Last Week Forex Trading Result

I find out the latest result of the forex trading, trade with northfinance company and using metatrader as a platform..

Found the result of the forex trading here..

http://googleeadsense.wordpress.com/2007/05/07/last-week-story-of-forex-trading/

Dont Deny Reality

If you want to be a successful trader, you must make sure you do not deny reality in any phase of your trading. You cannot deny losses, price direction, mistakes you make, being undercapitalized, or a whole host of things you would rather not think about.

Many traders think the best way to deal with unpleasant ideas, events, or personal character flaws is to shut their eyes and pretend they don’t exist.

Let’s face it, trading can be difficult, at times very difficult and it's essential that you focus on reality. Denial takes your focus away from the very thing you need to be concentrating on—the action of prices—regardless of time frame. Your mind must be clear so that you can look at the market and see what is really there.

The way I learned to handle denial was to simply write down and confront all possible ideas I had trouble accepting. Some thoughts I could fix and others I just had to accept. But facing the truth of what and who you are is the only way to deal with denial. You have to realize that for the most part the only things you can change are in yourself. Other things you just have to accept. You have to accept the reality of slippage, for example. You have to realize that indicators often give false signals and that there is no magic moving average nor is there a magical oscillator.

You have to realize that some winning trades are just lucky trades and had nothing to do with your skill as a trader. By the same token, you will also experience the bad luck of having prices make a sudden and unexpected move against you.

Rather than wasting your time in denial, concentrate your mental energies on improving yourself and improving your trading skills. Work at improving your abilities to observe. Realize that you have to survive the markets in order to benefit from the experience of the markets.

There is really only one true problem with your trading—that problem is you! However, the problem manifests in two ways:
1. Market conditions have changed and you haven’t.
2. You are no longer doing what you did when you were winning. You have drifted. You are not consistent.

The first aspect of the problem is due to poor observation. The market has changed and you haven’t changed with it. Poor observation stems from a variety of lesser but very important problems. You have married a market, or a trade. You may have allowed your ego to get the best of you and you are no longer humble. I’ve named just a couple here. I challenge you to think about the many things that can distract you from seeing when market conditions have changed. Make a list of those things and confront them.

The second aspect of the problem stems from inconsistency. Here again, you should make a list of those things that cause you to be inconsistent.

"Perhaps I was a good trader at one time, but the market conditions have changed and I may not be able to keep my reputation up." This is an issue that all traders face at some point: keeping up their reputation. When one makes big profits trading, it's tempting to tell neighbors and friends how well you are doing. It's great when you're making the big profits, but keeping up appearances is often the downfall of even the most astute trader. Again, denying your need for fame and glory, or pretending that you can maintain an unrealistic reputation, will use up your psychological energy and interfere with your ability to concentrate. Huge profits tend to go to the humble, so try not to build up your reputation. Admit that you will have difficulty keeping up appearances and just quit doing it.

One fact that traders wrestle with continuously is the notion that, "Trading is not a legitimate job." Many traders struggle with the legitimacy of trading. Some traders find that they can simply remind themselves, "Trading provides liquidity and helps control prices." Other traders, however, think this isn't good enough and need to find more meaning in their daily trading activities. For example, they may focus on how trading helps them provide for their family, or may plan to donate some of their profits to charities they view as personally

valuable. The point is, don't deny the possible truth to such ideas. You will be better off acknowledging and working through them, and then just moving on. Denying they exist, on the other hand, will use up time and energy.

Unacceptable beliefs tend to lie in the back of your mind. They remain there, lurking, and when you are vulnerable, they can powerfully influence your outlook. So acknowledge unacceptable ideas, and once you admit the possible validity of such ideas, you will neutralize their potential influence. This will free up limited psychological resources, allowing you to focus all your energy on trading profitably and consistently.

The US dollar has benefited from the strong ISM data

A slightly challenging start to the new month.

The US dollar has benefited from the strong ISM data, but the services ISM will now take on even greater importance.

The trend is down for the US dollar, but it is clearly trying to bounce just now and a break much lower in the Euro could trigger quite a substantial stop loss process for a lot of speculators still long the US dollar. The favoured scenario is the USD topping out here, but have to respect the immediate USD buying pressure at first today.

