James Gault's blog

Picture Of A Winner Part 1

Most that trade futures have the capacity to develop winning styles . However , most cannot resist deviating from their styles that win for them most of the time. The winner sticks to a winning style and knows that this requires patience and perseverance . Learning from a technical analysis course, a winner has the strength to wait for the opportunities for which his style is tailor-made . The winner is a controller first . He loves to focus on the loaded trades . He'll make a list on paper for making a certain trade . A winner realizes that there are very few sure thing trades the best trades are never overlooked by him and he sits tight on good positions . That discipline pays off!

He recognizes his imperfections, but taking a turn is his intent and knows that there is no easy way for doing it . Sound fundamentals are thoroughly assessed by him . In many cases , he will talk about all the market aspects he is involved in . Winners smell fear and ruthlessly act. He analyzes the human element of the market .

His style is magnificent . He's quiet, peaceful, and calm . He probably looks like he's bored. (He probably is). His eyes twinkle . Life and people are enjoyed by him. Just remember, be careful if you interfere with his plan or get too close to him - attempting to extract information, or an idea about what he's trying to do, - to ask his opinion of the market ,- what will occur! See what happens if you try to bug him . Otherwise he'll try to shower you with his glimmering ambience.  These are the signs of a technical analysis course graduate.

He both recognizes and develops his skills of behavior . He possesses the tremendous self-control needed to override rehearsed and developed sterile habits .

They are practical. They will never hold a position during a vacation . Sometimes they exit from the market to reappraise the situation, figure out profits, and take a rest . He learns the causes of his successes (not his failures). He records its perseverance . He knows that the winning style pays off. He knows and controls where his place is in the environment. He realizes that huge profits can be earned by those who can accept the emotional risk of going against universal opinion . He's wary of bucking a trend, but also realizes the opportunity it presents . He knows the time to strike, - striking with L analysis of his own and the reaction of the market to fundamentals. He outguesses tomorrow's price changes , [PL charting], since they likely depend on the news or anticipated news of tomorrow ;- weather changes, strikes, or a newly released crop estimate. His discipline and awareness results in a low aversion to risk . A technical analysis course show's that he's pragmatic. You don't need to share that people with low aversion to risk, whether optimistic or pessimistic , are most likely to profit .

Charles Drummond is a Canadian trader who has written nine books about trading and has created a technical analysis course called “Drummond Geometry." His biography and further information about his work can be found at the technical analysis course website.

Thinking Like A Winner - Technical Analysis Course

I have to tell you something. There is really no thinking by the winner. Are you surprised? In reality, he is almost bored by it all .

I'm talking about the point his mind decides to strike within the market . His mind has stopped thinking, at least momentarily . His mind has relaxed , sine the thinking is done and he knows the game plan.

Perhaps his mind will rest for a week , while his execution is in the market . He decides that if he's not in profits by one week , then he gets out, or he has another rule in place. His mind goes right to the task , maybe after that one week - or when his mental alarm system is permeated by a signal that there is a problem with prices , with the reaction to the news by the market - the market is just not doing what it is supposed to . His mind adapts fast.

He may make the choice to get out of the market until he's able to understand by thinking what has occurred. His mind is sharp enough to know what is to be anticipated from his technical analysis course and any deviation from that is thoroughly analyzed . He takes into account the "noise" of the market . The news is digested on a level that is close to subliminal. He applies news consumption to its affect on the market . His mind is introspective, aware, and self perceiving ! His mind continuously is totally aware, self perceiving, and introspective, thoroughly researching it's own attitudes and emotions , determining the influence of the market on him by probing his inner feelings .

He ensures he keeps his mind from thinking about the terms of quick killings and knows that commodities will always be there tomorrow and that a train leaves a few times a year, each month, or even every day.

He rarely places the blame on others for his mistakes . He plays fair with others . He doesn't allow others to influence his inclusive mind unless it's a mutual enlightenment, as it is yet expansive and all encompassing, - analyzing, questioning, appreciating . Most importantly, enjoying what it does . It is not grappled by the nightmare of emotions, fear, and greed . It shuns all destructive elements . It longs for healthy nourishment. It drinks at the trough of knowledge and rejects any stimulation that is artificial . Fancy words! - But it is true!

