Forex Blog

A new Forex article was added to my collection today. Hearing another success story of the Forex trader might as old to some people, as motivating to others. I think this one will be at least useful to many Forex traders. Experienced and professional Forex traders can say that part time Forex trading can’t be good and that it will always lack the “full market control and awareness”. Yes, I’d agree with them to some extent, but still, part time trading remains the only option to many Forex beginners (and not only beginners, just not professionals). So, here it is:

How I became a successful part time trader - by Joe Chalhoub

General trend: ranging or slightly bullish.

Revising my recent trades which were made during the last month I still find myself making the same mistakes I’ve been doing as a newbie trader. The amount of these mistakes lowered, but sometimes emotions overcome the mind and the strategy and as a result - pips are lost. Here is the list of most devastating and stupid things you can make in Forex trading:

1. Don’t place stop-loss - sometimes I just forget to place, sometimes I hope for the price to eventually go in the right way and think that stop-loss will be an obstacle. This is wrong! Always place a stop loss - it’s good to have it significantly lower than your targeted profit.
2. Trade in lots too big - even if you are100% sure that this position will be profitable, don’t make it too large - 1%-5% is more than enough. Losing 20% of your deposit will require much more risk to recover.
3. Overtrade - everyone says that it is bad to overtrade, but for a trader it is always hard to stay away from market when there is “so many opportunities”. Just try to set a limit of daily/weekly trades for yourself. Overtrading is a result of the mindless emotions, not your mind, so avoid it.
4. Closing the winning positions too early - it seems OK to get some guaranteed profit against risking to wait even more. But trading experience proves that early closing for winning positions and waiting for losing positions to go green - is completely wrong. Let your winning positions run and cut your losing ones early!
5. Following forecasts and signals - for some traders it’s hard to avoid this, especially when there is some Forex guru they respect. Trading with your own strategy and full responsibility is the only way that can make you a professional and successful Forex trader.

I am quite sure that you’ve already read such advices a dozen of times, but they are always good to remember, so consider it just as a helpful memo.

General trend: bearish.

Some important macroeconomic data was released in U.S. today - employment situation in June from the Bureau of Labor Statistics. As it was expected by the financial analysts, the overall unemployment rate in June remained on 4.5% level - which is quite low and is a good indicator for the U.S. economy. Non-farm payrolls in June reached 132,000 which is 7,00 higher than the experts’ estimations. May non-farm payrolls were also revised towards the better side - 190,000 from 157,000. Average hourly earnings came out at 0.3% level (as expected), but May data was revised from 0.3% to 0.4%. Overall, this is a good news for the U.S. economics and dollar as well. The Forex market isn’t playing this data yet (or it won’t) - EUR/USD returned to its 1.3600-1.3650 range, and no serious movement can be seen.

Another free Forex e-book is now available for download from this site. It deals with trader’s personality and emotions which are inevitable in such an activity as a financial trading of any kind. Various examples and stories are presented in this book to help a trader to better understand what he must to prevent losing money and gain them instead:

Your Personality and Successful Trading - by Windsor Advisory Services

Today EUR/USD was still as it was yesterday. As I said - this week will probably be flat until Friday at least (they tend to be quite unsettled, those Fridays). Independence Day in the United States of America is keeping the big U.S. Forex players out of the market, causing a lower volatility, especially on EUR/USD (while there some minor fluctuations on GBP/USD). It is quite clear that big holidays keep flat market even more flat, so I’d avoid expecting a high volatility Forex trading opportunities tomorrow. If you are for EUR/USD, just wait for 1.3600 or 1.3650 breakout and then jump in.

Today EUR/USD retreated from its yesterday levels of 1.3630 down to 1.3600 level (with a failed try ground below 1.3600). Factory orders macroeconomic data for May came out better than expected but it still showed a decrease in this important indicator - manufacturers orders decreased by 0.5% (against 1.2% expected). But this data didn’t affect Forex at all - the major bearish bars were seen four hours before it came out. It looks like EUR/USD will remain bound in 1.3600 - 1.3650 range for some time.

A new addition to my Forex brokers section of the site - a list of WebMoney Forex brokers - those that offer WebMoney as the option to deposit or withdraw money to/from the trading accounts. Forex traders that prefer on-line payment systems, but don’t want to deal with e-gold or other browser-security system might like WebMoney e-currency system for its hi-end security and good level of service. Here is the list of all brokers that accept WebMoney:

• LiteForex
• Marketiva
• FXEgypt
• FXcast
• Alpari
• Ava FX
• Real Trade
• IFC Markets

Today Forex was a very unlucky place for U.S. dollar as the EUR/USD rallied to its two months high at 1.3630. Even good ISM index data (56% - a 1% rise - against 55% expected) couldn’t help U.S. currency after last week losses. It is almost certain now that EUR/USD has broken the down-trend and is now heading north. Probable point of strong resistance can be seen at 1.3650 level, which if broken can mean a rally to 1.3800. While, stopping at 1.3650 will probably for a double-peak pattern with a new correction wave.