Signal-FxStreet

! AUD/NZD
: See 2349
: FLAT
: 1.1145
:
:
'



! AUD/USD
: See 2347
: FLAT
: 0.8290
:
:
'



! EUR/CHF
: See 2344
: LONG
: 1.6481
: 1.6700
: 1.6375
'



! EUR/JPY
: See 2342
: FLAT
: 162.75
:
:
'



! EUR/SEK
: See 2352
: SHORT
: 9.1893
: 9.1300
: 9.2050
'



! EUR/GBP
: See 2343
: FLAT
: 0.6782
:
:
'



! GBP/USD
: See 2338
: FLAT
: 2.0005
:
:
'



! USD/CAD
: See 2345
: SHORT
: 1.1056
: 1.0930
: 1.1110
'



! USD/CHF
: See 2340
: FLAT
: 1.2085
:
:
'



! EUR/USD
: See 2334
: FLAT
: 1.3662
:
:
'



! USD/JPY
: See 2336
: FLAT
: 119.63
:
:
'



! NZD/USD
: See 2349
: FLAT
: 0.7440
:
:
'



!
'
!
'
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[IFR Forex Watch]
[POSITION SUMMARY]
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Dollar-Where To GO??

Mid-Day Forex Technical Report - Dollar Still in Range Despite Tamer Core Inflation

Mon, 30 Apr 2007 14:23:30 GMT
by ActionForex.com Team

ActionForex.com

Forex Mid-Day Technical Report

Dollar Still in Range Despite Tamer Core Inflation

Dollar remains stuck in range against majors despite weaker than expected personal spending and tamer core inflation in Mar. Today's Mar personal income and spending data shows that inflation continues to moderate with core PCE deflator flat mom, dragging down the yoy rate from 2.4% to 2.1%, which is now much closer to Fed's comfort zone of 1-2%. Though, top line inflations high with PCE accelerating to 2.4% yoy. After all, the inflation part of the report is inline with the CPI report earlier which showed further moderation in inflation and should ease some of the concerns of Fed's members. Meanwhile, the unexpected slowing of personal spending to 0.3% casts some doubts on the underlying strength of US consumer. Other data saw Chicago PMI falling more than expected from 61.7 to 52.9 while construction spending rose 0.2%, inline with consensus.

Canadian dollar remains strong and surges against the greenback after the release of Feb GDP data which showed the growth of Canadian economy accelerated from 0.1% to 0.4% mom, much better than expectation of 0.2%. This is the fifth straight month of growth. USDCAD fell to as low as 1.1091 so far and is now close to 800 pips off this year's high at 1.1874 and is heading towards 06 low of 1.0930.

Released earlier, Eurozone M3 money supply growth continues to defy expectation and accelerated further to 10.9% in Mar, fastest pace in 24 years. Persistently strong upward momentum in M3 growth strengthen the case for further tightening by ECB down the road beyond the widely expected hike in June.

45 Ways to Avoid Losing Money Trading Forex

This article looks at the most common reasons why professional and new traders lose money on the forex market. Instead of learning from failure, learn how to avoid it.

1. Knowledge Deficiency – Most new forex traders do not take the time to learn what drives currency rates (primarily fundamentals). When some news or a statement is due out, they close out their positions and sit out the best trading opportunities; they are taught to only trade after the market calms down. So essentially they miss the whole move and then trade the random noise that follows a fundamental price move. Just think for a moment about technically trading the aftermath of a price move; there is no potential.
   
   
2. Overtrading - Trading often with tight stops and tiny profit targets will only make the broker rich. The desire to “just” make a few hundred dollars a day by locking in tiny profits whenever possible is a losing strategy.
   
   
3. Over leveraged - Leverage is a two way street. The brokers want you to use high leverage because that means more spread income because your position size determines the amount of spread income; the bigger the position, the more spread income the broker earns.
   
   
4. Relying on Others – Real traders play a lone hand; they make their own decisions and don’t rely on others to make their trading decisions for them; there is no halfway; either trade for yourself or have someone else trade for you.
   
   
5. Stop Losses – Putting tight stop losses with retail brokers is a recipe for disaster. When you put on a trade, commit to a reasonable stop loss limit that allows your trade a fair chance to develop.
   
   
6. Demo Accounts – Broker demo accounts are a shill game of sorts; they’re not as time sensitive as real accounts and therefore give the impression that time-sensitive trading systems, such as short-term moving average crossovers, can be a consistently profitable trade; once you start dealing with real money, reality is quick to set in.
   
