Elliott Wave Basic Tutorial - Introduction

Market prices move in recognizable patterns.

Recent scientific research has validated several aspects of R.N. Elliott's observations about markets. Of course, these findings only confirmed what countless traders and investors knew all along.

R.N. discovered the Wave Principle nearly 70 years ago. Over the decades, his discovery was kept alive by a handful of individuals. A few of those, such as Bolton, Prechter and Frost, educated investors on how to use pattern analysis in financial markets.

This is your opportunity to learn what they know and use what they've used.
What You Will Learn

Successful market timing depends upon learning the patterns of crowd behavior. By anticipating the crowd, you can avoid becoming a part of it.

Our Elliott wave tutorial describes these patterns and explains how they relate to one another. Over the years, we have taught thousands of people how to use this method to analyze the markets they follow.

To save you time, our tutorial distills decades of experience in making Elliott waves discernable. We've included everything you need to learn it and use it.

The course is comprehensive, with the same content you'd receive in a formal training class. The big difference is that you can set your own pace and review the material as many times as you like.

Some people tell us that the value of this information to their investment strategy is immeasurable and ask us not to let the secret out. To be frank, there are others who think it's nonsense. Well, that's why we offer it to you free. You can make up your own mind. We aren't the least bit worried about "everyone" using Elliott because people are people, and only one in a hundred has the mental toughness to believe his own work.

Forex Broker Guide

Introduction

The following is a list of questions you may like to consider before opening an account. You can use this checklist to narrow down your selection of companies that fit your requirements. You may also wish to refer to the forex broker ratings page on this site to read about traders unique experiences with particular brokers.

Important Note to Traders: GoForex recommends you do not open an account with a U.S. based forex broker regulated by the CFTC and NFA, due to excessive and over-bearing regulation imposed on retail forex brokers including reduced leverage levels, the "no-hedging" rule and the FIFO (first-in, first-out) rule which affects the way you trade.

The following links will also give you some background information on U.S. FCM's (Futures Commission Merchants).

Selected Financial Data for FCM's
NFA Background Affiliation Status
1. Word of Mouth

What do other traders say about the broker? See Forex Broker Ratings & Forex Broker Reviews
What is their customer service like?
2. Customer Protection

Is the broker regulated?
What regulatory organisation are they registered with and what protections does it afford the client?
Are client funds protected against fraud?
Are client funds protected against bankruptcy?
3. Execution

What business model do they operate? i.e. Are they a Market Maker[?], ECN[?] or no-dealing desk broker[?]?
How fast is their order execution?
Are orders manually or automatically executed? [?]
What is the maximum trade size before you have to request a quote?
Are all clients trades offset?
4. Spread [?]

How small is the spread?
Is it fixed or variable?
5. Slippage [?]

How much slippage can be expected in normal and fast moving markets?
6. Margin [?]

What is the margin requirement? e.g. 0.25% margin = max 400:1 leverage [?]), 0.5% margin = max 200:1 leverage, 1% margin = max 100:1 leverage, 2% margin = max 50:1 leverage, etc.
Does the margin requirement change for different currency pairs or days of the week?
At what point does the broker issue a margin call?
Is required margin the same for standard and mini accounts? [?]
7. Commissions

Does the broker charge commissions? (Most market makers commissions are built into the spread)
8. Rollover Policy [?]

Is there a minimum margin requirement in order to earn rollover interest?
What are the swap rates like for going long or short in a particular currency pair?
Are there any other conditions for earning rollover interest?
9. Trading Platform

How intuitive and functional is it to use?
Are there many disconnections during trading hours?
How reliable is it during fast moving markets and news announcements?
How many different currency pairs are available to trade?
Does the broker offer an Application Programming Interface (API) to allow clients to automate their trading systems?
Does the broker offer any other special features? (e.g. One click dealing, trading from the chart, trailing stops, mobile trading etc.)
10. Trading Account

What is the minimum balance required to open an account?
What is the minimum trade size?
Can clients adjust the standard lot size traded? [?]
Can clients earn interest on the unused margin in their account?

How Sales and Earnings Growth can affects a Stock's Performance

If you go back through the history of the stock market there is a recurring theme among those stocks which have had some of the strongest price appreciation and it's related to their Sales and Earnings Growth. Let's look at two companies over the past few years and compare their Sales and Earnings Growth. First let's look at Microsoft (MSFT) which has hard meager Sales and Earnings Growth in 2002 and 2003. Since the market made a bottom in October of 2002 MSFT has seen very little price appreciation since then. Back in early October of 2002 MSFT was trading around $22 a share and in late March of 2004 MSFT was trading near $24 a share.

Thus while the major averages saw significant gains from October of 2002 into the early part of 2004 MSFT was only up 9%.


Now let's look at a stock which has been exhibiting strong Sales and Earnings Growth over the past year or so. As you can see below Taser (TASR) has seen accelerating Sales and Earnings Growth over the past two quarters which has been reflected in its stock price. TASR formed a "Cup and Handle" pattern before breaking out in September of 2003 and rose nearly 800% from September of 2003 through mid February of 2004.


As these examples show those companies which have accelerating Sales and Earnings Growth have the potential to perform very well while those with poor Sales and Earnings will languish even in a Bull Market environment.

I would imagine those investors who have held MSFT over the past few years aren't very happy as the stock price has virtually gone nowhere since October of 2002 into the early part of 2004.
         

The key is to recognize those companies which are starting to establish a trend of accelerating Sales and Earnings Growth before everyone else does which takes a lot of time and research. This is what I do every week as I spend over 20 hours a week looking for companies that are starting to show signs of accelerating Sales and Earnings Growth.

Regards,

Bob Kleyla

Mark-to-Market Accounting: Is It Right for You?

One of the most important decisions you will make as a trader is whether to elect the mark-to-market (MTM) accounting method. Although MTM is only available to traders, not investors, and does offer some significant tax advantages, it is not right for everyone. What makes this decision so important is that once you select MTM, you're stuck with it; there is no going back simply because it would be to your advantage tax-wise to do so.

Here is what you need to know about mark-to-market: how it works, advantages and disadvantages, the process to elect it, and how to separate and exempt long-term investments.

The MTM Method

Since 1997, mark-to-market accounting has enabled traders to change the tax status of their earnings from capital gains/losses to ordinary income/losses. This occurs on the last day of the year, at which time you tally all of your open holdings as if you were selling them at the market price that day (they are "marked to market"). On January 1st, you re-tally your holdings as if you were repurchasing them at the current price. The basis of each holding is then adjusted to reflect these hypothetical gains and losses for tax purposes.

