FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

In one of my recent articles, Spell Out Your Trading Plan and Get a Trading Buddy , I shared a story of a motivated student who was able to take Online Trading Academy teachings about options, apply them, get cash flow going, and supplement her regular annual income at first, and then eventually embark on the full-time journey of just trading for a living. In that article, on which I have received a lot of emails, I focused on the need of spelling out a trading plan and also having a Trading

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

In today's market environment, where daily ranges continue to diminish, it's becoming more challenging for the disciplined day trader to find opportunity. Note I'm referring to a specific type of trader, that's because for the "undisciplined" trader, all types of markets are difficult. Now that's not to say that the professional trader doesn't have to overcome the daily demands of trading. However, my point here is that the more movement in a market, the more opportunity. Part of having this

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Within the last couple of weeks, the Obama administration released its assessment of its Anti-foreclosure program. The results were minimal. Here are some of the cold hard facts: Of the approximately 1 million financially-distressed homeowners who've been given mortgage payment reductions through the three month "trial" under the HAMP (Home Affordable Modification Program), only 116,000 have ended up with permanent loan modifications. 60,000 borrowers who entered the trial payment plan were

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

This week I would like to revert back to the basics of successful trading once more and thought that there would be no better subject to cover than that of the Stop Loss. I have had the privilege of working with hundreds of new Forex students from around the world via both the Online Trading Academy classroom and Extended Learning Track (XLT) experience. Each and every one of these up and coming Forex traders has received the very same message from me and that is regarding the vital importance

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

What kind of results are you getting in your trading? Are you violating your rules because you have been unable to keep your commitments, which have lead to disastrous draw downs and massive losses? Well, one of the things that is important in changing this scenario is to recalibrate what you are aiming for by targeting your thoughts to outcome thinking and results orientations. Results orientation is about envisioning what you really want as if you stepped into the future and got it. This is

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Chart patterns are one thing that most traders learn about early in their trading careers. The problem is that they do not necessarily learn how to trade them properly. There are a plethora of books and websites dedicated to identifying and trading these patterns. The problem is that if you follow the "conventional wisdom," then you will be trading right along with the masses and risk entering late or entering into a trade that has a lower probability of success. We need to think like a

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

While I do not use indicators or oscillators in my own trading, I do know one thing for sure - they all work. Yes, I said they all work fine and I mean it. What is needed is to define the word "work." These are all lines plotted on a chart based on different mathematical calculations depending on the indicator or oscillator. The math works fine and the lines are plotted where they should be so do they work? YES. If the definition of "working" has to do with producing profitable buy and sell

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Documenting the data of your trading is essential to success. Also, it's of vital importance to track not only the "mechanical" data; i.e., the data of the actual trading execution (entry, targets, stops and exits); but you must track the "internal" data as well; i.e., what you are thinking, emotionally feeling, and the unconscious beliefs that are driving the T + E + B = R equation. In this equation that is involved in "all" of our outcomes, T = thought, E = emotions, B = behavior and R =

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

In Part 2 of this series, we'll focus on the Younger Baby Boomers and part of the Echo Boomers Generation X. The Younger Baby Boomers are defined as being in their late forties and early fifties. Generation X, children of Older Baby Boomers, are in their late thirties to mid-forties. The Younger Baby Boomers are facing several issues and challenges that are very different from their parents: They might have had dreams of early retirement, however, it may be decades before they can consider

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

This newsletter is the second to last in a series of articles that have addressed, in greater detail, the option strategies known as Butterflies. Specifically, here I will present the steps involved in placing a Put Butterfly on TradeStation. As a brief recap, typically the option trader would place Butterfly spreads when they are not anticipating huge movement within a specific time frame. A regular Butterfly is essentially a combination of a debit and a credit spread. However, both types of

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

A Futures Spread is a position in the market where you are simultaneously long and short. Think of it as a hedged position which offers protection from volatile outright Futures positions. These Spreads can be: Intra-Market - long and short the same market, but in different contract months  Inter-Market - long and short, but in related markets (Notes/Bonds, Wheat/Corn, etc) The way we profit from this trade is when the net difference between the two positions changes. Let's take a look at

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

This week I have been teaching the Professional Forex Trader course in the physical classroom. I enjoy this environment very much as it gives me the opportunity to interact face-to-face with new Online Trading Academy students who are taking their first steps on the path of trading education. We study the various aspects of successful Forex trading including how to determine risk, plan targets, identify trend and how to scan the markets for only the highest probability, low risk setups. It is

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Sam, I am an Online Trading Academy stock trading graduate and soon to be futures class attendee (with XLT hopefully to follow if I like futures). Thank you for this week's "Systems Trading - A Complex World with Simple Answers" article; it was very enjoyable, well developed and perfectly explained. The only thing that I would ask is how you use these trade rules for "sideways" markets like we have now? I trade the "SPY" and I am having some difficulties with lack of movement. I often opt out

