Forex Robots: How To Daytrade The S&P500;E-mini Using Pivot Points

Pivot points can be used for almost any type of trading, and this is true when it comes to day trading on the S&P 500 e-mini as well. Pivot points are used to calculate support and resistance on the market, and they reflect the point where the market direction changes. The system used with the pivot points will differ, depending on the specific trader and the strategies being used, and a system tin contain anywhere from one single pivot point all the way up to nine or more. The S&P 500 e-mini is an electronic exchange, so all the trading is done electronically using computers. Pivot points use the previous day’s movement and price fluctuations to aid determine what the market will do on a specific day, and this helps to set the levels of resistance and support.

Pivot points tin help traders determine a couple of things. First of all, these points tin aid determine the market entrance and exit prices for a specific trade, alerting the trader that it is time to buy or sell depending on the situation. These points can also assist determine the current trend of the market, and are only I technical analysis tool among many that can be used. Day trading on the S&P 500 e-mini is the perfect way to utilize pivot points, because this analysis tool is best when used for short calling trading. The actual pivot points will be different every day, and must be recalculated before trading starts that day. One strategy when it comes to pivot points is to buy when the resistance price is broken, and to sell when the trade breaks the support level.

To use pivot points successfully it is necessary to determine the price where the biggest movement of the market will happen, and the history from the movements of the day before makes it much easier to do this. When used together with other support and resistance levels, which can also aid predict significant market fluctuations, pivot points tin aid protect against large losses due to market volatility. Once the pivot points have been set, former technical analysis tools should also be used, possibly including candlestick patterns and others, to assist pinpoint market movements even more. When positive predictions are shown by more than one of the technical analysis tools, the odds of the trade being successful become even greater.

Day trading on the S&P 500 e-mini can be done successfully, and pivot points are part of this equation. This method of analysis can be successful or not, depending on how effectively it is used by the specific trader. These points can be used together with the moving averages for a prediction astir specific trades as well, to increase the level of success seen. This will allow whatever positive trading opportunities of the day to be pinpointed, so that the trader can use these times to their advantage. The S&P 500 e-mini offers higher volatility levels, meaning big possible rewards, and a big exposure to the market without a high price. The contracts which are traded on this exchange are only a fraction of the amount which are used for commercial contracts, so the initial investment costs are also less.

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Most Commonly Used Daytrading Technique By Professional Forex Traders- Partial Close

The day trader opens and closes all his trades when the market is open during the trading period and does not hold positions overnight. Day trader usually use 1- minute to 15- minute charts.

Why would the partial close method be popular among the day traders?

Partial close method allows for short calling trading and also the benefits of riding on longer term trends and profiting from them. This is how it is done:

Entering a trade with multiple contracts that provide the freedom to take a portion of the positions off when a predetermined price is made based on market structure and short-term behaviour, allowing for the balance to profit in the short run and also capitalising on longer-term market behaviour.

Trading multiple contracts is one of the most misconceiving trading concept. When trading multiple contracts, there is a tendency for traders to take on excessive risk. Multiple undertake allow forex traders to cover part of his position and exit a portion of his contracts at pre-define take profit level. Next, he will shift his sign stop loss to entry price.

The beauty about using partial close method is when market suddenly stop him out of the trade by hitting his stop loss, he would still make a profit. If his stop loss is never triggered, he will enjoy the rest of the trade participating in the trend for as long as it lasts with no venturing, knowing that no matter what happens at the very least he has already bank in a small profit.

It is selfsame important to only trade which 1-2% risk per trade or 5% maximum risk per day. Sound money management is what keeps the professional traders from making money consistently in the long term. Protect your investment equity like you would protect yourself from hazards.

Partial Close Example

Trading Eur/Usd as example, your account size is ,000 and you choose to risk 2 percent on this trade. Two percent of ,000 is . Your trade entry is buy Eur/Usd at .2300, and your stop loss is placed 50 pips away from entry price .2250. You will trade with 1.00 (1 standard lot or €100,000) and stay within your risk parameters.

If you get stopped out before having a chance to partial close, your loss would only be 2 percent, which is an acceptable and expected risk. Therefore, this potential risk should not create any trading stress. When your trade becomes profitable, partial close will come into play. After which, stop loss will shift to break-even price (.2300) and you will use trailing stop strategies to manage your trade and bank in profits based on price action.

