Newcomers to trading the foreign exchange currency markets do well to accept the observation of experienced seasoned traders that the idea of a perfect Forex trading tool is an illusion.

While no perfect Forex trading tool exists, using a combination of tools to identify a converging of favorable market factors can yield a majority of high probability trades over a period of time.

Trendlines certainly deserve close consideration and many successful traders add them to their collection of Forex trading tools.

It should be stated at the outset that trendlines by themselves do not provide a strong enough signal to warrant making a trade. They are a useful addition and provide confirmation of signals from other tools. (See resource box for a visual example of using a trendline as a trade entry point)

The Three Trendline Strategy

Consider these three main types of trendlines you need to know and use if you are going to make any sense of trendlines.

Trendlines are lines drawn across significant lows in an uptrend, and significant highs in a downtrend. The more candles to the left and right of the lowest candle in an uptrend or the highest candle in a downtrend make the low or high point more significant.

1. Short Term Trendlines

Draw these lines across the most recent two lows (for an uptrend) or highs (for a downtrend). These are best observed on a smaller time frame such as a 15 minute or 30 minute chart.

2. Medium Term Trendlines

These are best observed on a higher time frame such as a 60 minute chart. Again connect the nearest significant low to current price action to the previous significant low in an uptrend or the nearest significant high to current price action to the previous significant high in a downtrend.

3. Long Term Trendlines

Use higher time frames such as the 4 hour chart or the daily chart to draw long term trendlines using the same method described for Medium Term Trendlines.

The long term trendline can be a powerful Forex trading tool. Keep in mind that the daily chart is used prominently by traders of big institutions. Such traders probably do not engage in small moves on an intra day level. They are more concerned about taking a position on a currency pair.

The daily chart is consulted by them when making decisions. So by drawing a trendline on a daily chart you can present to yourself graphically just where price is and where it is likely to either possibly bounce and retrace or continue with the current momentum.

Using Trendlines As An Effective Forex Trading Tool

Trendlines on the short time frame merely give you a defined picture of current price action. These trendlines are broken often during the course of a day. It is probably not a good idea to enter trades based on trendline breaks from a small time frame chart. Their main use is to give you a clear, instantly recognizable graphical representation of current price behavior.

However, here is where trendlines can prove to be a useful Forex trading tool:

If you notice price coming back to test a trendline on the higher time frames, (anything over 30 minutes), look at other factors. For example:

• Draw in horizontal lines to mark key support and resistance using previous highs and lows.
• Draw Fibonacci retracement and extension levels.
• Calculate the daily pivot points and put them on your chart.
• Have the 200 EMA (Exponential Moving Average) shown on your charts.

Now, if price were to bounce or touch the trendline on the medium to higher time frames, that is, on the 60 minute, 4 hour, or even daily charts, does that price point also coincide with or match up with one of the other indicators mentioned above?

If for example the trendline intersects with a pivot point which is also a Fibonacci 50% or 62% retracement, or 127% or 162% extension, then you have a convergence of factors. If you entered a trade at that point there is a high probability you will catch at least 10 to 20 pips on the first move on the bounce.

Looking for such opportunities takes patience. They don’t come up so often but when they do you can be ALMOST guaranteed a successful trade if you keep your first profit target to a reasonable level.

If trading multiple lots, then be sure to take your first profit at the 10 to 20 pip level and let one or two other lots run if price continues in the direction you anticipate. At the same time of course you would move up your stop to break even point after taking first profit so your trade can now run without risk.

Employ trendlines as a Forex trading tool with caution and discretion. Covering your charts with every trendline possible will only result in confusion and blurry analysis.

One or two trendlines at key or significant swing points, (price highs and lows) can give you a defined, clear picture of price action, which, when coupled with your other Forex trading tools, can result in profitable trades.

See how to use trendlines to get an optimum trade entry point:

http://www.vitalstop.com/Forex/trendline.html

How do you trade the non-farm payroll report? Read this:

http://www.vitalstop.com/Forex/Advisor/forex-strategy-non-farm-payroll.htm

For the best free economic calendars plus a free pivot point calculator and Fibonacci calculator click here:

http://www.vitalstop.com/Forex/tools.html

If you were to type in the words “forex trading systems” into any popular search engine, you would quickly reach the conclusion that the Forex Killer trading system is one of the most popular types of forex trading software available. For those who may have been misinformed, Forex Killer isn’t an automated system, but rather a signal generator designed for trading more profitably. The complex algorithm of the software computes for you a critical piece of information you need to make more pips. Forex Killer can tell you whether or not you should take a trade and what the probability is that the trade will end profitably. The most attractive benefit of using this software is the 70% probability factor.

Reason #1 More Profitable Trades With The Forex Killer 70% Probability Factor

For example, suppose you are considering a short position on the USD/GBP. Forex Killer’s unique mathematical process will calculate whether or not a short position is a profitable option based on the system’s algorithm. The software will give you a reading to buy, sell or not trade. In order to make the most profitable trade, both signals should match, saying either “BUY” or “SELL” and at least one signal should give you at least a 70% probability of success. Sticking to this one rule will allow you to make more profitable trades as well as save you the anxiety and expense of multiple poor decisions.

