This is small reason why people can make money from forex.

Think through this simple methology: A young trader can lose and closed his account within 2months. Losing almost 2000USD. If he had reversed all his trades, he would had raked in 2000USD!

Saturday, April 12, 2008

Swing trading, sine or cosine?

If you are "normal human being", you would know waves, or at least heard of it before.

Wave is a pattern that changes regularly from positive to negative in a certain period and then it goes on and on and on, non-stop. Waves are a very natural part of the human world. Be it when you whack a stone into a still water or when you strike a drum, and the sound waves comes.

In stock market or money market, prices change in a somehow wave-like pattern. Of course the wave aint like sine or cosine waves, if not, i would become a millionaire already.
But no matter what, such random waves are still waves, and somehow this is the fundamental of swing trading.

It is a NEED to have certain tools to identify the waves form and hence trade with the trend. But there are trend that last very long like a bull run upwards or a bearish run downwards, OR even small trend of ups and downs in a ranging market. Swing trading, is ranging market best enemy.

Probably Brokers like FXCM or MBTrading will provide such tools. There are many other good brokers available on the adverts on the left. Feel free to explore and gain more knowledge.

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This site do and only do advise on how you should trade and why you should trade. Forex market consist of leveraged risk. You can make big profits as well as big loses. Do not trade money that you cannot afford to lose, or funds that will be need for short term uses.