Simply Junior

Here we will look at some of the best Forex Trading indicators and how you can combine them into a simple robust Forex trading strategy for long term gains.

No single Forex trading indicator works all the time by itself and the way you combine them is essential. Many traders make the mistake of the thinking the more indicators they combine the better – Wrong!

If you do this the system has too many elements to break; you only need a few and your Forex trading system will be simple and robust in the face of ever changing prices.

Right lets build our Forex trading system and look at some of the best Forex trading indicators to help you build a trend following Forex trading system.

First Identify the Trend.

This is obvious by looking at a bar chart but you also want to use moving averages as well. Simple moving averages are great in terms of smoothing out the fluctuations and two great periods to use are first, the 40 day MA to identify the long term trend. Secondly, use the 20 day MA to buy and sell back to in a strong trend and you will find this moving average is excellent for getting in on a trend in motion, with optimium risk / reward.

Spotting the Set Ups

We don’t have time to cover this in detail here but there are a couple of points that are the key to maximizing profits. Firstly, be patient and only trade high odds set ups and secondly, make sure you trade breaks to new highs and lows all the big trends start and continue from them so you need to trade them.

Bollinger Bands – Check Volatility and Standard Deviation

Ask most traders what standard deviation of price is and you will probably get a blank look but an understanding of standard deviation of price and volatility is something that all forex traders need to know about and if you don’t, make part of your forex education and learn about Bollinger Bands.

Bollinger Bands are not used to for market timing – but give you an all round view of volatility price and when you understand this concept, Bollinger Bands can help you in 3 ways:

They can alert you to potential big moves, help set targets and spot market value and entry levels.

Best Forex Trading Indicators for Confirming

When you spot a potential opportunity, you need to confirm the move and make sure price momentum is going the way you wish to trade. There are plenty of momentum indicators but for the last 25 Years I have found the following two the best. There easy to learn and apply, lets take a quick look at them.

The Relative Strength Index (RSI)

A great leading indicator to time your trading signals with. If the RSI supports your view of the market you can use it in strong trends – or when it diverges from the prevailing trend ( from over bought or over sold) to enter trades against the prevailing trend.

The Stochastic Indicator

The best Forex trading indicator of all for better market timing and when combined with the RSI you have a dynamite combination. The stochastic is a simple indicator but is the ultimate timing tool for timing trading signals in my view. If you use stochastic crossovers to confirm your move, you will get the odds on your side. It’s also very effective for timing contrary positions. A stochastic cross, from over bought or oversold levels, against the trend is a highly effective way of getting in on the big contrary trades.

Simple and Effective

There are other great indicators around such as the ADX indicator, MACD and many others but as a blend the above 4 indicators with a bar chart are my best forex trading indicators for profit and they have served me well over the last 25 years.

The indicators are easy to learn, apply and if blended correctly, can add a new dimension to your forex trading strategy.

In this day and age of economic crisis, every single penny that you spend counts (unless you’re a self-proclaimed millionaire). And for a lot of people, nowhere else do they see themselves losing more money than when it comes to driving. A few years ago, I made the mistake of being young and naive when it came to buying my first car. Everything that you are supposed to do when buying a car the right way, I pretty much went the opposite direction. As a result, I ended up purchasing a brand new Jeep Liberty (which is considered a small SUV). No sooner had I purchased this car, then the economy decided to take a swan dive. Gas prices shot up, and I saw my checking account drain out fairly quickly.

I’m not the only one who has found themselves in a predicament when it comes to driving. Millions of Americans everywhere who made poor choices in the types of cars that they purchased have felt the pinch. Shortly after I got my new Jeep, I switched careers and had to commute thirty minutes to almost an hour at times just to get to work one way. In total, I was putting over forty miles on my Jeep each day just going back and forth to work, not to mention wasting gasoline sitting in traffic.

After a little while and a couple of negative hits at the bank in my checkbook, I began to get frustrated. Why couldn’t I keep any money in my account? After all, I was pretty sure that the only things I was spending money on were gasoline, food and bills. I did some investigating and soon discovered that I was right. I was living as frugally as one could- even sacrificing social events that other people my age were having fun with- all in an effort to save money that wasn’t getting saved. So where was it all going? My car.

That’s right. I discovered that on average, I was spending over $400 a month in gasoline just to get back and forth to work! This didn’t even count the gasoline that it took for me to fill up to run other errands around town, etc. After I tacked in my monthly car payment and car maintenance (I.e. oil changes, miscellaneous, etc.), I was spending close to $1,000 PER MONTH on my car alone. I started to figure that short of getting rid of my car (which I couldn’t do), I would have to drive it less because my paycheck that I was receiving was literally getting handed over to paying for my gas to get to work.