Reason # 2: Fast, User-friendly Market Analysis

Many traders spend countless hours pouring over financial trading signal charts trying to analyze the market on their own. They fret and stew about whether or not they’ve interpreted the data correctly and then walk the floors each night over trades based on that data that might or might not make any money. Forex Killer makes it easy to upload the relevant trading signals and scan all the currency pairs in minutes rather than hours. You get an easy to read and easy to understand format that, when coupled with the Forex Killer 70% probability factor, allows you to make the most of any possible trading opportunity.

Reason #3: Outstanding Return on Investment (ROI)

If you looks at most trading signal providers, they often want a recurring payment in order for you to keep receiving signals. Forex killer allows you to generates many signals as you like at any time without having to pay a monthly bill. This piece of software carries with it an amazingly high ROI because not only can you generate your own signals at no more cost than simply the software itself, but you also save money because it allows you to make faster and more educated trading decisions.

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Day trading coaching is a crucial prerequisite for anyone looking to make a serious foray into the world of professional day trading. Whether you seek to quit your day job and engage in day trading on a full time basis or whether you merely seek to dabble in day trading on the side, one cannot underestimate the incalculable benefits of undergoing some form of day trading coaching before you get started.

Not only is this true before you get started, but it is equally important and of positive benefit to maintain an active coaching relationship on an ongoing basis.

Why is this important?

In order to be successful in any endeavor, there is no resource more valuable than to have a coach, mentor, or a teacher who has blazed the trail before you and who can guide you, inspire you, motivate you, and keep you focused on achieving your goals.

Coaching can be provided for you in many forms:

- Someone you know who is already a successful day trader.

- A local investment company who can offer you one-on-one assistance.

- A local investment group that can offer you guidance in a peer / mentor environment.

- A “virtual” coach who guides you through books, audio tapes / CDs / DVDs / MP3s, or even via courses offered over the Internet.

No matter which way you go, coaching is not something you should underestimate the necessity of.

Day trading without a coach would be like lifting free weights without a spotter. Day trading without being grounded in the proper knowledge and mechanics of trading on the market is risky business. If you have access to a competent coach who is committed to your success, then you have a greater chance of achieving financial success as a day trader.

Do you have what it takes to become a professional day trader?

Day trading brokers are essential to new traders. They do the transactions for you and even give suggestions as to which transactions to make, whether you should sell now or later. Your choice of broker is therefore crucial to your success. But other than this criterion, what other qualities must your broker have and how do you choose the best one in your trading company?

The first thing to consider is the cost. Some really good brokers can charge high rates for every transaction that he does. While this may give you more profit, still you may not earn much because a big chunk of the money goes to the broker. You should therefore be able to weigh the transaction costs and commissions that you will give your broker against the profit that you are supposed to have.

It is also important that you require financial stability from your broker. He must have enough capital or assets. This will lessen the probability of him running away with your money. More importantly, transfer of funds between the two of you must also be relatively quick and easy. See also if he accepts online payments.

He must likewise be reliable and with a proven track record in this field. To know this, you must do your own research. Ask the company for details on the broker’s record, such as the number of clients that he had, how many of them lost their money and how many of them actually made profit. Or you can ask fellow traders as to which ones are good and which ones are not. You can also search his name in the net. It is possible that his name may have been mentioned in forums or message boards, so you will have more information on how he works or operates.

Of course, there are other services that he can provide, such as technical support and chart analysis. See also if he uses a trading platform that you are comfortable with.

With the many day trading brokers available, choose one who can provide you with the best service at the least cost. Remember your goal as you ventured into this kind of business, and that is to gain profit. If a big part of your gain goes to commissions, then it is time to look for other brokers who can provide you with the same service at a lower price.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Systems, Day Trading Strategies, Online Day Trading and Day Trading Websites. For more information visit his website http://daytrading.explore-me.com

The stock market is down, yet options activity is up. That means that many are finding themselves taking control of their assets and getting into the Wall Street game of leverage. Leverage can provide great opportunities for many looking to increase their returns and hedge against market risk. Unfortunately, with the wave of options activity, we’ve seen many firms offering high-priced seminars that don’t give the buyer what they think they’re getting.

Often times, people have just enough information to be dangerous…to themselves and their financial future. When they don’t find success, they find themselves paying the same high price for an alternative service or seminar. In order for people to have a full understanding of the options market, they need to speak with a professional who knows how they think and operate.

This is the one thing missing from many options seminars today. The course material is not always drawn up by a professional, but rather someone who has text book answers to standard market material and is in the business of making money. This can make it very difficult for the novice investor or trader who is looking to get their money’s worth out of the seminar. Options trading is not something that can be learned in 5-7 days. People who believe it can are either trying to sell you something, or do not have enough experience to advise you on how to trade options.

Do yourself a favor and seek out as many opinions as possible when choosing an options trading platform. There are many small differences outside of commissions that the less educated will not be aware of. One example is charting options. Most retail investors lack the most needed skill when it comes to getting the best entry prices on options, a chart. Would you buy a stock without looking at the chart? Probably not! This is the type of information you need to be educated on to find success in options trading.

To learn more about options trading go to http://www.stockmarketfunding.com