After the weekend, the Sydney traders generally do not have the oomph or desire to reverse any meaningful decline seen in NY. They are therefore happy to see the prices steadily drift in the direction NY left them until Tokyo comes online.

Many losing traders don’t close their positions during the weekend expecting the market to miraculously reverse itself during the weekend. Just keep this in your mind that don’t expect for a miracle reversal in the direction of the price action on Sunday if you have a losing position. Once Tokyo and London enter the market, the direction may be reversed. But often by then traders nursing losing positions will have already been stopped out.

After a Friday with extreme volatility, however, this typical pattern is enhanced and turns into a low risk trade opportunity for traders. The Friday to Sunday price extension in the forex market is a good opportunity to make low risk 10-30 pips. The reason is simple. On economic data heavy Fridays, prices usually end up several hundred pips away from where they started the day.

This leaves the Sydney dealers with a mess on their hands by the time they start trading early Monday morning. As they go through their motions of processing the outstanding orders that the moves in NY have created, this activity shows up as a Sunday morning bump.

Suppose a big economic number is released on Friday morning in NY. It causes the currency prices to jump wildly in both directions. Eventually the market settles for a direction and proceeds to follow it for the rest of the day.

Once European traders go home, liquidity quickly dries up and the NY traders begin to plan their weekends. In this 3-5 pm window, the price will slowly trickle in the same direction until the close of the week.

The market is too thin to stage any kind of meaningful reversal. This window of opportunity enables traders to safely enter the market in anticipation of a Sunday extension.

The move is quickly extended further for 10-50 pips before settling in for a Tokyo open when Sydney opens the new trading week. You can position yourself ahead of the market by entering yourself in the general direction of the market during the 3-5 PM window.

Trading the Friday to Sunday extension is simple, yet highly effective. This high probability outcome combined with a limited downside gives this trade great risk-return characteristic.

Talk about making money while you sleep. All that you have to do is to close your eyes, enter in the prevailing direction of the market during the 3-5 PM window and return on Sunday evening NY time to collect your 10-30 pips.

So I was reading a story in the Wall Street Journal last night and I came across a well muted tidbit of information that, if it continues, could serve to hurt the Dollar in the near and demolish it in the long term.

China, the US’s largest investor, sold off a significant chunk of its T-Bills in June. Now, in recent months there has been much talk from China about their concerns regarding the US’s debt load, but trust me on this, they would not be selling the debt at this time if they did not have to.

If they did, they stand to lose a serious amount of money if the prices go down based on the sheer volume as well as psychological implications of the act.

According to other sources I read after my curiosity was peaked, it seems as if the Chinese government is spread a bit too thin right now – having increased their feverish purchase plan of almost every natural resource in the Eastern hemisphere while investing heavy in mineral and oil excavation Africa as well.

In an economy that thrives on exports to be spending as large as they have been under conditions that are being equated with the Great Depression is just plain crazy – and culturally it was probably not easy for them to stop when they realized this.

Culturally, the Chinese are all about not making mistakes or miscalculations and while they were saying things were fine, they were really not.

The theory here is that the Chinese need to unload some of the 3 Trillion greenbacks they have to raise cash – by no means am I saying that China is in trouble, but they are not as well off at this point as everyone thought. If this is the case, Forex traders can worry if they are long Dollar positions.

The fact is, the Chinese have so much impact on the Forex at this moment based solely on their reserve levels, that the hint of a selloff would panic the market.

I don’t believe the Chinese want to hurt the Dollar, I will say this a thousand times, it is not in their interest to do so.

I just think that their needs might inadvertently lead to this and there is nothing anyone can do about it. For now, I will keep my nose in the online Forex world and ears to the whispers – perhaps I can help make more sense of this as the weeks go by.

More online So I was reading a story in the Wall Street Journal last night and I came across a well muted tidbit of information that, if it continues, could serve to hurt the Dollar in the near and demolish it in the long term.

China, the US’s largest investor, sold off a significant chunk of its T-Bills in June. Now, in recent months there has been much talk from China about their concerns regarding the US’s debt load, but trust me on this, they would not be selling the debt at this time if they did not have to.

