How Not To Exit A Trade

Too many times I hear about new traders opening a trade using the 5-minute chart (not my favorite approach) and when the market moves against them, they move to the 15-minute chart to justify staying in a little longer, hoping that the market will turn around.

Then if the market continues to move against them, they move out to the hourly chart to look for a reason to stay in the trade. As the market continues to move against them, they shift to the daily chart to hope to find a reason to stay in the trade. The next step is to get a margin call because they have no funds left to maintain their position.

Of course, the main issue here is that they were looking for a way to stay in a losing trade rather than closing it out at a small loss. Taking a loss does not mean that you do not know what you are doing. Too many new traders think that losing a trade means that they are losers or that they aren't smart enough to trade. Nothing could be further from the truth though.

Professional traders understand that if they trade, they will have losing trades. That is really the only guarantee in the field of speculation. How you handle those losing trades has as much to do with your success as a trader as any other factor. You don't have to like losing, but you must accept the fact that all trades cannot be winning trades. You have to keep those losing trades small enough to be able to make up for them with your winning trades.

Switching time frames to justify staying in a trade is not how you keep your losses small. Identify your exit point before you get into the trade and stick to it. Judge yourself from month to month rather than on every pip move in the market. Be consistent in your approach and stay in one time frame from the beginning of the trade to the end of the trade.

But If You Want To Really Make Ridiculous Amounts Of Money From The Forex Market On Complete Autopilot, then click herenow.

See you at the top,
Hassan Ismail,
MD/CEO Income Legends Concepts

7 Costly Mistakes A Forex Trader MUST Avoid

In every field, there are some costly mistakes that you should watchout for. Forex is not an exception. For this reason, you should not only know them but also know how to avoid them whenever they suffice. Some of those mistakes I encounter as a forex trader are:

1) Overdependence on EA: An EA is a short form for Expert Advisor ( what is normally called "robot" by the layman). EA is a programming script written to simulate trading plans & strategy. There are alot of them out there that promise 100% success. To be honest with you, I tested alot of them. The only one I can recommend to you is Forex Autopilot pilot. You can read more about it at http://tinyurl.com/5cvtmk.

2) Adding to losing trade: I have been asked by most my clients what it means to add to losing trades. It simply means allowing your loss to be greater than the profit. You do this by shiftimg your stoploss whenever price approaches it in expectation that price will reverse in your favour. If your trading paln utilizes 30pips stoploss, stick to it. This is why you need plan your trade and trade your plan.

3) Inadequate knowlege: This is the most overlooked aspect of forex trading. You think attending one forex seminar/course has made you a forex guru as such you feel there is nothing more to learn. Learning never ends my dear. Most of your losses are due to indiscipline, emotions( greed,fear,impatience) and inadequate knowlege.

If you asked how many lots of EURUSD can you trade with a $1500 account on a 1:500 leverage, you will be guessing. Some traders use the trial and error method by changing the volume on MT4 only to see the response NOT ENOUGH MONEY. This is not the brokers problem but yours due to inadequate knowlege.

$1500 account on a 1:500 leverage can trade 5.4 lots max. How do I get this? Last year, I designed a lot calculator using EXCEL programming. I sold it for N4500 at www.forexriskmanager.com. You can check it out. But dont hurry to place an order, I am giving it away for free. Just send an e-mail to forexpips@sendfree.com and you will get it for FREE all yours. What you will give me in return is to tell your loved ones about this blog.

It is only with quality forex education that we can make consistent profit from it. So, share the blog with all traders you know.

3) Taking losses as setbacks: One fact you should put behind your mind before placing a trade is to know that losses are part of the game. If you have a good trading strategy, you will not worry over the meagre losses as long as that system incorporates witthin it a good money management principle. Due to fear of losses, you tend to develop the fear of placing a trade thereby sabotaging/missing some pips due to delay. Punctuality is the sole of every business.

4) Overtrading: This is very common to happen especially when you just had few winning trades continuously. This is when you start assuming that you are on a roll and all the trades that you are going to place will be winners. Well, Forex Trading doesn’t work that way.

5) Looking for a perfect system: No system can be accurate 100% of time. So searching for one such system is just waste of time. Don’t listen to people who say that they know such system.

6) Taking Profits Early and letting the loss run: This is not a right approach. Instead the approach to be used in the trades is the other way round. You should try to limit your losses and let your profits run.

7) Reading the Charts they you want the charts to be: This is most common in beginners. This is a result of urge to place trades. Some traders just want some reason to trade and so they interpret the charts incorrectly.

But If You Want To Really Make Ridiculous Amounts Of Money From The Forex Market On Complete Autopilot, then click here now.

See you at the top,
Hassan Ismail,
MD/CEO Income Legends Concepts

EURUSD Gone Crazy

Yesterday, EURO went to a highest high of 1.4192 against the US dollar. This is so far the highest since september 28 this year. The EURO has defied all major resistances and has highly overbought to 89 RSI. It has gone blunt and deaf on all the technical indicators as it breaks fibonacci levels without retracement.

My advice is that you should not trade this currency pair on retracement for a sell. If you are an experienced trader, you should only take advantage of retracemement on EURUSD only after some fundamental announcements knowingful well that it will retrace for 35-50 pips after rallying as a result of the turbulence caused by the news.

You could also trade it on retracement using "the trading by zero" principle, a principle that states that every currecny tends to retrace/continue about 45-90 pips upon reaching zero levels. E.g 1.5440, 1.5400, 1.5000 or 2.0000. The greater the number of zeros, the greater strenght of the reversal/continuation of the principle.