Advantages of MTM

No wash sales: MTM traders are exempt from the wash sale rule; because holdings are tallied at year's end, there is no need to account for gains or losses that might occur within the 30-day wash sale restrictions. Many traders elect MTM specifically to avoid cumbersome wash sale accounting.


Favorable tax rate: Under MTM, income is taxed at a lower rate than capital gains.


Losses are fully deductible: Because your income/losses are treated as ordinary and not capital gains/losses, you are not bound by the $3,000 capital loss limitation. This means you can deduct all losses in the year they occur, providing tax relief when you need it most.


No change to self-employment exemption: Even though MTM income is not considered capital gains, traders who elect MTM remain exempt from self-employment tax, the same as investors and non-MTM traders.
Disadvantages of MTM

No capital loss carryover: Capital losses can only be offset by capital gains. If you are carrying forward a substantial capital loss, beware: by selecting MTM, your gains would be considered ordinary income moving forward, hence only $3,000 per year could be used to offset your capital loss.

Loss of long-term capital gains: A trader who deals mainly with 1256 contracts may not want to elect MTM because they would lose the 60% long-term capital gain on futures.

Election is permanent: As an individual trader, once you've made the MTM election, you're stuck with it. You can petition the IRS, but don't expect leniency, especially if there is a tax advantage to you. However, if you establish a legal entity for your trading business first, you may un-elect MTM if circumstances dictate, or simply dissolve and form another entity without electing MTM.

How to Elect MTM

To elect mark-to-market as your accounting method, you must enclose a statement of intent with your tax return or extension request and file by the appropriate tax deadline (March 15 or April 15) the year prior to beginning MTM accounting. The one exception: if you're filing as a new legal entity, such as an LLC, you have two months from opening to note your accounting preference in your meeting minutes.

Your first year using MTM, you will fill out IRS Form 3115 (Application for Change in Accounting Methods) and submit it with your tax return. This form contains an adjustment, Section 481(a), which captures duplications and omissions resulting from the change in accounting methods. If the adjustment is $25,000 or less, you may deduct the full amount on your return; if it exceeds $25,000, you may deduct 25% each year for the next four years.

Exempt Your Investments from MTM

Before you elect mark-to-market, be sure to separate your investment holdings from your trading stocks and options. Why? Because unless they are clearly separated, you will be required to mark them to market at year's end and report any gain as ordinary income. That could prove disastrous for stocks that have greatly increased in value over the years.

The IRS lets you exempt your personal investments from your trading business, but only if you identify those investments up front. Like the MTM election itself, this designation is irrevocable; you cannot decide later to fold your investment losers into your trading stock for ordinary losses or cherry-pick your trading winners for capital gains treatment.

Under the IRS guidelines, you must clearly identify your investment stock as such in your records by the close of the day on which you acquired it or when the MTM election was made. There are two ways to do this: you may establish a separate account for your investment stocks (the wisest course of action for MTM traders), or simply note in your records which securities are not part of your trading business.

Be prepared to convince the IRS that your investments have "no connection" to your trading business; otherwise, you'll be required to mark them to market at year's end and report any gains as ordinary income.
         

Get Advice Before You Decide

Is the mark-to-market method right for you? Every trader faces different circumstances. For some, MTM is the obvious solution to the time-consuming task of tracking wash sales. For others, the ability to fully deduct their losses in the year they occur can make a big difference starting out. Oddly enough, traders who close their positions daily may not ever have to go through the MTM since there is typically nothing left at year's end to reclassify.

If you find yourself carrying forward a capital loss or have other questions relating to mark-to-market accounting, be sure to consult one of our tax professionals about your situation before you decide.

by Jim Forrester

Pivot Point Trading

You are going to love this lesson. Using pivot points as a trading strategy has been around for a long time and was originally used by floor traders. This was a nice simple way for floor traders to have some idea of where the market was heading during the course of the day with only a few simple calculations.

The pivot point is the level at which the market direction changes for the day. Using some simple arithmetic and the previous days high, low and close, a series of points are derived. These points can be critical support and resistance levels. The pivot level, support and resistance levels calculated from that are collectively known as pivot levels.

Every day the market you are following has an open, high, low and a close for the day (some markets like forex are 24 hours but generally use 5pm EST as the open and close). This information basically contains all the data you need to use pivot points.

The reason pivot points are so popular is that they are predictive as opposed to lagging. You use the information of the previous day to calculate potential turning points for the day you are about to trade (present day).

Because so many traders follow pivot points you will often find that the market reacts at these levels. This give you an opportunity to trade.

Before I go into how you calculate pivot points, I just want to point out that I have put an online calculator and a really neat desktop version that you can download for free HERE

If you would rather work the pivot points out by yourself, the formula I use is below:

Resistance 3 = High + 2*(Pivot - Low)
Resistance 2 = Pivot + (R1 - S1)
Resistance 1 = 2 * Pivot - Low
Pivot Point = ( High + Close + Low )/3
Support 1 = 2 * Pivot - High
Support 2 = Pivot - (R1 - S1)
Support 3 = Low - 2*(High - Pivot)

As you can see from the above formula, just by having the previous days high, low and close you eventually finish up with 7 points, 3 resistance levels, 3 support levels and the actual pivot point.

If the market opens above the pivot point then the bias for the day is long trades. If the market opens below the pivot point then the bias for the day is for short trades.

The three most important pivot points are R1, S1 and the actual pivot point.

The general idea behind trading pivot points are to look for a reversal or break of R1 or S1. By the time the market reaches R2,R3 or S2,S3 the market will already be overbought or oversold and these levels should be used for exits rather than entries.

A perfect set would be for the market to open above the pivot level and then stall slightly at R1 then go on to R2. You would enter on a break of R1 with a target of R2 and if the market was really strong close half at R2 and target R3 with the remainder of your position.

Unfortunately life is not that simple and we have to deal with each trading day the best way we can.

I have picked a day at random from last week and what follows are some ideas on how you could have traded that day using pivot points.
         

On the 12th August 04 the Euro/Dollar (EUR/USD) had the following:
High - 1.2297
Low - 1.2213
Close - 1.2249

This gave us:

Resistance 3 = 1.2377
Resistance 2 = 1.2337
Resistance 1 = 1.2293
Pivot Point = 1.2253
Support 1 = 1.2209
Support 2 = 1.2169
Support 3 = 1.2125

Have a look at the 5 minute chart below

pivot point

The green line is the pivot point. The blue lines are resistance levels R1,R2 and R3. The red lines are support levels S1,S2 and S3.

There are loads of ways to trade this day using pivot points but I shall walk you through a few of them and discuss why some are good in certain situations and why some are bad.

