Don’t forget to check the currency correlation when trading multiple pairs. You want to make sure you are diversified by not trading pairs that move in tandem. This is a great site to check when doing research on your potential trades. This will also help you if you want to be more active by telling you what other pairs to look at.

If you are looking for a currency to trade one thing to consider is how much does the pair move. If you are looking to trade over a short time period and the pair doesn’t normally have that much of a range it will be hard to trade it. It is hard to expect 200 pip a day if the pair only moves 75.

One good way to do some research is to use Power Stats. The basic version can be found on IBFX.com’s website. If you are a client they give you the advanced version.

Next depending on how you trade and when you trade look at how much it moves by the hour. This will give you a good idea of when it might move in your direction or against you. Remember the time will be in GMT.

More to come in another article.

I wanted to write an article and give an update where I am in trading process. For the last few months I have been reading books about trading as a business. I want to someday move to trading full time. Here is some of the process if you are just starting out in Forex trading.

One thing you will need do is determine which pair you would like to trade. This depends on a number of factors such as:

1. When will you be available to trade?

Read the rest of this entry »

Here is a interesting trade. Cramer was talking about this company on Mad Money. He was concerned about their dividend as another company called Fairpoint in the same market might have to file for bankruptcy.

Now check out this article.

Target Reached.

Here is a trade based on a number of signals. Short the EUR/JPY at 133.88 Stop 134.29 Limit 132.18.

1. Daily and 4hr STOC is indicating a move down.

2. On the 4 hour we have a moving average crossover to the short side.

3. A bearish engulfing candle on the 4 hr.

4. 1 hour found risistance at 50% of fibo from 135.17 to 133.32.

5. We are either in a ABC move correction down in which case the C leg should move below A or we are in a wave 3 pattern which should be longer than wave 1.

6 Daily chart indicates range trading with a move back down in the range.

4 Hour Chart

Daily Chart

Here is a interesting article on the US debt. http://www.cnbc.com/id/33004753 We hear so much on how the recession is ending. Doesn’t it make you wonder what has changed?

Our job situation is still getting worse. They say will still have a lot of houses being held that will soon go into foreclosure. People are worried and are saving their money.

It is interesting to see that the debt our country is selling to others is the short term debt and not the long term. Makes you wonder if everyone is a little scared to buy our long term debt doesn’t it?

So how does this effect us? Should we all start buying gold or other currencies? Maybe we should all just step back and think what could we do now to save us money long term? To keep from having to buy items should inflation heat up.

I have been working recently on a trading plan. The currency I trade is primary the EUR/JPY. This one give nice moves and I don’t have to worry about my emotions getting involved with the USD. I am very patriotic and I have a problem with currencies pairs that use the USD. I want the dollar to go up so I keep think it will. Trading this pair takes that emotion out. Of course it does mean I still don’t have emotions.

I did something recently that I think might help some of of you. I exported the charts from my trading software (Dealbook gftforex.com). This allowed me to calculate the average move per hour and the hours when you are most likely to see a big move in the pair. Not surprisingly for the pair it is in my sleeping hours.

One of the advantages of doing this is it tells me when to be aware of the potential moves in this pair. For me I have to plan that most of the time a big move will take place when I am sleeping. So I need to have my trade all planned out or set some alarms to watch it better.

Here is the spreadsheet I did. If you have some better ways to do it let me know.

As you can see I have changed the look of the website. I hope you like it. I have some information that I will be getting ready to post. I have been working on a trading plan.

Here is a excellent article from Kathy Lien. She has a great signal service and appears regualarly on CNBC and Fox Business news. When you are determining when to trade take this information on the currencies into account. http://thebull.com.au/experts_detail.php?id=5373

Here is a interesting article on China. http://www.bloomberg.com/apps/news?pid=20601087&sid=aBxrKbtAhV6g Just think about this for a minute. Who finances USA debt? China to a large degree. What happens when we are not buying their products? They don’t have the money to finance our debt. If no one buys our debt what happens? The cost of financing our debt goes up, the government prints more money causing inflation.

Along with that check out this great slideshow to see who is the largest holders of USA debt. http://www.cnbc.com/id/29880401

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