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Ask most Americans what they think about Wall Street brokerages after the 2008 market collapse and you can imagine that the responses may not be fit to print in this article. However, is the best answer more government regulation? In a recent misguided attempt to "fix" the markets, the SEC voted 3-2 to reinstate a version of the old uptick rule. If you aren't familiar with the rule, let me explain. First, you need to understand what constitutes an uptick. To make it more confusing, the NASDAQ

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

My path to becoming a successful trader has been a long journey, from starting with illusions about the markets to coming to see the truths of the markets. Nowadays, when private traders usually start out trading electronically, I believe it is even more imperative that most beginning and even many advanced traders overcome those same illusions I had when I first started out. This might be even truer for new traders who start trading Forex with a broker who is also a market-maker. At these

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Index of contents Forex Basics Technical Analysis Forex Strategies Market Psychology Education Related Topics FEATURED BOOK Forex Analysis and Trading Title: Forex Analysis and Trading: Effective Top-Down Strategies Combining Fundamental, Position, and Technical Analyses Author : T J Marta Synopsis : The forex market is huge and offers tremendous trading opportunities. There are many different tools for analyzing the forex market. But what are the best tools and the best ways to use them to

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

When we think, feel, say, and do in a way that is congruent - meaning that we have internal and external consistency, perceived by others as sincerity or authenticity - then we are in alignment. It can also be termed an 'intra-rapport,' moving in tandem with self, in sync and balanced, also centered and grounded. We can also be described as having integrity and 'walking our talk.' Alignment cannot be overstated in its importance to trading or anything that involves performance, for like a

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Recently, many leading indicators have been published, so let's focus on them this week and go back to our series on demographic changes and their effect on the housing market next week. We'll start by looking at the Case-Shiller Home Price Index. The index, dated January 26th, shows that the annual rates of decline continue to improve for the 10-city and 20-city composites, although we did see some price declines in November. January's report marks approximately ten months of improved

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Back in December of 2008, I wrote an article entitled, "The Rubber Band Effect." In it, I discussed the propensity of the market to overshoot in both directions, and the opportunities that the "reversion" trade usually presents. I spelled out the technical tool that I use and the rules associated with that particular set up. In this article, I'm going to revisit this phenomenon, and explain the workings behind why the market has a strong tendency to revert to the mean. The premise is quite

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

In this article, the first of two parts, I will share a story of a motivated Online Trading Academy options student. She was able to take Online Trading Academy teachings about options, apply them, get cash flow going, and supplement her regular annual income at first and then eventually embark on the full-time journey of just trading for a living. This article utilizes her actual emails that came to me over several years to point out how her trading career gradually evolved. It focuses only

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Sometimes we just need to keep things simple. I live by this motto in my personal trading career and always send the same message to each and every one of my classroom and Extended Learning Track (XLT) students. Trading should be clear and practical at all times. The minute we make things too complicated, the account usually suffers as a result. I have been there and bought the t-shirt! After experimenting with various technical indicators and chart patterns, I soon realized that the most

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

The economy has been pretty rough over the past few years. Most people worldwide are now focusing on saving and spending wisely. Especially those hit by unemployment or credit reduction. Could we use this natural tendency of swinging between miserly and extravagance to help predict the movements of the markets? Of course we can! According to Investopedia, the Consumer Discretionary Sector is, "A sector of the economy that consists of businesses that sell nonessential goods and services.

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Recently in the Extended Learning Track (XLT) - Stock Mastery class, we had a lesson on trading systems. While I can't go over all the information during that session in this piece, I wanted to share some of the important aspects of that lesson. I have been in the business of market speculating and market/trading education for over 15 years. While Futures and Forex have always been the main markets I trade and manage accounts in, I have also spent plenty of time trading stocks and options as

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Let us go over our example that we have been beating on for the last several weeks. The specifics are described in the article, Butterfly: Part II , but here is a brief recap of it. I had a long Butterfly spread; namely the 41/43/45 Call Butterfly. I purchased the lower (41) strike call, sold two of the middle (43) strike calls, and also bought the higher (45) strike call. The basic composition, line by line, reads: BTO + 1 Feb (lower strike) 41 call @ $2.46 (debit) STO – 2 Feb (middle strike)

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

A popular trading vehicle for Commodity Futures has become an ETF (Exchange Trade Fund). The first Commodity ETFs came along about five years ago. You can trade these just like you would a stock. These funds are traded on security exchanges such as the New York Stock Exchange, American Stock Exchange, etc. Since the majority of investors and traders already have equity trading accounts, these funds are easily accessible to them. Adding to their comfort level, they will be using a trading

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

If I had to name the one single key to successful and consistent trading results, it would be Discipline. In virtually every aspect of trading, we have to control ourselves because as I have stated time and time again in previous articles, human beings were never designed to be traders. Let's list some of the common reasons why most novice traders hit a road block with their activities: 1. They have little concept of protecting their capital and managing risk 2. They do not understand how

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

"… strategic inflection points do not always lead to disaster. When the way business is being conducted changes, it creates opportunities for players who are adept at operating in the new way. This can apply to newcomers or to incumbents, for whom a strategic inflection point may mean an opportunity for a new period of growth." Andrew Grove of Intel What, in the real estate industry, will be creating opportunities in the future? People will always need a place to live and work. But that place