   
7. Trading During Off Hours – Bank FX traders, option traders, and hedge funds have a huge advantage during off hours; they can push the currencies around when no volume is going through and the end game is new traders get fleeced trying to trade signals. There is only one signal during off hours – it is better to stay out.
   
   
8. Trading a Currency, Not a Pair – Being right about a currency is half a trade; success or failure depends upon being right about the second currency that makes up the pair.
   
   
9. No Trading Plan - "Make money" is not a trading plan. A trading plan is a blueprint for trading success; it spells out what you see your edge as being; if you don’t have an edge, you don’t have a plan, and likely you’ll wind up a statistic (part of the 95% of new traders that lose and quit).
   
   
10. Trading Against Prevailing Trend – There is a huge difference between buying cheaply on the way down and buying cheaply. What was a low price quickly becomes a high price when you’re trading against the trend.
    
    
11. Exiting Trades Poorly – If you put on a trade and it’s not working make sure you exit properly; don’t compound the damage. If you’re in a winning trade don’t talk yourself out of the position because you’re bored or want to relieve stress; stress is a natural part of trading, get used to it.
    
    
12. Trading Too Short-term – If you’re profit target is less than 20 points, don't do the trade; the spread you pay to enter the trade makes the odds way against you when you go for these tiny profits.
    
    
13. Picking Tops and Bottoms - Looking for bargains works well at the supermarket but not trading foreign exchange; try to trade in the direction the price is going and your results will improve.
    
    
14. Being Too Smart – The most successful traders I know are high school graduates. They keep it simple and don’t look beyond the obvious; their results are excellent.
    
    
15. Not Trading Around News Time – Most of the big moves occur around news time. The volume is high and the moves are real; there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the prices changes reflect serious currency flow (compared to quiet times when bank traders rule the market with their customer order flow).
    
    
16. Ignore Technical Conditions – Determining whether the market is over-extended long or over-extended short is a key determinant of near-time price action. Spike moves often occur when the market is all one way.
    
    
17. Emotional Trading – When you don't pre-plan your trades, it is essentially a thought and not an idea; thoughts are emotions and a very poor basis for doing trades. Do people generally say intelligent things when they are upset and emotional? I don’t think so.
    
    
18. Lack of Confidence – Confidence only comes from successful trading. If you lose money early in your trading career it’s very difficult to gain true confidence; the trick is don't go off half-cocked; learn the business before you trade.
    
    
19. Lack of Courage to Take a Loss – There is nothing macho or gutsy about riding a loss, just stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Getting married to a bad position ruins lots of traders. The thing to remember is the market does crazy things often so don’t get married to any one trade; it’s just a trade. One good trade will not make you a trading success; rather, it is the monthly and annual performance that defines a good trader.
    
    
20. Not Focusing on the Trade at Hand – There is no room for fantasizing in successful trading. Counting up and mentally spending profits you haven’t made yet is mental masturbation and does you no good. Same with worrying about a loss that hasn't happened yet. Focus on your position and have a reasonable stop loss in place at the time you do the trade. Then be like an astronaut – sit back and enjoy the ride, there is no sense worrying because you have no real control; the market will do what it wants to do.
    
    
21. Interpreting forex news incorrectly – Fact is the press only has a very superficial understanding of the news they are reporting and tend to focus on one element and miss the point. Learn to read the source documents and understand it for real.
    
    
22. Lucky or Good – Your account balance changes don’t tell you the whole story about your trading; fact is, if you are taking a lot of risk and making money you will eventually crash and burn. Look at the individual trade details; focus on your big losses and losing streaks. Ask yourself this - if I had a couple of consecutive losing streaks or a couple of consecutive big losses, how would my account balance look. Generally, traders making money without big daily losses have the best chance of sustaining positive performance. The others are accidents waiting to happen.
    
    
23. Too Many Charity Trades – When you make money on a well thought-out trade, don’t give back half on a whim; invest your profits from good trades on the next good trade.
    
    
24. Courage Under Fire – When a policeman breaks down the door to a drug dealers apartment, he is scared but he does it anyway. When a fireman climbs onto the roof of a burning building, he is scared but does it anyway - and gets the job done. Its the same with trading - it’s OK to be scared, but you have to pull the trigger; no trigger = no trades = no profits = no trader.
    
    
25. Quality Trading Time – I suggest 3 hours a day of quality, focused trading time; that’s about all your brain allows. When you are trading, you must be 100% focused - half way is plain bullshit and does not work. Don’t even think that time spent in front of the computer watching the rates has any correlation with profitability; it doesn’t. Spend less time but when you are trading, be 100% focused.
    
