Trendfilter aud and nzd strong, gbp strong vs two brothers usd and yen weak G10 valid long

My main objective for filling this report is to expose to all our readers FX solution, key philosophies, principles and psychology required not just to survive, but win the Forex Trading Battle. In all my efforts to come up with better strategies for trading news events more profitably, I think this one has given me so much leverage over most strategies I have used in the past. The fun thing here is not necessarily the profit but the time and efforts required to make such returns with well calculated and minimized risks giving just a fraction of my time.

Anyone familiar with the Forex market will tell you it can often be time consuming, so heart breaking and too risky. There is no doubt the market is very risky, but the 5 minutes News Trading Strategy exposes how all these can be taken care of with relative ease.

Introduction to the 5 minutes News trading Strategy

The 5 minutes News Trading Strategy belongs to the 5 minutes trader. Here is a trader that who organizes himself so well that he does not allow his trading result pose a problem to him; whether he is winning or losing. One thing I have enjoyed with this strategy is the fun of not having to stay in any trade for longer that 5 minutes. Could you imagine this: You have reviewed your Economic calendar and found out that a news event is coming out from say, Australia at 2:30am (Nigeria time), you set your alarm clock to wake you up at 2:22am. At 2:22am your alarm clock rings and you are awake. You turn your computer on and about 3 to 1 minutes to 2:30am (between 2:27 to 2:29am) you have set up your orders and by 2:33 or at most 2:35am you are back to bed with 10, 15, or 20 pips or more profit as if nothing happened. Some other times, he wakes up and before 5 minutes he has taken a little loss of 5 to 10 pips and is still very profitable. Guess what? He understands the market and has learnt to use his risk management skills very well, as well as managing his trading psychology. Another good thing about the 5 minutes trader is that he has known the events that are worth his time and has great discipline to stick to them. He can now afford to trade, take care of his family, earn a salary working for his boss because even now, he does not commit as much time in his trades as he does his full time job and still earn more than he is paid.

His Trading Philosophy, Principles and Psychology

One thing he has worked so hard to develop is the ability to stay disciplined. He has trained his mind so well that he came up with the following philosophies:
My trading philosophy and principles: the following make up the core values I have adopted as a trader and which have formed my trading philosophy and principles,

They are:

1. Treat losses the same way you treat profits.
2. Start small and grow to whatever level you desire.
3. Do not focus on the immediate small losses or growing gains; always keep the end result in mind. In other words, it is the monthly result and not one single trade that determines my profitability in the trades, but each trade contributes to the end result.
4. Let the law of compounding work for you. Target building from small to big.
5. Find what works for you and stay with it; always be yourself.
6. Always have a plan; and in your plan decide how much you would be willing to loose before accepting any trade. Also decide your profit ahead.

Managing his Trading psychology, otherwise known as Emotions

He has this to say again:

Taking control of your Emotion and handling losing trades-
Without doubt I can authoritatively tell you, before you read any further, that the best skill you need to work tirelessly to develop as a Forex trader is the emotional control. Some call it psychology , what ever the name, you just have to learn to take absolute control of your emotions, Miss this point and you miss out on the opportunities that this huge market has to offer. I have had many call me and just lack words to express their disappointments in the market. Some have actually given up trading, believing it is not for them. But this does not have to be so if only you will humble yourself and learn these important facts about trading. It will be very sad for you to allow the market to humble you as it has done so many who are now afraid to take another chance. Now the smart question I expect you to ask is this; what are the emotions to take control of in other for me to truly conquer the FX market? And I will answer you right away. Here are the emotions you have to control: Greed, Fear, Ineptitude and Revenge or Anger.

How do you do that? I will summarize the answer in one sentence; "Treat your losses the same way you treat your profits, but make sure your losses are always smaller than your profits". This is the question I always ask myself when I lose a trade and want to re-enter immediately; "If this trade were a winner, would I enter a second a time and risk losing my profits for that day" I hope this will also help you in handling losing trades and losses. Remember, always determine and know your risk before ever taking any trade. If you do not know or are not sure of what to risk then do not trade.

