10 Forex Strategy (3-Continue)

Currency Trading Strategy Number 22:
Former stock traders take note: I say former because I don't
honestly know why you would ever want to go back to stocks after
having tasted the forex. Don't over-trade the forex. This is not a
scalping market! If you have to scalp, do it in slow motion.
Currencies trend well. Don't buy too soon in a downtrend, and don't
sell too soon in an uptrend. Watch for trendline breakouts to know
when to make your move.

Currency Trading Strategy Number 23:
You cannot succeed at trading the forex unless you are TOTALLY
committed to trading, and trading it. This is not something to be
played with. If you are not going to take it seriously, then try
something else.
Currency Trading Strategy Number 24:
Put your emotions in your hip pocket. This is a business, and should
be treated as such. If you have any bad habits, the forex will fix
them real quick.

Currency Trading Strategy Number 25:
Important point here: If you deem the major trend for the current
session, based on everything you have learned to this point, to be
down, then think DOWN. Sell rallies. Don't look to buy, or you might
get whipsawed to death. Likewise, if you deem the major trend for
the current session to be up, based on everything you have learned
to this point, then think UP. Buy the dips. Don't look to sell. Former
stock traders fall prey to wanting to have it both ways. Maybe, when
you get real good at this, you can try. But for now, think one way,
and save yourself the grief.

Currency Trading Strategy Number 26:
Another important point here: The major rally for the Euro begins
after two am New York time. These are the London hours – the
busiest in the forex, bar none. The Euro always – session after
session – puts in, on average, 76 pips during the first 12 hours from
that time forward. Whether you want to believe it or not, the Euro,
once it makes up its mind what the major trend is going to be during
those 12 hours, will "drive" to the other end of its range (76 pips)
within those 12 hours. So catch the trend, and ride it. Now, it won't
be a straight line, of course. Even an airplane taking off or landing
encounters some bumps along the way. Same too with the Euro.
Once it picks its direction, it will meander all the way to the other
end of its range. This will "fake" the dumb money out. They never
know what happens to them. To conclude: If the Euro wants to have
a down trend during those 12 hours, it will achieve its 76 pips south
of where it started. So, think DOWN. If the Euro wants to have an up
trend from during those 12 hours, it will achieve its 76 pips north of
where it started. So, think UP. The Euro either goes up or down
during those 12 hours – not both. Here, I am talking about the major
trend, of course. Ah yes, there will be rallies or dips along the way,
depending on the direction of the trend (down or up), but like I said
earlier, SELL THE RALLIES IN A DOWNTREND, AND BUY THE DIPS IN
AN UPTREND. That's all there is to it.

Currency Trading Strategy Number 27:
Something to think about: If you get the above strategy - number
26, then you're going to love this one. It will test your nerve. If you
buy into the idea of the major trend unfolding during those 12 hours
(check it out here every day, and you'll see living proof), then why
not try to get in when it starts to unfold, and "ride it." That will take
nerves of steel, because the Euro will go against you from time to
time – but not enough so to take out your initial stop. From a
risk/reward ratio point of view, you are risking 20 pips to gain 76.
Not a bad ratio. What I am trying to say here is why not just put
your trade on, set the stop, and go clean the swimming pool while
the Euro meanders its way to the end of its range. What spooks a lot
of people out is when they stare at price action after they have
engaged their trade, and they over-react every time the Euro
hiccups. Just leave it alone. So, what's the worst that can happen?
You can get stopped out right? Chances are you won't. If you catch
the major trend, chances are very much in your favor that you will
be richer by at least US$760 per lot. If you trade the action all the
way through the trend, you may get beat up real bad, and lose
anyway. Let the Euro lead you, not the other way around.

