2Bull Forex Blog

When it comes to scanning the forex market for opportunities, you will need to be more familiar with currency trading rates. However, these rates may not exclusively be kept as is. As currencies rise and drop according to their specific values, it affects how the rates in the forex market will be presented. It’s pretty easy to understand how the rates work since they are usually duly presented right on the forex dashboard if you are using any particular platform.

However, tracking rates can be a hard thing to keep up with. They always rise and fall and they have a huge tendency to fluctuate before you even know they will. So to help you monitor their activities as closely as you can, here are a couple of forex tools you can utilize to your advantage:

1. Forex Chart – Generally, forex charts contain all of the possible currencies you may play within the forex market. But if you want to keep track of your game much more efficiently, you can choose to retain only those currencies which you have a good grasp on. Another thing about forex charts is that they are also characterized by their spreads which helps you understand how your values will eventually play up once you start using them. Forex charts are useful in understanding currency trading rates because it gives you the opportunity to identify currencies that you can buy for a low price but sell at a more profitable cost.

2. Trading Software – Let’s face it, keeping up with the forex market needs 24/7 focus with almost no break in between. But the question here is can you do it? Actually, there’s no need for you to shoulder such a heavy task all by yourself. With the help of a forex trading software, you can now automate your forex business and conveniently keep track of currency trading rates while you attend to other things.

Aside from these forex tools, it is also necessary that you learn more about the forex market so you can better analyze occurring trends within the business. Admittedly though, it is not enough that you are now proficient enough to keep your currency business going. You also need to educate yourself with the most up to date information about the forex market. These days, you can choose to self study or apply to online courses which you can flexibly take when you have the time to. Here are some practical ways that can help boost your knowledge about currency trading rates:

1. Read online tutorialsedfa – There are lots of websites that offer video tutorials to make learning more efficient for you. Most of them can be accessed for free while some may require a one time or monthly fee for you to access their site and browse through videos more effectively.

2. Join in forum discussions – Forex business people converge online through forums. This is a great place for you to know the latest in the world of forex from different locations worldwide. You can also get here, knowledge on some first hand experiences in forex trading that you might not be able to learn theoretically.

Most of the courses, trading e-books, forex mentors and all other sources I encountered shares “the secret” in Forex trading, and no, I am not talking about the popular movie made by Bob Proctor etc. What “secret” the forex mentors and “gurus” out there may have teach you, directly or indirectly, is to Day Trade, which leads to OVERTRADING. Most say that you need to make a career out of Forex in order to succeed in it. This is not the secret to financial freedom.

What do I mean by that? I mean like replacing your current job with Forex, and yeah… you just did “fire your boss”, but you are not free,not at your best, you have just created another boss that is harder to battle than your current, YOU. Forex is an opportunity to enjoy life, a part-time income source, yet a full time devotion. You can enjoy financial freedom now with Forex.

You can be rich trading yet have time for your kids, do that hobby you always wanted, have vacations with all your forex profit (which means a lot), and whatever you want to do with your life it is possible with Forex, no wonder it already is becoming one of the most popular home business nowadays, without the competition of MLM and other businesses, but the profit potential is just huge!

The myth is, that if you cannot be successful in day trading, therefore you cannot be successful trading by end of day as well.

The truth is that there are many more Forex Traders growing by the minute, but not all of them are full time. It is so impossible to just stare at charts and day trade all day and have that job also. You cannot indeed serve two masters at the same time. And by the way, staring at charts all day requires so much attention that if you miss any detail, you may have lose the opportunity to gain profit.

Do you believe that there is always a better and more convenient way to trade at Forex? Contrary to the myth I just mentioned, you can still be successful and very wealthy in Forex even in trading by end of day, simply because they have different rules to follow and different attitudes required, but in the end, the less stressful and equally profitable choice to trade is at the trading by end of day.

Along with using technical factors, trading by end of day allows you to spend more time to see “the big picture” or the long term trends — is there really a trend? Am I doing it right? You can do this in a more peaceful trading hours following the New York close ( 5:00 pm eastern time). It also possible you spend 20-30 minutes in it.

Here’s a brief example:

Using a recent chart of the EUR/USD pair, from March 2009, shows a strong move from the 1.2600 range to 1.3000 — a 400 pip gain, which took about 7 days to complete and should have been captured by a good end of day trading method. However, that same chart shows more extreme fluctuations as the price ranged sideways in a 200 pip channel — if a forex trader is trying to day trade in that channel, the trader can quickly find themselves on the wrong side of a trade in more extreme short term volatility.

