Futures Trading
BASIC THINGS 1) Basic Instructions
2) Discount Markets
2) Advanced
2) Volume Profiles
3) Trading Indicators
THE SYSTEM 1) Trading System
2)Long-Term analysis
3)Short-Term analysis
3) Trading Analysis
MARKET TIMING 1) Candlestick Charts
2) Candles Patterns
3) Chart Patterns
4) Continuation Patt.
E-Mini System
O/R System
Dow Futures
Forex systems
FX Introduction
COMMODITIES 1) Commodities
Commodity System
Oil Futures
MANAGEMENT (Risk, Mind & News) Risk Management
The Trader's Mindset
Market News
SIMULATOR Trading Simulator
FUTURES BROKERS 1)  What to look for
2) Futures Brokers
TimeFrames Analysis
"Super Tech Analysis"
CHARTS and QUOTES Charts and Quotes

Forex Trading: How to Build your own forex courses and the Necessary Experience to Survive

Forex trading involves high risk, we all look for forex courses trying to get the holy grail. casualty rates among beginners are high due to impatience and inexperience. You must be willing to invest the time in vital practice sessions to fine-tune your trading plan and to gain the confidence and consistency necessary to both survive and thrive in this investment genre (build your own forex courses through practice is called).

A disciplined approach to all market decisions is key, and practicing with “virtual” cash and real time quotes is the only pathway to invaluable experience.

The first step in the process is to develop a trading plan or system using what you have learned to this point. Forex brokers provide free “demo” trading accounts that are ideal for practicing and adjusting your plan to real market conditions (build your own forex courses testing ideas and systems!). Prudent risk and money management techniques will limit your risk and set proper position sizes.

Trading System Development

A forex trading system is a set of steps that will guide your entry and exit of a position in the market. The simple plan displayed in the EUR USD hourly chart below is for instructional purposes only:

The “EMA” blue line is an “Exponential Moving Average” for twenty periods that gives more weight to more recent prices in its computation. Your plan should help you find a trade set-up (opportunity), and then tell you to enter based on several conditions being met. In this case, the steps might be as follows:

  1. Wait until the pricing "candlesticks” rise above the EMA;
  2. Enter a position, along with a stop-loss order at 40 “pips” below the entry point;
  3. Exit when the candlesticks descend through the EMA and the Slow Stochastics indicator confirms the bottom.

Healthy trends that last a few days, like the one above, are difficult to find, but when the opportunity presents itself, you want to “ride this winner” as long as you can. Some traders would sell when their profit target was reached, then re-enter for more of the same. A gain is not a gain until it is closed.

Risk and Money Management Techniques. (build your own forex courses testing ideas and systems!)

One important rule of trading is that you must always cut your losers off early. The wise way to do this is to set a stop-loss order at the same time that you create a position order. You will learn over time how much below to set your protection, but one method is to use the “Average True Range” (“ATR”), shown here at the bottom of the chart. The average range for the previous twenty periods was roughly 40 “pips”, the figure used in “Step 2”. For a standard lot, this procedure would limit your downside loss to $400.

Traders will generally expect a “2X1” reward/risk ratio in a trade, or a potential of $800 of profit. If he is right 50% of the time on ten trades, then the math says:

5 winners at $800 on average = $4,000
5 losers at $400 on average = (2,000)

Net Gain for 10 trades = $2,000

The forex market, however, never gives away its secrets so easily as with this example. Losing streaks can be long. You must manage you position sizes accordingly, waiting for your winners to materialize. Money management rules state that no more than 2% of your capital should be at risk at one moment, and no more than 6% or three trades open at the same time. A $400 position would equate to a $20,000 account.

Using mini or micro lots would apply for smaller account balances.

Out last article will deal with trading psychology (click below) and summarize our forex introduction. Remember build your own forex courses testing ideas and systems!

3) Go to Trading psychology in the Foreign exchange markets

Risk Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.

Click here to go back from forex courses to futures trading how to

Essential Tools For Traders

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  • Instant Analysis Of Where the Market Could Go Next

  • Tools to Understand the Markets

  • Trading System

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