Trading the Breakouts with great Success

There are currently hundreds of available trading methods out there that it will surely take you years of trying and defining what works best for you. 

Most strategies are the technical or mechanical type of trading style where the aim is to simply buy at the lowest price and sell at the highest price of the current market. 

The reason is that the behavior of the market often goes for a trend and comes back at the normal price level.

Some traders especially newbie think that they can make money by simply predicting the direction of the trend. Predictions offer a huge risk and often lead into a complete failure and lose of an account.

One of the best method that guarantee your success in trading the Forex market is to trade only on a high odds where there is a good confirmation of the trend’s direction. 

Try and observe your trading chart. You will notice that the bullish trend always starts in the same manner especially when it breaks through overhead resistance. 

Sometimes it even moves further making a new high and it’s the reason why it’s best to make a buy on breakouts.

Defining for buying at the right breakouts can be done with the help of your resistance levels. 

If the resistance has been tested several times in the past and held before the break then there is a high probability that a bullish trend continuation will mostly likely going to occur.

A six or more tests are already good enough to confirm the strong level of the resistance. The wider the gap of the tests in terms of time provides the best odds for the breakout to continue.

The Bolinger Band Breakout

Trading the Breakouts offers a very high reward and with a very low risk of losses because the stop loss is always close or near the level of resistance. 

If you managed to hit the high odds of a certain breakout then your profit can tremendously increase depending on how far the range of the market will trend.

You may simply choose just to trade on the break of resistance levels but you can also choose to use other tools such as momentum oscillators to further confirm the best signal that you wish to take.

Forex Trading Course

Most new traders tends to use Mechanical or Technical Forex trading system while others are undergoing courses offered by any professional gurus. 

There is no wrong option between the two where they can both lead into a trading success as long as you are comfortable. 

Anyway, the focus of this topic is about learning Forex Trading in a more detailed discussion.

It is always emphasized that Forex Trading is a risky business where almost 95% of all traders lose their money and this should serve as a warning for those who wish to be involve on this line of work. 

Anyway, there is no type of investment that doesn’t involve risks if such exist then everyone could become a millionaire for a life time. 

Buying a system on the market does not guarantee you to make profit especially when you are using it the wrong way. 

You will simply lose your money and the sure winner of the game is the vendor who made an income from selling his so called profitable trading robot.

Learning is the best way to go if you wish to achieve success in trading the Foreign exchange market. 

It would really require some effort of learning all the basics and putting all the knowledge that you have acquired into practice. 

The good part is that you will be able to generate money with a high probability of success. You can almost learn everything online by searching through your favorite search engine. 

There are several informative website and blogs out there (like this one) that you can always browse and read the contents as your references or even participate on a Forum Communities. 

If you are still having some trouble trying to understand the basic concept of trading the market then you can enroll to any online Forex Courses.

A Professional Trader will be your teacher on the course that you have chosen to enroll. He will be teaching everything about his system and to share his successful experience. 

The strategies and tools are also provided by your teacher which is used to make profits. 

Before everything starts-up, the logic and strategies are well explained to let you have some confidence on your trades. 

To prove that the system being taught works you will be able to check or trade at the same time with your instructor and it’s up for you whether to keep on learning the method or not.

There are several courses offered today and the best once are those that you can try them risk free for a period of one or two months. 

If you are not satisfied of what it is being taught on the course or simply cannot follow the concept then you can always withdraw and get your full money back.

The MetaTrader User Guide

If you do not have the money to spend on such courses then you can always rely on any forum community. 

As for your trading platform, you can learn every function by simply referring to its User Guide.

Multiple account on Marketiva

Do they allow multiple account on Marketiva?

The answer is no and it is against their TOS or policies. Violating this rule will make all of your existing account banned and you may never be able to trade again on their services. 

If your purpose is to create several accounts in the aim of claiming multiple bonuses from the registration then this is a bad idea because you won’t be able to withdraw this amount without supplying valid documents. 

