Analysts Anaylze Traders Trade

It is important to understand the difference between being a trader and being an analyst. The first one tries to make money through actual trading, while the later tries to make money by selling advice in some form. Always trust your own technical analysis beyond any other person's advice, regardless of the source. You MUST have faith in your own ability to analyze the market, and stop waiting for others to tell you when and where to take trades. One of the goals of my new mentoring program will be to teach my students how to think and "see the market" for themselves.

Check out any major Forex message board or chat room and you will see that there are always plenty of individuals willing to offer up their advice. Even better they can be so convincing that others in the room will blindly jump into a trade based on the advice! Best of all you can usually find two equally convincing traders both offering the opposite advice at the same exact time. Never ever enter a trade based on some other person's suggestion. Never ever!

You can even find professional paid analysts offering up contradictory advice, along with pivots, supports, and fibs that all differ from each other. That is why you need to have your own method of analysis that you know inside and out. You may be a day trader that is trading a minor downtrend, while the analyst whose advice you are reading is looking very long term at a major uptrend. Depending on the time frame you are trading it can and will completely change your perspective on things. Know the time frame you are trading. Know the profit you are seeking and stop loss you can accept. Know your entry and exit signals. If you are confused and struggling from month-to-month like many traders, I can help. My mentoring program will be starting within the next two months.

Until then best of luck traders!

Three Words to Remember When Trading the Forex Market....

Patience, patience, patience! The importance of patience in trading any market cannot be overstated. As Forex happens to by my market of choice, I will use today's trades on EURUSD as an example of how I first entered without patience, and later entered at a more appropriate point. Today was the first day of 2009, where I temporarily forgot my lessons and entered on emotion. Luckily I was still able to close the day in profit.

My first position was a Short trade taken on EURUSD when Price seemed to be showing a move down. However, trading based just on Price movement, is an absolute no no according to my trading rules. For me to have a valid entry I needed to wait for some sort of a retracement to a level of Resistance or Fib Level. I entered based on emotion and also only 20 pips away from the Daily low. Needless to say Price began to reverse and move steadily up. I had to use a larger stoploss than I ordinarily like to carry due to my inappropriate entry. Entries are so very crucial in Forex, because the proper entry allows you to use a much lower stop. Everyone will be wrong occassionally, even if all the rules are followed, but if you enter at a good point, you won't get hurt too bad.

Luckily I was able to salvage my day, but entering another Short position at an area of Resistance. Price did actually move up through the Resistance, but never approached my stop loss, as I had entered at a "smart" price point. Since EURUSD was trading in a range today I closed my positions when I was +11 pips between the two. My "smart" trade saved me from a losing day. However, if I had used PATIENCE and only entered on the 2nd position I would have easily netted 33 pips, and possibly more, because I could have let half the position try to run instead of covering the pips I was still down on the original trade.

Trade smart, be patient, make more money! Check back soon for my new Forex Trading Group, where you will be able to take my signals live, use my EA's, and learn to trade for yourself!

2009 - The Year of the Ox

2009 is the Year of the Ox according to the Chinese calendar, and it just so happens that I was also born in the year of the Ox. Since I am feeling ultra motivated to accomplish in '09, I'm assuming that the stars are somehow aligned for me and I must take advantage. Strike while the iron is hot you could say.

2008 was a nice year for me Trading Forex, so I will have my work cut out for me. Some of my accomplishments included leasing my Forex MT4 EA auto trader to a large Forex company, creating my most profitable manual Forex trading system to date, doing a better job of maintaining my own personal Forex trading journal, creating my very first custom Forex trading indicator for the Metatrader platform, and starting my very own Forex website, which you have apparently discovered if you are reading this post.

I plan to blog here as often as possible to post my thoughts on the current Currency market, as well as to make announcements regarding Forex online training, new product releases, live workshops, and my Forex Mentoring program, which will be the best way to learn to trade this dynamic market I enjoy so much.

Until the next post happy trading!

Jeff