The psychology of partial close method is to reduce stress by locking in profit which would help forex day-traders not only to profit from short market action but also stay in longer-term market behaviour with his remaining positions.

Feel free to use this article on your website or ezine as long as the following information about author/website is included.

Warren Seah

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Forex News feed: A Must For Every Daytrader

The Forex world has changed 180 degrees over the past few years and we have the Web to blame for that. The internet has taken an industry that was reserved for the financial elite and the corporations, and made it accessible to the general population. Not only are platforms now available via the Web but a C can be found on hundreds if not thousands of sites across the interwebs.

In a market as big as Forex, why are 90% of traders losing their money and not coming away millionaires? Many believe it is because of the misconception that Forex is similar to gambling and should not be taken seriously.

Traders who do not study the market, analyze the charted, and stay updated with a Forex news feed on a daily, hourly and sometimes minute by minute basis. There is no shortage of professional Forex news feed sources and a simple Google search for Forex News will bring up millions of sources.

The trick is to find a reliable Forex news feed, bookmark it, and check in as often as you think is necessary.

However, the Forex news feed goes a lot farther than websites. Most Forex trading platform have an integrated Forex news feed, and in today’s market, there is no reason to trade with a broker who does not have one.

The importance of a Forex news feed in your platform is that you can resting focused on your trading while getting the most updated events taking place in the market without ever held to leave your platform. The incorporated Forex news feed should be intuitive, easy to use and understand, and the most important thing is that it is updated frequently, so you cognized what is happening at any given moment in the market.

Whether you have a site that provides an updated Forex news feed or you use your platform for that, the important thing is that you are updated so when it is decision time about opening or closing a trend, there is no need to waste time searching the Web for updated market stats, it will be right there in front of you and you will be able to act accordingly.

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Forex Daytrading ? All the Facts you Need to Know

There are more e-books and advice on FOREX day trading than on perhaps day trading than any other method of trading currencies.

Can you become a successful day trader? Let’s find out, by looking at the facts.

The answer is you probably win’t make money FOREX day trading and if you assume’t understand me consider these facts

1. Getting the odds in your favor

Successful trading is all about getting the odds in your favor and it is impossible to foretell what will happen in a day session.

Why?

Because currencies represent the underlying health of the economy and trend longer term and longer term trends are the ones to focus on.

Short term movements in a day are random, so it’s simply like flipping a coin.

2. The fundamental rule of investing

Is run your profits and liquidate your losses quickly.

You can certainly wasting your losses quickly by day trading, but you can never jog your profits far enough to cover your inevitable loses, as you close your profits to speedily.

Your profits are simply not big enough to cover your loses, so its bye bye, to your account equity.

This is simple common sense!

It gets worse, here is another problem.

3. Transaction costs

If you FOREX day trade your transaction am are richly, they add to losses and restrict profits even more.

Why do people day trade then?

There are several reasons:

1. They think it’s less risky.

But by attempt to avoid risk they are actually creating it and give them no happen of winning.

2. Greed

Investors see e-books and guru’s with convincing copy that appealed to their greed (mostly from book sellers who have never traded in their lives) and believe headlines such as “trade with 90% accuracy” and other stupid statements.

Humans are greedy and even though it’s obvious no one would sell a system like the above as they wouldn’t need to! They would keep quite, bank the profits and wouldn’t need you.

Ask anyone selling advice, to produce a real track record, of real dollars and you won’t get a reply.

3. Brokers

Day traders are great it means commission, less risk on their books and contrary to belief, no broker is reliant on traders making money for their balance sheets.

Most brokers assume that the trader will lose anyway, so why not make as much as they can? FOREX Day trading serves this purpose.

If you want to make FOREX Trading profits don’t day trade.

The fact is the odds are against you and if you trade why not put the odds in your favor surely that makes more sense?

MORE FREE BETTER TRADING INFO

On all aspects of becoming a profitable trader including info about legendary trader W D Gann who made a million fortune trading go to our website for an exclusive Gann Trading Course visit our website at http://www.net-planet.org/index.html

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