    
26. Rationalizing – Killer. Absolute Killer. Put your trade on and let it run. If it hits your reasonable pre-determined stop, you're out. Moving your stop is like getting up after being crushed with a knockout blow; it’s pointless, things will only get worse. Don’t ignore the obvious - you are wrong, so get out. Come back the next day and try again. A small loss will not hurt you, but a catastrophic loss will.
    
    
27. Mixing Apples and Oranges – Have you ever done this: you see the EUR/USD trading higher, so you buy GBP/USD because it “hasn’t moved yet”. That's a mistake. Most of the time the reason the GBP/USD hasn’t moved yet is because its already overbought or some 4:30am UK news was bearish. Don’t mix apples and oranges; if EUR/USD looks good, buy EUR/USD.
    
    
28. Avoiding the Hard Trades – Bank FX traders have an axiom: the harder the trade is to do, the better the trade. This I learned from experience - when I needed to buy EUR/USD and it was hard to get them, that’s when it is necessary to pay up and get the business done. When it’s easy to get them, then sit back and wait for better levels. So if you're trying to get into a trade or more importantly get out of a trade, don’t putz around for a few points; get your business done.
    
    
29. Too Much Detail – If you are trading more than 2 indicators, then you need to clean house. Having many indicators stifles trading and finds reasons not to trade. A setup and a trigger is all you need.
    
    
30. Giving Up Too Easy – Your first trade of the day may not be your best but certainly it’s no reason to quit. I have a preset daily trading limit and I use it; you can’t make money by making excuses. Getting trades wrong is natural and should be expected.
    
    
31. Jumping the Gun – Don’t be penny wise and dollar foolish; wait for your trade signal to be clear. Put on your trade and give it a decent size stop loss so that you don’t get knocked out by random noise. Do trades and don’t buy lottery tickets (extremely tight stops).
    
    
32. Afraid to Take a Loss - Trading is not personal; it’s business. Don’t think that a poor trade is a reflection on you. It could be you are just ahead of your time or a commercial order hits the market and temporarily creates a small unexpected move. Again, place your stop beforehand and NEVER increase your pre-determined risk. If it’s going bad, it will probably get worse; I think that’s Einstein “in motion stays in motion…”
    
    
33. Over-Relying on Risk Reward – There is zero advantage in risk reward; if you put a 20 point stop and a 60 point profit your chances are probably 3-1 that you will lose; actually with the spread its more like 4 to 1 (from entry point if it goes down 17 points you lose or up 63 you win; 17/63 is close to 4-1).
    
    
34. Trading for Wrong Reasons – Because the EUR/USD is going up is not in itself a reason to buy. Buying EUR/USD because its not moving is even worse; you’re paying the toll (spread) without even a hint that you will get a directional move. If you are bored, don’t trade - the reason you are bored is there is no trade to do in the first place.
    
    
35. Rumors – Rumors are rumors almost 100% of the time; think about where in the motion you heard the rumor. If EUR/USD is up 50 points in last 15 minutes and the rumor is dollar negative, well then you missed it. Whenever you trade, determine where in the motion you are entering.
    
    
36. Trading Short-term Moving Average Crossovers – This is the money sucker of the century. When the shorter term moving average cross the longer term moving average it only means that the average price in the short run is equal to the average price in the longer run. For the life of me I cannot understand why this is bullish or bearish. Easy to set up on software, complete with lights, bells and whistles, and good for the seller getting thousands for the software but in terms of creating profit, it’s a zero.
    
    
37. Stochastic – Another money sucker. Personally I think this indicator is used backwards; when it first signals an overdone condition, that’s when I think the big spike in the “overdone” currency pair occurs. To be overbought means strong and oversold means weak. Try buying on the first sign of overbought and selling on the first sign of oversold; you’ll be with the trend and likely have identified a move with plenty of juice left. So if %k and %d are both crossing 80, buy! (Same on sell side; sell at 20)
    
    
38. Wrong Broker – A lot of forex brokers are horrible; get a good one. Read forums and chats in several different places to get an unbiased opinion.
    