If they did, they stand to lose a serious amount of money if the prices go down based on the sheer volume as well as psychological implications of the act.

According to other sources I read after my curiosity was peaked, it seems as if the Chinese government is spread a bit too thin right now – having increased their feverish purchase plan of almost every natural resource in the Eastern hemisphere while investing heavy in mineral and oil excavation Africa as well.

In an economy that thrives on exports to be spending as large as they have been under conditions that are being equated with the Great Depression is just plain crazy – and culturally it was probably not easy for them to stop when they realized this.

Culturally, the Chinese are all about not making mistakes or miscalculations and while they were saying things were fine, they were really not.

The theory here is that the Chinese need to unload some of the 3 Trillion greenbacks they have to raise cash – by no means am I saying that China is in trouble, but they are not as well off at this point as everyone thought. If this is the case, Forex traders can worry if they are long Dollar positions.

The fact is, the Chinese have so much impact on the Forex at this moment based solely on their reserve levels, that the hint of a selloff would panic the market.

I don’t believe the Chinese want to hurt the Dollar, I will say this a thousand times, it is not in their interest to do so.

I just think that their needs might inadvertently lead to this and there is nothing anyone can do about it. For now, I will keep my nose in the online Forex world and ears to the whispers – perhaps I can help make more sense of this as the weeks go by.

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The IvyBot Bonus List

Bonus one : Free Indicator Market Watch

The’Market Watch’ indicator is a very easy indicator to follow. Just place it on your chart and follow the green and red lines. When the indicator shows a number of rising green bars, you know that the strength of the currency is rising. When the indicator shows a number of rising red bars, you know that the power of the currency is falling. It’s that simple, when you see green you buy, when you see red, you sell.

Bonus two : Free Indicator Session Profile

‘Session Profile’ will take your trading and technical research to a whole new level, allowing you to further monetize your currency exchange success. This custom indicator is unlike anything in the market today.

The’Session Profile’ indicator is also extremely simple to follow. Once placed on your chart, you’ll see three large boxes. They outline the different global trading sessions. You’ll be able to identify the open, close, high, and low of each one of the three major world trading sessions : Far East, Europe, and America.

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Get one month’s access to live webinars and other trading services that premium currency exchange traders get daily support from in the form of daily live foreign exchange webinars,news and industrial calendar research, a forex toolbar with daily tips for sticking with your trading plan.

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Let’s take a run away trade example. Suppose you believe that the currency pair EUR/USD is overbought and is near the top. You believe the rate may fail near the resistance level 1.2453. You take an initial short at 1.2433.

Your plan is to scale into the position. This is your first shot. You want to stay flexible. You are looking for a swing trade back to the support level 1.1983. This will give you a 450 pip profit when you close your position on reaching this support level.

You place a 150 pips stop loss at 1.2583. This gives you a risk/reward ratio of 150/450=1/3. This risk/reward ratio is really good. You expect that the maximum the rate would go is up to 1.2583.

EUR/USD pair rallies taking out stops to print a new high of 1.2490 on reaching 1.2453 resistance level. You are not surprised. You knew it could happen so you had placed your initial stop loss at 150 pips.

You take advantage of the higher levels to place your second short at 1.2493. Now you are two short at an average cost of 1.2493+1.2433= 1.2463. You replace the stop loss of 150 pips with two stop losses of 75 pips each (150/2).

The EUR/USD pair begins to sink. You are happy. You plan to place a third short when it reaches the level 1.2383 (70 pips below the initial resistance level of 1.2453) since that will be an indication that the momentum is picking up steam to the downside.

You are unfortunate again. The EUR/USD pair does not break that level. It rebounds at 1.2463 and is soon testing the highs again. During this rebound you can choose either to cut the trade at cost or stick with it. You could have closed your position at 1.2463 taking a loss of 30 pips on your first short and a profit of 30 pips on the second short to end up with a zero loss. Learn swing trading. Get good forex training. Dicover a revolutionary new forex robot.

You don’t do that instead decide to let the rate go up with a belief that the pair will rebound after going beyond 1.2500 level. The rebound does not take place and the rate continues to go up and reaches the 1.2470.

