my analysis and if I did there is no such thing as an optimum parameter … except in hindsight. However, hindsight is not much worth to us right now.

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Do Candlestick Charts Work on Forex Charts? Print
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Friday, 20 October 2006

The limitations of candlestick patterns in Forex

The quick answer is both "Yes" and "No".

Candlestick charting was first developed by Japanese rice traders and can be traced back several hundred years in the 18th century. According to Steve Nison, candlestick charting first appeared sometime after 1850. Much of the credit for candlestick development and charting goes to a legendary rice trader named Homma from the town of Sakata. It is likely that his original ideas were modified and refined over many years of trading eventually resulting in the system of candlestick charting that is used today.

Last Updated ( Friday, 20 October 2006 )
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How to Make Big Profits with Currency Trading Systems Print
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Sunday, 10 September 2006

Currency trading systems have become more popular than ever in recent years.

Here we will look at the advantages of currency trading systems and how to pick one that's right for you.

Trend Following the Key to Big Profits

As economic cycles of boom and bust take years, so do currency trends that mirror the health of the economy.

Traders who can spot and lock into these trends can make substantial profits.

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Forex Mistakes That Assure Failure Print
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Sunday, 10 September 2006
Before venturing into your trading journey there are some things you need to be aware of, otherwise you could succeed on your trading adventure, and we don't want that to happen, do we? This Forex training guide will help you track the most costly mistakes Forex traders do.

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Profitable Trading Systems Print
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Sunday, 10 September 2006
After you have found a profitable trading system that you already back-tested, how can you be sure that this system will produce the same gains in future. Nobody can predict the future, your system can easily make losses in next years or can be no tradable. There are some tests you must do before accepting a trading system, these tests swill show the robustness of your system and when passing these tests, it will be more likely to show gain in future.
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Welcome To The World Of Forex Trading Print
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Sunday, 10 September 2006
You no doubt have a ton of questions and are eager to learn what this popular investment option entails. This site is designed to give you the tools and techniques necessary to make smart investment decisions. Spend a little bit of time reading through the various articles and tools to decide whether FOREX trading is right for you, and how to begin investing.

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How to plan your success in trading Print
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Sunday, 10 September 2006
1. Establish a plan and define specific risk and profit objectives before trading. Maintain the necessary discipline to follow that plan through both good and bad times. Successful traders will agree that discipline contributed more to their success than their trading philosophy itself. Remember that the key to any plan is how well it holds over time
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