Now, I know the question is why the zero principle? Just to understand, the reason why the probability of reversal at zero level is high is since once a zero level is reached, most of the traders from all across the world will jump in and –

1. They will either close their open trades.
2. Or they will open a new trade to take advantage of reversal.
   

So, in a nutshell the more the number of traders that agree to certain level, the stronger the level is. So, if most of the traders agree that “Zero Levels” can be potential reversal points, then that means all these traders will be ready to trade at the zero level!!

In the next post, I will be sharing with you how to position yourself to improve your account trading forex using the zero strategy.

One more advice, dont take the principles I share with you for granted becasue they are free. I have paid heavily for them and am exposing you to the strategies I use for my live account. If you dont have faith in me, then please try them on a DEMO at least.

But If You Want To Really Make Ridiculous Amounts Of Money From The Forex Market On Complete Autopilot, then click here now.

See you at the top,
Hassan Ismail,
MD/CEO Income Legends Concept

EURUSD Gone Crazy

My advice is that you should not trade this currency pair on retracement for a sell. If you are an experienced trader, you should only take advantage of retracemement on EURUSD only after some fundamental announcements knowingful well that it will retrace for 35-50 pips after rallying as a result of the turbulence cause by the news.

creating a successful forex system

There are alot of 99.99% acclaimed powerful system all over the internet. The vendors claim that the system is the holy grail to unsuspicious forex traders. There is no holy grail when it come to forex trading. The principle is get a system that works for you and stick to it.

What do we really call a successful forex trading systm? A successful forex trading system is one that rakes in profit consistently when used regularly. If a system can have a 65% win trades, it is successful as long as it is consistent. You have to use it regularly to know if it is really a good one.

Components of a good system

Every system that claims to successful must have all the folllowing ingredients

1. A well defined entry point
2. A precise exit criteria
3. Basic money management principle
   

If a system lacks any of the above ingredients, it is incomplete and unworthy of being called a good forex system. Forex autopilot lacks point 3 because it has no stoploss. This is why despite its winning trades, it could lose all to a single draw down. I have been down that lane and I know what am saying.

I will be reviewing some tested and trusted system that have been tested live in subsequent posts.

But If You Want To Really Make Ridiculous Amounts Of Money From The Forex Market On Complete Autopilot, then click here now.

Have a nice day

Mega Profits with Scalping strategy

Hello Aspiring Traders! I believe you are set for the task of being a millionaire by applying the trading strategies, rules, plan and targets that I will be sharing with you on “Making Mega Profits by Scalping the FX Market” The indicators that I will be sharing with you are simple and easy to understand if you could just take your time to practice very well.

Well, before I proceed further, I have a wonderful gift for all our lovely readers and it will be of benefit to all that are asking questions on our previous edition on forex lot calculator. To grab a copy of this gift, just send an email to forexpips@sendfree.com

As defined in the last edition that Scalping is a very good trading strategy but I will like to encourage you that this strategy is not for all traders because of the emotion and risk involved. It is an advanced trading method that needs to be mastered before committing your live account. The scalping trading strategy that I will be sharing involves simple indicators; MACD and MOVING AVARAGE(s).

The MACD is an acronym for Moving Average Convergence/Divergence. It is a trend following momentum indicator that shows the relationship between two moving averages of prices. The MACD default is the difference between a 26-day and 12-day exponential moving average. A 9-day exponential moving average, called the signal or trigger line is plotted on top of the MACD to show buy/sell opportunities.

MACD’s can be used as an oscillator, does that sound too technical? No! Oscillators indicates that the asset will revert back to its mean valuation OR a Momentum indicator; indicates that the trend is strong and will continue.

Parameters:

The MACD line is the difference between the 12 and 26 day EMA. The signal line is the 9 day EMA. of the MACD. Visually, the MACD consists of three elements, like the MACD, it is a line plotted on the bottom of the chart. The MACD line. This is simply the difference between the 12 and 26 day EMA. It is a line plotted on the chart. The Histogram. The MACD histogram is simply a bar chart located at the bottom/top of the chart, where the MACD and signal lines are plotted. The histogram is simply a visual representation of the difference between the MACD and the signal line. The “zero” point of the histogram — meaning the point where the bars cross above and below — is referred to as the centerline.

A Trade Signal is received when the MACD crosses the signal line. Traders can enter positions following the direction of the MACD Overbought/Oversold. No specific numbers indicate whether it is overbought or oversold, but if it is relatively far from its mean compared to its recent history, this may suggest that it is due for a decline. Divergence occurs when the pair makes new highs/lows but the MACD does not, this suggests divergence, and that the trend may in fact be weakening with a reversal in store.

The MACD crossover is a straight-forward indicator that provides precise timing for entry points. The one drawback of this indicator is that it is sometimes too slow to provide a signal. Sometimes it signals an entry several candles after the ideal entry point. The price has already moved far enough that the trade no longer has a favorable risk: reward ratio. Always consider support/resistance when entering a trade regardless of the crossovers.

MACD is truly a trend following indicator - sacrificing early signals in exchange for keeping you on the right side of the market. When a significant trend developed, the MACD would alert you on how to capture majority of the move. Moreover, MACD proves most effective in wide-swinging trading markets and there are three popular ways to use the MACD: Crossovers, Overbought/Oversold Conditions, and Divergences.

