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Forex Options Trading – the Wonder of Technical Analysis
March 10th, 2010 | 
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Traders in the largest financial market in the world known as the foreign exchange are all too familiar with the fact that about 90 to 95% of all traders in the world lose their money and only a handful of traders, which are considered as elite, are able to make serious money out of this business venture. So, why is it that only a few are able to make money? What can you do in order to avoid becoming a simple part of the majority? For starters, you can learn how to analyze the forex market.
Those who are able to keep up with the market and earn big money all have systems and strategies when they trade. The most common mistake in trading is to trade every day without any sound strategy. To be able to make a good strategy, you must first understand the facts of the market and somehow predict what’s going to happen. This is where the forex technical analysis comes in.
The forex technical analysis is one of two ways to analyze the foreign exchange market and to look for the different trading signals. This type of analysis is based on the previous facts and performance of a currency as well as using charts and other statistical data. In other words, predicting what is going to happen tomorrow is based on what happened yesterday. This is a more common way to analyze the market as it is a simpler, more efficient method to learn about the movements of prices in the market.
Timothy Stevens
http://www.articlesbase.com/currency-trading-articles/forex-options-trading-the-wonder-of-technical-analysis-678334.html
Posted in forex day trading strategy
What should I day Trade?
Hi I am a finance major who has spent a lot of time studying stocks, futures, forex and options.. I want to try out some of the technical analysis I have been studying and was wondering which would be the best to trade?
If you’re a finance major, you should have learned by now that day trading is a terrible idea. On average, any gains you make will be totally negated by transaction costs.
Also, I don’t think technical analysis is designed to be applied to the extremely short time intervals involved in day trading. Head and shoulders formations mean nothing in the span of 4 minutes.
Go read "A Random Walk Down Wall Street" by Burton G. Malkiel. It will put the stuff you learn in finance class in a real world perspective that will keep you from doing silly stuff like day trading.
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I concurr with Videocrew. The best way to make money in stocks is to buy high quality companies and hold them forever. Buying and selling is for chumps. Daytraders are the biggest chumps.
Also, Fundamental Analyses is much more accurate than the voodoo that is Technical Analysis. I believe 80% of the Street would agree with me. We use those charts to hypnotize people into buying and selling NOW! so we can book a commission.
Read "Securities Analysis" by Graham and Dodd. It’s been a classic for 70 years for a reason–it’s Warren Buffet’s bible.
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I was a Stockbroker for 11 years and I could never tell my clients what I just told you…I’d have gone broke.
You should have a look at this guys videos (and so should those who answered saying day trading isn’t s good idea!)
http://www.daytradingfreedom.com/videos
He makes like – a thousand or two thousand dollars in an hour day trading, and it looks pretty easy to me. But then I’m not a business or finance student, so maybe I’m less blinkered in my ideas!
SJ
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You do know you cannot daytrade with less than $25,000.00 USD by law, right?
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Day trading of US stocks is the best because it is time efficient. You don’t want to be parked in front of your PC all day and night. Try this course :
http://cool101e.hnetltd.hop.clickbank.net/
It will focus your attention where it can do the most good (ie make money) in the least amount of time.
Whatever you end up doing I hope it helps you to reach your goals. I’m well on the way to meeting mine!
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