The next thing I have also adopted is to laugh at all my trading results; profitable or not. Watch your psychology, learn how to trade for only 5 Minutes Per News Event and pile up massive profits.

BIACHI SOLOMON is the Author of massive break

If you look at any currency charts you will see long term trends that last for months or even years and these can be worth $10 - 20,000 or more.

Many traders pick the direction correctly get stopped out and then see the trend make huge profits and there not in!

So how do you catch and hold these trends? Let’s take a look.

Entering the trend

You see an important level of resistance about to be broken and you want to get in so you buy a break and prices accelerate – Now you’re in profit and looking forward to a much bigger one.

Now it is here that most traders fail to act correctly to hold the trend and it is routed deep in human nature.

Human emotions and trend following

You have a profit and the bigger it gets, the more the temptation is to take it before it gets away.

Most traders know this is wrong they need to hang on to capture a bigger profit but they want to limit risk.

So what do they do?

The Fatal Mistake

They make the fatal error of trailing their stops up quickly and most do it under the first level of resistance - after the trend has broken to the upside.

If you want to catch the big trends you cannot do this as you will simply get stopped out.

90% of traders lose money in forex trend following and this is due to the fact they try to restrict risk so much they never make any meaningful profits.

By trying to restrict risk they actually create it.

In the brutal world of currency trading volatility is the enemy unless you handle it correctly and even in the best trends you will see huge swings within the trend.

Trail your stop to close and volatility will take you out.

Risk

If you want to catch big trends you have to take a calculated risk.

This means holding your original stop and letting the trend go WITHOUT trailing your stop to close.

Sure, you are going to see periods where dips eat into your open equity by thousands of dollars, but if you believe you are in a big trend, you need to leave the market room to breathe.

If you don’t do this, you will NEVER hold the really big trends that can pile up huge profits.

Get used to taking dips in open equity when forex trend following and keep your eye on the bigger picture.

Forex trend following over several weeks or months holding a big trending move is mentally tough, but do it and you will catch some stunning profits.

FREE ESSENTIAL TRADER PDF'S AND MUCH MORE

On all aspects of becoming a profitable trader including features, downloads and some great FREE Trading PDF's visit our website at http://www.net-planet.org/index.html
By Sacha Tarkovsky

If you want to start trading forex then if you make this method the basis of your FX Trading strategy, you will catch all the big moves and all the big profits. Let's take a look at it and how it could lead you to triple digit gains...

This FX strategy is simply based upon breakouts, which is a timeless strategy for profit which works, will continue to work and is easy to understand.

What is a Breakout?

A breakout is simply a break to new high or low on a forex chart

Why is it so effective?

Almost every big move starts from a new market high or market low or a breakout on the chart. Check any forex chart and you will see this occur again and again.

Why Doesn't Everyone Trade Breakouts Then?

Most traders are looking to buy low or sell high and trying to get perfect market timing, by waiting to buy at bottom or sell at the top and wait for a pullback when a breakout occurs. They miss the moves as once a strong breakout occurs, it tends to continue. The trader who waits is left watching the price disappear over the horizon making thousands of dollars and he's not in.

Buying breakouts is not predicting, it's simply trading the reality of a price change on the chart.

Most traders find this hard, they want always to get in at a low and sell at a high which is not possible and therefore miss these moves. If they would have gone with them they would have made money.

What are the Best Breakouts?

Not all breakouts of course continue and many fail, so you really need to concentrate on the high odds ones which are valid. Generally the valid breakouts are ones which have tested the breakout point at least 3 times, in at least 2 different time frames and the wider they are apart, in terms of time the better.

It's basically the more tests, more times frames and the wider they spaced apart the better and more valid the breakout is.

You need to look for areas the market considers important and if a break occurs and most traders disagree with it, it's likely to be a good one!