Still you are expecting a rebound around 1.2503 so you decide to throw all your cards by going short again at 1.2473. Now you are short 3 lots average 1.2503+1.2493+1.2433= 1.2466.

Whenever the market is faced with something it can’t do. It proceeds to do exactly that. Trying to out think the market is never a bright idea. This is because the traders just like you who have been caught on the wrong side of the market are all sitting on the same trade and are vulnerable.

This simple trade is now looking like it may very well take a large chunk out of your account. The EUR/USD rate reaches 1.2550. You are in trouble now with an unrealized loss of 107+57+47=211 pips. First practice on your forex demo account. Learn the forex charts.

The stress level increases. You are tempted to simply stop the pain, get rid of it all and regroup. Stubborn traders may be tempted to double up and bet on a decline.

Pride has no place in forex trading. The market proved you wrong and you need to move forward. The pair EUR/USD does not want to reverse any longer and is set on going beyond 1.2550 level.

The one thing that can save you during this bad time is that currency rates do not move straight up or down. Currency rates have a tendency to make a move, consolidate then continue. This stair case pattern is evident in most financial instruments. It simply indicates the accumulation/distribution stages of a move.

Longs may take some profits and the shorts may get stopped out and both need time to set new positions. You should consider these consolidation periods as your window of opportunity.

You look for a dip and a consolidation period to free up part of your position. You get rid of one lot at 1.2553 taking a realized loss of 107 pips. Taking a loss hurts but we have now given ourselves more flexibility and more margin. Now you have two lots short.

We wait for a range to develop. This soon takes place as a rough 100 pips range develops and trades for several days. You realize that a range has developed. You actively start to trade it with the third lot. Know range trading.

By trading the range that inevitably develops after each uptrend or a downtrend, you can cut your losses. This technique proves effective. You are nimble enough with intra day trades to quickly pocket a good amount of pips to offset some of the loss that you have taken by removing all the stop losses.

This way you can reduce your loss. The currency prices can never go up and up and up. It will at one point pause and try to consolidate. You have taken advantage of this fact. Lesson is to reduce your total exposure and try to manage it instead! But sometimes it is always good cut and run. You be the judge of your decisions.

Let’s still suppose that there is a run away trade confronting you. Although in my opinion if you follow proper money management rules, this type of situation should never arise. What we are talking about is a run away position that has the potential of wiping out the equity in your account.

Most traders have two choices when holding onto a big loser. 1) Cut the position immediately and avoid a huge loss. 2) Try to average down and hope for a turn around in your favor.

In one you should accept a big monetary hit. In the second approach you place all your chips on the table and hope for the best. Neither approach is attractive. Good news for you. There is a third way those great traders always use.

Great traders once they realize that the market has proven them wrong they slowly begin to trade their way out of a losing position. Great traders simply refuse to take an outright loss by way of a stop.

So once you realize that you have a losing position that you need to get out, your mission should be to better your average cost without adding to the position. Adding to the position will only create more pain and sorrow for you.

Adding to a losing position can also quickly take away your flexibility as the loss grows and becomes unmanageable. You need to cut part of it to create a more breathing room for yourself and be able to trade out of the rest.

Suppose that you had gone short in a downtrend. After sometime the trend suddenly reversed and turned into an uptrend. Now you are in a losing position because the trend has reversed. You have three choices with you:

1) Hold onto the losing position and hope that the trend will again reverse itself before you receive your margin call. 2) Get out of everything and take a substantial loss. 3) Cut part of the position on any reasonable dip.

There are two benefits of cutting your position on a dip. Firstly, although you are going to take an initial loss, you are in fact freeing up liquidity to react to future price moves. Any move now is a good move.

If the currency pair bounces higher, you can reload at better selling levels to improve your average cost. On the other hand, if it immediately collapses then great, it is moving in your direction.

Elliott wave analysis tries to separate the price action into a number of waves that give valuable information about the duration of the trend. R.N Elliott discerned various types of wave patterns and labeled them. He discovered that there are basically two types of wave patterns. 1) Impulse wave. Impulse waves are waves that move in the same direction of the main trend of the market. An impulse wave consists of five smaller waves.