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

As an instructor at Online Trading Academy and a trader, I am very familiar with many technical analysis tools. I further demonstrated my technical analysis knowledge by attaining the Chartered Market Technician designation. However, when it comes down to trading and profiting from market moves in any market, I always rely on the basic tools of supply and demand. Many students claim that I trade differently than Sam Seiden or Michelle Volmering, and that I use technical tools like the CCI or

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

The Strongest Mental Models Are Created in Early Childhood Childhood emotional traumas, wounds, and scars create the crux of your mental models of the world. How you see the world is influenced by the way you bonded with your parents/family in the first 3 to 5 years of life. A secure bond or attachment means that you experienced a nurturing upbringing, complete with plenty of affection and limits, as well as room to explore. A secure attachment is one of two main constructs that form the

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

One of the most common reasons for aspiring traders having difficulty during their journey towards self-empowerment is emotion. Herd mentality trading is an account killer. Buying after a big rally in price is like going to the bank, withdrawing funds from your savings account, and then handing those funds to the person in line behind you. As you leave the bank, you say to yourself, "Why did I just do that?" A while back, I was instructing and trading in Irvine, California. We had a very good

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

James Chen “I remember Francesc’s [Riverola, CEO at FXstreet.com] announcement regarding the launch of the new forex portal website, FXstreet.com ten years ago!�, says James Chen , chief technical Strategist at FX Solution, in an exclusive interview with FXstreet.com on the occasion of the site's ten year anniversary. James Chen began to trade on the foreign exchange market since the inception of the retail forex market and he could see the very beginning of the FXstreet.com adventure. Author

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Peak performance trading bridges the gap between wishful thinking and getting the trading results you want. The most powerful tool you have is right between your ears, as long as you learn the combination to unlock your inner self and unleash this strength. And, of course, to unlock your inner strength you must be in the moment, for the moment, fully available and in the "now" of the trade. This means that you are aligned physically, mentally and emotionally; in other words, your system is

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Most of my articles to date have focused mainly on real estate in the US. However, we have centers and students around the globe. A couple of months back I focused an article on the Dubai real estate market. Now, as we get ready for the Winter Olympics, I feel it is only fitting to focus on the Canadian real estate market. Since the Olympics begin this week, let's first address an age old question: Do hosting the Olympic Games promote an increase in local housing prices, and is there a

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

I just finished teaching a terrific E-mini class in our Northridge location last week. In class, we found some great set-ups and I left feeling that many of the students, after our five days together, were taking with them a good structural foundation for their future trading ventures. As I do with any class, I begin by stressing the basic market underpinnings of trends, support, and resistance. Having a systematic way of identifying these core concepts is imperative. We start by assigning

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

As a trader and an instructor, I am constantly being asked, "What time frame is best for trading?" The answer is a personal choice. There is no one time frame that stands out as being best for all traders. Just as we are all different as people, we all have different trading personalities. The main consideration we must have when selecting a trading time frame is our risk tolerance. In our courses at Online Trading Academy, both in our centers and online, we teach that in order to set stops

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Hi Sam, Enjoyed your insightful article on 1/26 about supply & demand but my question is: Which chart time frame is most useful? As you know, different time frames will show different pictures so which do you recommend? Thanks for the email. There are two parts to this answer. First, this depends on what type of market speculating you are doing. Are you looking to day trade, swing trade, or trade with a longer term time horizon? Maybe you will do all of the above. Whatever the answer is,

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Many times as I am looking at various charts, a trade just jumps at me. I was looking at various time frames on the chart of an unnamed underlying. First, I noticed on the monthly chart that its price action had recouped all its loss from the 2007–2009 crash and that the price was running into resistance, technically described as a double top. This, by itself, was enough to attract me to consider placing an option trade on it, so I looked deeper into it. After pulling up first the weekly, and

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

It has been a busy couple of weeks for me and I don't mind one bit. I think it is healthy to start a New Year in the way that you plan to go on and 2010 is no exception. With my teaching in class for Online Trading Academy and my ongoing Extended Learning Track (XLT) class commitments, I am always on the move; but one of the best things about trading is that you can fit it around your life so I never feel like I am missing out. In fact, having distractions aside from my own trading is a huge

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

Let me explain the term "Compound Interest" as simple as I can: Compound interest simply pays you interest on your principal; then, when it’s time to pay interest again, you’re paid interest on your principal AND the previous interest that you earned. In other words, the interest that you’re paid adds to and becomes part of the principal that accrues interest during the next period. This means that you have a continuously growing principal amount without having to make another deposit. But if

FXstreet.com: Education
FXstreet.com: Education. A series of useful resoruces to learn more about trading in the currencies market.

With the rapid rise of Forex Trading over the last few years, the number of brokers available in the market are also growing at a rapid rate. Most traders are scratching their heads when it comes to choosing a reliable broker to trade with. Unless you are a bank or large financial institution, you will need a broker to trade currencies. In fact, all individual traders need a broker to trade in the Forex Market. This is a critical step to take before you can begin your journey as a Forex