The best breakouts only occur a few times in each currency per year - but these are the high odds trades and I know traders who make triple digit gains on them and you can to.

Anything Else?

Yes you should always confirm the breakout with momentum indicators. We don't have time to discuss them here (simply look up our other articles) but these are indicators that gauge the strength of price and you want them supporting any price break.

Use the stochastic and RSI as a good two to look at first. These are visual indicators, easy to use and on every major forex chart service.

What about Stops?

Simple right under the breakout point.

The key to making money though is how you trail your stop.

If it's a big break don't trail to soon wait until the trend is underway and trail outside of daily volatility.

Breakout trading may be simple but it works and most people don't like doing it, don't let that put you off the majority don't win and it works!

All the best currency trading systems are simple and it's a fact simple systems work best, as they are more robust in the face of brutal market movements. If you base your FX Strategy on trading breakouts, you can soon be enjoying currency trading success and targeting triple digit annual gains.

By Kelly Price

Many traders like to buy dips to support or sell into resistance but this simply ensures they lose.

This FOREX trading tips is all about using leading indicators to confirm a move, rather than simply assuming support and resistance will hold.

Let’s look at it in more detail.

Buying Into Support and Sell Into Resistance.

You hear this tip all the time, but it doesn’t make money.

It is based on the old saying “buy low sell high” which is another phrase that won't make you money.

If you buy into support or sell into resistance then the logic is that you will have low risk and high reward if the levels hold.

The important word here is “if”

If you trade FOREX then you don’t want to rely on “if” and hope – you want indicators that will increase the odds of these levels holding and your chances of making a profit.

If a price is speeding toward support or resistance then it will break as often as it holds, you therefore need to watch for changes in price momentum and that’s where leading indicators can help.

Getting the odds in your favor

If you want to buy support and sell resistance and get the odds in your favor do use the following FOREX tip.

You can use lagging indicators as well as trend lines in FX trading to denote areas of support and resistance and the ones we like are:

Bollinger bands and moving averages.

These indicaotrs like trend lines should NOT be used to enter trades.

When buying dips to support or into selling resistance, you want confirmation that the levels are going to hold - before prices reach these levels you want confirmation of the turn in advance.

When price momentum turns above support or below resistance you can enter with increased odds of success.

The best timing indicator by far is the stochastic.

Look it up and learn all about it as it’s a great under used tool.

Another great indicator is the Relative strength Index RSI.

Combine the two and watch for confirmation on both and you have a powerful combination you can use to increase your odds of success.

They will give advance warning of a change in price momentum at support and resistance and when they turn in your favor you can enter the trade.

You don’t predict with the above.

You act on confirmation and this will increase the odds dramatically in your favor and increase your overall profitability.

This FOREX tip is obvious, but it’s surprising how many traders simply hope a level holds rather than looking for confirmation

Don’t make the same mistake always act on confirmation when trading FOREX.

Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?


This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading.


Trade pairs, not currencies - Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.

Knowledge is Power - When starting out trading forex online, it is essential that you understand the basics of this market if you want to make the most of your investments.
The main forex influencer is global news and events. For example, say an ECB statement is released on European interest rates which typically will cause a flurry of activity. Most newcomers react violently to news like this and close their positions and subsequently miss out on some of the best trading opportunities by waiting until the market calms down. The potential in the forex market is in the volatility, not in its tranquility.

Unambitious trading - Many new traders will place very tight orders in order to take very small profits. This is not a sustainable approach because although you may be profitable in the short run (if you are lucky), you risk losing in the longer term as you have to recover the difference between the bid and the ask price before you can make any profit and this is much more difficult when you make small trades than when you make larger ones.

Over-cautious trading - Like the trader who tries to take small incremental profits all the time, the trader who places tight stop losses with a retail forex broker is doomed. As we stated above, you have to give your position a fair chance to demonstrate its ability to produce. If you don't place reasonable stop losses that allow your trade to do so, you will always end up undercutting yourself and losing a small piece of your deposit with every trade.

