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FX Recommends - Trading Skills 11-20

Discussion in 'Forex Discussions' started by fx-recommends, Jun 29, 2009.

  1. fx-recommends

    fx-recommends Content Contributor

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    11: Wait for the news. Do not anticipate on the data before it. Take profit on the effect of the data (the spikes and the dips). The rate you receive after the data instantly (especially as the high weighted data such as the US labor report) is much more attractive and exposed to the market profit taken and you can be heavy but take care when you get out as there is a third wave after the correction on the profit taken as the market sentiment has been changed on the significant data and the new direction after these significant data can persist again mostly. It is not the same sentiment after this significant data. When you find a 100% retracement of the first wave on the data it is preferred to get out as the market is mostly to shrug off the data especially if there is a clear trend against these significant data. This can be supported by technical strong levels meeting after the data for forming a new pulse wave inside the trend.
    12: The discounted data is always followed with clear profit taken waves can be prolonged than the normal ones.
    13: These support and resistance levels can help you in putting your limit orders and stop loss orders on its clear breaking. Consider the major and the psychological strong levels more than the short terms ones.
    14: It is preferred generally to open you position on a new anticipated pulse wave on the 38.2% Fibonacci retracement.
    15: When you trade on technical reason should appreciate the longer term chart than you currently use. You can be tackled by a strong level you do not realize on the current chart you use. So it is better and recommended to start your draws on the longer term chart than you want to trade on. These can make these strong levels much obvious.
    16: At the serious levels of JPY strength especially against USD, you may find cautiousness on the Japanese intervention threats. This can make the USDJPY meeting with the big figures having especial characteristics making each break of these levels a new strong resistance and you can find the pair well supported above them for a while and then JPY crosses can get some strength such as GBPJPY and EURJPY.
    17: The spot hedge option has a psychological effect as it saves you and gives some rest as the stop loss orders. You can use the hedge much more effectively if your broker affords stop loss orders grantees then you can make a hedge before the effective data such as the US labor report with close stop loss orders for each part of the hedge then you have a long winner trade and a short losing trade. Anything but that the hedge is just like the stop loss and you should not go far beyond that! It costs much more interest payment when you have it for more than a day than the normal stop loss order choice. The hedge does not use more leverage but you should not reach this high risk point which is more than 50% of your account amount to take use of this.
    18: It is preferred mostly to direct most of your trading time to the European session and the US one on the big market volume and the standard volatility. It is preferred to avoid trading during the light volume of the Asian session and always save your efforts for better chances even the Japanese economic indicators can move the market lightly in the Asian session but the Japanese GDP, Tankan survey and the significant numbers of the Japanese trade surplus and industrial data. Take care that the earlier NASDAQ performance effects on Nikkei and by the way on the JPY and high JPY effect negatively on the Japanese stocks generally.
    19: It is better to be an intraday trader when you trade in the spot market. This can help you to get along with any change of the market sentiment and increases your ability to catch up with the new market sentiments and the breaking of the strong levels and the continuations signs of it.
    20: Try to be a bargain hunter that you hold yourself till you find the real chance and try to not be involved most of the time this is wasting your chances. Again try to be with the pulse waves and with the change of the market sentiment. Do not hesitate to change your direction on this change.
    Best wishes

    FX Consultant
    Walid Salah El Din
    E-Mail: mail@fx-recommends.com
    http://www.fx-recommends.com
     
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