Currency Trading Strategy Number 28:
Every once in a while, I would encourage you to step back from the
daily intraday action, and have a look at it from 30,000 feet.
Sometimes, we can get too close to it, and not see the trees in the
forest. On the daily chart, if you plot trendlines and look for
divergences, you will learn a lot about where price is going to go
"next." Of course, that's what we all want to know, right? Not only do
trendline breakouts and MACD divergences tell a "big" story, but
where a daily bar closes will offer up a clue as to where price will
likely go in the next session. Study the chart, and you'll see what I
mean.
For those of you who don't know what this is all about, the little line
pointing off to the right of a price bar is the "close" for the daily
session. The little line pointing off to the left is the "open" for that
session. In the forex world, the close of one session automatically
becomes the open for the next session, as this is a very liquid
market, and there are no gaps in trading.
I just thought it wise to pause and reflect at a higher level from time
to time. Looking at things top-down is sometimes healthy, and a
wise thing to do. We can sometimes get caught up in the minutiae of
the daily flurry of price movements, and lose perspective of the
bigger picture unfolding above us.

Currency Trading Strategy Number 29:
To reiterate, there are just a "few" things you have to watch out for,
and be "patient" for set-ups to occur. Don't just pull the trigger
because you "think" it's time to do so. Wait for bona fide "signals."
There are only "four" clues you have to look for: "reading bars,"
MACD divergence, pivot point breakthroughs/tests/violations, and
trendline breakouts. That's it folks. That's all it takes to succeed in
this wonderful business called forex trading. No other bells and
whistles or toys are required, contrary to what you may have learned
before. The hardest part for you will be to "unlearn" everything you
knew about trading before. Just give your head a shake, and it will
go away.

Currency Trading Strategy Number 30:
Although I have said that there are only four clues that you have to
look at for price direction – "bar reading," MACD divergence, pivot
points, and trendlines – there is actually a fifth. It's called "price."
Price is the number one indicator in the sky. It will tell you where it
wants to go. Let it point the way. It's like playing cards. Wait for it to
reveal its "hand." You just have to be patient and wait. It's called
"following the leader."

Currency Trading Strategy Number 31:
I was asked recently about multiple lots – in other words, buying or
selling more than one lot at a time. You can either "load up the boat"
at your entry point, or you can go at it one at a time – adding
additional lot(s), as price moves through each successive pivot point,
as it "reaches" for the end of its range. If you are confident that you
are "with the trend," and are using good money management
techniques, then there is nothing wrong with taking more position(s)
along the way. Or, you can do both – load up to begin with, and
buy/sell more, as price progresses through pivot points in its tear to
the finish line. Don't bail too soon. Remember, currencies trend well
(especially the major trend), and price knows where it wants to go.
Let it take you there. Use the "five" indicators – "reading bars,"
MACD divergence, pivot points, "price," and trendlines – to make
your trading decisions.

Read More......

10 Forex Strategy (2-Continue)

Currency Trading Strategy Number 11:
That all said and done, if you entered a trade close to a pivot point,
or a particular significant bar pattern (like a double top, for instance,
or a trendline breakout), place your stop on the other side (but not
too close to) the event that caused you to take action. This is
because price has a tendency to snap back to that situation that
caused it to bolt away from it in the first place. If you follow the 20-
30 pip stop rule, but a 33 pip stop on the other side of that event
would safeguard you against such a reaction, then so much the
better. So, yes the stop rule is 20-30 pips, but within reason of
course.

Currency Trading Strategy Number 12:
Stops (read “stop-loss”) are for insurance purposes only – not
necessarily for taking profits. However, you can most certainly
employ “trailing stops,” whereby you keep moving your stop up (or
down, whichever the case may be) to protect your profits, as price
advances, or declines.
Currency Trading Strategy Number 13:


Only use “reading bars,” MACD divergence, pivot points, and
trendline analysis in your forex trading toolkit. That’s all you need for
this market. Be a technical bigot. Focus on pure technical analysis,
and avoid funnymentals. Even news is factored into price action, soyou don’t need to be up on it each and every nanosecond. If you
don't have my .pdf file on reading bars, please send me an e-mail,
and I'll forward it to you: prbain@tradingsmarts.com As was pointed
out to me by a client, "reading bars" includes spotting double, or
even triple, tops and bottoms.