The Breakout Trade

At the beginning of the day we were below the pivot point, so our bias is for short trades. A channel formed so you would be looking for a break out of the channel, preferably to the downside. In this type of trade you would have your sell entry order just below the lower channel line with a stop order just above the upper channel line and a target of S1. The problem on this day was that, S1 was very close to the breakout level and there was just not enough meat in the trade (13 pips). This is a good entry technique for you. Just because it was not suitable this day, does not mean it will not be suitable the next day.

pivt point channel

The Pullback Trade

This is one of my favorite set ups. The market passes through S1 and then pulls back. An entry order is placed below support, which in this case was the most recent low before the pullback. A stop is then placed above the pullback (the most recent high - peak) and a target set for S2. The problem again, on this day was that the target of S2 was to close, and the market never took out the previous support, which tells us that, the market sentiment is beginning to change.

pivot point pullback

Breakout of Resistance

As the day progressed, the market started heading back up to S1 and formed a channel (congestion area). This is another good set up for a trade. An entry order is placed just above the upper channel line, with a stop just below the lower channel line and the first target would be the pivot line. If you where trading more than one position, then you would close out half your position as the market approaches the pivot line, tighten your stop and then watch market action at that level. As it happened, the market never stopped and your second target then became R1. This was also easily achieved and I would have closed out the rest of the position at that level.

pivot point brakeout

Advanced

As I mentioned earlier, there are lots of ways to trade with pivot points. A more advanced method is to use the cross of two moving averages as a confirmation of a breakout. You can even use combinations of indicators to help you make a decision. It might be the cross of two averages and also MACD must be in buy mode. Mess around with a few of your favorite indicators but remember the signal is a break of a level and the indicators are just confirmation.

pivot point advanced

We haven't even got into patterns around pivot levels or failures but that is not the point of this lesson. I just want to introduce another possible way for you to trade.

Good Trading

Best Regards
Mark McRae

Chart Patterns to Avoid: Climax Top Off a Parabolic Move

This pattern occurs when a stock rises very quickly out of a base and gets overextended.

Stocks in a Parabolic Move can double or triple in value in a very short period of time (usually less than two weeks).

As an investor you certainly don't want to be one of the last passengers on the train and get quickly thrown off.

Some examples of this pattern are shown below.

Notice the quick move upward in MCOM back in July. In 5 trading days it went from $20 to $57 for a gain of 185%. Also notice that on the biggest volume day (point A) that it gapped up strongly to $53 and then closed poorly around $41. This was the Climax Top Off the Parabolic Move. As an investor you should have sold this day if you had bought the stock in the $20's. Meanwhile you certainly should have not bought this stock this day. Notice how the stock eventually pulled all the way back to $20 by early August (point B).


Another example of a Climax Top Off a Parabolic Move is demonstrated by LWIN. This stock skyrocketed from $30 to $95 in 10 trading days for a whopping gain of 217%.

The Climax Top occurred on the 10th and 11th days of trading as the volume peaked (point A). The stock then sold off and retreated back quickly to around $42 by late November.

As you can see stocks that go up very quickly, in a Parabolic Move, can also come down just as fast.
         

My advice is if you buy a stock and it doubles or triples in value in a very short period of time (1 to 2 weeks) take your profits and congratulate yourself for a job well done. If you become greedy then you could lose most of your gains as the above examples indicate. Furthermore if your buying a stock in this type of move be very careful and watch out for the Climax Top if the stock is trading on its biggest volume day.

Regards,

Bob Kleyla

Taking Control

          In my mind, control is an important issue that has a great deal to do with understanding the process of trading and doing it successfully. There many parts of the trading process where exercising control is relatively easy and other parts of the process where control is much more difficult. For example, the entry into a trade is a point where we are very much in control. We set the conditions and the market must meet our conditions or we will simply refuse to participate. This is clearly the point in the trading process where we can exercise maximum control.

I can recall attending some lectures many years ago by George Lane (of stochastic indicator fame) when he revealed to the audience a list of items that he wanted to see before he entered a trade. His pre-entry checklist had twenty-seven conditions on it. Being a skeptic of complex trading strategies I don't recall what any of these twenty seven items were except I'm sure at least one of them was the stochastic indicator. At the point of carefully reviewing his checklist George was very much in control of the situation and if the market didn't do exactly what he wanted he didn't trade.

As I often point out in my lectures, entries are the easy part of trading. This is because each of us has maximum control at this point. We can exercise as much or as little control as we like. George Lane can require every one of his twenty-seven criteria and I can require my usual two setups and a trigger condition. However the control situation changes drastically once we enter the trade. Our ability to control all the elements of the trade now becomes much more difficult and far from absolute. Once we enter a futures trade we know that we must exit that trade within a limited period of time or we are going to be in trouble because the contract will expire. Even stock traders who don't need to be concerned about expiring contracts must exit their positions correctly if they wish to maximize their profits. Exits are much more difficult than entries because we can not simply reverse the entry process and require that the market do thus and such. Once we are in the trade George Lane and I can both throw our lists out the window because we can no longer dictate our terms to the market. The market is now in control and we must be prepared to react to whatever the market does. The market can do anything it wants once we have entered our trade and we can be assured that the market doesn't care what conditions might be on our list or what our preferences might be. Once we enter the trade we are at the mercy of the market the market operates according to its own list and that list of possibilities is much larger than George Lane's meager list of twenty-seven items. The market's options are limitless. It can do anything it wants whenever it wants and somehow we must be prepared to deal with it. Where is our control now?
      As we hold our trade we must be prepared for big moves against us and big moves in our favor. (Surprisingly the big moves against us are much easier to deal with than the moves in our favor. We will talk more about this in just a minute.) Among the market's limitless possibilities are gaps, reversals, limit moves, whipsaws, and perhaps worst of all, boring sideways action that makes us wish we were trading something else. The market may present us with inside days, outside days, reversal days, key reversal days, high volume days, low volume days, expanding ranges, contracting ranges, acceleration, and deceleration. We can be faced with days that are so big that the chart looks like a propeller on the end of a stick or days that are so small they just look like dots.          

Because we have to be prepared for all this and more, it should be no wonder
that our exit strategies are often much more complex than our entry strategies. We need to have solutions ready for any problem the market might send our way. As I mentioned earlier, the losses are rarely the problem because we can control those by simply setting a loss point and closing out the trade if the loss point is hit. Here again we are facing an issue of control and it is comforting to know that we do have a great deal of control over our losses. If we want to design a system where the average loss is $487.50 it wouldn't be difficult. We can absolutely control the size of our losses and we must be certain that we do.

All of our exit strategies have to be carefully planned to be certain that we control what can be controlled. First we must recognize and understand what can be controlled and then we must make certain that we exercise whatever control we have. It may be comforting to know that we can strictly control losses but it is extremely discomforting to realize that we have very little control of our profits. If we have a $500 profit, how do we make it become a $1000 profit? Unfortunately holding on to the trade longer gives us no assurance that we will eventually have a $1,000 profit.