Most of all, he has a sense of humor. While being sympathetic to losers his mind can laugh quietly . The loser is respected . The mind respects experiences that it has already gone through. In fact, it respects everything . The human element is only allowed emotions of compassion and sympathy, and in some cases the indulgence of pleasure. It may tell the host " I know you love Beluga caviar go buy a few hundred dollars of it since you made a large amount in the market, and allow yourself to indulge . Go head and eat it because I think it's a great thing for you".

It coasts and enjoys any new information, such as with a technical analysis course, but screens it as thoroughly as a bean picker at the supermarket .

It finds the good elements in the book, and refuses to memorize anything about losing . Instead it gets involved with good things in a technical analysis course and carefully selects what it accepts, keeping the golden rule in mind - "Keep it Simple". It has patience, it is able to think when required . It is able to sit and wait, since it is so well disciplined .

Maybe the mind is lazy . Perhaps just sitting and waiting is what it wants. There's already so much expected of it . A well honed mind is in such good shape that like a jogger who easily does 10 miles , - that catching the bus while running is easy. Because it is well trained and honed it can be lazy and take it easy . It doesn't have to be worrying about "sprinting to the bus" - so lazy and so well tuned that it can just sit and wait for the silly little demands that the market place makes of it . It handles everything like a pro - life and trading on the market bring it joy - heaven on earth, and the radiance of the mind shines out like beautiful diamonds falling on those all around, including the host.

Charles Drummond is a Canadian trader who has written nine books about trading and has created a technical analysis course called “Drummond Geometry." His biography and further information about his work can be found at the technical analysis course website.

US Non-Farm Payrolls And Forex Trade Signals

Most people who get involved with forex trade signals do not realize how significant to the global financial markets the US Non-Farm Payroll happens to be. I often get the question , " why each month does the number of US jobs led to ups and downs in the market?" To answer that question it is important to look at what is represented by the US jobs number . This gives insight into why nothing else can make the markets move in this way.

The US Non-Farm payroll report is released on the first Friday of every new month . It is released by the US Bureau of Labor and Statistics or (BLS) and what it quantitatively measures , is the number of brand new jobs, excluding farming, created in the prior month by the US economy . This announcement is so important because the health of the US and global economy are both reflected . Just remember, the US economy is the largest in the world and the single largest component that drives the US economy is consumer spending ; actually making up 70%!  This means, in forex trade signals, because a country's interest rates is the number one factor affecting the strength or weakness of its currency , you must look at the rates and what is driving them; or the US Federal Reserve's interest rate policy . The jobs report is probably the single most important piece of fundamental data that the Fed uses to set short term interest rates and because it works this way, often the Non Farm Payrolls report actually can, can lead to market volatility.

Why does the jobs report have anything to do with where the Federal Reserve sets short term interest rates ? A wonderful question! If you have a strong jobs report that generally means that people are employed and resource utilization is high . This also means that companies are employing workers and the consumers, or workers, are then spending money by shopping, dining out, or on clothing, and all of these things drive the economy ; they help to heat or grow the economy. There is more money in circulation when the economy is growing and inflation must be kept in check by the Federal Reserve . They cool the economy and keep inflation in check by raising the short term rates, or they lower short term rates to raise inflation and heat up the economy . So it's easy to see, the jobs number is one of, if not the primary factor , driving all this right under the surface.

So next time you are preparing for your forex trade signals week or the next day, remember to take a look at the events calendar for the fundamental information that is scheduled to be released that upcoming day or week . If it's the first week within a month then on that Friday there will be the release of the Non-Farm Payrolls report since this is always the day of release. If you're planning to take advantage of market volatility that occurs when this jobs report is released, just remember the following formula : A stronger economy usually is going on if the numbers of jobs are stronger than expected which means short term interest rates will go higher, strengthening the currency . Oppositely, if there is a weaker than expected jobs report usually you'll get short term interest rates that are lower, causing weakness of currency . It doesn't always happen this cut and dried, but you can have a leg up on competitors with knowledge of these general parameters .

David F Dacosta - Is a private trader using technical analysis to do forex trade signals & futures trading. David makes specific trade recommendations for a small select group of traders. He uses drummond geometry to make his forecasts. Click Here for training materials and a free forex trading forecast.

