I came upon this quote and wanted to share it with my friends at FF.

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lt;TABLE class=MsoNormalTable style=WIDTH: 100%; mso-cellspacing: 0in; mso-padding-alt: 4.5pt 4.5pt 4.5pt 4.5pt cellSpacing=0 cellPadding=0 width=100% border=0gt;lt;TBODYgt;lt;TR style=mso-y-irow: 0; mso-y-lastrow: yesgt;lt;TD style=BORDER-RIGHT: #c0c0c0 1pt inset; PADDING-RIGHT: 4.5pt; BORDER-TOP: #c0c0c0 1pt inset; PADDING-LEFT: 4.5pt; BACKGROUND: #feefcf; PADDING-BOTTOM: 4.5pt; BORDER-LEFT: #c0c0c0 1pt inset; PADDING-TOP: 4.5pt; BORDER-BOTTOM: #c0c0c0 1pt inset; mso-border-alt: inset windowtext .75ptgt;I have read the numerous responses to you here of late and that I have a couple observations.

First, what's Forex versus perhaps the e-mini Forex markets? ForexMadeEasy (regardless of how it is spelled) is an absolute oxymoron. Allow me to preface my comments as more but I believe Forex is one of the markets to trade that you will ever come across. It's almost entirely dominated by professionals employed for huge multinational banks, associations and hedge-funds and it is an absolute man (and woman) eating jungle to the inexperienced trader. It's also highly subject to an absolute horde of fundamental report releases which push it to and fro as well besides being a real 24 hour market (unlike the e-mini futures that are around Globex 24 hours but just thinly traded outside of the pit hours.) Forex is, in my view, a market that could quickly decimate your account if you attempt to day-trade it. Even the best traders have heard it is a lot more wise to swing-trade the Forex market if they wish to survive long term.

That having been said, let us move on to a lot of the nitty gritty, shall we? Beginning traders, for want of any better way to get started begin as what we call pattern traders. That means they scan their charts each day to what we call high likelihood set-ups that reportedly set the odds in your favor by taking a trade just when those patterns appear on your screen. Where you've begun, if that's let me advise you to concentrate patterns for the time being. Regardless of all of the great little rectangles, pennants, triangles and wedges they love to refer to, once you take a look within those little lines that are cute, you may spot mostly just two real price patterns, either W's or M's. The M's are supposed to indie a topping out of the market and possible change whereas the W's are supposed to signify only the opposite (a bottoming and possible change.)

Now please realize that some traders who have failed at recognizing or trading those patterns will warn you off patterns entirely and perhaps even state they are total poppy**** and hazardous to your trading potential. Please take that advice. Remember, anything that tons of different traders follow religiously, such as patterns, fibonacci support and resistance, flooring pivots or anything else have you, has value as it leaves clues regarding market leadership and action. Just see that the traders often play with those positions contrary to the way the retail traders do. For instance, the boys have been busy amassing contracts in many of the moves while the retail traders are selling to them cheaper and cheaper as the market moves down, then lo and behold they stop buying and the selling dries up. What happens afterward? Well the buying begins in the opposite direction and of course the big boys then sell and thus distribute the contracts they accumulated straight back into the market for some tidy profits as prices rise.

There are at least another two sides to that equation (beyond patterns) and they are support and resistance (sometimes loosely associated with the term value) and momentum/volume in the market that's either encouraging or resisting the action at hand.

As Soultrader and many others in this thread and elsewhere have intimated, you would be well advised to learn about price action. Regrettably, telling that to a newbie is tantamount to telling them if only they'd just learn how they would triumph in trading. What is price action after all and does one learn it and make use of it? Ahh... there's the rub.

There are perhaps untold ways of coming to the markets, but virtually all of them boil down in the end (if you wish to be somewhat successful in it) to learning about value, about extremes beyond value and about support and resistance which you may encounter between both. If nobody has told you earlier the associations and professional money players mold and move the markets, whereas the retail traders just like you and that I generally offer the cash that goes to fulfill their bank accounts. That is the reason why the traders here will tell you to learn how to stop losing money until you concentrate on earning money.

This is a long winded way to tell you that you must study and learn who moves the markets and how they do it. After testing of indiors egies and much fruion you're likely to finally come to the conclusion, either learn everything you can about market value and encourage and resistance or get out of the markets before your account is redeemed. You may do well to consider your trading screen (price chart) just like a battle. A battle is fought between the bull military and the bear military. Your job is to learn about the artillery and troop concentrations (traces of support or resistance) and create an assessment based upon what you see happening in front of you - that the price action - together with those support and resistance lines and what's likely to happen as the conflict between the bull military and bear military rages on nearer and closer toward one of those points onto your screen.

I suggest you learn everything you can about pivots and support and resistance, especially as it concerns what happens when the price action either bounces from them or goes through them in either direction. Moreover, you have to think about three things before each trade, once you understand the structure of the playing area: trend, timing and momentum or quantity. Is there a trend or will be the market chopping to and fro in a tight range? Please understand that very few individuals successfully trade chop in a profitable fashion few. I must add however, that not many men and women who mostly just play break-outs (wherein they attempt to immediately pounce to the breakthrough of price through some formidable line of resistance or support) fare far better.

The smarter and more consistently profitable traders are usually awaiting proven establishment of the next trending motion. Remember that although a market only trends about 15% to 20% of the time, after it starts it often goes on more than most traders anticipate. Timing is your next consideration (and remember you can eventually do each of these things in only a few moments as your expertise takes hold) and you will most likely have to look to your assessment of whether the transfer is breaking out of understood and accepted value to new heights or new highs and if so. . You evaluate your issue which is momentum or quantity. Has the action reached an area on the screen where the large players happen to be lying in wait ? Is price currently breaking through the daily pivot in a new direction? Can it passed R1 and looks like people are piling on in a race to the point of resistance at R2? These are questions which could only be correctly assessed once you both understand the arrangement of the markets as noted above and have spent considerable screen time in observance of what typically occurs at such junctures so you have some sense for what happens more often than not in similar scenarios.

Trading is a profession, much like learning how to become a surgeon or an airplane pilot. There's a lot at risk and also you don't jump in and place cash or lives online without knowing what it is you are doing and using an experienced comprehension of how best to safeguard your individual, your team or in this case, your capital, at all times.

After lots of study and lots of screen time you're prepared to start thinking in terms of probabilities. Do not fret about being right more often than being incorrect. Focus instead on controlling your losses. Once you truly believe you have an edge over the enemy just like in a conflict, you only commit your troops. Cut your shedding positins as soon as you notice you're incorrect in your assessment. Do not make a habit of waiting for them to consume their way all of the back to your stops.You don't have to be in the market all the time, however you must be in the market when your rules or signals/triggers tell you to be there otherwise, just keeping losses small will not be enough, as you won't be in the market when those big moves come together.

Anyway, I have gone on way too long and I am all tuckered out, so that I will wrap up this here and expect that there was a small morsel of something helpful for you here in all this typing.

Joyful Trading lt;ogt;lt;/ogt;