An impulse wave is a wave that moves in the direction of the market trend. It subdivides into 5 smaller waves. Waves, 1, 3 and 5 move in the direction of the market main trend. Waves 2 and 4 move against the market main trend! They are called corrective waves.

2) Waves that move counter to the direction of the market trend also known as the corrective waves consisting of three smaller waves. Waves therefore can be analyzed in times periods ranging from a matter of minutes to days to months and years.

Wave 3 is usually the longest and the strongest wave. In wave 1, the currency pair makes its initial upward move. In wave 2 the currency pair is considered overvalued.

The most difficult part of Elliott wave analysis is correctly labeling and counting the waves. Elliott discovered that each wave whether impulse or corrective subdivides into smaller waves or is part of a larger wave.

A correct counting of the waves can help the analyst to achieve amazing accuracy in forecasting the market. An incorrect wave count however, will give a wrong forecast. Wave counting is quite subjective. It usually results in as many forecasts as there are Elliott wave forecasters.

Some traders believe in Elliott wave principle while others don’t. Some people say that Elliott wave analysis is useful only in hindsight meaning it is not useful in predicting the future course of the market. However, majority of people who have used Elliott wave analysis strongly disagree with this proposition.

Even if you are not interested in Elliott wave analysis as a trading technique for short term profits, an understanding of Elliott waves still have value because it brings to the investor a strong historical perspective.

Markets that go up eventually do come down. Markets never go in one direction. The sheer power of the Elliott wave analysis as a forecasting tool creates a great deal of confusion and worry about the market.

The followers of the Elliott Wave analysis believe that market timing is of critical importance in investment decisions. It is up to you to make a decision whether market timing should be of consideration when you make your own investment decisions.

The first thing we must determine is whether there is such thing as a good forex software, let alone one that deserves to be regarded as the best among the many you can find out there.

The answer to this basic question is undoubtedly yes, there are a few good and reliable forex software, but I must emphasize the fact that only a handful of them can be trusted with your investment. This is something I have learned through a painful process of trial and error, but one that certainly has not kept me from pursuing a higher profits through the use of technology.

In this context it is now time to determine, which is the best forex software, based on several important factors:

As important as the answer to this question is, we must first understand that there are usually two kind of forex software we can find and use, and assessing which one is the best is not only a matter of how reliable or how much of a good performer it is, but also what are your needs as a trader.

The first kind of software or service you will find is meant to deliver signals (with indications to enter and exit the market at a particular time), and there are a few really good ones that do work consistently toward the growth of your equity. However, this type of software has a downside, you have to remain attentive to the signals at all times since the forex market runs 24 hours per day during each business week, so performing well with the help of one of these systems is perfectly possible, but you will need some time to spare during the day and probably endure a couple of late night trading sessions.

The other type of forex software you may find these days are commonly known as expert advisors, and they as their cousins have the ability to scan the forex market for good entry and exit points within a particular currency pair, but they have the added ability to place and close the trade orders by themselves, which means that the software will not only be assisting you, but it will be executing for you 24 hours per day during the business week without the need for you to be present.

After using many software and services, thus experiencing first hand how each one works, I have developed a preference for the fully automated version of this trading tool, because nowadays you can find some fully automated forex software that really deliver a great money management and overall performance, with the obvious advantage that they are able to trade when you cannot humanly expect to be in front of your PC.

Nonetheless, this does not mean that a fully automated forex software is the best option for you, because maybe you like to be the one placing and closing the trade orders or you are a late night trader, in which case a forex signal software or service might suit you better than an expert advisor.

On the other hand, if you know little of nothing about forex trading, the fully automated option will certainly be more friendly and deliver better results provided that you choose a reliable forex software.

Therefore, if you are thinking about adding a trading tool like this to your trading operation, I advise you go for it because no matter if you use a fully or semi automated software, both will certainly help you avoid painful mistakes and become a more profitable trader, however, go for the option that best fits your time availability and your preferences as a trader.

