Symmetrical Triangles - Long Trading Strategy with CFDs

By Jeff Cartridge

The symmetrical triangle is sometimes referred to as a wedge. It is a very well known and easily recognized chart pattern that has been used by many successful traders over the years. A symmetrical triangle is formed when the price action is contained within two lines. The top line slopes down while the bottom line slopes up towards the top line. The angle of the two lines is similar giving rise to the name symmetrical.

Symmetrical Triangles, Breakout Unclear

Symmetrical triangles show no clear tendency to break up or down. Despite the fact 56% of the patterns break out to the upside this is likely due to the fact the market tends to move higher. Around half (44%) of these breakouts are profitable and on average the profit per trade is 0.85% over a period of 9 days.

Improve Your Trades

Unusually symmetrical triangles do not work well when the market is an up trend, but perform better when the market is consolidating or falling. As would be expected, both the sector and the share should be consolidating or in an up trend.

Symmetrical triangles, that breakout early in the pattern, produce inferior results. A breakout is better if it occurs after the pattern gets past 30% of the way to the point. The length of a symmetrical triangle is important with patterns that are 25 days or less producing better results.

If volume strongly supports a symmetrical triangle breakout then the profitability of the trades improves. For volume to support the breakout, volume when the stock is going up should be 40% greater than volume when the stock is going down.

Symmetrical Triangles Deliver Strong Profits

You can improve your trading results by using a series of simple filters that have been outlined here. This select group of symmetrical triangles delivers an average profit of 1.87% in 11 days and is profitable on 55% of the trades. Overall this makes symmetrical triangles attractive to trade.

Note: Statistics for this article have been provided by Patterns Trader after analyzing over 60,000 chart patterns on the Australian market from 2000 - 2008. - 23222

About the Author:

Jeff Cartridge has been trading CFDs since 2002 and created the website LearnCFDs.com Trading Chart Patterns - All The Insider Tricks

Can You Beat Automatic Forex System Trading?

By Bob K. Drummond

FAP Turbo has probably become the most popular Forex software released ever. It has been sold and used by over 43,000 Forex traders worldwide and is considered by many to be the most profitable Forex robot in the world. But is this merely clever marketing or does FAP Turbo really work?

We can learn reliable information from a number of sources:

1. Automatic Forex system trading experiments conducted on back data over a number of years showed that FAP Turbo delivers profitable outputs over time. You can make money no matter how small your account is. In fact you can start with only $50.

2. FAP Turbo was run on real accounts. When you plug it into the Metatrader4 platform, it begins the evaluation of the market for you, it will place trade for you automatically once it discovers a money-making trade. This is a much better signal of how a trading robot is performing and it showed how FAP Turbo really works as the live accounts showed considerable profits.

3. There are innumerable reviews by regular Forex traders and experts alike which speak very highly of FAP Turbo. FAP Turbo is designed to give serious investors who are afraid of high-risk trading a piece of mind by implementing a highly effective Stop Loss Strategy.

While it is true that you can get rich overnight trading Forex, doing so would be financial suicide. I know what the official website says but this may not be the case in each and every month and may depend on how much money you trade as well as other factors. Professional traders and banks always manage their risk and so should you. There is no zero risk trading.

Automatic Forex system trading is not perfect, and it is possible that you might lose trades once in a while but I know for sure that the earnings with FAP Turbo will be bigger than the losses it makes. That is the way forex works, losses and gains and I know you will agree with me that there is no Forex trader that doesn't make losses. Its 60-day money back guarantee, gives you the opportunity to buy the robot, test it with fake money on a demo account for about a month and return it if it doesn't deliver the results you were hopeful for. - 23222

About the Author:

Bob K. Drummond does full-time currency trading from home. He often writes on trading, work from home opportunities and finances. To find out more about FAP Turbo, visit http://fapturbo.iiqtec.com.

How Can Forex Software Reviews Help You Choose The Software You Need For Trading?

By Ryse Edwards

Forex trading is different than trading on the U.S. Stock Market. This can be both good and bad depending on how prepared you are. Looking at forex software to help you is smart, but how do you know which software to buy. This is where forex trading reviews can come into play.

Are you looking at buy forex software, but are having a difficult time deciding which one would be the best? With so many different ones available it can seem like an impossible task to find what you need.

The best way to find the software for you is to do your research. Start with forex software reviews.

By using and reading Forex software reviews you'll learn a lot of different things about the different software packages. Forex software reviews aren't something to rely on, what you need to do is learn everything you can by reading them and then do some more independent research. If you learn as much as you possibly can it will be a lot easier for you to make your decision.

These reviews will provide you quite a bit of information and in most cases they are written by someone who has some experience with the software package that your are considering. There may be some cases where the person who wrote it doesn't have the necessary experience, but that's why we have what's know as independent research.

Soon enough you will be able to figure out what software to purchase. You will have to do plenty of research to find out what type of Forex software you want. Read the reviews and know what's in so that you can get what's best for you.

