The foreign exchange market is the biggest market in the world by far. It is traded all around the world, six days a week, twenty-four hours per day. It also happens to be one of my all time favorite markets. I find it is easy to predict, with trends tending to persist for long periods of time.
So today we're going to look at the Euro (EUR) against the US Dollar (USD). I'm going to show you the last few MarketClub signals that were generated by our "Trade Triangle" technology. This will give you an indication of just how profitable trading forex can be. You just have to remember a few rules and have the right tools on hand.
I've had the good fortune of trading markets like these around the world. I started my career in the pits of the Chicago Mercantile Exchange (CME). Later, I traded for a private family fortune in Geneva, Switzerland. I found that trading forex gives you the leverage you need to pull large returns.
I am excited to share this new 7-minute video with you. It is available with no strings attached. No sign-up, no cost... just click to watch.
It is very important when you are trading in any market to be very, very, disciplined. You must also have a game plan and understand the rules of the game. If you get into forex trading just on a whim, you're going to be burned... that's almost a definite. If you approach the forex markets with respect and a game plan, you can do extraordinarily well.
In over 3 decades in the investment business, I have made more money trading forex than trading any other market. Take a few minutes, check out this video, and see how it could possibly work in your own trading. As many of you know, brokers love us because we are not brokers, we simply provide educational material to help traders improve their trading.
Every success in the forex markets in the future,
Adam Hewison
President, INO.com
Co-creator, MarketClub
I trade while also working a full-time job. I tried dabbling in commodity options, too. I've avoided Forex because I simply didn't have enough time to do it all.
So, if I'm going to do Forex, I have a few questions on how to get started.
1. How do I find a broker. I've heard there are brokers that trade against you. So how do I find a fair, efficient broker?
2. Are there best times to trade? First, there are the Aussies and Orientals, then the Europeans, then New Yorkers. I hear the ads talking about the markets being open 23 hours a day. But, surely there are better times to trade. Do I want to avoid the openings for when the Aussies start, then avoid the European openings? i.e. people talk about avoiding stock first half hour calling it amateur hour.
3. If I use marketclub, using weeklies for trends and dailies for timing, what margins do you use? 10:1, 100:1, 300:1? What about draw downs? or are there options for trading longer term so I don't have to worry about one big trade wiping me out?
4. If I missed a cogent question, ask a question I should be asking.
Thanks
Kerry Siggard
Kerry,
Thank you for your feedback. To answer your first question I have to really stay on the sidelines. We do not recommend any one broker because if anything happens that is not good it reflects back on us. We fly the Swiss flag of neutrality here at MarketClub.
With the market trading 24 six you really want to have stops in most of the different time frames. You can't stay awake 24 hours a day so you need to place stops in the market to protect your capital.
To answer question three you want a look at basically how much risk you want to take on a position. That is something only you could answer for yourself, the key thing here is to be more conservative than aggressive.
The only thing I suggest Kerry is that you should paper trade for a while in the Forex markets just to get a feel of the markets. You can do this quite easily with MarketClub using our "Trade Triangle" technology and our timing tools.
Forex is a great market to trade and I highly recommend. I wish you every success in the future.
Adam
Adam,
Great video, and great system. But I have a question: How do you set your Forex stop-loss? Or do you just avoid using one and wait for the next signal to close your position?
Also, Doji, have you checked out Oanda.com? They have tight Forex spreads and good customer service. Not sure why you would want to trade 10 million units, but I know you can trade 1 million there. The only negative is that the platform is not MetaTrader, but if you're doing manual orders it shouldn't be a problem.
Brian,
Thank you for your feedback.
Stops are something every successful trader uses. Stops that we use with our trade triangle technology may not be suitable for every trader. You can use a dollar stop, or a chart point stop. It really is an individual choice. What works for me may not work for you.
Every success in Forex markets.
Adam
Hi Adam,
There are a zillion FX pairs, it's hard to know which ones are best to trade. Which ones are the most liquid and best to look at? I've heard the term "Majors" but no good definition of what the FX Majors are (although it usually seems to be a US pair). Thanks...
Andy,
I appreciate your feedback. When you talk about the majors you are really referring to the US dollar against the euro, US dollar against the yen, the Swiss franc, the British pound and the Japanese yen. These crosses are considered to be among some of the major crosses in the world of Forex.
Having said that, there are some very interesting crosses out there, however they tend not to be as big or as liquid as the ones mentioned above.
Every success in your fork string period
Adam
Adam,
I too find the FX market to be the tops. But the hardest part of the game has nothing to do with trading skill or market discipline, its simply the matter of finding a reliable broker that can handle positions varying from 100 to 100 million units with efficient execution and acceptable customer service.
Hi Adam,
Thanks for another great video. I have a question for you on using Trade Triangles. I have been using them with success. So far, I have been getting into a trade only if the Daily signal occurs AFTER the signal on Weekly time frame. In this video, the Weekly signal came after the Daily signal. Would that be a correct setup to enter?
Also, how best to determine Stop Loss?
Thank you for your feedback and your compliment.
To take a new position in Forex when the trend reverses you need to use the weekly as your initial entry point. After that you will use the daily signals for exiting a position or reentering a new position in the direction of the weekly trend.
Stops. This is a very interesting subject, and we've written about it extensively on our blog. I would suggest that you just query the blog and look at several postings that we have on this subject. Just type in stops in the search box and you'll see the postings on how to best utilize stops in your trading.
Every success in the market.
Adam