CROSSOVERS:

The basic MACD trading rule is to sell when the MACD falls below its signal line. While a buy signal occurs when the MACD rises above its signal line. It is also popular to buy or sell when the MACD goes above or below zero line.

OVERBOUGHT OR OVERSOLD CONDITIONS: The MACD is also useful as an overbought or oversold indicator. When the shorter moving average pulls away dramatically from the longer moving average (i.e., the MACD rises), it is likely that the security price is overextending and will soon return to more realistic levels. MACD overbought and oversold conditions exist vary from security to security.

DIVERGENCES: This is an indication that an end to the current trend may soon change when the MACD diverges from the security. A bearish divergence occurs when the MACD is making new lows while prices fail to reach new lows. A bullish divergence occurs when the MACD is making new highs while prices fail to reach new highs. Both of these divergences are most significant when they occur at relatively overbought or oversold areas.

Now, for the Scalping Trading Strategy, you will modify the MACD default by 2 deviations. And you must follow the trading rule strictly, work on your trading plan and target per trade. Preferably, 5 to 10pips is attainable with this system but once you make your target, PLEASE close your trading platform to avoid over trading, agreed and losses. Does it sound funny? You can not exempt yourself from the fact that emotions can’t rule your trading strategy and plan when you over trade.

To set up MACD for scalping, subtract 2 from the default parameters i.e. Fast EMA = 12 to 10, Slow EMA = 26 to 24, MACD SMA = 9 to 7, Apply to Close. Select the Color Tab and change the color to your favorite, you could also increase the line style. Click the Levels Tab – Add the Zero line and also change the color. You could also double-click the Description space opposite the zero value and type “Center Signal” and increase the line style too. Under the Visualization Tab, deselect the “All Timeframes” and select M15 only because this trading strategy work best on 15 minutes chart and you could also try it on 5 minutes. But I recommend 15 minutes because of how emotional and noisy the 5 minutes chart is.

Add EMA 4 (yellow), LMA 10 (DarkTurquoise), LMA 120 (white), LMA 40 – 90 (red) to your trading chart. Oh! Waiting for the entry and exit rule? I think this is getting interesting! Just relax and wait for the next edition of our No. 1 life changing magazine – Success Digest Extra, where I will be demystifying more secrets on this trading strategy. Did you gain something? Then watch out for the next edition and be the first to get your copy.

You are already at the top.

But If You Want To Really Make Ridiculous Amounts Of Money From The Forex Market On Complete Autopilot, then click here now.

Hassan Ismail,

Fx trader & coach

Scalping The Forex Market (pt1)

I will be introducing you to another technique of making it big scalping the Forex market and walk away with mega profits within the shortest trading time. Believe me that I have tested this technique and also want to let you know that 75% traders in Nigeria are scalpers. I really celebrated the New Year thanking God for giving me the courage to develop more on scalping as a trading strategy. 31^st of December 2007, I made 78 pips by scalping the FX market. Just scroll your trading platform to that day and see the market volatility.

What is Scalping? Many traders don’t really understand that simple word. Some even pronounced it wrongly, and if you don’t understand the meaning now, you can not benefit from the mega returns that the strategy is generating in the world’s largest financial market.

Scalping is a focused technique that involves making a minuscule trade to generate profit within a short period of time. This method of trading the FX market is of high probability trades with extremely small risk stops and predefined profit objectives, it is also a means of taking a million trades to make a million dollars.

There are different types of traders; “Position Traders” “Day Traders” and “Scalpers” A position trader could engage in trades that are intended to last for multiple days or months with huge pips target of hundreds to thousands. A day trade could typically engages in trades that might last for less than a day aiming for targets of 20 to 100pips while A Scalper engages in trades that might last for few minutes and the minimum target could be 5+ pips. Pick your calculator now and calculate 5pips on a 2.00 standard lots of 5 trades per day for 20 trading days (5pips x 5 trades x 20 dollars x 20 trading days = $10,000 monthly) If all the scalping techniques are adhered to. Are you saying it’s not possible! Just demo trade this for a month and see what I am saying.

A scalper normally trade higher lots size or volume depending on your account size and risk acceptance. For the fact that this technique requires a maximum Stop Loss of 20pips, you must also maintain a good equity management principle. If you could just sincerely follow the rules that I will be teaching you on this technique, you could rake in more profits to your bank account without stress compared to day or position traders.

Let me sound this warning that if your account can not accommodate the risk involved scalping with higher lots or contract value, please don’t trade higher lots. Simple! Because scalping is more emotional and advanced in nature in the aspect of making a very quick decision and trade execution. Don’t trade without setting your stop loss when scalping. Trading without stop loss could wipe off your account with this strategy. P-L-E-A-S-E, just follow the simple trading rules that I will be sharing with you.

Scalpers often engage in multiple trades per day. Some traders execute several trades and make profits with ease. Don’t worry, I will teach you the technical know-how of scalping the market. Scalps are executed in the direction of the current trend of the Forex market. You can’t run away from the fact that the “trend is your friend” if you don’t know the trend of the market, don’t place any order.

You could also take larger profits as this lesson is getting more technical by applying trailing stop. What is Trailing Stop? Stop Loss is intended for reducing losses where the symbol or currency pair price moves in an unprofitable direction. If the position becomes profitable, stop loss can be manually shifted to a break-even level. To automate this process, Trailing Stop was created. This tool is especially useful when price changes strongly in the same direction or when it is impossible to watch the market continuously for some reason.