Money Management Basics And Forex Trade Signals

Forex trade signals allows just about anyone to make a quality living. And what better way to do it than waking up in the morning , having a cup of coffee , and then setting up the trading day while in your pjs ? Sounds great! Hang on because although it can be relaxing as well as easy most people quickly find out that it is not that easy at all . That's why this article is dedicated to basic money management principals - because if you have your money management game-plan in place your odds for success are much, much higher .
Why , if this is such an important area of money management , do many people choose to ignore or overlook this? That's a great question and one you need to take a hard, long look at if you want to succeed . My own feeling is that most people skip right over this aspect of trading , money management principles, because it's not something that is "sexy". In reality , how many sexy or interesting accountants do you know ? That's what this is really about ; boring numbers and more boring numbers .
That said , it is only going to be boring if you approach it in this way. If you look at it as a drag then it will be a drag and you won't want to do it . If you look at this as an important key to becoming a forex trade signals professional and the possible success ahead if only you'll take enough time to think through your money management tactics ....well then, it can become pretty darned exciting .
Now you know you really have to focus on this. Wonderful ! What is it about ? The following are the keys by importance, follow these and you'll be off to a great start : over leveraging yourself should never be done, the leverage on each trade should be consistent , never add to losers but add to winners . That is all . Sure there are tributaries to all the above but they are quite powerful alone.
The next time you're wondering why your trading level has not progressed the way you hoped it would , remember the money management keys. Here is one more thing you must consider : managing your money in a solid way will provide incredible psychological benefits . These benefits will help you go beyond what you though possible when it comes to your trading. Why? If you have no fear of losing money, or you have a great plan that makes sure you'll be able to trade another day , then you can finally start to look at the markets from a clear and relaxed state and this will bring about serious profit .
Forex trade signals can be the most rewarding, yet challenging thing, you will ever do . Remember that usually the best keys to success are the simplest and most obvious things . You've all been searching for the holy grail in trading - and money management is it .

David F Dacosta - Is a private trader using technical analysis to do forex trade signals & futures trading. David makes specific trade recommendations for a small select group of traders. He uses drummond geometry to make his forecasts. Click Here for training materials and a free forex trading forecast.

Learn More About Forex Trade Signals Currency Pairings

When I talk to people who have not tried forex trade signals before, even those involved in futures, stocks, and bonds , it makes me remember that for this global market, even the very basics must be explained. So let's take a good look at pairings, what they mean, and what the main and cross pairings happen to be .

Currency pair. What is it? Let's start with the Eur/Usd this has as the base currency the US dollar against the Euro . What is the meaning of the pari when I have a price quote that is 1.3200 on the Eur/Usd? The easiest way to remember the answer is this : take the base currency pair , the US dollar here, look at this price quote of 1.3200, then you say, " 1.3200 US dollars are needed to purchase 1 Euro." That is exactly what that price quote means . Perhaps a few months later you check out the price quote and now it is 1.4000 then that means the US Dollar as gotten weaker against the Euro because it now takes 1.4000 US Dollars to buy 1 Euro . On the other hand, if the price quote is 1.2500 a couple of months later , then the US dollar has gained strenght since purchasing one Euro will only take you 1.2400 US dollars .

Forex trade signals can be especially challenging when for example you see a price quote on the Usd/Jpy pair for 100.50 . Using the method we discussed, simply take the base currency of Jpy and look at the 100.50 price quote and that is how many Jpy it will take to buy 1 US Dollar . Pretty easy huh ? Now you will have no difficulty understanding the price quote on any pair the next time you look at a chart screen or a quote window .

Now that we know how to read the price quotes , you may wonder what are the cross pairs and the main pairs? Well the main pairs are usually the strongest economies throughout the world versus the US Dollar . Just a few pairs considered main pairs include the Mzd/Usd, Aud/Usd, Usd/Jpy, Gpb/Usd, and more. A cross pair is a pair not involving the US Dollar such as Eur/Jpy, Gbp/Jpy or Eur/Gbp to name a few of the more popular ones .

Hopefully you'll be helped by this article if you have been intimidated by the forex trade signals landscape in the past . It can take a while to get used to it with all the time zones, economies, and currency pairs out there. But once you start to wrap your mind around how all of the pieces fit together it's not that difficult - and many actually find it exciting and fun !