In this instance we have very little control but let's see what we can do with the control that we do have. Although the amount of profits can not be controlled in the sense of our somehow forcing them to be larger, they can be controlled in the sense that we don't have to let them become smaller or turn into losses. Those of you who have purchased any of our systems will appreciate that locking in open profits at various levels is important to the success of our trading strategies. You will notice that in the "25 X 25" Bond System (free on the web site) we use a very tight channel to help lock in profits after twenty-five days or after five Average True Ranges of profit. We can't control the market and force it to give us five ATRs of profit, but if it does we can make sure that we keep most of it. Protecting our open profits is definitely within our control.

When conceptualizing a new trading system and when going through the design
and testing routine, be alert to issues of control. Look for what you can control and make sure that you are controlling it to your benefit. Look at what you can not control and as a minimum have some plan that will minimize any possible damage. Thinking about control will make you a better trader and implementing control will make your systems trade better

ADX Has it's Limitations

(I'm referring to Welles Wilders Average Directional Index in case you are a "newbie".) After many years of extolling the virtues of the ADX in articles and lectures all over the world I have become closely associated with this indicator. That's fine with me and I don't mind being considered the resident expert on ADX. It is an excellent measure of trendiness and a good indicator to be linked with.

However, I think it is a mistake to try and over work or become too dependent on any one indicator. If you were going to build a house you would need more than one tool and you wouldn't try to do it with just a hammer. The same is true of building systems. The ADX can be a very valuable tool if used correctly but it has some major shortcomings that everyone should be aware of: We all know that the ADX is slow. This is because of all the smoothing in the formula. The basic ingredients are smoothed and then the results are smoothed again. For example I think it takes more than 30 bars of data to calculate a 14 bar ADX. This smoothing makes the ADX slow but there is an even greater problem than just the speed of the indicator. The logic of measuring directional movement makes the ADX very reliable at certain times and very unreliable at other times.

A rising ADX is a reliable indication of a trend when there has been an extended sideways period before the trend gets started. Before all the high tech computer mumbo jumbo we used to simply refer to this sideways period as a "basing pattern". The ADX is most effective when it begins to rise from a low level (low = 15 or less). This low level on the ADX indicates that there has been a basing pattern for a while. This interpretation is contradictory to those users of the ADX who want to see the ADX cross above a specified threshold (usually 20 or 25) to indicate that a trend is underway. This technique would make the ADX even slower and means you would be confirming a trend and entering your trade long after the basing pattern was broken. But even if you were late due to your method of interpreting the ADX, following the ADX after a base pattern is still quite reliable. The potential problem I want to bring to your attention in this article is the action of the ADX after major peaks and valleys.
      The logic of the ADX is best visualized as measuring directional movement over a moving window of data on a bar chart. If we have sideways data in the window followed by recent trending data (lets think of rising prices but it could be the reverse), the rising prices would show directional movement relative to the sideways data at the beginning of our window. The ADX would promptly rise and call our attention to the fact that there is now a direction in prices that should continue for a while.          

However, if the prices rise for an extended period and then begin to fall sharply (a typical scenario) we now have a window of data that shows rising prices followed immediately by falling prices. The ADX formula measures the rising prices in the window and compares them with the declining prices in the window. Because the two trends are about equal they cancel each other and the ADX does not detect any net directional movement. The ADX now begins to decline indicating that it is finding no net directional movement in the period measured by the window.

As the window moves forward, eventually the older rising price data falls outside the back of the window so that the window now contains only the more recent downward price movement. The ADX suddenly begins to rise rapidly because the data window at this point contains only one trend. The problem with this new signal is that the downward trend in prices has been underway for quite some time and only now has the ADX finally begun to rise. This is obviously not a good point to be entering a trade to the short side. We are probably nearer the end of the trend than the beginning.

Remember that the ADX works best after a basing period and is unreliable after a "V" bottom or top.
That"s all for now. I'll continue this discussion of the ADX in our next bulletin which should be out very soon

The Parabolic Trigger for V Tops and Bottoms

Our previous article about using the ADX for V shaped tops and bottoms was surprisingly well received. We had a great deal of very favorable feedback from our members who experimented with it. This very valuable pattern seems to do an excellent job of spotting major turning points in almost any market from Palladium to Natural Gas to Soybeans or even Lumber. This pattern seems to work extremely well in almost all futures, stocks and even the hard to trade stock indexes.

Much like a kid with a new toy, we've been having fun scanning through our charts and finding all the important signals that have been generated. For example, when looking at the stock index charts we had some very timely and important signals that the strong bear market in stocks was finally reversing. Let's review very briefly the conditions that create the pattern we are looking for.

REVIEW OF SETUPS and TRIGGERS: For those of you who are new to our work, we strongly recommend a two step process for entries. The first step is to identify some "setup" conditions that tell us that an entry is near. The second step is the "trigger" that tells us we must enter the trade NOW.

Just to refresh your memory from the previous Bulletin, let me review the "setup" conditions that we are looking for. Remember that we are trying to anticipate important "V" shaped reversal patterns. We want to be able to trade as near as possible to major tops and bottoms. As most of you are aware, a major directional price move will cause the ADX to rise to a high level. Depending on the direction of the price movement, either the Plus DI or the Minus DI will also move to an unusually high level. As the market peaks the DI will begin to decline while the ADX is flat or still rising. Near the top (or bottom) the ADX will become the highest line and will be above both the Plus DI and the Minus DI lines. This is our "setup" and alerts us that an important change in direction is likely in the very near future. The relationship of the three lines with the ADX being the highest tells us that there has already been a very extended price move that is running out of gas.

FINDING A TIMELY TRIGGER: While studying the charts using our new ADX pattern we found that our setup conditions often occurred early and that our DMI triggers were sometimes a little bit late. We don't mind having the setup conditions occur early. After all, lead indicators are rare and very hard to find. However to make this entry pattern even more exciting we thought we would see if we could make the triggers occur sooner.

Now that we have our lead indicator in place we want to find a timely entry trigger that gets us started in the direction of the new trend that should just be getting started. In Bulletin 45 we suggested that the crossing of the Plus DI and Minus DI lines could be the entry trigger. Although this method is acceptable and produces excellent results we observed that there might be room for further improvement. In many cases, by the time the Plus and Minus DI have crossed some profits in the new direction have already been left behind.