The beauty of scalping is that, it allows traders to trade even when other techniques would make you sit with your PC for long without trading. Scalping is best used in conjunction with or as a supplement to other trading techniques – so keep trading your normal strategy that you are used to and add scalping to your trading toolbox.

TYPES OF SCALPING

There are three methods of scalping the Forex market which I will be teaching in this article: You could apply the EMA 4/12/63 to 15 minutes chart of your trading platform and scalp with the strategy. Alternatively, apply the one I will be sharing basically for this technique.

1. Time-sensitive trades: This comes in 2 forms: Firstly, in opening range breakouts, where a quick scalp is taken minutes before the open, in the direction of any market thrust. I revealed an important secret in the previous edition of SDE on the best trading time for the EMA 4/12/63. Meanwhile, if care is not taken, the bull back preceding the breakout of the 7:45am Nigeria time might strike your stop loss. But you can perfectly study the market; and scalp to make profits before the main breakout. And I will advise you always use your Bollinger Bands, preferably on a separate 15mins chart.

Secondly, trading to capitalize on the regular market turnaround time of the New York opening session. Infact, scalping is the best strategy to apply because something must happen. Keep your eyes also on 15 to 30 minutes to the FA release. I bet you that you would have made your target before the news. Then if the news is worth trading, trade and make more profits. Always tie this law on your neck and do not let it depart from you “make 20 or 30pips per day and every other pips shall be added unto thee”

2. Countertrend trades: Scalping when the market is silent or consolidating during the trading day. It could be the Asia session too.

3. Trend continuation trades: These methods focus on entering the market in the direction of a trend AFTER the trend has gone underway. They are also classified as retracement trades.

One of the most liquid, active and electronically accessible market is Online Forex Trading and I feel the scalping method represents the best known chances for picking consistent profits as a trader/scalper.

Expect more details on the scalping technique as I will be including the trading indicators, time frame, target, rules and the setup in the next edition of our wonderful live changing magazine Success Digest Extra.

The lot concluded the design of a lot calculator using EXCEL programming Language and I’m giving it out as a gift to our lovely readers. Interested? Just send an email to forexpips@sendfree.com with subject This will eliminate the stress of calculation pivot point daily. Do you still have any questions on the past articles or you’ve almost lost your account? Kindly forward your questions to me and let see how we can build it back.

See you at the top!!!

But If You Want To Really Make Ridiculous Amounts Of Money From The Forex Market On Complete Autopilot, then click here now.

Hassan Ismail,

Fx trader & coach

Pivot Point Trading Entry strategy

Hello there!

Today, we shall be discussing how to set your trades and get them filled even while you are at work or away from the computer using a special type of order.

Without much ado, let’s get started.

If the entry points have not been reached, it may be dicey to enter a trade in expectation that the trade will move in your direction. What you will do is to PEND the order. There are basically two (2) types of order – Instant and Pending order on the MT4 platform. You can read more about order form MT4 platform help by pressing f1.

We will be using the BUY STOP & SELL STOP pending orders. If we have the following conditions:

Current price = 1.7280

R1 = 1.7332

R2 = 1.7392

You should place a BUY STOP 10 -15 PIPs away from R1 with 10 PIPs STOPLOSS below it. Your TAKEPROFIT should be ¼ of the range between R1 & R2. The range between R1 & R2 above is 60 PIPs (1.7392 - 1.7332 = 60). ¼ of 60 is 15. Hence you add 15PIPs to your BUY STOP entry to get the TAKE PROFIT.

Note: TAKE PROFIT & STOPLOSS are not fixed but recommendations that have worked for me. You can have yours too.

The converse is true for a SELL STOP order. You sell 10 – 15 PIPs below a support and use ¼ of the range between S1 & S2 for TAKE PROFIT.

Tomorrow, we shall be discussing the break out strategy and the best time to catch it.

I will like to draw the curtain here for today. Meanwhile, more experiences await you.

Till then, keep on making and keeping those PIPs.

But If You Want To Really Make Ridiculous Amounts Of Money From The Forex Market On Complete Autopilot……You MUST Know The Insider Automated System That I (And A Few Of My 15,000 Clients) Use To Generate Massive “Windfalls” For Our Forex Trading Business…click here now.

Hassan Ismail,

CEO/MD Income Legends Concepts

Pivot Point Trading system

Hello there!

Today, we will be talking about about Pivot Point. What are
pivot points? Pivot points are turning points. They are points
where we expect price to have a u-turn or continuation of trend.
They are the most profitable trading method yet are grossly
underulitilzed by most traders.

The concept behind pivot points is that when price reaches a
point, it either breaks it upward/downward or reverses. It is
critical to know these points so we can know where to place our
entry.

Pivot Point (PP for short) is a point below which we sell the
currency and above which we buy. Poins above are called
resistances (RR) while those below PP are called supports (SS).
There may be more than one RR or SS depending for evey currency.

Pivot points can be claculated or you can get them from
http://www.actionforex.com/technical-analysis/pivot-points/
pivot-points-summary-200603205734/

Just change it to daily and use standard values.

Simple Entry Rules
All examples are based on MT4 Platform
Use a 15M, candle sticks chart.

Buy Rules
1) Buy above a PP or RR when two candles close above them and
place your stoploss 10PIPs below the PP or RR or
2) Buy when price reaches one-third of of the range between the
PP or RR

Sell Rules
1) Sell below a PP or SS when two candles close below PP or SS
and palce your stoploss 10PIPs above the PP or SS or
2) Sell when price reaches one-third of of the range between the
PP or SS

What about if price did not reach any of your points? Will you
sit all day waitng for price? No! In our next class, I will be
telling you how to go about it.