Currency Trading Strategy Number 14:
And now for the tough part. I know my documentation says that the
forecast low and high for the next trading session can be M1/M3 or
M2/M4. However, trading is shades of gray. It is not a black and
white business. If it were, the world would be paved in gold, and
everybody would be rich. Now, we wouldn’t want that would we? The
forex would be nothing more than a Church at the end of a road
connected to a river bank at the other end with nothing in between.
The point I am trying to make is that the “actual” low and high for
the next session could very well be any combination of M1, M2, M3,
and M4. It could be M1/M4, M2/M3, or combinations of the other five
pivot points. The M1/M3 and M2/M4 calculations are just guideposts,
but are not poured in concrete. Price is the number one indicator. It
will determine what the low and high are going to be. And one other
thing, you should use these forecasts in conjunction with the other
three “tools” in your forex trading toolkit – “reading bars,” MACD
divergence, and trendline analysis. In other words, if price has been
trending down from the past session into the current one, price is
trading at, say, M3, and price is still going down, then M3 may very
well be the high for the new session, regardless of the fact that my
system may have called for M4 to be the high. So, use the pivot
points in conjunction with other three possible signals – “reading
bars,” MACD divergence, and trendline analysis. I have seen it
happen, as in the example just given, where price was trending down
from one session to the next right through M3 at the open of the
next session – simultaneous with the formation of a “double top” bar
pattern. Well, there you have three indications that price was headed
south for sure. And, I believe MACD was also trending down in that
particular case. So, that was another clue that the high for the
session had probably already been put in.

Currency Trading Strategy Number 15:
When you are first starting out, pick one currency of the four major
pairs (EUR/USD, USD/JPY, GBP/USD, and USD/CHF) to trade, and
become a specialist in it. I would personally recommend the Euro,
especially if you are going to be asking me questions, as that's what
I focus on with my clients around the world. Get to know its rhythm.
When you are doing well with it, then move on, and trade the other
three major pairs, as you see fit. When you are in learning mode,
you will have your hands full trying to figure out what to look for,
and how to manage your trades – enough so that you don't want to
be skipping back and forth between currencies.

Currency Trading Strategy Number 16:
Keep a log of all your trades – both good and bad. Analyze where
you went right and wrong, and vow not to repeat those situations

that could have been done better. This is all part of being organized
as a "professional" trader - with good habits. This is not about gunslinging
and winging it with "Hail Mary" passes.

Currency Trading Strategy Number 17:
Important point here: If price action opens in the upper end of the
projected range for the session (all the way up to R2, and beyond) –
in other words, in the sell area (that area above the central pivot
point) – and there are other suggestions that price is too high (such
as a particular bar reading, MACD divergence, or trendline breakout),
then price has probably achieved the upper end of its price range for
the session. The same holds true where price action opens in the
lower end of the projected range for the session (all the way down to
S2, and beyond) – in other words, in the buy area (that area below
the central pivot point) – and there are other suggestions that price
is too low (such as a particular bar reading, MACD divergence, or
trendline breakout), then price has probably achieved the lower end
of its price range for the session.

Currency Trading Strategy Number 18:
If there is nothing to do, then don't do it. Don't just do something
because your "gut" tells you to. That can get you in a lot of trouble in
this business. Only react to bona fide signals provided by the four
indicators talked about above – "reading bars," MACD divergence,
pivot points, and trendline analysis.

Currency Trading Strategy Number 19:
Only use an "industrial strength" market maker with the lowest pip
spread in the industry. If you would like more information on this,
please send me an e-mail: prbain@tradingsmarts.com

Currency Trading Strategy Number 20:
Occasionally, you will see a huge spike up in price, as we did 11 May
03. This just happened to be on a Sunday, shortly after recommencement
of trading, after the weekend respite. Ordinarily, I
would take the OHLC numbers from Friday, but given the nature of
the wild swing up that evening on one of the 15 min bars, I would
then use the OHLC numbers from Sunday night's session close to get
a better reading on support and resistance levels for the next
session. This is, of course, if you are using a market maker that
delineates its break between trading sessions in the late evening -
anywhere between 20:59:50 and 24:00 (midnight).

