Forex Currency Trading Tutorial – What Is Support?

If you are just starting to learn about the forex markets, and currency trading, then I have no doubt that you may already have come across the terms resistance and support. These two concepts are pivotal to you trading successfully. It is critical that you fully understand what causes them, and how to spot these areas of support and resistance on your currency charts.

In the normal cyclical movement of the market the price is influenced completely by sellers and buyers. If there are more sellers than buyers at any given period then the price action will be moving downwards. Conversely, if there are more buyers than sellers at any given point in time then the price level will be trending upwards.

Day Trading At The Beach – Can It Get Any Better?

Day trading attracts plenty of hype. Slick vendors want you to believe that you can trade whenever and wherever you want. You could even be on vacation and make money at the same time. They push the image of someone with a laptop on the beach, ticking off profits in between swimming, building castles with the kids, and taking romantic walks with a tanned, beautiful someone by your side.

This dreamlike image is, of course, just a dream. You cannot trade at the beach. And, believe me, I have tried. I have done my best to live up to this dream of making money in luxurious leisure. But there are some serious problems with that image of the laptop at the beach. Three serious problems in fact.

Should You Let Your Profits Run?

Knowing when to accept your profits is key to successful day trading. However, many people often think that you can earn more by letting your profits run. This strategy almost always fails, and it is why I find that setting profit targets is one of the few ways to guarantee that you turn a market gain into a monetary gain.

The $700 Billion Bailout Plan – A Good Idea?

We have all heard plenty of talk, both positive and negative, about the $700 billion bailout plan, and there are now rumors of similar plans in the works. The discussion dominated the recent election, and it continues to be a primary concern both on “Wall Street” and “Main Street.” Many people who have never concerned themselves with high level economic issues are finding themselves writing, or being solicited to write, letters to their congressmen and women in support of or opposition to the plan.

The High Cost of “Free”

Who knew that “free” really meant “expensive”? That may seem like a contradiction, but day traders can easily find themselves in a situation where it turns out to be true.

I teach a number of strategies that require software that displays tick charts. However I often have students who tell me that they use such-and-such piece of software that will not display them. But they refuse to change because the software they are using was free.