Till then, keep on keeping those PIPs.
But If You Want To Really Make Ridiculous Amounts Of Money From The Forex Market On Complete Autopilot……You MUST Know The Insider Automated System That I (And A Few Of My 15,000 Clients) Use To Generate Massive “Windfalls” For Our Forex Trading Business…click here now.

Hassan Ismail,
MD/CEO Income Legends Concepts

BreakOut Trading Strategy (Pt 2)

Breakout trading has been tried many times over the years by thousands of successful and not so successful traders. This system is very simple yet many traders fail to seize the opportunities abound in it due to negligence and impatience. Switching from one time frame to another doesn’t change the strategy, it’s still the same. Many even use multiple time frame breakouts, like 5min, 15min 30min, 1 hr chart etc or use weekly breakouts and daily breakouts of highs and lows. However, there is only one issue with Breakout Trading Strategy. This is to determine when the breakout will occur.

I refer to this trading strategy as “A Simple Way For Building Long Term Wealth” because there is no correlation in the market between the complexity of an indicator or method and its success. In fact, the opposite is true; most of the world’s top traders who have made consistent profits have used systems that are essentially simple. Simple systems are the best because their logic is easy to understand and implement. If the system is easy to understand it is easier for a trader to execute it with discipline. There is no point in having a system unless you have confidence in it to trade with discipline, even when faced by a losing set of trades.

There are some trades that are more valid than others and the probabilities of the breakout turning into a strong trend are greater. We need to look at some basic criteria for evaluating breakouts in terms of their probability of success.

1. Generally, the more times a line of resistance or support are tested the more important the violation will be if breakout occurs. We generally never trade less than three tests. What I am trying to say is; you need a minimum of two or three relatively equal highs and lows to have a true consolidating base.

2. The time frame between the tests of resistance and support is also important likewise the longer the support or resistance has been in place, the more valid the break will be when it comes.

Trading breakouts is a great method for catching big moves that can pile up big profits - that is the aim of all traders. Every trader could use a breakout system if they wanted to; the fact is they don’t, for reasons stated earlier. The fact that the bulk of traders don’t want to is the fundamental reason why they work and will continue to make mega profits for those of us that understand the simple concept.

Once a clear break has occurred, the odds are the trend will continue in the direction of the break. If the trend reverses quickly, and goes back to the breakout point rather than continuing, the break is likely to be false. Stops should therefore be at or near the breakout point but if you have what is displayed on the chat below, it is a clear breakout that can make u more profits.

Look for opportunity when the price or market is consolidating and the more the consolidation the more the volatility/breakout. Also locate Double Top (two or more candlesticks that traded the same high) and Double Bottom (two or more candlesticks that traded the same low). Therefore, that will serve as the tunnel and you will be watching for the candlestick that will break any of the lines and make your decision as fast as possible. Then insert EMA (200) as the trendline, EMA (8) as the fast and signal line, while EMA (20) is to confirm the breakout.

ENTRY RULE:

Once the price breaks through one of the trend lines and a current price bar closes outside the tunnel – place a buy/sell position in the direction of the breakout. If price penetrate the trend line, but did not close outside the tunnel, cancel the previous trend line and draw another one according to the new conditions.

EXIT RULES:

You could set 50 – 70 pips but I will advise you to automatically trail your profits by setting 5 or 10 pips below or above the trendline and apply Trailing Stop of 15 or 25 points. However, it is believed/speculated that the price after breaking the tunnel will travel the distance more than the width of that tunnel.

Keep making more profits while I keep researching for more Money Making Trading Strategies!!!

Till then, keep on keeping those PIPs

Hassan Ismail,

MD/CEO Income Legends Concepts

Explode Your Forex Account With BreakOut Trading System (part1)

Dear traders,

A new chapter of trading the online Forex Market is opened again for more profits as the FX market is getting more complex and interesting due to the interpretation and implementation of both technical and fundamental indicators. What I will be sharing with you is called “BREAKOUT TRADING STRATEGY” (BTS). Technically, the Breakout methods seems moderately simple but its simplicity is somehow deceptive because Breakouts are amongst some of the most powerful, most profitable players in existence but 72% of all Breakouts fail and in that it remains one of the most effective ways of trading, if used correctly.

I am sure you will ask yourself how can Breakouts be so powerful and profitable if most of them Fail?

Answer: The 28% that works do so in a major way. Big Profits! In fact, its simplicity makes it a tool that can be used by all traders from novices to seasoned traders. The logic behind Breakouts is simple to understand and easy for any trader to implement. An additional benefit of Breakouts is because the logic is so simple and traders find it easy to trade with discipline.

Now, let me quickly define Breakout so that you will have a clear idea or perspective towards the Money Generating Machine (MGM). A Breakout could be defined as the point at which the price breaks away or move out of a trading range. Moreover, the trading range could be for any length of time but once the prices exceeds the high or low level of the trading range, a Breakout has occurred.

Oh! The definition is not clear enough; Breakout is a price movement through an identified level of support or resistance, which is usually followed by heavy volume and increased volatility. Traders will buy the underlying asset when the price breaks above a level of resistance and sell when it breaks below support. Simple!!! But once a resistance level is broken, it is regarded as the next level of support when the asset experiences a pullback. Most traders use chart patterns and other technical tools such as trendlines to identify possible candidates that are likely to break through a support/resistance level.