Currency Trading Strategy Number 21:
I often get asked by fellow traders why my pivot points aren't the
same as theirs. Good question. The answer is, of course, that you
may be using a different market maker, where a daily 24-hour
session is "cut off" at a different time. Some end at 20:59:50. Others
at five pm. Where you take your OHLC from will have a direct
bearing on the pivot points that you calculate using my program. Theresults will obviously not be the same. But, that is okay – because
you want to use the pivot point calculations that are reflective of the
last 24 hours at the market maker you are trading with. That way,
the resulting numbers will be truly indicative of the support and
resistance levels you should be working with during the next session.
If you are trading with a firm that cuts off at 5 pm, and using OHLC
figures from another source that cuts off at a different time, your
figures will be "out-of-sync." I hope this all makes sense. If not,
please send me an e-mail: prbain@tradingsmarts.com Also, in your
message, you can ask me how to get a copy of my program, if you
don't already have one. You can also ask me where you should be
trading – i.e., which market maker you should be using. I only
recommend "select" providers, after considerable research, and
feedback from my clients.

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10 Forex Strategy

I got this off Peter Bains site. It's more geared towards the beginner,
so enjoy and maybe you might learn a thing or two!

Please pour over the 80 currency trading strategy items on the
checklist below that the big dogs use. You'll be glad you did. Please
pick up on the fact that you only need four tools to trade the forex
with, using my approach – "reading bars," MACD divergence, pivot
points, and trendline analysis. That's it. Nothing more! Plain and
simple. Don't let the naysayers have you believe otherwise. The
world is full of "Doubting Thomases" who are everybody's armchair
quarterback, but have never made a dime in this business. They "sell
shovels." They don't use them.
Currency Trading Strategy Number One:
When you are just starting out, strive to carve out 20 pips per


session, and that’s it. Then, turn it off, and study some more. When
you get really good at it, you can then “graduate” to higher returns.
So, set your goal at 20 pips and stick to it, until you are a grand
master at this wonderful “business” called forex trading. I stress the
word business. This is not a game, especially where your “hardearned
money” is involved.
Currency Trading Strategy Number Two:
Spend most of your time on the 15-min chart.
Currency Trading Strategy Number Three:
When you first start out in any particular session, look at the 1 hr
chart to get an overall perspective on trend from one session to the
next, and what it’s likely shaping up to be at the beginning of the
upcoming new session.
Currency Trading Strategy Number Four:
Only look at the 5 min chart if you absolutely have to see what’s
behind the current 15 min bar – especially where the bar is
elongated, and may have just penetrated a pivot point; in other
words, is price reversing course on the 5 min chart, which would
obviously not yet be reflected on the 15 min chart?
Currency Trading Strategy Number Five:
Don’t dwell on the 5 min chart, as it contains a lot of “noise” that will
whipsaw you to death.
Currency Trading Strategy Number Six:
MACD rules on the 15 min chart. Even if MACD is, say, trending up
on the 1 hr chart, if it is trending down on the 15 min chart, that’s
what you take your cue from. That’s not to say a shift in price
direction is not in the works. It just means it’s coming, but not yet.
In the meantime, you don’t want to miss what’s happening “in the
now,” which is what is reflected in the 15 min chart.
Currency Trading Strategy Number Seven:
If MACD is trending down on the 15 min chart, and price is wanting
to go north, price will sooner than later head south as it perhaps
bounces off a pivot point, or gets turned around at a juncture caught
by one of the other three “tools” you should be using (“reading
bars,” MACD divergence, or trendline analysis). Same thing if MACD
is trending up, and price is trying to head south.

Currency Trading Strategy Number Eight:
Only use MACD for divergence, not for buy or sell signals. It is a
lagging indicator, and as such is useless

Currency Trading Strategy Number Nine:
Again, MACD divergence on the 15 min chart is more significant than
what you see on the 1 hr chart in the near-term. For those of you
who don’t understand what divergence means, keep looking at my
own personal forex trading examples on this page on a daily basis for
examples of divergence. Basically, what it means is where you see
MACD waves “waving” in the opposite direction to price action. That’s
why I connect the top of the waves (in a downtrend) and the bottom
of the waves (in an uptrend) to illustrate that the waves are “waving”
higher in an uptrend and lower in a downtrend – in the opposite
direction to where price is going.
Currency Trading Strategy Number 10:
Always “protect” your money by using 20-30 pip stops. Mental stops
are okay, but not if you are dead serious about using a “disciplined”
approach to managing your money. You will lose three out of ten
trades. The three losses should be kept to 20-30 pips. Your wins will
by far surpass your small losses, and that’s what stop-losses are all
about. Don’t be afraid to lose. Even professional batters strike out six
out of 10 times. Lions are only successful 20% of the time in their
chase for the kill. Professional golfers lose 95% of the time.
Professional poker players lose 50% of the time. So, your chances
are better at trading the forex, using my system of course, than in
any other venue. Even businesses have “bad inventory.” And, life in
general is not always “100%” for sure.