Independence - If you are new to forex, you will either decide to trade your own money or to have a broker trade it for you. So far, so good. But your risk of losing increases exponentially if you either of these two things:
Interfere with what your broker is doing on your behalf (as his strategy might require a long gestation period);
Seek advice from too many sources - multiple input will only result in multiple losses. Take a position, ride with it and then analyse the outcome - by yourself, for yourself.

Tiny margins - Margin trading is one of the biggest advantages in trading forex as it allows you to trade amounts far larger than the total of your deposits. However, it can also be dangerous to novice traders as it can appeal to the greed factor that destroys many forex traders. The best guideline is to increase your leverage in line with your experience and success.

No strategy - The aim of making money is not a trading strategy. A strategy is your map for how you plan to make money. Your strategy details the approach you are going to take, which currencies you are going to trade and how you will manage your risk. Without a strategy, you may become one of the 90% of new traders that lose their money.

Trading Off-Peak Hours - Professional FX traders, option traders, and hedge funds posses a huge advantage over small retail traders during off-peak hours (between 2200 CET and 1000 CET) as they can hedge their positions and move them around when there is far small trade volume is going through (meaning their risk is smaller). The best advice for trading during off peak hours is simple - don't.

The only way is up/down - When the market is on its way up, the market is on its way up. When the market is going down, the market is going down. That's it. There are many systems which analyse past trends, but none that can accurately predict the future. But if you acknowledge to yourself that all that is happening at any time is that the market is simply moving, you'll be amazed at how hard it is to blame anyone else.

Trade on the news - Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices change resulting in a serious currency flow.

Exiting Trades - If you place a trade and it's not working out for you, get out. Don't compound your mistake by staying in and hoping for a reversal. If you're in a winning trade, don't talk yourself out of the position because you're bored or want to relieve stress; stress is a natural part of trading; get used to it.

Don't trade too short-term - If you are aiming to make less than 20 points profit, don't undertake the trade. The spread you are trading on will make the odds against you far too high.

Don't be smart - The most successful traders I know keep their trading simple. They don't analyse all day or research historical trends and track web logs and their results are excellent.

Tops and Bottoms - There are no real "bargains" in trading foreign exchange. Trade in the direction the price is going in and you're results will be almost guaranteed to improve.

Ignoring the technicals- Understanding whether the market is over-extended long or short is a key indicator of price action. Spikes occur in the market when it is moving all one way.

Emotional Trading - Without that all-important strategy, you're trades essentially are thoughts only and thoughts are emotions and a very poor foundation for trading. When most of us are upset and emotional, we don't tend to make the wisest decisions. Don't let your emotions sway you.

Confidence - Confidence comes from successful trading. If you lose money early in your trading career it's very difficult to regain it; the trick is not to go off half-cocked; learn the business before you trade. Remember, knowledge is power.

The second and final part of this report clearly and simply details more essential tips on how to avoid the pitfalls and start making more money in your forex trading.


Take it like a man - If you decide to ride a loss, you are simply displaying stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Sticking to a bad position ruins lots of traders - permanently. Try to remember that the market often behaves illogically, so don't get commit to any one trade; it's just a trade. One good trade will not make you a trading success; it's ongoing regular performance over months and years that makes a good trader.

Focus - Fantasising about possible profits and then "spending" them before you have realised them is no good. Focus on your current position(s) and place reasonable stop losses at the time you do the trade. Then sit back and enjoy the ride - you have no real control from now on, the market will do what it wants to do.

Don't trust demos - Demo trading often causes new traders to learn bad habits. These bad habits, which can be very dangerous in the long run, come about because you are playing with virtual money. Once you know how your broker's system works, start trading small amounts and only take the risk you can afford to win or lose.

Stick to the strategy - When you make money on a well thought-out strategic trade, don't go and lose half of it next time on a fancy; stick to your strategy and invest profits on the next trade that matches your long-term goals.