Many Breakout traders find trading opportunities by identifying chart patterns such as channels, ascending triangles, descending triangles, headers and shoulders, etc. These types of traders will generally set up target prices to be equal to the distance between support and resistance levels.

Breakout trading is not a new concept because lots of traders have been using this strategy for long and many are still using it for big profits. I will strongly advise to trade Breakouts in the direction of the trend, do not trade against the trend or no trend at all. Again, the probabilities of trading along the trend are higher than trading against it and a Breakout trade will only be successful when a TRUE Breakout is determined.

“When you identify an uptrend and decide to buy, you have to decide whether to buy immediately or wait for the dip. If you buy fast, you get in gear with the trend but your stops are likely to be farther away and you risk more. If you wait for the dip, you will risk less but will have five groups of competitors:

1. Buyers who want to add to their positions
2. Sellers who want to add to their positions
3. Sellers who want to get out at even
4. Traders who never bought, and
5. Traders who sold early but are eager to buy

The waiting area for a pullback is very crowded! Markets are not known for their charity, and a deep pullback may well signal the beginning of a reversal. This reasoning also applies to downtrends. Waiting for pullbacks when a trend is gathering steam is an amateur’s game.

If you want to have the opportunity to make the really big money from the big moves, you need to get in at the start of the trend and follow the move.

An easy way of recognizing a Breakout is after price has been trending (moving in one direction, either up or down) it will move into consolidation, or 'pullback'. This normally occurs because traders with positions in the direction of the trend close them to take profits and those with positions that ended up losing will want to recover. During this time, price does what we call range, or move in a very narrow boundary between two price levels (support and resistance). And the more the market consolidates the higher the volatility.

The breakout will occur once the market has made up its mind about it direction - be it a trend continuation or a trend reversal. When that happens, either the support or resistance price level will fail and price will move out of the previous range. Note that Breakouts typically occur during active trading hours and as such price will usually move out of the range with decisiveness. A typical confirmation of a Breakout is when price breaks the previous swing high/low (recent high or low).

Trading the Breakout involves defined discipline because it is not a complex method and if you are going to trade any methodology with discipline, you must first have confidence in its ability to work. This is where the simplicity of the Breakout method of trading is, and that is the strength of the strategy. If you understand this fact, coupled with discipline, even when you are losing trades; logically you will soundly base your plans of making profits over the longer term.

Why would you trade the Breakouts?

Breakouts enable you to utilize your trading capital. Moreover, instead of buying low, trading against the trend or waiting for retracements in the Forex market, you could get the trend earlier, lock into and hold the trend with huge profits.

The fact is, however, the market spend most of it time in trading ranges going nowhere. Many markets don’t trend for several days. A trader who takes a trade in the anticipation that it will move, may have to wait a long time to see the trade move in his/her favour, if it does at all. This can tie up capital for long periods that could be utilized more productively elsewhere. The big advantage of Breakout trading is you are only entering a trend in motion. As we all know, a trend in motion is more likely to continue than reverse. This is a basic principle that Technical Analysis is based upon, and Breakouts get you in, as the trend emerges, and has a high probability of continuing. You therefore know you are only entering markets that have a high probability of trending strongly and making you big profits.

Anyway, Breakout trading has again been successful for many and not so successful for many more. Basically, the people you would probably want to hear from most would be Pivot Point traders. They trade in a similar fashion with Support and Resistance lines. Most systems based around Pivots use similar indicators as Average Directional Movement Index (ADX) or Momentum Indicators. Have you gotten my free wonderful forex e-book? If No, this gift is waiting for you and you will find it useful to your trades. Just fill your name and e-mail below the blog to receive it.

Whao! We’ve just started with this strategy and I know by the time I will be revealing the secrets of trading the Breakout strategy, you will never remain the same – cause “Your Level of trading the Forex market will change drastically” Expect more insights in the edition.

Just make it a date with with me for the next edition because it’s going to be explosive.

Keep moving forward and trade Forex profitably!!!

But If You Want To Really Make Ridiculous Amounts Of Money From The Forex Market On Complete Autopilot……You MUST Know The Insider Automated System That I (And A Few Of My 15,000 Clients) Use To Generate Massive “Windfalls” For Our Forex Trading Business…click here now.

Hassan Ismail,

Fx trader & coach

Creating Profitable Forex Trading Systems in Five Easy Steps

There is an old saying that is loosely translated to 'if I don’t help myself, who will?’ now while this isn’t very eloquent, it does convey what I want to tell you.

No entrepreneurship, no success, no money making scheme, is done if you don’t have a hand in it. So don’t rely on what other people can do for you, just get it done for yourself.

Now while this rule applies to everything, it’s specifically useful regarding the Forex market (foreign exchange). The Forex is the biggest, most liquid market on the planet. Basically it trades currencies and is estimated that over 3 trillion dollars pass hands each day. Just to give you perspective, the new your stock exchange (the busiest and largest stock exchange), 'only' processes about 50 billion dollars a day. Get the picture?

I bet I can guess your thoughts right about now. Well, maybe not the actual thought so much as the sentiment. You want some. 3 trillion is too much to be ignored and any person with a sturdy head on their shoulders would want a piece of the action. But in order to do that, you need to know at least the minimum for Forex trading.