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Forex News, news and news!

News is the most important thing that you must know in forex, even you are a technical forex trader.
Forex movement is influenced by economic indicator such as financial i ssue, politic, security, service trade, import and export. Every single number of changing makes different moving in forex, so you must read news about a currency that you trade in forex. We have discussed about each currency factor movement in last chance, you can read it in this forex's tutor. Good luck!

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Easy Tips For Computer

Things you can do to keep your computer running smoothly.

1. Empty your recycle bin, delete the deleted files from Outlook, you can also delete files in your sent folder that are no longer needed.

2. Get rid of those cookies, they can take up alot of space. Marketers also use this information to track your buying patterns.

3. You can delete your Temp files these end with *.tmp you can use F3 in Windows to search for that extension.

4. Run Microsoft ScanDisk at least once a month.

5. Run Microsoft Defrag as well to keep your files in order on your harddrive.

6. Dust, dust is horrible for your system. If you smoke, dust more often, you can purchase canned air from Radio Shack to blow out your case, do it outside.

7. Purchase system utilities software such as Noton System Works or Registry Mechanic to keep your system running optimal.



8. Consider upgrading your RAM if your system is running sluggish.

9. Upgrading your video card can improve your gaming experience.

10. A new processor can do wonders to application performance.

11. Make sure Windows is done shutting down before you power off.

12. Use Anti-Virus Software and update your Anti Virus signatures.

13. If your using DSL or Cable use a firewall.

14. Install the latest drivers for your hadrware.

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BGX-Forex Sistem Trading

Following are the conditions and variables where the BGX approach works most effectively:
Suggested Currencies (a1,a53)
· EUR/USD
· GBP/USD
· USD/CHF
· EUR/JPY (a53,a158)
Bunnygirl originally recommended trading 4 currency pairs – EURUSD, GBPUSD, USDCHF,
EURJPY. These pairs were considered to be the ones most likely to respond to her methodology,
based on her own back testing of BGX. However, as recently as April 2005, Bunnygirl had
temporarily discontinued trading the cable (b340), which had previously been her favorite. Since
then, she has picked the cable back up, indicating the flexibility of BGX to work with changing
market conditions.

Recommended Trading Sessions (a11, a158, a520)
· European
· US
· Best Trading times from 06:00 GMT – 16:00 GMT (7 AM UK – 5:00 UK)
Bunnygirl maintained that the best times to trade were the European session and the open of the
US session. Specifically, she indicated that the best time for crosses was at the beginning of the
European session after a flat Asian session (a11, a99, a520). Additionally, she recommended
observing "no touch" days. These are days where the daily or 4-hour bar does not touch the
WMA5. She clarified that this was more relevant to the cable than the other pairs (b197).
Primary Charts
- 30m for crosses (a11)
- 5m for scalping and exiting (a11, a52)
- Daily and 4h for longer term trends (a334)
Bunnygirl uses 30 minute charts to determine crosses and 5 minute charts for exiting and scalping
using the "Gimme Bar" method. She used daily and 4-hour charts to plot resistance points, fibs,
and to check for no-touch bars (addressed later).
Chart Setup
· 30 minute candlesticks
· 5, 20 and 100 Period Weighted Moving Average lines
· RSI 14 indicator with 50 line
Preparation
1. Setup charts for targeted pairs.
2. On the daily and weekly charts, observe any significant patterns, support or resistance points,
and Fibonacci points.
3. Also add the WMA 5, WMA 20, and WMA 100 lines to the daily and weekly charts. Observe
the general trend and whether the price is near any of the WMA lines.
4. On the 30 minute charts, determine any near term highs and lows, chart patterns, or other
resistance points.
The BGX starts with a crossing signal. Crossing signals occur when the WMA 5 and WMA 20 lines cross
each other. Following are the appropriate signals and the ideal position of the WMA 100 line for each
signal:
Long Signal
· WMA 5 Crosses above WMA 20
· WMA 5 and WMA 20 above WMA 100
Short Signal
· WMA 5 Crosses below WMA 20
· WMA 5 and WMA 20 below WMA 100