Trade today - Most successful day traders are highly focused on what's happening in the short-term, not what may happen over the next month. If you're trading with 40 to 60-point stops focus on what's happening today as the market will probably move too quickly to consider the long-term future. However, the long-term trends are not unimportant; they will not always help you though if you're trading intraday.

The clues are in the details - The bottom line on your account balance doesn't tell the whole story. Consider individual trade details; analyse your losses and the telling losing streaks. Generally, traders that make money without suffering significant daily losses have the best chance of sustaining positive performance in the long term.

Simulated Results - Be very careful and wary about infamous "black box" systems. These so-called trading signal systems do not often explain exactly how the trade signals they generate are produced. Typically, these systems only show their track record of extraordinary results - historical results. Successfully predicting future trade scenarios is altogether more complex. The high-speed algorithmic capabilities of these systems provide significant retrospective trading systems, not ones which will help you trade effectively in the future.

Get to know one cross at a time - Each currency pair is unique, and has a unique way of moving in the marketplace. The forces which cause the pair to move up and down are individual to each cross, so study them and learn from your experience and apply your learning to one cross at a time.
Risk Reward - If you put a 20 point stop and a 50 point profit your chances of winning are probably about 1-3 against you. In fact, given the spread you're trading on, it's more likely to be 1-4. Play the odds the market gives you.

Trading for Wrong Reasons - Don't trade if you are bored, unsure or reacting on a whim. The reason that you are bored in the first place is probably because there is no trade to make in the first place. If you are unsure, it's probably because you can't see the trade to make, so don't make one.

Zen Trading- Even when you have taken a position in the markets, you should try and think as you would if you hadn't taken one. This level of detachment is essential if you want to retain your clarity of mind and avoid succumbing to emotional impulses and therefore increasing the likelihood of incurring losses. To achieve this, you need to cultivate a calm and relaxed outlook. Trade in brief periods of no more than a few hours at a time and accept that once the trade has been made, it's out of your hands.

Determination - Once you have decided to place a trade, stick to it and let it run its course. This means that if your stop loss is close to being triggered, let it trigger. If you move your stop midway through a trade's life, you are more than likely to suffer worse moves against you. Your determination must be show itself when you acknowledge that you got it wrong, so get out.

Short-term Moving Average Crossovers - This is one of the most dangerous trade scenarios for non professional traders. When the short-term moving average crosses the longer-term moving average it only means that the average price in the short run is equal to the average price in the longer run. This is neither a bullish nor bearish indication, so don't fall into the trap of believing it is one.

Stochastic - Another dangerous scenario. When it first signals an exhausted condition that's when the big spike in the "exhausted" currency cross tends to occur. My advice is to buy on the first sign of an overbought cross and then sell on the first sign of an oversold one. This approach means that you'll be with the trend and have successfully identified a positive move that still has some way to go. So if percentage K and percentage D are both crossing 80, then buy! (This is the same on sell side, where you sell at 20).

One cross is all that counts - EURUSD seems to be trading higher, so you buy GBPUSD because it appears not to have moved yet. This is dangerous. Focus on one cross at a time - if EURUSD looks good to you, then just buy EURUSD.

Wrong Broker - A lot of FOREX brokers are in business only to make money from yours. Read forums, blogs and chats around the net to get an unbiased opinion before you choose your broker.

Too bullish - Trading statistics show that 90% of most traders will fail at some point. Being too bullish about your trading aptitude can be fatal to your long-term success. You can always learn more about trading the markets, even if you are currently successful in your trades. Stay modest, and keep your eyes open for new ideas and bad habits you might be falling in to.

Interpret forex news yourself - Learn to read the source documents of forex news and events - don't rely on the interpretations of news media or others.

John Gaines

online trading, currency trading, financial service

A veteran of online trading, John Gaines offers the financial services industry his perspectives and expertise on a variety of trading systems and financial instruments, including forex, CFDs, futures, options and stocks.