The AUDUSD dropped like a stone on the lower than expected CPI number. The pair broke through the support line and made a new low on a daily chart falling below the psychologically important resistance at 0.9300. It might take time to break through that number though. Our short-position position opened on Apr. 17 is … [Read more…]
Tu., Apr. 22 Forex Trade Signals
Today there were 2 signals issued (see below). Later on the USDJPY signal was cancelled. The USDCAD position was open but it went nowhere and will be held overnight.
What is the difference between stock trading and gambling in a casino?
Answer by Dave Hughe: All the talk about 50/50 odds in the stock market or any other financial market for that matter is simply NOT TRUE. Just the same as calling the stock market a zero-sum game. The broker's commissions and other charges shift the odds against the trader. Yes, your chances of correctly guessing … [Read more…]
Why did Jesse Livermore blow up a couple of times in his trading career?
Answer by Dave Hughe: He explained it himself in the book: he did not follow his own rules. This is exactly why so many people blow their accounts in Forex. I used to be fascinated with Jesse Livermore but later on I realized that he had a gambling personality. Nevertheless, his advice is as sound … [Read more…]
Aren’t stop loss orders completely pointless?
Answer by Dave Hughe: The major part of investing and trading is money management. If you don't mind losing all your money and even more if you trade on margin, then you don't need stop loss orders.On the other hand, if you want to control your risk, stop loss orders are a must. View Answer … [Read more…]
What makes Fibonacci lines and pivots so favourable as an indicator in Forex?
Answer by Dave Hughe: Fibonacci lines and pivot points are in favour because they work. Why they work that's a different question, to which there is no straight answer. But isn't that amazing to see how price touches a Fibonacci or a pivot line and reverses its course? Personally, I use FIbonacci lines and pivots … [Read more…]
In Forex, do Market Makers trade against you?
Answer by Dave Hughe: The truth is: you never know. But there is definitely a conflict of interest between the client and the broker regardless of what they say. Always assume that your broker might be trading against you and question everything that happens in your account. Prior to committing to any broker check all … [Read more…]
What are the odds of becoming successful in Forex trading with very little math knowledge?
Answer by Dave Hughe: A good trading system does not have to be complicated at all. I trade profitably just like you said: with the help of few indicators and basic patterns. Below you can see the results of the trades posted in my blog:Week 1: +231 pipsWeek 2: – 19 pipsWeek 3: +415 pipsWeek … [Read more…]
What are the advantages of using a mini forex account for trading?
Answer by Dave Hughe: If you trade and not gamble, the advantages of using a mini or even a micro forex account are numerous:1. Trading with real money, which makes you emotionally involved as opposed to a demo account, where there are no real emotions. Thus, you learn to control emotions.2. Trading in real-life conditions … [Read more…]
How can you become rich in forex starting with only $20?
Answer by Dave Hughe: Hypothetically, yes you can become rich in forex starting with only $20. For that you need a solid trading system, strict money management, lots of patience and a little bit of luck. Trade micro lots, use strict money management rules and use the power of compounding by reinvesting your profits. I … [Read more…]