Just don't rely only on the forex trading software reviews. Research thoroughly and before you know it, you will have the software that you need to help you start forex trading. - 23222

About the Author:

Before you purchase any Forex Software, make sure that you visit Ryse Edwards' website and read his Automated Forex Trading System Reviews first. Click HERE now for more information.

Forex Hedging With Forex Trading Software

By Terry McDaniel

Even though there are many way to earn a profit in the foreign exchange, many traders prefer using fundamental analysis. These traders tend to follow the basic fundamentals when trading in the currency market, but other traders would rather use technical analysis.

The technical analysis model of foreign exchange trading utilizes technical or trade indicators such as the Relative Strength Indicator (RSI), the MACD, and other oscillating indices to evaluate profitable trades. Both the "fundamental analysis" and "technical analysis" models have merit. However, further evaluation of foreign exchange hedging has led me to believe it is the best model to use when trading in the currency market.

The term "hedging" can be defined as a means of reducing your risk in trading. Those veterans in the Forex market are likely familiar with hedging as it is commonly used by traders.

Even though you trading method may be different, it is important to be familiar with the ways of hedging as a Forex trader.

There are a number of different ways to hedge, the specific details on these are beyond the scope of this article. However, a Forex trader must always consider that there is both an upside and a downside to failing to hedge their trades. Those who choose to hedge cut their risk and are insulated from loosing as much as other traders.

Even though you will have to pay a broker cost for each trade, the amount of pips are inconsequential and it may not help you in the long run. The best suggestion would be to find an accurate and comfortable way of trading that works for you and never use real money until you have the first paper traded in your system.

There are a number of excellent Forex trading software programs currently available. Using this software is beneficial regardless of whether you engage in foreign exchange hedging and/or utilize the various market models in your trading.

This software will provide reliable and consistent trading signals, and will help in your trading. Good luck in your trading endeavors. - 23222

About the Author:

If you wish to find out more about getting a forex trading education, make sure to check out this website: forex trading advice

Money Management in Trading Systems

By Maclin Vestor

How to manage money when buying stocks, futures, or options -- what you must know before you buy.

Many people have a very crucial problem, they take on more risk than they can. It really doesn't matter if you're very young, if you take risk to the extreme and continue down that path, you will by mathematical law in all probability lose money.

Lets say you had an almost sure investment that was 85% likely to succeed. When it succeeded you double your money. You put all your money on it. The problem is, when the investment fails, you lose everything. Now it is just a fact that you will eventually lose everything if you continue to invest everything. You only need one trade and you are wiped out completely. Now, even if you invested 90% of your money on an investment that would win 80% of the time, you still are taking on too much risk to win in the long run. If you lose once, you will need a 1000% return just to get back to even. That simply will not happen forever, and even if it did, the large loss would limit your potential for gain so much, that you'd be better off not taking on the maximum risk.

Now, your risk of losing everything can never be completely 100% eliminated, even with conservative strategies. If you flip enough coins, eventually you'll get a very rare event such as 100 heads in a row. However, you'll also get 100 tails in a row. The idea is that you have a strategy that yields you more when you win, and/or wins more than it loses. in this case there will be several losses in a row, but there will also be several wins in a row. If you manage your money properly, you will still have enough money if you get several losses in a row, to be able to more than make up for it when you get several wins in a row. If you are forced to limit the amount of capital after so many losses, that you cannot invest with the same amount after the losses, you may be unable to win enough to make up for those losses. The idea is to keep your investments small enough to limit the chances of that happening. Although almost nothing is a sure thing, by using proper money management, you tip the odds in your favor.

Even if you have a profitable method, if you do not manage your risk, your profitable method becomes unprofitable. It's not usually the investment vehicle, it's the investor that ultimately determines how quickly you fail, and ultimately whether you are able to succeed. Under the same context, it's not usually the type of car, but the driver that determines whether you cause an accident. In order to protect yourself, you must keep your positions at a manageable level, and make sure to keep yourself limited by these rules that will limit your risk of ruin and keep the odds in your favor so you can stay in the game.

So how exactly does one manage money in a trading system? You need to determine probability of a move taking place. If you buy OTM option, the stock will have to move larger for success to occur. Of course if it does, the reward will be greater. There are probability curves based on a random walk theory that will assist you in determining the probability of a move taking place, until you know any better, use these. However, you also should use your own records of your system Determine both your risk/reward (your average % win divided by your average percentage losses, and in addition figure out your likelihood of success. When you do this, you can use what's known as the Kelly Criterion By using the formula as follows Kelly % = W - [(1 - W) / R] Kelly % = The maximum percentage of your capital you should invest per position. W = Winning probability R = Win/loss ratio

A trading system that contains good money management rules will not only outperform one without, but it will also help protect your capital, and keep you in the game. - 23222

About the Author:

Maclin Vestor teaches about varioustrading systems and teaches you to find a trading system that works for you.