The signal is not the entry point. Entering at this point may often result in a whipsaw – a rapid reversal
immediately following a cross, frequently occurring in ranging markets.
Also, while these examples show the
WMA 100 either above the WMA 5 and
WMA 20 lines for a bear cross, or below
the WMA 5 and WMA 20 lines for a bull
cross, signals can occur when the WMA
100 is not in this preferred position. There
are, however, rules for trading "into" the
WMA 100 line, which will be discussed
later.

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Money Management

There are three key elements to being a successful trader.
1. Money Management
2. Market Analysis and A Good Trading System &
3. Sound Personal Psychology
We will cover all three of these in this course. Each of these three key elements are
equally important and without all three you will not succeed as a trader. Borrowing an
analogy from Dr. Alexander Elder, a respected psychiatrist and professional trader, in his
book Trading for A Living he says These three essentials are like three legs of a stool
remove one and the stool with fall, together with the person that sits on it. Losers try to
build a stool with only one leg, or two at the most. They usually focus exclusively on
trading systems. This chapter covers the first of the three, money management.
Trading without proper money management is like trying to cross a desert with no water -
you won t make it. As traders, our first goal of money management is to insure survival.
The second goal is to generate a steady rate of return, and the third goal is to make a high
rate of return, survival however, is the first.
NEVER RISK YOUR WHOLE ACCOUNT on one trade is your very first rule of
trading. People who lose money frequently violate it by risking too much of their account
on a single trade. They continue trading the same or even bigger sizes during a losing
streak. Most losers get killed trying to trade their way out of a hole. Luckily, good money
management can keep you out of the whole in the first place.
Let me illustrate how the more money you lose the more difficult it becomes to try to
earn it back. If you have a $10,000 account and you lose 10 percent, ($1000 of your
account), you have to make 11 percent on the account which is now $9000 to recoup that
loss. If you lose 20 percent ($2000) you need to make 25 percent on what is now $8000
to come back. If you lose 40 percent ($4000), you need to make a whopping 67 percent
of what is now $6000, and if you lose 50 percent of your account which would make it
$5000 you need to make 100 percent just to recover your money. While losses grow
mathematically, the profits that are required to recoup them increase almost
exponentially.
This is why it is absolutely crucial never to let these kinds of losses occur, and the only
way to do this is to employ and adhere to strict rules of money management. Amateurs
often ask what percent profit they can make per week, per month, or per year trading
currencies. The answer to that question depends on their skills (or lack of skills) as a
trader, the quality of their trading system, and market conditions. Amateurs however
never ask a more important question: What can I do to insure that I do not lose my
money? You must be sure you are not going to lose your money before you worry abouthow much you are going to make. Proper money management is your best insurance
policy on your trading capital.
HOW MUCH TO RISK
Most traders get wiped out by one of two things, ignorance or emotion. Amateurs act on
hunches and spontaneous urges to stumble into trades they never should have taken
because of unfavorable conditions in the market. Those who survive this stage of naivete
learn to design a better way of trading. When they become confident, the second enemy
comes to their door. Confidence makes them greedy, they risk too much money at one
time, and a short string of losses blows them out of the market.
If you trade with half of your account on every trade, your ruin is absolutely guaranteed.
If you risk a quarter of your account on each trade, you also likely will never survive long
term in the market. A short losing streak will completely wipe you out. Even risking a
tenth of your account on every trade is being more risky than one should if they want to
stay in the market long term.
Professional traders cannot afford to lose more than a tiny percentage of their equity on a
single trade. An amateur has the same attitude towards trading as a foolish gambler has in
Las Vegas. The more money they bet, the more they ll make. WRONG, even the most
successful traders in the world have losing trades, even strings of losing trades and
traders have to insure that the least amount of their capital possible is to be risked each
time.
This is one of the areas of trading where it is absolutely vital to treat trading as a
business. It cannot be treated like a game if one wants to make money. No smart
businessperson would do something to risk half, a quarter, or even a tenth of their
business in a single transaction. Trading has to be dealt with in the same manner. The
general rule to follow is if you are day trading to never risk more than 2-2.5% of your
total equity on any given trade. This means that on every trade, if you trade with 10
percent of your equity, and you will have a stop loss that limits your losses to no more
than 25 percent of that amount. When doing long term trading, like with the 5Minute
FOREX System our stop loss and risk per trade is normally much higher, but this is
okay because of how infrequently you trade compared to day trading. The second rule is
to never have more than three trades open at any given time. So the maximum about you
will ever have at risk is 6-7% of your account when day trading. For those starting with
less than $10,000 the rule for them is to only trade one currency at a time until your
account reaches $10,000. If you are trading with an e-mini account then it is the same,
except you would trade one currency at a time until your account reaches $2000. Trading
in this way will insure that you do not ever wipe out your entire account with a short
string of losses, which can happen with even the best of trading systems and the sharpest
of traders. There is no system in the world that wins 100 percent of the time.
Most beginners have absolutely no rules of money management in their trading strategy.
They risk more capital on trades that look really good to them. They risk less capital on

