$F0R-3X$

Investor needs no wory!

2007-10-19T00:30:00.000-07:00

This is a trading report example from my current daily trading portfolio.
For investor, this trading report must be received from their trader, so investor can keep an eye on their trader performance.

In my company, this report will be delivered to investors everyday when trading is happened.

As you see, there are some elements in the report:

Position, indicates if the trader was opening sell or buy.
Open price position.
Closing price position. The green mark means it is a Profit trap (i will explain about this later).
Profit, shows the profit or loss you have got. Usually it shown in USD.

Indicators: SMA (Simple Moving Average)

2007-10-18T09:47:00.000-07:00

In making an analysis, we need some indicators.
One of them is SMA ( Simple Moving Average).
SMA is the mean of the previous data from some period.
SMA can be calculated by:
SMA=(Cp1+Cp2+Cp3+..+Cpn)/n
Example:
Day 1 Closing price: 1.001
Day 2 Closing price: 1.001
Day 3 Closing price: 1.005
Day 4 Closing price: 1.010
Day 5 Closing price: 1.003
Then the SMA = (1.001+1.001+1.005+1.010+1.003)/5= 1.004

If you want to read additional information about SMA, click here.

To be continued...

Next step: Resistant

2007-10-18T08:58:00.000-07:00

Resistant means lines that show the points where the market will try to make a back move.

When the candlestick touch the upper resistant, we assume it as a sell position, and when the candlestick touch the lower resistant, we can set it as a buy position with expectation that the market will stay on the range between the high and lower resistant.

There only two possibilities when the candlestick touch the resistant:

The market will make a back move, if it was going down, it will be going up; if the market was going up, it will be going down.
The market will try to break the resistant and making a new higher or lower range.

Candlestick reading in ForEx

2007-10-18T07:11:00.000-07:00

Candlesticks are composed of the body (blue or red), an upper and a lower shadow wick. The wick illustrates the highest and lowest traded prices of a stock, and the body the opening and closing trades.

There are 14 pattern of candlesticks:

Blue candlestick - signals uptrend movement (those occur in different lengths; the longer the body, the more significant the price increase)
Red candlestick - signals downtrend movement (those occur in different lengths; the longer the body, the more significant the price decrease)
Long lower shadow - bullish signal (the lower wick must be at least the body's size; the longer the lower wick, the more reliable the signal)
Long upper shadow - bearish signal (the upper wick must be at least the body's size; the longer the upper wick, the more reliable the signal)
Hammer - a bullish pattern during a downtrend (long lower wick and small or no body); Shaven head - a bullish pattern during a downtrend & a bearish pattern during an uptrend (no upper wick); Hanging man - bearish pattern during an uptrend (long lower wick, small or no body; wick has the multiple length of the body.
Inverted hammer - signals bottom reversal, however confirmation must be obtained from next trade (may be either a blue or red body); Shaven bottom - signaling bottom reversal, however confirmation must be obtained from next trade (no lower wick); Shooting star - a bearish pattern during an uptrend (small body, long upper wick, small or no lower wick)
Spinning top blue - neutral pattern, meaningful in combination with other candlestick patterns
Spinning top red - neutral pattern, meaningful in combination with other candlestick patterns
Doji - neutral pattern, meaningful in combination with other candlestick patterns
Long legged doji - signals a top reversal
Dragonfly doji - signals trend reversal (no upper wick, long lower wick)
Gravestone doji - signals trend reversal (no lower wick, long upper wick)
Marubozu blue - dominant bullish trades, continued bullish trend (no upper, no lower wick)
Marubozu red - dominant bearish trades, continued bearish trend (no upper, no lower wick)

Dave's "ForEx" guide for newbie

2007-10-18T06:06:00.000-07:00

Foreign Exchange (ForEx) learning is not difficult.
Here I want to share some of my experience in ForEx trading.
May this little tutorial can be useful.

To master a ForEx, all that we need is only mastering three things:

Technical Analysis
Fundamental Analysis
Emotion Control

With those three things, I can guarantee that you will be a ForEx master.

1. Technical Analysis
Is forecasting the market action through the us of charts.

2. Fundamental Analysis
Is the examination of the underlying forces that affect the well being of the economy, industry groups, and companies to derive a market forecast.

3. Emotion Control
Is the tools that keeps us clear-minded, away from greedy and frightened situation, so we can make a good deal.