tips for forex tradingThis article will take a concentrate mostly on the RSI and the stochastic indicator and what certain levels can actually tell us about what we are trading. If you are going to use an indicator it is very important to understand how that indicator works so you can understand when the information is valuable and when its not or tricky. RSI and stochastic are oscillators and commonly people believe they are only valuable in ranging markets. They can also be used to determine the future trend of the market. Firstly we need to know - The RSI and the stochastic moves within ranges during a trend a price. The levels the RSI and the stochastic ranges between can indicate the strength of the trend. In an uptrend the RSI and the stochastic should stay between about 20 and 90. In a down trend it will generally stay between 20 and 70 (often 60). This can let us know if a trend is reversing, as a drop below the 30 level on the RSI and the stochastic is rare in an uptrend. If it ducks below 30 or fails to recover above 80, the uptrend has been stifled. These levels will vary slightly depending on the currency pair you are trading, so find the levels your market ranges between before using this. In a ranging market this is not useful, so try other useful indicators. This means if we are in an uptrend we will often have "overbought" type readings on the RSI. Many traders exit positions because they think a price reversal will materialize simply because the RSI is showing a reading of 95 for example. This may not happen. The RSI looks at average up moves and average down moves, therefore, we can get a drop or reversal in the RSI without a reversal in price. The RSI and the stochastic can move out of this overbought territory even without a significant fall in price. This is because a brief sideways movement will bring down the "up average" calculation of the RSI and the stochastic, allowing it to fall to more normal levels. The RSI and the stochastic that is continually in the 70 to 90 range shows - in a rough approximation - that prices are continually closing near highs and former bar highs a high percentage of the time...and this is a good opportunity for a good trader to collect some pips as profits, because even if you are wrong you should know that your profits will be coming in very soon, just watch the market. I have just explained in details how to use the RSI and the stochastic indicators; with this you will agree with me that they are similar in properties. So I will advice you to practice with these two indicators and add them to your trading systems. For more information and guide on how to generate a good trading system that works for you visit; www.700dollarsdaily.com Catching in on pips at the right time

It has been discovered that most forex traders loose their money, even repeatedly, even those who are today earning a living from forex trade first lost money, so the big question is that what is the best way to trade forex and make profits from it, in view to answer this question, so many people have spent much money on e-book and forex seminars.

So what is still the solution, some have bought some software's, demo traded with them, made profits, but when they tried real trading, they end up loosing their money. The big problem is still what should I do to make profit like the big forex gurus.

After some careful thinking I asked myself some questions like; 1, why do robots trade specific currencies? 2, why are there fixed time frame to which some robot can perform best? So considering the above I decided to go into practice with GBP/JPY and I discovered that the best time to trade gbp/jpy is between 7.00 am and 9.00 am GMT, so if you carefully follow this I don't see why you should not make $200 daily from a $1,000 account.

It is not just enough to use this system, but you should know that in trading forex you must be disciplined. So I recommend at least a $1,000 account for a start, You should use a lot or 1.0 only, with this you should be able to make $200 daily with ease, that is 400% return on your investment which Is very good for a start.

Please practice this very well before implementing it, also note that you can also practice other currency pairs for different time frame, this will help you maximize you profit. You should not fell like a forex guru when you begin to make 400% monthly because you just started. Infact a forex trader made 2000% in 30 days, so you see you have just started