After some trial and error we found that the Parabolic indicator did just what we wanted. We believe we can use the Parabolic indicator instead of the DMI crossovers to provide much more timely entry triggers.
      We have never liked the Parabolic stop and reverse (SAR) method as an independent trading system which was the intent of J. Welles Wilder, its originator. However we do like to use the Parabolic indicator for exits. As a system we find that the Parabolic reversal points occur much too frequently and this reversal system would drive us crazy with far too many false changes in direction. However the features of the Parabolic indicator that make it useful as an exit strategy are exactly what makes it the timely trigger we need for our ADX reversal pattern.          

The Parabolic indicator accelerates steadily as the prices trend until the reversal points are very, very close to the peak of the move. The stronger the trend the closer the Parabolic gets to the prices. That is exactly what we want. When the Parabolic indicator is close to the prices and we have fulfilled our ADX setup conditions we are all set for an outstanding trade. Even a very small countertrend move will now quickly cross the Parabolic and signal our timely entry.

AN IDEAL ENTRY PLUS AN ADD POINT: We view the marriage of the ADX setup with the Parabolic entry trigger as an ideal combination. The entries now occur in a much more timely fashion than when we relied on the DI crossovers for our trigger. In fact, once the Parabolic has been crossed we can use the DI crossover as a confirmation and add to our position. I don't normally believe in pyramiding positions but in this case we are trading a very reliable pattern that is designed to identify a major reversal in direction, so I think that adding to positions early is a very good strategy.

As you can probably tell, I really like this ADX and Parabolic entry technique and I think that we have a lot of good concepts working for us here. We have an early setup, a timely trigger and now we can use the delayed confirmation of the DI crossovers as a point to pyramid the position. You can't ask for much more than that for an entry strategy that does a great job of catching big moves early. Take a look at this pattern on your favorite market and give me your comments.

Contradictions in using ADX

          In our last article we described how the ADX works best when a move develops out of a basing pattern. Someone sent us a very courteous email questioning this strategy and reminded us of our "25 X 25"Bond system where we want the ADX to be above 20 before looking for an entry. He commented that by the time the ADX gets to 20 any move out of a base pattern may be over. He is absolutely right and I can see how there may appear to be some confusion on how the ADX should be applied. But there really isn't any contradiction if you understand that what we are trying to do with the ADX is very different in the two examples.

In the "25 X 25"strategy the ADX is used as an important "setup"condition that tells us when the trend is strong enough that we can confidently buy on weakness. However, when we describe the basing pattern strategy we are using the ADX as the actual entry trigger to buy on strength. There is a big difference in the buy on strength and buy on weakness strategies. In the basing pattern strategy a low level of the ADX is preferred because the rise in the ADX is the trigger. If the ADX is at 12 and starts rising we very well could miss the majority of the move if we waited for it to reach 20. With the ADX already at 20 or higher it might only be safe to buy on dips and of course that is exactly what the "25 X 25"bond strategy does.

To sum things up: there is no contradiction. To catch a move out of a base you should enter as soon as the ADX starts rising. Just compare today's ADX with yesterday's ADX and the faster it is rising the better. At this point the the lower the level of the ADX the better because we are buying on strength and the ADX is our entry trigger.

System Results Update
      By the way, our bond strategies have been making lots of money this year. Hope you are all trading them with real money. Back in February I had lots of critics calling and asking why we were offering long only bond systems when bonds were at 115 and that had to be the top. They said that they couldn't possibly go much higher than that and our long only results could not hold up in real trading. Now that the bonds are over 130 I am glad that we have the Serendipity system that does trade the short side because I suspect that we really are near the top. (Doesn't take a genius to make a dumb statement like that. I apologize.)          

The Big Dipper system has been long since July and has huge open profits even after having to be rolled forward from the September contract into December. The "25 X 25"system is not doing bad either. When is the last time you had a free system make that much money for you? And last but not least, lets not forget the "Little Dipper". According to my recollection the last seven trades were all winners and it could be more because I can't remember the last loser. Not too bad for out of sample trading results. REMEMBER: PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE SUCCESS. I'm not just saying that because I have to. I really believe it and so should you. The bull market in bonds has made us look smarter than we really are. Bull markets do that.

Good luck and good trading

Switch Time Frames For Better Exits

I just returned from a weeklong Trader's Camp hosted by Dr. Alexander Elder in a beautiful island nation in the South Pacific called Vanuatu. When I studied geography in school many years ago, Vanuatu was known as the New Hebrides islands. Vanuatu is located about 1,000 miles west of Fiji.

If you have read Elder's excellent book, Trading For A Living, you will recall that Dr. Elder is an advocate of using multiple time frames for trading both stocks and futures. For example, he suggests looking at the weekly chart to make sure that the weekly trend is firmly up before trading the long side of a market based on the daily chart patterns. This approach makes good sense and I highly recommend his book and his strategy.

While listening to Dr. Elder explain his multiple time frame strategy for entries, my thoughts wandered to the application of his ideas to my favorite subject - exits. One of my goals in trading is to find exit strategies that do a good job of protecting open profits. One method of accomplishing this goal is to simply move the daily stops closer once a specific profit objective has been reached. However, it might also make sense to simply switch to a chart with a shorter time frame once we have reached a reasonable profit objective.

Here is an example of how such a strategy might work. Let's say that we have been trading XYZ stock on an intermediate term basis using daily charts. The trade is working out very well and we now have six ATRs of open profit. (See previous Bulletins for an explanation of how to use Average True Range to set profit targets). Up to this point we have been using our well-known Chandelier trailing stop placed at 3 ATRs below the high point of the trade.

However, now that we have reached our primary profit objective we want to tighten up our stop to protect more of our profits. We could reduce our Chandelier stop from 3 ATRs to 2 ATRs and continue using the daily bars or we could switch our chart to one hour bars and continue to trail the Chandelier exit at 3 ATRs based on the intraday one-hour bars. The basic idea is to switch to a chart with a shorter time frame once we have reached our profit objective. This procedure should allow us to let our profits continue to run but we would be protecting our open profits with much closer stops by using the chart with a much shorter time frame.

      Combining our exit strategy with Dr. Elder's entry strategy would provide the following sequence: for entries we first examine the weekly chart and then use the daily chart to trigger the trade. Once we are ready to exit our trade we examine the daily chart and then trigger our exit using the hourly chart.          

Of course this strategy would require some extra work as well as the use of intraday data. The alternative would be to simply reduce the number of ATRs used to hang the Chandelier exit on the daily chart. Either way we do it, the logic is to move our stops closer once we have achieved a worthwhile trading profit.

Essential Elements of a Successful Trader

Courage Under Stressful Conditions When the Outcome is Uncertain

All the foreign exchange trading knowledge in the world is not going to help, unless you have the nerve to buy and sell currencies and put your money at risk. As with the lottery “You gotta be in it to win it”. Trust me when I say that the simple task of hitting the buy or sell key is extremely difficult to do when your own real money is put at risk.