trades they are less sure about. This never works in the long run because there seems to
be a frustrating version of Murphy s Law found in this aspect of trading: trades that you
risk more money on will almost always be the losers and trades that you risk less capital
on will almost always be the winners. So now we move on to another way to use money
management to insure a steady increase in profits.

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Factors Affecting EUR/USD

The Eurozone: The 11 countries that have adopted the euro in order of GDP: Germany,
France, Italy, Spain, Netherlands, Belgium, Austria, Finland, Portugal, Ireland and Luxembourg.
European Central Bank (ECB): Controls monetary policy for the eurozone. The decision
making body is the Governing Council, which consists of the Executive Board and the governors
of the national central banks. The Executive Board consists of the ECB President, Vice-
President, and four other members:
ECB President- Wim Duisenberg (Netherlands)
Vice President- Christian Noyer (France)
Board Member (Chief Economist)- Otmar Issing (Germany)
Board Member- Tomasso Padoa-Schioppa (Italy)
Board Member- Eugenio Domingo Solans (Spain)
Board Member- Sirkka Hamalainen (Finland)
ECB Policy Targets: The primary objective of the ECB is price stability. It has two main
"pillars" of monetary policy. The first one is the outlook for price developments and risks to
price stability. Price stability is defined as an increase of the Harmonized Index of Consumer
Prices (HICP) of below 2%. While the HICP is very important, a broad number of indicators and
forecasts are used to determine the medium term threat to price stability. The second pillar is
monetary growth as measured by M3. The ECB has a "reference value" of 4.5% annual growth
for M3.
The ECB holds a Council meeting every other Thursday to make announcements on interest
rates. At each first meeting of the month, the ECB holds a press conference in which it gives its
outlook on monetary policy and the economy as a whole.
Interest Rates: The ECB s refinancing rate is the Bank s key short-term interest rate used for
managing liquidity. The difference between the refinancing rate and the US Fed Funds rate is a
good indicator for the EUR/USD.
3-month Eurodeposit (Euribor): The interest rate on 3-month Euribor, deposits held in banks
outside the Eurozone. It serves as a valuable benchmark for determining interest rate differentials
to help estimate exchange rates. Using a theoretical example on EUR/USD, the greater the
interest rate differential in favor of the euribor against the eurodollar deposit, the more likely
EUR/USD is to rise. Sometimes, this relation does not hold due to the confluence of other
factors.
10-Year Government Bonds: Another important driver of the EUR/$ exchange rate is the
difference in interest rates between the US and eurozone. The German 10-year Bund is normally
used as the benchmark. Since the rate on the 10-year Bund is below that of the US 10-year note,
a narrowing of the spread (i.e. rise in Germany yields or fall in US yields or both) is theoretically
expected to favor the EUR/$ rate. A widening in the spread, will act against the exchange rate.
So the 10-year US-German spread is a good number to be aware of. The trend in this number is
usually more important than the absolute value. The interest rate differential, of course, is usually
related to the growth outlook of the US and eurozone, which is another fundamental driver of the
exchange rate.
Finance Ministers:
Germany: Hans Eichel, who took over when his more left-wing predecessor, Oskar Lafontaine,
resigned in March 1999.
France: Christian Sautter replaced Dominique Strauss-Khan who resigned in November 1999.
Italy: Finance Minister Vicenzo Visco, Treasury and Budget Minister Giuliano Amato.