I wasn’t even breaking even. I started thinking about applying to a different job because it didn’t make sense for me to drive so far and not see the fruits of my labor. It was actually costing me money to go to work! Luckily, my situation improved, and I didn’t have to do anything drastic, but it just goes to show how the choices we make can really come back to bite us!

2011 Tax Deduction for Homeowners is a great way to save money in year 2011. If a taxpayer understands the benefits of home ownership they might decide to own a home instead of continuously paying down payment to a rental apartment.

If you own a house, here’s the steps on how to claim maximum Tax deduction for homeowners in 2011.

The deductions can be made by reducing the real estate taxes you paid in accordance to the assessment value of your property and if the local government has similar rating to its value.The public must have gained benefits from taxes they paid and not only for individuals or community. Whenever you have first or second homeowner mortgage, home equity loan, and home improvement loan in 2011 you can deduct from taxes all the interest you paid for this loan as long you are using this home as your main or secondary residence. Never deduct payments you have made from your real estate escrow account because your lender can present annual information of your payments that can show the actual amount you paid for it and can deduct to your federal income taxes. This is important point you must remember when doing Homeowner Deductions from your 2011 Tax return. A lot of people make this mistake. In the event you bought a house you can transfer all taxes you have paid and add it to its cost basis. This is the item that cannot be deducted to your taxable income.

To claim your Tax Deductions as a Homeowner in 2011, be diligent when filing.

The Great Recession is over! Well, at least that is what we keep hearing. In truth, the technical indicators show the recession is at an end, but the anemic recovery is going to make it hard to see any positive bright lights. One need look no further than the current real estate market.

The real estate bubble is considered by most the trigger that started the domino effect that got us into this mess. There were certainly many other issues, but housing was the focal point. The official end of the recession would seem to suggest the real estate market has bottomed out and is now in recovery. Is this really the case? The answer seems to be no.

The news from the real estate market shows there is no big recovery. Just consider the news this week from Las Vegas. MGM Casinos was developing a $8.5 billion high end condo development prior to the downturn. The company has just announced that the prices of those condos are being slashed by a whopping 30 percent because of a lack of demand. In fact, the word out of Vegas is no new casino projects will break ground for at least the next 10 years. You know it is bad when they stop building casinos in Las Vegas!

What about the rest of the nation? Well, the latest figures show that apartment vacancies are at record highs. The current figure is up to a massive 7.8 percent vacancy rate. This would seem to suggest that renters are buying homes, right? Unfortunately, no. The truth is this figure represents unemployment problems and family members moving in with each other to make their dollar go farther.

Make no mistake, there are parts of the country in which the real estate market has solidified. That being said, it is an entirely different thing to say the market has recovered and all is good. It simply is not and will not be for some time.

The real estate market in Phoenix, Arizona, while being alive and active, has been hit hard by the sub-prime home loan crisis and subsequent recession. At the present moment, however, the market seems to have hit its lowest and is on its way back to a recovery. However, if you are expecting to see the high values that the Phoenix market held just about a year back, you will be disappointed.

The most important statistic, which is the best indicator of the present market conditions in the Phoenix area, is the average price of homes sold in the area. The price today is hovering around $135,000 as opposed to this time last year when it was about $207,000. This extremely sharp drop in prices is the impact of a receding market. Present prices are almost the cheapest real estate prices the area has experienced in quite a long time. Houses for sale in Phoenix, AZ are therefore a great deal for interested buyers at their present value. This reflects in the fact that there were about 1,750 completed house sales in the phoenix region last month itself. This is a significant jump in numbers. However, the inventory has reduced substantially from what it was last year at the same time, meaning that there are only about 8,700 current listings in the Phoenix, Arizona real estate market as opposed to over 14,000 a year ago.

The average number of days on the market for a property in Phoenix today is 62 days. While this is not too low, it is not too high either. In fact, the figure is much lower than most other locations hit hard by the recession. As a result, even though the prices have bottomed out, a flip sale is still possible in the market and there is some activity on the seller’s part in the market. However, make no mistake, with the present prices Phoenix, Arizona is still very much a buyer’s market.

The prices and market activity in Phoenix has largely been governed by another factor as well. This is the fact that there have been a significant number of properties in the area, which have been foreclosed or short sold due to lack of means to repay a housing loan. These properties are often sold at a bargain price and have resulted in a lot of buyer activity in the recent past.