You will feel anxiety, even fear. Here lies the moment of truth. Do you have the courage to be afraid and act anyway? When a fireman runs into a burning building I assume he is afraid but he does it anyway and achieves the desired result. Unless you can overcome or accept your fear and do it anyway, you will not be a successful trader.

However, once you learn to control your fear, it gets easier and easier and in time there is no fear. The opposite reaction can become an issue – you’re overconfident and not focused enough on the risk you're taking.

Both the inability to initiate a trade, or close a losing trade can create serious psychological issues for a trader going forward. By calling attention to these potential stumbling blocks beforehand, you can properly prepare prior to your first real trade and develop good trading habits from day one.

Start by analyzing yourself. Are you the type of person that can control their emotions and flawlessly execute trades, oftentimes under extremely stressful conditions? Are you the type of person who’s overconfident and prone to take more risk than they should? Before your first real trade you need to look inside yourself and get the answers. We can correct any deficiencies before they result in paralysis (not pulling the trigger) or a huge loss (overconfidence). A huge loss can prematurely end your trading career, or prolong your success until you can raise additional capital.

The difficulty doesn’t end with “pulling the trigger”. In fact what comes next is equally or perhaps more difficult. Once you are in the trade the next hurdle is staying in the trade. When trading foreign exchange you exit the trade as soon as possible after entry when it is not working. Most people who have been successful in non-trading ventures find this concept difficult to implement.

For example, real estate tycoons make their fortune riding out the bad times and selling during the boom periods. The problem with trying to adapt a 'hold on until it comes back' strategy in foreign exchange is that most of the time the currencies are in long-term persistent, directional trends and your equity will be wiped out before the currency comes back.

The other side of the coin is staying in a trade that is working. The most common pitfall is closing out a winning position without a valid reason. Once again, fear is the culprit. Your subconscious demons will be scaring you non-stop with questions like “what if news comes out and you wind up with a loss”. The reality is if news comes out in a currency that is going up, the news has a higher probability of being positive than negative (more on why that is so in a later article).

So your fear is just a baseless annoyance. Don’t try and fight the fear. Accept it. Have a laugh about it and then move on to the task at hand, which is determining an exit strategy based on actual price movement. As Garth says in Waynesworld “Live in the now man”. Worrying about what could be is irrational. Studying your chart and determining an objective exit point is reality based and rational.

Another common pitfall is closing a winning position because you are bored with it; its not moving. In Football, after a star running back breaks free for a 50-yard gain, he comes out of the game temporarily for a breather. When he reenters the game he is a serious threat to gain more yards – this is indisputable. So when your position takes a breather after a winning move, the next likely event is further gains – so why close it?

If you can be courageous under fire and strategically patient, foreign exchange trading may be for you. If you’re a natural gunslinger and reckless you will need to tone your act down a notch or two and we can help you make the necessary adjustments. If putting your money at risk makes you a nervous wreck its because you lack the knowledge base to be confident in your decision making.

Patience to Gain Knowledge through Study and Focus

Many new traders believe all you need to profitably trade foreign currencies are charts, technical indicators and a small bankroll. Most of them blow up (lose all their money) within a few weeks or months; some are initially successful and it takes as long as a year before they blow up. A tiny minority with good money management skills, patience, and a market niche go on to be successful traders. Armed with charts, technical indicators, and a small bankroll, the chance of succeeding is probably 500 to 1.

To increase your chances of success to near certainty requires knowledge; acquiring knowledge takes hard work, study, dedication and focus. Compile your knowledge base without taking any shortcuts, thereby assuring a solid foundation to build upon.

Learn Forex Trading before you Start Investing and you to could Become Wealthy due to the FX Markets

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Foreign Exchange Investing Class

If you've been tempted by the guarantees of easy income to be had from foreign money buying and selling, it's good to know that these promises are solely half way to the truth. However in a glass half-empty sort of way, the earnings could be made, however they certainly aren't easy.
The Forex markets are extra accessible now than they've ever been. But just because you probably can walk by an open door, that does not mean you will not get tripped up by what lies beyond. The bit that can make it easy is the training - Forex buying and selling coaching to be exact.
Forex trading coaching is a bit like getting your driving license. Most of us may have some concept of what the assorted bits and items of a automobile do, before we begin driving. But you do not just get in, and pull away - you get driving classes first. That is what foreign money trading coaching is all about: helping you to avoid turning into concerned in a automobile crash with your money.
What is involved in currency buying and selling coaching? Well, most programs today are conducted over the internet. You'll have a set of tutorials that will cover the whole spectrum of currency trading coaching concepts.
They could cover areas comparable to how the foreign exchange market works; what the difference is between fundamental and technical trading; how you can set up profitable trading methods; and easy methods to properly manage your money into your trading activities.
An excellent currency trading training course may even have in-depth on-line resources pay a visit to every tutorial, with back-up printed materials. They want to positively have on-line videos that take you through each concept, step-by-step; ideally these ideas needs to be demonstrated in a real foreign exchange system, one you want to have free access to.
If you get stuck throughout your currency trading training, you will have some assistance to get you back on track. So Forex coaching courses can have good help techniques - it is best to be capable of cope with experts by e mail, textual content, or phone.
It can also be good to get onto the road, because it were, with some supervised and safe foreign exchange 'driving'; this may be achieved by utilizing a simulated foreign money trading system, that can assist you to place trades using digital money. If you occur to can hone your foreign money trading coaching on considered one of these, preferably a system you utilize in real buying and selling later, you'll be throwing your foreign currency trading L-plates off in no time.

Automated Forex Trading System – several tips to choose the best one

Currency trading enables many people around the world to earn good money working just several hours a day. Foreign currencies market is very profitable, but at the same time it is very risky. Every day we can hear the sad stories from the people, who lost their last money because they wasn`t enough careful working with foreign exchange rate market.

So the only way to succeed in foreign currency trading is to use the Automated forex trading robot. You should already know that the Automated Forex Trading System is the sophisticated software based on the complicated mathematical algorithms, optimized for analyzing the dynamics of the rate exchange trend.

Automatic Forex Trading is much more simple than manual trading. You just need to install and setup you trading system. After that it will handle the entire trading process by itself. This automation level is fascinating, but on the other hand you need to have really highly reliable software to let it trade with your real forex account (where you have you REAL money).

Automated Forex Trading SystemThere are several main rules you must follow to choose the right FX robot. For example let us check EA Sigma Automated Forex Trading System. Firstly we should pay attention at the Testing period. For EA Sigma it is about 10 YEARS!!! I guess you understand how important this parameter is. And what is still more important – the Profit Trades % through these 10 years is about 82%. If you compare this combination of 10 years and 82% with the other available Automated Forex Trading Systems, you will find out that EA Sigma has really awesome results.