Simple, trading by end of day requires more patience, your own analysis (this is where the fruits of education and discipline comes in), another approach in trading methods, but is equally profitable as the stressful day trading. If you want to tap in the Forex goldmine yet still have a job, or a life, this is the best time for you. You do not want stress and still want to be rich with Forex right?

What if you can still have your cake and eat it too; that you can still have great taste without the calories, sounds heaven sent? Believe me it is not. There is always a better way.

Foreign exchange market has becoming so popular as a source of income or another home based business. Banks and institutions as well as individuals like you and me can tap into this great mine of profits. People succeed and people fail. The difference in it is the quality of information, forex tips, learning and training they get. And one of the unique forex courses not always available out there is the Forex Profit Accelerator.

Let me come back again to the question : “What is it for me” ? The purpose of this article is to show the real purpose of the Forex Profit Accelerator, how and why is it made. The real benefits of it, the other things that you read about it are more of the features in it. But what is it really designed for?

Once there was the Forex market and the internet, and learning to trade forex was a thing thought to be for the people with degrees and diplomas. But evolution caused the discovery that Forex does not require any specified degree of learning to be successful in it, but a desire to change and consistency in learning. So the internet became a medium of bombarded sources of courses and education to trade Forex.

But not all traders were happy about this. With so much the hype of the sources that sprawled like mushrooms. Something out there is to be made specifically with the Forex trader’s success in mind. Simplicity in understanding and application was the heart’s desire of a trader who wants to spend a little less time trading ( and I mean minutes) and more time hanging out,playing golf, doing hobbies and family outings.

The Forex Profit Accelerator has this objective embeded in its soul. It was created first by long hours and months of research and survery taking among traders themselves, headed by its creator and mentor,
Bill Poulos.

The main benefit you will be experiencing will be : Consistent Profits ( a.k.a more money, coming in often ) and less time trading ( 20-30 minutes to be precise) that is after learning and understanding the whole course.

What is it for you? maybe a lot of time to travel, a fancier car, a great vacation, a better house, neighborhood,a greater school for the kinds. Everything! Your mind can think about more. Anyway…

To show that it is unique, you will recieve many free stuff first such as trading ebooks, videos and scorecards( to evaluate your broker) even if you don’t get in. It is called the Forex 4 Pack.

But what makes it more unique is, that it shows you that Forex is nothing to be feared, as a result, everything is organized, easy to understand and apply, minimizing loss with forex risk management and maximizing gain with the best forex indicator possible. It also shows that you do not need to stare at charts all day ( a.k.a. daytrading, long forex hours) to be successful. You know what this means right? More time playing golf, watching t.v. and anything you want.

Its features such as : constant support, complete materials and blueprints, are just icing in the cake. anyway, let me elaborate a little…

1. First, all the materials you need. Blueprints, books, videos, cd’s. easily organized and easy to understand. Who says simple isn’t effective?

2. Background and overview. For beginners, it explains what is Forex and what can you do to be profitable in it, and also what you can expect. For the experienced, it is a good thing to review a thing or two. Most of the information cannot be found in any source because Bill Poulos source is his experience and his Forex peers. You do the math.

3. Methods that will make you get that car or house you want. Simple. Less time consuming. a step-by-step ‘how to’, guidelines that will make you minimize risk and gaining more.

4. Bringing yourself together. It is essential for a trader to keep the mental discipline and emotions in check. All of this would not work for you if you are not in harmony with it, so this is an essential part of the course also.

5. Website and support. People helping people, you can ask all the questions you want and the support you need. That is why there are limited slots available, to help fully focus on the learning. So it is not just like any source you will meet.

The Forex Profit Accelerator is one of the most comprehensive yet simple and complete trading method you will see in the swarm of Forex Education resources. It is simple to understand and gives you confidence to trade knowing there is nothing but profits in the end. It helps protect your trades, minimize risk with the guidelines and discipline it seeds in you.

Again, back to the question, what is it for you? The Forex Profit Accelerator has you, the Forex trader in mind. Before trading with live currency, this can prepare you mentally and academically in FOrex. The convenience of trading and the time to spend on anything else in trading is what makes it tailor made for you.

Many professional forex traders have been using support and resistance levels as part of their forex trading strategies to trade the currency market. Besides currency trading, there are other financial instruments like stocks which also use support and resistance. It is considered to be one of the most powerful ways to trade forex as it is based on price actions itself.