We understand that you can’t know or operate everything; you will need porters, or advisers or just plain friends to call when you’re in a bind, but don’t you want to be the one to make the call about what’s best for you? The only way you can do that is if you learn, so make sure you understand what’s going on before you take even a step into the world of Forex trading.

How do you start trading Forex?

Now you need to find a Forex system that will help you along with your trading. You need to find the right system for you, so don’t ever get tired of searching. You can find trading systems all over the market (the internet really) and they could and will help you make hundreds, if not thousands of times over any dime you pay up front.

You might think it’s difficult to get your trading system personalized or up and running in general, even if it’s standard. You might even find it hard to make a choice, but all it ever comes down to is knowledge, and that is what we are here for.

You can find the trading system for you if you just take into account 5 different pointers (that’s it, five!!).

Before we get there, there are three things you have to know. So lets start there, and then we can move on to the pointers.

#1: Simple analysis does the work.
The first things you have to know is don’t fall into the complexity trap. Just because it’s shiny doesn’t mean you need it. It’s actually, almost on the contrary. The simpler the system the better it will probably be for your Forex needs, so stay away from complex Forex trading systems. Stick to the basics and you will be fine. Another thing that should be obvious to you is that you, as your trading system, should be in the business of cutting losses and running with any profit possible.

#2: Clear entry/exit points
Secondly, you need a system that can identify possible profits and (ideally) instantly cut losses. This could save you a great deal of money, so don’t turn on your computer before you’re convinced that this is what your system does. It should give you early entry signals while the trend is developing and also give a clue of when the trend is diminishing. For instance, I use ADX to confirm the trend, parabolic SAR to determine my entry/exit point.

#3: Long term definition
The last of the three things you should know is that you need a system that can recognize long term trends. if your computer is only analyzing days when deciding to sell or buy, then you will never get more then pennies to your dollar, and that just isn’t enough when there are two trillion to be had.

Now let’s get to the five must-knows when it comes to getting started with the Forex market.

First of all, your trading system should be simple (for conviction read above). You need an extensive investment management system, but only some essential general rules. Anything more will only confuse your computer and will long term hurt your profit potential.

Secondly, don’t be happy with short term trends; go for the longer weekly based trends so that your profits will really be impressive. If you analyze what happens to the market on daily/hourly charts then it can really understand the market, and only then will you be happy you left your day job.

The third is that the best way to trade in foreign currencies is the breakout method, so ask around, find from peers and experts, and learn all about this method before you get started.

The forth pointer that I want to enlighten you with today is that you need to develop a timing tool for your market entrances and exits. Watch for breaks in the market and have them sketched on your chart so that you can see what is going on in the market.

The fifth and my last parting words of wisdom is that you should have time management become an important part of your chosen system. you need your time to yield the best results, because two trillion isn’t when you want it, its once a day, and days come and go as they please, not at your request.

So get started, there is no doubt in my mind that if you stick to what you have read here then you will be that much closer to becoming a millionaire.

Have fun!!

How To Improve Your Trade Instantly

Dear Friend,
As contradicted to what you always believe, Forex Trading should never be considered mere luck. Tons of research could and should be done to eliminate, or at least, to minimize the effects of luck. As it's always said “Fail to plan and plan to fail”, those who do not have specific plans and just trade randomly to look for the mercy of luck would eventually kiss goodbye to their bank accounts.

The purpose of this Free Report is to provide you with the powerful fundamentals to achieve real, remarkable profits with your trading. Of course, this would not turn you into a professional trader overnight, but I'm confident with the knowledge learned from this report, you would be able to step up your trading to a whole new level and reap the profits very soon.
If you want to have a serious income stream from trading you must really see it as a business, not a leisure hobby, and always keep in mind the following 4 Golden Keys that would unlock YOUR way to your trading SUCCESS:

• First Key – Be Emotionless
Remember this: Learning to control the way you think and react to the markets is crucial to achieving trading success...

We all know how easy it is to get all worked up about losing. Well, it’s also easy to get pumped up and excited about making winning trades.
Trading fortunes are built on logic and consistency, not “gut feelings” or “psychic impressions” which are what emotions produce.
Most traders are trading without even knowing that too much emotion involved in trading is the fastest way to lose their banks
It’s a lot more fun to release all those emotions while you spend all the money you made!

• Second Key – Be Scientific
Think about each new strategy or concept as an experiment: conduct the experiment and make a note of the results. If the results are continually positive, keep the change. Systems can be tested by creating different demo accounts on the same platform.

If the results are continually negative, drop the change. Don’t rush to judgment from one outcome (it might be a fluke)... and don’t keep chasing a losing formula because it feels right. The right formula is the one which pulls in money consistently in the long run.

• Third Key – Be Mechanical
Your system should be exactly that: a system. When “A” happens, you do “B” and when “C” happens, you do “D.”

Sure, it might not sound exciting or dramatic but it is profitable and that’s all that matters! In other words, stick to the system’s entry and exit rule. If none are met, stay out.

Being inconsistent sinks your bank account and makes it impossible for you to know what is working and what isn’t working.

• Fourth Key – Be Quiet /calm
No, that doesn’t mean you can’t brag about how much money you’re making to your friends (after all, that’s part of the fun!). It means that you need to quiet your mind just like you quiet your emotions.

When you’re trading you should be thinking about trading... and not the next vacation you want to take... or the overdue bills you’re trying to make up for. Before taking a position, calm and ask yourself this question, “Why am I buying or selling?” Consult your strategy for answer.