You need to send them a scanned copy of any proof of billing containing your real name and address.

Trading on Marketiva will require you to download their software which is the “Streamster”. The file size is 524 KB and it works on Windows 98/ Me/ 2000/ XP / 7/ and Vista. 

The installation process is easy to set-up where all you just have to do is to follow the instructions. The hard part is familiarizing yourself from their trading platform where you have to learn how to place an order and layout your indicator tools on the charts.

Marketiva’s trading platform comes with some default indicator tools that you can use to analyze the behavior of the market and predict future price movement. 

The downside of the Streamster is that you cannot import any customized tools as compared with the Meta-Trader. 

It also doesn’t have any Expert Adviser or a program that runs automated script for auto-trading.

Streamster also comes with other services such as being updated with the latest news that will be released before it occurs. 

This will allow you to avoid any unexpected volatility of the market. 

If you are having some trouble about their trading platform or encountered technical errors then you can immediately talk to their technical support representative in the form of chat. 

You will receive an immediate response about your concern which is the good part of their services.

My best experience in using Marketiva is that you can trade in nano-lots and you do not need a huge amount of capital to begin. 

The lowest amount that you can deposit and start trading is only $1 dollar which is perfectly good for all starters to experience real trading.

Meta Trader Order Form

In comparison with the Meta Trading Platform, the lowest amount of volume allowed for you to place an order is worth 0.01

Basic Requirement to Start Trading

The first time that I encountered Forex, I thought that it is another form of GPT or “Get Paid to” Programs. The first FX Broker that I signed-up for an account is the Marketiva. 

They are offering a worth of $5 dollar bonus during that time and I am happy to be able to claim it without any problem. 

Trying to trade for the first time, I had immediately lost my free $5 dollar bonus and I came to realize that trading the Forex market is not an easy thing to do.

There are a few requirements that you must have before you can participate on the trading business and they are the following:

1. Trading Platform

If you have found the Broker that you can trust then they will provide you their trading platform which is also known as “Deal or Trade Station”. 

This program will allow you to have access on various types of currencies and enable you to place your trades. 

Details such as Dealing Rates, Open Trades, Entry Orders and Account Balance are also provided.

The most important part of the platform is the charts with some default sets of indicator tools that you can use. 

There are three different types of charts which are the Line, Bar, and Candle Sticks and they come in multiple different time frames which are the following:

1, 5, 10, 15, 30, minutes, 1 hour, 4 hours, daily, weekly and monthly

Chart Time Frame

Technical traders have various strategies where they use different time frames in analyzing their best possible entry and exit price level.

The Marketiva Platform contains all the important tools required but most traders prefers to use the MT4 or Meta Trader 4 because you can fully customize your own script that will automatically run your trades. 

With the addition of those new FX Brokers, they also have their own unique trading platform.

2. Computer

You must have your own computer where renting on an internet shop is not advisable because your account can be stolen. 

Anyway, you must have a very fast computer where Pentium 3 or higher is recommended. As for the monitor, you are free to use any sized as long as you are comfortable on viewing your trading platform. 

The minimum requirement for the RAM is 256 MB. Take note the insufficient RAM memory could cause your computer to function at a very slow speed.

3. Internet

You must have an internet connection that is always stable. Broadband or ADSL and Cable are recommended while Dial-up can also be used but with some factors that are needed to be considered.

4. Operating Software

Most trading platform are designed to work on Windows versions but is could also work on their types of Operating System such as Linux but it will involve you to have some technical configuration.

Moreover, the most important requirement of all is that you must have knowledge and experience before taking Forex as a serious business.

Fundamental or Technical Analysis

The Forex market allows anyone to participate on the currency trading business. 

Some of these participants are the Governments, Reserve Banks, Large Mutual Funds, Hedge Funds and even Individual traders at home. 

I myself is an individual trader where all I need to join the trading exchanges is a computer with a stable internet connection.

If you have been on some other related Forex websites or Blogs then you must have been already warned about the danger and risks of losing your investment. 

