November 12th, 2009 by Shawn Cannon
Be sure to take a little time on the weekend to prepare yourself for the upcoming week in trading. I am an advocate for clearing your head on the weekends, so do not spend too much time in preparation. When you plan ahead, execution is much easier.
If you’re a swing trader, this really pertains to you. Scalpers, don’t concern yourself so much with this. There will be plenty of action for you during the week that does not require much analysis on a larger time frame.
Every Sunday, I will open up the charts. In all, there are 24 pairs that I will take a look at. I open it on the weekly chart and look at a naked chart without any indicators. I take not of trend direction and any other price action analyses that would assist me in determining overall price direction. I write down the bias I …
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November 8th, 2009 by Shawn Cannon
Forex is a market that trades 24 hours a day. So when is it a good time to trade Forex? That is mainly dependent on your methodology for trading. For me, any time during the week is a good opportunity to enter the market as I trade on a daily chart. So whether I enter during the Asian, Australian, London, or US market has no bearing to my trading style. However, what about the intraday trader? When is a good time to enter into the market.
Ideally, it is best to enter into the market when the market is most volatile. When the market is moving well, this allows one the most opportunity to profit. The market can tend to be more predictable in a fast moving market. When the market is slow, it can be a difficult read. There can be unpredictable moves that defy what one might have …
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November 4th, 2009 by Shawn Cannon
Picking a broker is an incredibly important decision when one begins to trade. The broker itself is the tool that will take your trading system and bring it to the actual trading grounds of the Forex market. Knowing this it is a decision that one should not make with haste.
It is no secret that brokers make money when you trade through them on the currency market. It is only fair. They are providing a service to you that allows you to not worry about having to first half a sizeable amount of wealth to participate in currency trading.
However, in any market, you will find your den of thieves. There are illicit people that are willing to con you into giving them your hard earned money. However, how is one to know a reputable broker from a scam artist? After all, with the internet as the primary means for one …
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October 21st, 2009 by Shawn Cannon
A while back I had a conversation with a fellow trader. He asked me how many pips I gained off my last trade. I told him, “400 pips”.
He inquired on the trade before that.  “550 pips”, I answered.
His jaw dropped. “You made nearly 1000 pips in two trades,” he said in shocking disbelief, “You must be loaded!”
I turned around and asked him the same question, “30 pips on the first trade, 15 pips on the second trade.”
That was the difference between us. Based on where he was trading, 400 pips would seem like a lot. In his mind, I must have been some sort of master trading making oodles of money. At one point he even did express on my account size, and commented that one day he’ll trade that many pips when he was a large enough capital. Truth is, that even someone with a 100 dollar trading …
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October 19th, 2009 by Shawn Cannon
Nobody likes to lose. However, in any game there is always a winner and a loser. Even in Forex Trading, when you win, you are ultimately taking money from someone that lost it. And if you have any good sense, you want to be on the winning side of that transaction.
Losing, however, is inevitable. During your journey through Forex you will lose countless times. This is a fact that you need to accept early on. Losses are just a part of the equation.
As mentioned before, no one wants to be a loser. Traders tend to take losses personally. They get upset or frustrated. Such adverse emotions can do even more damage in your trading plan. You are more susceptible to making a revenge trade.
I say embrace losing. If you know it is going to happen, there is no good sense in getting all upset over it. If anything, think …
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