Trading advice & trading tips

Use technical formations in conjunction with the visual identification for further optimization,
eg. when a bearish descending triangle is in formation, the breakout has a higher likelihood of occuring to the downside, if inside days are building and contracting towards the bottom of a recent range.
sam

we need some tips and advice regarding tax and trading :)

I think this article can be useful:

http://en.wikipedia.org/wiki/Capital_gains_tax

Breakouts aren't easy to trade, and most traders don't trade them, however, most traders also don't make money in Forex.

How to trade big breakouts?

Get a weekly chart and find important resistance/support levels. They are easy to spot - these are tops and bottoms that price reversed at.

Then go to your daily chart and waaaaaaait paaaatiently for the breakout to occur as well as watch for confirmation from other indicators like Bollinger band, which will show volatility situation on the market and Stochastic, which is the best confirmation indicator for breakout trading!

Get in as soon as the price breaks the level of support/resistance. Don't wait ofr a pull back because it may never happen!

The fact is that most major currency moves (especially up-moves)go up without any significant pullbacks!

Good luck!

Forex tader

I always trade using breakout technique and usually get profits from it using asian and NY times.

The tips is, when u wanna trade in asian time, use only pairs with yen such as GBPJPY. Dont trade GBPUSD in asian time because the british already woke up from bed but the americans did not. If we wanna fight we dont fight with unconscious
person :)

Hi Edward,
This is Karen here, I've been visiting this site for a couple of days now, and I find it very helpful, thanks for all the information! I do have a question that I hope you can help me answer. One of the patterns that I have been looking at but don't fully understand yet is "double bottoms."
The part I don't quite understand is that people over and over again talk about this, "Most technical analysts believe that the advance off of the first bottom should be 10-20%. The second bottom should form within 3-4% of the previous low, and volume on the ensuing advance should increase." What does it mean when the author wrote, "After the first trough, advance takes place that typically ranges from 10 to 20%." 10 to 20% of what? Is it the first increase after the first peak was formed?

Hi Karen,

the author is talking about the advance after the first peak/bottom.

That's, in fact, is the first time I hear about those percentage requirements.
Double top or double bottom is simply a price pattern, where price hits the same support/resistance level twice and neither time is able to break it.

Both peaks in the pattern must be distinct and obvious to you and me and other traders, but other than that I don't see how we're going to calculate those percentage numbers on practice. In this case simple is better.

Best regards,
Edward

Good Day
I have traded before with FXDD but noticed I made good judgement on trends but finally lost my capital. after much reflection I noticed my stop losses were always higher than my Take profit so nomatter a higher percentage of good trades one bad trade wipes out my profits. Is it a good I dea to put take profits always higher than stop losses?
Fon