Support and resistance trading is understood as once the price reaches a certain level, it may stop, find it hard to break through that level and then reverses. When traders are able to identify these activities, they will be able to gain huge profits from the forex financial market. Support levels are identified when buyers push the price up when price reaches a certain level which finds it hard to break through. Vice versa for resistance levels.

We will now look at how we spot resistance and support levels on the forex charts. There are a few forex trading techniques to spot those levels but I will list those that are more commonly and effectively used. The top five are Moving Averages, Trend Lines, Pivot Points, Chart Patterns and Fibonacci Levels.

Moving Averages: Some moving averages value may have an impact on the currency market and they are the 200 EMA (Exponential Moving Average), 100 EMA, 62 EMA and 23 EMA. When price reaches the EMA levels, sometimes it tests the levels, bounces off and reverses. That is why they are used as support and resistance levels and even used for forex day trading strategy.

Trend Lines: We draw trend lines to give us an idea on how trendy the market is when the price travels up or down. This is also known as channels and let us predicts how the price will move. For example, when the price is trending up, we draw a up trend line, so when the price breaks below the trend line significantly, we know that it is a breakout and the trend will change. Vice versa for trending down.

Pivot Points: This is one of the forex indicators that is based on previous period. It can be used by breakout traders or range-bound traders. For breakout trades, prices which are above the pivot are considered bullish while below are pivot are bearish. Using pivot in forex trading systems, after the range-bound traders identify the upper resistance or lower support levels, they will place sell or buy orders, and target profit at S1, S2 or R1, R2 respectively.

Chart Patterns: Some of the examples are ascending/descending triangles, double top/bottom, head and shoulders and reverse H & S. You can find examples in some of the few forex ebooks and learn how to identify the patterns from there.

Fibonacci Levels: When we draw swing low to high or swing high to low, we use the Fibonacci levels of 23.6%, 38.6%, 50.0% and 61.8% as support and resistance levels. For example, when it is swing low to high, traders may buy when the price hit one of the levels, as that is support in this case. Some traders may only trade when the price went out of the 61.8%, which means a reversal of trend.

The key to master these forex trading techniques mentioned above is to experience it yourself. You can start by doing demo trading before going live. Practice makes perfect.

Trend in real terms may be defined as trading in the direction of trend, thus ignoring the trading signals which are directing against the current trends. The trends would remain friendly until the traders treat them as friends and not doing anything against their will and desires.

Most of the current trends are defined by looking at the daily charts that include line charts, bar charts and candlestick charts etc. However, those traders who have small cash amounts define trends in terms of 4-hour chart and 1-hour chart. Anyway, daily charts have their own importance because if the hourly signals match with the daily trend, then there are all possibilities of a strong movement along the trend.

Most of the traders while examining the charts try to capture the low and high peak of the trade which is against the trend. This means that the trader is lacking the main concept and that is discipline. It is surprising that while the trader is investigating his own faults and errors, simply ignores his major mistake and that is trading against the trend.

To define the meaning of the trend in detail, let’s take an example. You can explain the trend by taking the combination of four simple moving averages (MA). Suppose 5/20/40/60 is the four moving averages. Now if MA 60 is below MA 40; in other words MA 40 is above MA 60, then the trend is upward each time when MA5 crosses MA20 upward which means it is in the direction of the moving trend. On the other hand, if MS5 crosses MA20 in the downward direction, then signals are used only to close the previously opened position and vice versa.

In the chart given below, the red dots indicate the crosses of MA 60 and MA 40, whereas the red and blue lines denote the opening positions towards the current trends. Those traders who are in search of catching the peak price always open sell position near the blue lines. If the trader wants to open the position without the minimum analysis then he better go to places such as casino where people make the guesses but are not sure about it. Sometimes the MAs are not proving to be a good indicator but in terms of trend, they served as best trend indicators.

Here the green line denotes MA5 and red lines represent MA20. On the other hand, blue dot place the opening position towards the trend (MA20 is crossed by MA5 in the upward direction and red dot place the closing position (MA20 is crossed by MA5 in the downward direction).

In this chart, the blue dots depict the opening position towards the trend and the red dots depict the closing position. The basic idea behind the combination of four MA is that the small number pairs affect the relatively close trade and the big number pairs define the existence of the current trend. The purpose of the above mentioned examples is to remind you about the need of checking the direction of the trend before entering the market.