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Ivybot is a forex trading robot that will enter and exit your forex trading for automatically. Ivybot is not like other forex trading robot I have used in the past. This is so because it does not use only one strategy. The other automated trading systems I have worked with in the past usually use only one scalping tool. As for ivybot it makes use of 2 major types of algorithms to analyze the volatile intensity of trends on specifics time frames and evaluate the trend time after time putting the variation of price into consideration till it discovers a profitable opportunity to enter a trade for you. There are other technical indicators attached to it to determine the most appropriate time to enter a trade which I will not about in this review.

There are up to 4 major currency pairs you can trade using Ivybot. They include USD/JPY, USD/CHF, EUR/USD, EUR/CHF. Ivybot utilizes only these four currency pairs, it makes use of these currency pairs because they are mostly profitable for forex trading. Additional reasons why these four currency pairs are predominant on Ivybot are because you can encounter marginal problems if the robot is made to work on anything that is more than four pairs. Nevertheless, if you chose to alternate its settings by changing these four currency pairs to include another one, it may become less profitable.

Ivybot has a friendly customer support which will provide you with any help you may need on the way. This way you will not be left in the midst of your problems. This should not be the major reason why you need to get the forex trading robot. The main reason why you should get it is because it is profitable. It is updated daily to be with current market conditions, this will afford you the chance not to lose any trade it places for you. This does not mean that Ivybot will not lose any trade it places for you, but it will minimize loses and maximum gains. This is made possible with the exit trade feature attached to it, which will exit a trade for you if it notices that the trade will not turn out profitable.

In conclusion, i will say that Ivybot does work and it is not a scam. At least this review of mine has pointed out some important aspects of the robot which makes it profitable.

IvyBot Forex Trading Robot is one of the most profitable forex trading systems which you can use to trade your forex automatically. It uses many strategies which are attached to its system to make sure the signals generated for you will win trades for you. It has a high winning rate. I must tell you that if you are not using this tool know that you are missing a lot because it has changed the way most traders trade to a profitable way.

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Some traders do succeed at making a lot of money in the forex market but their numbers are not many. Many times, the traders are not aware of the fact that they have the power and might to shift the odds in their favor.

The main reason why traders get defeated by the market can be attributed to their lack of knowledge. In the 21st century, the buzzword is knowledge. You can dramatically increase your chances of success if you want to.

It is not just a matter of working hard but also a matter of working smart. Knowledge is the key that can open many doors. Not only you need to know and understand how the forex market works, you also need to understand your own emotions and other people’s emotions.

So you need knowledge and you need a set of good rules that can help you achieve success. In fact, you need to understand the high probability trade setups and how to manage your money wisely. The ten rules that I think are important for forex trading are listed below:

The Things You Need To Do:
1) Practice and practice on your demo account. When trying out a new trading strategy, first test it on your demo account.
2) Always keep a record of each trade that you make. Maintain a Trading Journal that should contain a record of each of your trades. Analyze each trade in the trading journal.
3) In the end it is all about developing your own trading plan. Develop a personalized trading plan and update it frequently as you learn from the market.
4) Only trade when you are sure about a risk/reward ratio of 1:2. When unsure of a trade, don’t make it. Stay out! It is always better to miss an opportunity than to have a loss.
5) Daily monitor the market for 15-30 minutes. Update yourself frequently about the fundamentals and technicals affecting the market.
First practice on your forex demo account. Try Netpicks forex signals free.

The Things You Don’t Need To Do:
1) Never ever trade with borrowed money! It will affect you emotionally and force you to make irrational trading decisions. Always trade with money that you can afford to lose!
2) You should be able to understand why you are getting into a trade and how you are going to get out of it. Don’t follow someone’s advice blindly.
3) Just be concerned about being profitable. Don’t be concerned about being right.
4) 5:1 leverage ratio is enough. Don’t try to learn it the hard way how dangerous leverage can be. Don’t over leverage!
5) Learn to stay calm and composed. Don’t try to take revenge from the market after a terrible loss. Vent your frustration somewhere else.

One of the most important things that a trader needs to learn is the matching of trading method with the trader’s own trading style and personality. Some strategies may work very well for some traders but may not have the same results for other over a period of time.