On the example of EA Sigma you can also see the significance of complex auto adaptive algorithms, which are used by the system. You must understand that the foreign exchange rates dynamics is constantly altering and we can do nothing about that. But EA Sigma is able to adopt the changes and so you may be sure that in several years it will gain you the same profits as at the moment.

Trailing Stops - The Chandelier Exit

In a previous article we discussed the Channel Exit which trails a stop based on previous LOW points. In this Article we will discuss a stop placement strategy that trails our stop based on previous HIGH points.         

The Chandelier Exit hangs a trailing stop from either the highest high of the trade or the highest close of the trade. The distance from the high point to the trailing stop is probably best measured in units of Average True Range. However the distance from the high point could also be measured in dollars or in contract based points

Here are three simple examples: (As usual we will use long side examples. Simply reverse the logic for short trades.)

1. Place a stop at the highest high since we entered the trade minus three Average True Ranges. 2. Place a stop at the highest high of the trade minus $1500.00. 3. Place a stop at the highest high of the trade minus 150 points.

The value of this trailing stop is that it moves upward very promptly as higher highs are reached. The Chandelier name seems appropriate and should help us to remember the logic of this very effective exit. Just as a chandelier hangs down from the ceiling of a room, the Chandelier Exit hangs down from the high point or the ceiling of our trade.

The reason we prefer to use units of Average True Range to measure the distance from the high to our stop is that the ATR is applicable across markets and is adaptive to changes in volatility. We can use the same formula to trade corn, yen, coffee, or stocks. If the trading ranges expand or contract our stop will automatically adjust and move to the appropriate level continuously staying in tune with changing market conditions. (Members who are not already familiar with the many valuable applications of Average True Range should be sure to review Bulletins #10, 11, 13, and 14.)

In Dr. Van K. Tharp's excellent book, Trade Your Way to Financial Freedom, he refers to a study he conducted to demonstrate that an effective exit strategy could produce profits even with random entries. We were not surprised to see that the exit methodology he used to produce the profitable test results across a diversified portfolio of futures markets was the Chandelier Exit. (Tharp used three ATRs trailing from the highest or lowest close and used a ten-day exponential moving average to calculate the ATR.)


Protecting Open Profits
      When we discussed the Channel Exit in Bulletin #34 we suggested that at the beginning of a trade we should use a wide stop and then, as profits are accumulated, tighten the stop by reducing the number of bars in the Channel. The same profit-protection logic can be applied using the Chandelier Exit. At the beginning of a trade the distance to the stop in most futures markets should probably be in the neighborhood of 2.5 to 4 Average True Ranges. As the trade becomes increasingly profitable we can bring the stop closer by reducing the units of ATR from the high to our stop.          

Let's assume that we started with 3 ATRs at the beginning of the trade. After we have reached our first profit level we might tighten the stop to trail the high point at only 1.5 ATRs. After the second profit level is reached we might want to tighten the trailing stop to only one ATR. We have had good results with some highly profitable trades by trailing exits as close as a half an ATR. We have found that some markets have better trending characteristics than others and we prefer to adjust the trailing stops on a market by market basis so there is no universal formula that we would recommend. The important message we want to convey is that to capture the maximum profit potential of trend-following trades the trailing stops need to be tightened as significant profits are accumulated.

Keep in mind that although the highs used to hang the Chandelier move only upward the changes in volatility can shorten or lengthen the distance to the actual stop. If you want to see less fluctuation in the stop distance use a longer moving average to calculate ATR. If you want the stop placement to be more adaptive to changing market conditions, use a shorter moving average. We normally use about twenty bars to calculate the ATR unless there is a specific reason to adjust it. In our experience the use of very short averages (3 or 4 bars) for the ATR can often create problems when there are brief periods of small ranges that tend to bring the stops too close. These abnormally close stops may cause us to exit prematurely. If we want to have a short and highly adaptive ATR without risking placing stops that are too close, we can calculate a short average and a longer average (maybe four bars and twenty bars) and use the average that produces the widest stop. This technique allows our stops to move away quickly during periods of high volatility without the risk of being unnecessarily whipsawed during brief periods of low volatility.

Combining the Channel Exit and the Chandelier

We like to start our trades with the trailing Channel Exit and then add the Chandelier Exit after the price has moved away from our entry point so that the open trade is profitable. The Channel Exit is pegged at a low point and does not move up as new profits are reached. The Channel Exit will move up only when enough time has passed that the previous low is dropped from the data period of the channel. The Channel Exit moves up very gradually over time but it does not move up relative to any recent highs that are being made. This is why we need the Chandelier Exit in place to make sure that our exits are never too far away from the high point of the trade.

By combining the two exit techniques we can use the Channel Exit as an appropriate stop that very gradually rises at the beginning of the trade. However if the trade makes a run in our favor the prices will quickly move very far away from our slowly trailing Channel Exit. Once we are profitable we need to have a better exit that protects more of our profit. At this point it would make sense to switch to the Chandelier Exit which will rise instantly whenever new highs are reached. This valuable feature of the Chandelier makes it one of our most logical exits from our profitable trades.

As you can see, the Chandelier Exit is a very useful tool. However coding the Chandelier Exit in TradeStation is not necessarily a straightforward matter.

Switch Time Frames For Better Exits

I just returned from a weeklong Trader's Camp hosted by Dr. Alexander Elder in a beautiful island nation in the South Pacific called Vanuatu. When I studied geography in school many years ago, Vanuatu was known as the New Hebrides islands. Vanuatu is located about 1,000 miles west of Fiji.

If you have read Elder's excellent book, Trading For A Living, you will recall that Dr. Elder is an advocate of using multiple time frames for trading both stocks and futures. For example, he suggests looking at the weekly chart to make sure that the weekly trend is firmly up before trading the long side of a market based on the daily chart patterns. This approach makes good sense and I highly recommend his book and his strategy.

While listening to Dr. Elder explain his multiple time frame strategy for entries, my thoughts wandered to the application of his ideas to my favorite subject - exits. One of my goals in trading is to find exit strategies that do a good job of protecting open profits. One method of accomplishing this goal is to simply move the daily stops closer once a specific profit objective has been reached. However, it might also make sense to simply switch to a chart with a shorter time frame once we have reached a reasonable profit objective.

Here is an example of how such a strategy might work. Let's say that we have been trading XYZ stock on an intermediate term basis using daily charts. The trade is working out very well and we now have six ATRs of open profit. (See previous Bulletins for an explanation of how to use Average True Range to set profit targets). Up to this point we have been using our well-known Chandelier trailing stop placed at 3 ATRs below the high point of the trade.