Economic Data: The most important economic data is from Germany, the largest economy, and
from the euro-wide statistics, still in their infancy. The key data are usually GDP, inflation (CPI
and HICP), Industrial Production, and Unemployment. From Germany in particular, a key piece
of data is the IFO survey, which is a widely watched indicator of business confidence. Also
important are the budget deficits of the individual countries, which according to the Stability and
Growth Pact, must be kept below 3% of GDP. Countries also have targets for reducing their
deficits further, and failure to meet these targets will likely be detrimental to the euro (as we saw
with Italy s loosening of its budget deficit guidelines).
Cross Rate Effect: The EUR/USD exchange rate is sometimes impacted by movements in cross
exchange rates (non-dollar exchange rates) such as EUR/JPY or EUR/JPY. To illustrate:
EUR/USD could fall as a result of significantly positive news in Japan, that filters through a
falling EUR/JPY rate. Even though, USD/JPY may be declining, euro weakness spills onto a
falling EURUSD.
3-month Euro Futures Contract (Euribor): The contract reflects markets expectations on 3-
month euro-Euro deposits (euribor) into the future. The difference between futures contracts on
the 3-month cash eurodollar and on the euro-Euro deposit is an essential variable in determining
EUR/USD expectations.
Other Indicators: There is a strong negative correlation between EUR/USD and USD/CHF,
reflecting a steadily similar relation between the euro and the Swiss franc. This is because the
Swiss economy is largely dependent upon the Eurozone economies. In most cases, a spike (dip)
in EUR/USD is accompanied by a dip (spike) in EUR/CHF. The inverse also usually holds. This
relationship sometimes fails to hold in the event of data or factors pertaining solely to either of
the currencies.
Political Factors: As with all exchange rates, EUR/USD is susceptible to political instability
such as a threat to coalition governments in France, Germany or Italy. Political or financial
instability in Russia is also a red flag for EUR/USD, because of the substantial amount of
Germany investment directed to Russia

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The Sidus Method

What do you need?
- 1H (of 30MIN, but you wil get wore whipsaws) candlesticks/bar charts
- 18 EMA & 28 EMA (put them in red)
- 5 WMA (in blue) & 8 WMA (in yellow)
The 18 EMA & 28 EMA are two red lines who form a tunnel, these will help you to determine the start
of a trend and the end of a trend.
Long term
The WMA & 8 WMA will show you when to enter a trend, they will also help you to see the strenght of
the trends.
Short term
Entry Signals
! You should only open a position, when the red tunnel is extremly narrow or crossed !
LONG: 5 WMA & 8 WMA cross the red tunnel upwards.
If the 5 WMA also crosses the 8 WMA upwards, then the signal is extra strong.
SHORT: 5 WMA & 8 WMA cross the red tunnel downwards.
If the 5 WMA also crosses the 8 WMA downwards, then the signal is extra strong.
Exit Signals
Signals that show the end of the chosen trend:
- Long: The price has reached a top and 5 WMA dives under 8 WMA
Close position
- Short: The price has reached a bottom and 5 WMA jumps above 8 WMA
Close position
Always close your position when boundry’s of the red tunnel cross eachother or when they become so
narrow that they are one! This is a clear sign of a trend reversal. After you see this, close your position
and open a new postion in the other way (If you were long, close, open a short postion)
When in a trade and the 5 WMA & 8 WMA cross the red tunnel -> Pay attention! As long as the red
tunnel boundy’s doesn’t cross eachother there is no problem, but often this is a sign that they will!

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