Understanding Forex Trade Signals Time Zones

AudJpy_WeeklyCharts

For an average trader, forex trading time zones can be intimidating and difficult . Like most traders , when I started in this global, cash, 24 hour market, the time zones issue never made a whole lot of sense to me . That changed over time however and within the article I'll let you in on a few basic insights on how the 24 hour market is handled by me and hopefully this will give you some help when getting prepared for another big trading day.

Consider where you live first, or where you plan to do most of your forex trade signals trading from. This will be the single greatest factor affecting how this 24 our market is looked at . For an example let's say that California is where you life on the West Coast of the United States in the Pacific Standard Time (PST) zone which happens to be three hours behind the time on the East Coast .

Now that we know the trading will be done in California, which is three hours behind the East Coast , we can begin to plan our forex trade signals trading day. In this market that goes 24 hours and never sleeps (but gets very quiet on weekends and major international holidays such as New Years ) the day is rest and stops when the financial centers in New York close at 5pm or close to that in Eastern Standard Time and then banking centers like Hong Kong etc in the Far East open and start a new day at roughly the same time. Taking this into consideration it is best to set your trading charts up so that the daily bar or candle that you are using closes at 5pm EST every day .

So now we've determined that we are trading from the West Coast in the US which is three hours behond New York's EST and we also know when this 24 hour market stops and resets for the next day . The next thing to consider is when you will get ready and plan for the next day . If you're living in California , as in this example , and you're a night owl then the London session is what you may want to prepare to trade which is from 1am-4am PST or 4am- 7am PST. Perhaps you like sleeping and you want to sleep through the session in London but getting up early is no problem , at about 4am Pacific Time so you get a look at the end of the London session and prepare for the start of the New York session which will really get going around 5:30am PST (8:30am EST) . Perhaps getting up early isn't your thing and so you'd prefer to be a middle of the day trader ; this is not a problem. Simply wait until about 2pm Pacific Standard Time when the day begins in Tokyo and this session is when you can do your trading.

Now you've got a clear handle on what the major forex trading time zones are all about and you can accordingly plan your days . Keep in mind , planning and preparation are perhaps the two most over-looked, yet important factors of success in all businesses, including this one.  Thinking this through you should be able to plan your forex trade signals day.

Forex Trade Signals

 

TBonds_MonthlyCharts

Forex Trade Signals

 

TBonds_MonthlyCharts

Forex Trade Signals

TBonds_MonthlyCharts

 

Understanding What Forex Trade Signals Is All About

Well, first and foremast , forex trade signals, like any speculation form, has one main goal; make some money ! If this premise is what we start with , that our goals is making money, then in a massive global market market, how do we do this ?

First you must decide whether you're a fundamental or technical trader, or perhapse both . In the future we'll have more articles regarding this topic, but we'll assume for now that you keep track of current events and world affairs and you are more attracted to fundamental trading . Then you must ask yourself , what are the most important factors fundamentally driving currency movement ?

If the fundamentals is what you're focusing on , there is one thing above all else that will drive your forex trading decisions ; differentials in interest rates between countries . You may wonder what an interest rate differential is? That is a very good question! Let us suppose that the Australian Dollar has a short term interest rate of 4% . This means that if you live in Australia and you're in debt this base rate helps to determine what you pay on mortgages, credit, and other debt. Also, if you happen to be a creditor you can use this 4% short term interest rate as your base rate that decides how much your investments make; things like certificates of deposits (CDs) at the local bank . Now let's suppose the US Dollar has a short term interest rate , set by the Federal Reserve , at 1% . How are currency movements affected by all this ?

If the Australian Dollar short term rate is at 4% and the short term rate of the US Dollar is 1% it's all as simple as this : a higher yield is sought by investors and since there is more interest in Australia then they take funds and move them to Australia. The investment shift of capital leaving the United States and moving to Australia leads to a weakening of the US Dollar because supply is larger than demand and this strengthens the Australian Dollar since the demand is greater than its supply. Economic fundamentals are working here ; where there is more demand for something its value will rise .

Next time you think about your forex trade signals and your next position, you should ask, " which country will moving forward have higher rates and what country probably will have the lower rates moving forward?" Then, buy the currency that you favor for higher interest rates and sell currency favored for interest rates that are weaker and see profits increase as investors leave currency that is weaker and go towards the one that is stronger. This is the essence of forex trading.

 

 

 

Forex Trading -- June 21, 2010 Drummond Geometry Daily Forecast called 115 pip profit

 

 

 

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