Author: David Wallace

David is a full time DBA and Business Systems Analyst and part time currency and indices trader.

Breakout Trading Strategies

Breakout Trading Strategies

Trading Strategies
Breakout trading strategies are quite popular just as trend trading strategies. In fact, compared to trend trading, breakout trading strategies are likely to come out higher. This is due to the fact that the markets tend to be in a range most of the times. The profit potential from break trading strategies are bigger and quicker, compared to trend based methods. With trend based methods, profits are not quick to come by. With a trend based trading strategy, you will have to hold on to your position for a prolonged period of time. The main benefit of using a breakout trading strategy is to capture the big gains based on the volatile breakouts. Despite the quick gains, breakout trading strategy can also result in significant losses. To avoid this, find an edge by getting familiar wi

Currency Trading Strategies That Work

Trading Articles
There are many different trading strategies that traders employ but very few of them actually work, in this article, I am going to write about what works in the Foreign Exchange (or Forex) market and why. Any trading strategy, no matter what it is, will not work if it does not employ at least one edge to give the trader better than 50/50 odds of either being right or of then gaining more from a winning trade than they will lose on a losing one. If trades were simply entered on a coin toss and exited at random then the traders doing this would, on average, win as often as they lost with the size of the average losing trade being equal with the size of the average winner. In a scenario like this traders would slowly lose all the money in their trading accounts as the costs of trading (i.e...

Strategies For Scalping The Forex Market

Trading Strategies
Scalping is the most difficult of all the trading strategies to do profitably as it is impossible for any trader to consistently make money without an edge that gives them an advantage over the randomness in the market. And in the Forex market, as is the case with almost every other financial market that I know of, the smaller the time frame the greater the degree of randomness and the greater the time frame the more significant the effects of an edge tend to be. Scalpers also have the problem that many brokers simply do not like scalpers and will put successful scalpers on dealer intervention or even stop accepting their trades altogether. And if that wasn’t enough, scalping is also the most expensive form of trading because the spread, or the small commission that ECN Forex brokers charg

Trend Following

Trading Strategies
In my opinion, the best trading strategy for trading the Forex market is probably trend following. Different markets behave in different ways and the Foreign Exchange market is one of the few markets left that still tends to experience long and fairly clean trends. Trend following has slowly lost it's effectiveness as a trading strategy on most markets in the last few decades as markets generally only tend to trend well when they are being driven by real economic fundamentals and not by speculation. And as speculators have gained access to ever increasing amounts of capital over the last 20 or 30 years as more and more wealth is poured into hedge funds and the likes the influence of speculators has increased. But speculation still doesn't rule the Foreign Exchange market in the way t...

Why Do Most Traders Fail?

Trading Articles
It is often said that 95% of retail Forex traders fail and end up losing their entire accounts and while I can not confirm what the actual statistics are I can see no reason to seriously doubt these claims. Whatever the failure rate in retail Forex is I can tell you this, it is the vast majority who fail. If you were to ask a broker how many of their accounts were profitable however you may get a very different answer, they might tell you, for example, that 33% of their traders were profitable. But this wouldn’t mean that 33% of people who tried retail Forex trading were successful; because many more people would have failed and would no longer even have an account as a result and they would not even be counted. So why are so many people who try their hand at Forex trading so unsuccessf