• Fifth Key – Never trade with people’s money
The fastest way to get your fingers burnt in Forex trading is trade with people’s money. Any investment consultant will always tell you that you should invest the part of money you can afford to lose. Can you afford to lose someone else’s money?

This brings about panic, pressures, fear of losing money, impatience, greed and all the grandchildren of emotions. Don’t be trapped by people begging you to accept their money. When it becomes sour, they will be your greatest enemies.


Just putting these Four Keys into action will radically improve your trading. If you get nothing else from me, please study those four deceptively simple Keys and put them to work for you.

But If You Want To Really Make Ridiculous Amounts Of Money From The Forex Market On Complete Autopilot……You MUST Know The Insider Automated System That I (And A Few Of My 15,000 Clients) Use To Generate Massive “Windfalls” For Our Forex Trading Business…click here now.

Forex Trading--Real, a scam or a gamble?

Over the past years, there has been speculations as to whether forex trading is real or just a large scam. This speculation arouse becasue a large percentage of forex traders lose money to forex trading. This nothwithstanding, some forex brokers have made the business of froex trading so difficult with their poor customer service, large spread, requotes and dealing desks. Most borkers claim they don't have a dealing desk. You cant know this until you commit your hard earned money into trading. That is when you start expereinceing requotes due to their slow servers.

The question still remains. Is forex real, a gamble or the largest global financial scam? A lot of my clients havve asked me this question and I am going to give my personal unreserved opinion on this matter. The answer to this question can be looked at form three different perspective:

A Scam?
If you take forex to be a scam, are not wrong to have said that. You may have probably must have been faced with failed promises of their brokers. While you were demo trading, the speed of execution was absolutel out of this world. You had never a requote not until you started live trading. You got luck amd made some profits but withdrawal became as difficult as knocking your head against a brick wall. I have been down that lane. As at this moment, I have lost some money to a broker who refuse to credit my account after I have filled withdrawal request.

All attempts to reach the broker has been futile. So, if I say forex is a scam, then I am justified. But, how do you spot a perfect forex broker? I will be sharing some tips with you in subsequent posts.

A Gamble?
Have you ever been in a trade and your stoploss is hit just to find out that the trade retraced to the trend you have predicted earlier. In fact, at a certain stage of my trading career, I had the misconception that the trading paltform has affinity hitting stoploss. Why is my stoploss always been hit only for trade to go in my favour after it has robbed me of my money? You can not be 100% certain that the trend you speculated is the direction the market of the market especially if you are intra-day trader. There are so many "perfect" systems out there that claim to tripple your account in a week only to find out that you are sustaing huge loses with it. Why would you not feel forex trading is a gamble? How do you spot a successful forex trading system? I will be giving reviews of some tested and trusted systems and how to maximize them.

Real?
If you label forex trading as real, then you must be one of the 5% successful forex traders who have mastered the act of trading through patience, discipline and persisitence. You mmusgt be among those that have made some wothdrawals into your bank account. Not until my 1st withdrawal 2 years ago, I have labelled forex as a scam or a gamble. I am not saying that because I now have profitable trades there arent scammers ou there. There a bunch of them who dupe novice traders of their hard earned money. keep an eye on this blog, I will be exposing them by revealing to you their sugns and symptoms so that you don't fall prey to them.

To sum it up, forex trading is a profitable real business for those who have the patience to learn the nitty-gritty of it. If you dont have that patience, please find another trade!

But If You Want To Really Make Ridiculous Amounts Of Money From The Forex Market On Complete Autopilot, then click here now.

Hassan Ismail,
Fx trader & coach

Welcome Message

Hello there,

How has the trading been? You are reading this article becasue you are either a forex trader or a yet-to-be-forex trader. If you belong to none of these groups, disregard this mail else, welcome on board.

I am Hassan Ismail,CEO/MD Income Legends Concepts. Enough of the story.
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Bofore you proceed, fill in your name and email to get success forex reviews in your mail.

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After studying the forex market for two (2) years now, I have got load of experience that I am willing to share with you through an e-mail forum I call Let's Talk About It. You know a good knowlwdge in every investiment is indispensable let alone in forex market with its volatility. I will be sharing with you strategies that have generated an average of 200PIPs monthly.

The question is why am I doing this? Last month, I mistakenly formatted my laptop. All efforts to retrieve the files have been abortive. Come to think of it. My autopilot, fx killer, analyxer, trend manager, trade helper, annihilation robot and lots other forex softwares went down the drain. The one that pained me most is my 264 page ebook on candlesticks by Steven Nixon. I have lost documents worth over $2300USD by mistakenly presing a button.

I reflected and asked myself this question. Hassan, what if you lose your life today, what happens to all the loads of secrets you have been keeping to yourself? It was a tough one. I wish I could keep them to myself but the guilt that if I die today, I would have denied lots
of people the benefits. Dont blame me. It's blackman's mentality. We eat alone and die alone. There are lots people out there with wonderful ideas but they are dying with them.

In this medium, I will be sharing with you

• breakout strategies
• pivot pointing for maximum profit
• fibonaci extention and retracements
• execution of orders
• forex arithmetics
• how to generate entry signals technically & fundamentally
• portfolio management
• how to spot a good forex broker
• secrets of signal vendors with different sources where you can get free reliable signals and lots more
  

Till we meet again tomorrow, keep your eyes posted to this blog for success reviews on working, tested and trusted forex strategies and systems.

To your success,
Hassan Ismail,
Fx trader & coach
http://tinyurl.com/5cvtmk