    
39. Simulated Results – Watch out for “black box” systems; these are trading systems that don’t divulge how the trade signals are generated. A great majority of them are absolute garbage. They show you a track record of extraordinary results, but think about it - if you could build a trading system with half a dozen filters using the benefit of hindsight, couldn’t you too come up with a great system. Of course going forward is an entirely different story. High-speed number crunching capabilities allows for building great hindsight trading systems; BEWARE.
    
    
40. Inconsistency – Every business (forex trading included) requires a business plan (trading plan). Unless you have taken the time to write down a set of rules that you can and will follow, it’s likely your trading will remain unfocused and directionless. Make a plan, have rules, follow them, set goals that are realistic, and you will achieve them.
    
    
41. Master of None – Focus on one currency for technical trading. Each currency has a unique way of trading and unless you get intimate with it, you will never truly understand its underlying idiosyncrasies. Don’t spread yourself too thin. Focus – master one currency at a time.
    
    
42. Thinking Long Term – Don’t do it. Stay in the moment. Especially if you’re a day trader. It doesn’t matter what happens next week or next month, if you are trading with 30 to 50 point stops restrict your thought process to what’s happening right now. That is not to stay the long-term trend is not important; it is to say the long-term trend will not always help you when you are trading in a significantly shorter time frame.
    
    
43. Overconfidence – Trading is not easy; statistics show a 95% failure rate. If your doing well don’t take your success for granted; always be on the lookout for ways to improve what you’re doing.
    
    
44. Getting Pumped Up – The trick is to maintain an even keel. When you are in a trade, you want to think exactly as you would if you didn’t have a trade on. To do this requires a relaxed disposition; this is not a football game. Don’t get psyched up, relax and try to enjoy it.
    
    
45. Staying in the Game – I don’t recommend demo trading because traders learn bad habits when trading with play money. I also don’t think “letting it all hang out” right away is wise either. Start off doing trades and taking risk that is relatively small but still makes a difference to you if you win or lose. About a quarter to a third of what you expect to reach as your trading matures is reasonable.

The British pound is trading at 15 year highs and the burning question on everyone's mind is "How Much Further Can it Rise?" In our opinion, quite a bit. The last time the currency was trading at this level against the US dollar was right before the country’s withdrawal from the Exchange Rate Mechanism (ERM) and things were much different then than they are now. The UK economy is now on a far stronger footing with a low risk of a major reversal.

The prior strength that we saw in the British pound in the early 90s was for no reason other than the overvalued fixed parity rate against the deutschmark that Britain had undertaken as a part of the entry into the ERM. We all know how disastrous that turned out to be with the infamous Black Wednesday occurring two years afterwards.

Surge in Inflation will Force the Bank of England to Raise Rates

This time around, the rally in the British pound has been triggered by the currency market’s obsession with countries that need to increase interest rates. For the first time ever, Bank of England Governor King has written an open letter to the Chancellor of the Exchequer Gordon Brown explaining why inflation has surged beyond 1 percent of their target rate. This morning, annualized

consumer prices for the month of March hit 3.1 percent. Full letter available here:

http://www.bankofengland.co.uk/monetarypolicy/pdf/cpiletter070417.pdf

Brown credits the move to the rise in food and energy prices as well as the near 10 percent jump in home furnishings. The housing market continues to perform well with the latest reports revealing increases in house prices. Such strong demand has led many businesses that are tied to housing to increase their own prices as well. The BoE continues to back their belief that consumer prices will drop significantly over the next few months and fall below their 2 percent target by the end of the year. However, with oil prices holding steadily above $60 a barrel and the economy still performing well, the only way that this can be achieved is through a strong currency and higher interest rate. We fully expect King to back his words with action. The futures market is already pricing in a quarter point rate hike in May, as well as another rate hike in the third quarter, which would bring the yield on UK rates to 5.75 percent. The outlook for higher interest rates provides a strong fundamental basis for further gains in the currency pair.

Next Significant High Still 4000 Pips Away

As seen in the Bloomberg chart below, the next significant high in the GBP/USD is still 4000 pips away. On a shorter term basis, we would have to first clear the September 1992 high of 2.0100. Divergence in intraday and daily technical oscillators suggests that there could be a risk of a reversal, but that may just provide an opportunity to buy on dips.

Gbp/Usd Sky High Record !!

Since the last Black September occur in 1992, it happens again.
GBP/USD make a sky high record of touching the 2.000 point.
It will be ridicolous that the USD has been tampered so hard rite now.

Now watching for the day 5 after GBP/USD touch the 2.000 point.