However, now that we have reached our primary profit objective we want to tighten up our stop to protect more of our profits. We could reduce our Chandelier stop from 3 ATRs to 2 ATRs and continue using the daily bars or we could switch our chart to one hour bars and continue to trail the Chandelier exit at 3 ATRs based on the intraday one-hour bars. The basic idea is to switch to a chart with a shorter time frame once we have reached our profit objective. This procedure should allow us to let our profits continue to run but we would be protecting our open profits with much closer stops by using the chart with a much shorter time frame.

      Combining our exit strategy with Dr. Elder's entry strategy would provide the following sequence: for entries we first examine the weekly chart and then use the daily chart to trigger the trade. Once we are ready to exit our trade we examine the daily chart and then trigger our exit using the hourly chart.          

Of course this strategy would require some extra work as well as the use of intraday data. The alternative would be to simply reduce the number of ATRs used to hang the Chandelier exit on the daily chart. Either way we do it, the logic is to move our stops closer once we have achieved a worthwhile trading profit.

* * * * * * *
Notes On Bear Markets

One of the best ways to gauge a bear market is to observe the reaction to good and bad news. In a bear market the averages go down even when the news is good. (For example, look what happened the last time the Fed cut interest rates.) We will know that the bear market is finally over when we observe the market reacting favorably to good news. In the meantime, we can take some consolation in the fact that at the present rate of decline we will soon be at zero. At least at that level we should be able to safely resume trading stocks from the long side.

Fundamental Analysis Essentials

The forex trading business sees forex traders breaking down the currency markets via a multitude of ways and methods. These methods generally fall within one of three categories. Fundamental analysis, technical analysis and a combination of both principles.
Whilst all 3 methods maintain their good points, a forex trader that has a great understanding about both technical in addition to fundamental analysis philosophy normally is able to obtain a enhanced representation from the forex markets.
Fundamental analysis looks at the major factors for each currency. The aspects that steer currencies are all economic in addition to political in nature. This is the major motive of why the forex markets act in response to economic data such as the unemployment rates, non farm payrolls in addition to retail sales of a certain country.
Despite the fact that the economic situation about a nation critically affects the movement of a particular currency, the internal political state is able to move currencies with good effect. Political upheaval, disease, natural disasters all can have an effect and are taken into consideration in fundamental analysis.
This gives rise to a big problem with fundamental analysis. Fundamental Analysis requires a great perception of both micro and macroeconomics on top of market sentiment to properly profit from it. Decisions made by individual central banks and the monetary policies they come out with also drives the currency market greatly. How the markets react to such policies is normally identical regardless of what central bank you are concerned with.
Forex fundamental traders evaluate all this information and make a decision based on it. Interest rates as well as international trade all exceptionally crucial elements to take in as well. The forex markets can react relatively violently to news releases that have a huge effect. Expect to see spikes of a hundred pips or more on volatile currencies.
More extraordinary is the whiplash that can sometimes take place as there is mass buying plus selling that happens one after another. A 100 pip movement both ways has occurred in the past. Mostly when dealing with volatile currencies like the Pound/Yen.

Few Facts About This Forex Trading Robot

Forex Software like FAP Turbo can help traders in earning good amount of profit. Robots like this are equally useful for a new comer and a seasoned trader. They not only assist you in calculating big amounts but also help in analysis of market data and future market drift. Following are the few things which should be considered before the purchase of this automaton.
• FAP Turbo is a robot which can work in any market condition. It has the ability to predict the market trends. This analytical ability of the software can help traders in making right moves at right time. This eventually results in earning good profits.
• The software has the demo account facility. Instead of trading with real money you can start trading with demo account and once you are satisfied with the working of the software you can invest your real money. This feature is very helpful for the new traders. And if you are not satisfied with the product or it does not suits your requirements you can get your money back with in 60 days of perchance.
• This software can trade with five currency pairs, which is very good for you as you can invest in the money of your choice.
• It's just a software, you have to adjust the settings very carefully. Wrong settings may lead to losing a trade.
• Although it can predict the future market drift but do not overestimate it. It prediction depends on the market conditions. So in case of volatile market conditions you have to supervise the software.
• Features like scalper mode are quite helpful in making small profits which pill up to be a large one at the end of the day.
These are the few things which might help you if you are planning to buy FAP Turbo as your office assistant.

Automated Forex Software Trading - How to Become Successful

Forex market is open for everyone who has at least $200, computer and high speed internet connection. Everyone wants to be a part of this incredible financial world that allows people not just earn money but also to gain real financial independence. Indeed, this is a truly lucrative opportunity for you to choose. Of course, it is not that easy to make money on this volatile market and that is why a number of technological innovations were presented to make the life of a trader easier and even richer.
What Are Our Advantages?
I am talking here about automated Forex software trading that is very popular today due to its advantages. So, let's have a closer look at this software. In case you are interested in this issue then you should know the main principles that automated Forex software trading is based on.
Automated Forex software trading is used by traders because of several reasons and here are some of the most vital. To begin with it should be pointed out that some variants of automated Forex software trading that allow you to set up your 'personal advisor'. Simply speaking, you program it considering your experience, knowledge and risk factors.
So it means you give all your knowledge to this robot and therefore it cantrade for you, just like you and even better than you! You might think that it is impossible. Well, you see the great plus of this advisor is that it has no emotions. It means it will not drink coffee and smoke or bite nails -it will trade on that base you have programmed. No hesitations. That is the reason why the risk to lose is minimal.
The other advantage you should take into consideration is that with this Forex trading software you will be ableto trade 24 hours a day. This is very comfortable: you go to bed and your software works and makes money and as soon as there appears pre-programmed opportunity it proceeds transactions. There is no doubt that now you also want to buy it and in order to make the right choice follow some tips.
First of all you should look for software that is completely comfortable for you to use: simple and user-friendly. Secondly, it is recommended to choose automated Forex software trading that can be used during a certain period of time (usually from a week to 30 days) free of charge as in this way it will be easier for you to understand whether this software is suitable for you and whether it meets all your requirements.
If We Want To Become Successful We Must Avoid These Typical Mistakes
Of course, typical mistakes that people do when using automated Forex software trading also can not be omitted. First of all you need to realize that it is wrong to think that as soon as you start automated Forex software trading you will begin earn huge sums. Keep in mind that you will make money in the long run,so - be patient.
The second mistake that people usually do is that they don't want to deepen their knowledge. You should not forget that automated Forex software trading is not perfect and your knowledge is the key factor that will bring you success. So, don't be lazy and learn all the time!
Warning: Do not neglect the above! Be sure to take this advice seriously if you want to increase your Income