Through the years of my trading career, I have lost numerous times and it is due to greed and lack of education. 

This has proven that trading Forex is totally risky especially when you do not know exactly what you are doing.

The most important factor that every trader should try to develop is their analytical skill to analyze the behavior of the market. 

These are the fundamental and technical method of trading style. However, more guaranteed result can be achieved by combing the two methods.

The main focus of this Fundamental Analyst is to study the condition of the Economy, Social, Political and Geographic forces influencing the type of currencies that are being analyzed. 

These factors have the potential to drive the supply and demand on a certain level of prices.

The primary tools of the Fundamental Traders are the Micro-Economic indicator such as the Interest rates, Inflation, Unemployment, Economic Growth Rates and etc… 

Analyzing these events on how they are going to affect the behavior of the traded currencies is the hardest part where only a financial expert is capable of doing. 

However, even professionals do commit mistakes on their analysis so it’s always best to be prepared on taking the risk.

Technical Analyst tends to study the previous price movement of the market. They analyze the past historic data of the currencies and based their decision in trying to predict the future price trend direction. 

All technical traders believes that the “Market repeats itself” which mean that the next trend can be determined by studying Price Action.

The basic tools of a Technical Trader are charts where they use it to define profitable trend and patterns. 

The concept of their analysis is that the market will always move in two different directions which is either Bearish or Bullish condition. 

Their aim is to be able to define the best possible entry level before the trend starts to be developed.

Past Historical Data

Whatever type of trading style that you prefer to adopt, the most important part is that you are gaining profit and enjoying the method without suffering too much stress.

Size of the Forex Market

The Forex Market has a continuous operation of 24 hours in a period of 5 days a week. 

Some brokers disable their trading platform during the week-end while others allow their traders to open a position in exchange of paying a high-cost on their spread. 

Actually, the global currency exchange market never stops. It operates even on Saturday and Sunday where the slight movement can be noticed on your chart during the start of the trading week. 

This is known as the “Gap” because the last closing price will not be the opening price.

Trading will begin at 5 PM of Sunday, New York time. The market will open starting from Sydney and Singapore then followed by Tokyo at 7 PM. And finally, London will open at 2 AM and New York at 8 AM.

The world foreign currency exchange market does not have a main or central office location where the trading processes are conducted. 

Players of this game compose of Banks, Companies, Individual Traders and other Institutions.

Forex is by far the largest market in the world where there’s an estimated value of 1.85 US trillion dollars that are being exchanged everyday. 

If we are going to compare it on the NY Stock Exchange it will have to take at least three months period before the same amount can be achieved. 

The FX market can accept unlimited amount of trading transaction and volumes at any given period of time. This makes the other types of trading market nothing when compared. 

One advantage of trading Forex is it’s characteristics of being liquid which mean that you can immediately Stop or Close your Opened Positions without any problem of suffering from slippage.

Participating on trading the FX market will require you to have a dealing station or more commonly known as “Brokers”. 

Their primary task is to match your BUY and SELL order on the real-time market prices with some cost as their own commission. 

There are several FX Broker out-there where it’s so easy to join plus most of them are giving free bonuses by simply registering an account. 

Such other bonuses offered is that you will be receiving an additional percentage on every successful deposit that you have made on your account.

All Brokers allow their traders to trade a variety of currency pairs. These pairs are categorized into three types which are the Major, Cross and Exotic currencies. 

Major types are those that are paired with the USD and the following are some examples:

EUR/USD, GBP/USD, AUD/USD, USD/JPY, and USD/CHF

Cross currency pairs are those that without any relationship to USD such as:

EUR/GBP, EUR/JPY, GBP.JPY and EUR/CHF

Exotic currencies are pairs that are not commonly traded by everyone and offered by a few Brokers only. The downside of trading them is that it could cost you a huge amount of spread.

Moreover, if you really intend on investing your money online then trading the Forex market provides you a good opportunity. 

You just have to put some time and effort in trying to educate yourself and gain experience through practice.