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Rapid Forex Scam Watch Gets Your Money Back

When Rapid Forex relaunched as a blog, I got several emails that I haven’t had a way to deal with…

Until Now!

Many of the rapid forex blog readers have been telling me that there are hundreds of forex scams out there. To help expose these online forex trading scams, I’ve created a new blog feature, The Rapid Forex Scam Watch.

From this point forward, I’ll be monitoring the Internet for reports of fake forex trading courses, fradulent forex investment schemes, and just down right forex rip-offs.

I’ve seen some of these forex trading scams circulating online, but now I’m going to help to prevent you & others from being burned.

4 Benefits of Blogging About Online Forex Trading Scams:

1. Pressure will be put on the forex scam to refund money to victims.
2. The forex scammer will be forced out of business.
3. Forex traders will be warned to avoid the forex scammer.
4. Traders who have been scammed will have a place to report their grievances.

Of course I’ll also be sharing the very best resources with you on the rapid forex blog as well.

Rapid Forex Scam Watch Begins With You

I’ve already found a few Forex scams, which I’ll be reporting in the new Rapid Forex Scam Watch section of this blog. But rather than just picking an anonymous scam out of thin air (there are many), I wanted it to be more personal.

Here’s what I need you to do:

1. Report any forex trading website that’s scammed you out of money.
2. Explain how they scammed you (i.e. why you think they are a scam).
3. Post your grievance as a comment to this blog post.

I’m going to take the top scams reported by Rapid Forex blog readers and then do some more research and discover the truth about the scam. I’m going to put pressure on the scammers by creating blog posts explaining how they’re scamming people, and share people’s stories who they have scammed. I’ll find more people that they’ve scammed.

I’m going to contact them and ask them to give you a refund. If they issue refunds and you confirm it, I’ll post that on the blog as well. I think it’s only fair to allow the “scammer” to try and make things right and clear their name. If they refund everyone’s money, I’ll post that too.

If you’ve been burnt, you might never see that money again. I think it’s worth a try. Rapid Forex holds enough weight in the online forex trading world that I’m confident that I could help many of you get your money back.

To try and get your money back and warn other forex traders about malicious forex trading scams, please post your “I was scammed” experience as a comment below:

Posted in Forex Trading Scams

Six Killer Forex Trading Strategies

There are several forex trading strategies that can bring you profits. However, what works in a trending market may not work in a sideways market (and vice versa).

Here are six general strategies for placing trades in different forex trading situations. You may have seen some of these ideas in previous blog posts, but this will be a nice summary of forex trading rules to print and keep by your forex trading desk.

Remember to combine the general information listed here with the more detailed, case-specific information you’ve learned throughout this blog.

Strategy #1: This forex trading strategy works well in both sideways markets and trending markets. To trade the first trading strategy, follow these steps:

1. Enter with one lot.

2. Place your stop loss order at the last level of support if you are a bull (you are buying) or the last level of resistance if you are a bear (you are selling).
3. Analyze the potential risk compared to the potential reward in the trade. Keep your potential losses small.
4. Go for small profits, don’t get greedy.
5. Exit just before the market makes a new high or low. Exit as the market passes through the previous level of support (resistance) to make a new low (high).

Strategy #2: This forex trading strategy works better in sideways markets, but also works fine in trending markets. To trade the second forex trading strategy, follow these steps:

1. Enter with several lots (5 or 10, for example).

2. Place your stop loss order at the last level of support if you are a bull (you are buying) or the last level of resistance if you are a bear (you are selling).

3. Analyze the risk-reward ratio. Keep your potential losses small.

4. Go for small profits (20-30 pips). You should be in and out of the trade quickly.

5. Exit just before the market makes a new high or low. Exit as the market passes through the previous level of support (resistance) to make a new low (high).

Strategy 3: This forex trading strategy works well in trending markets and poorly in sideways markets. To trade the third forex trading strategy, follow these steps:

1. Enter with one lot.

2. Place your stop loss order at the last level of support if you are a bull (you are buying) or the last level of resistance if you are a bear (you are selling).

3. Analyze the potential risk compared to the potential reward in the trade. Keep your potential losses small.

4. Cancel and replace your original stop loss order (to seal in profits). Only cancel and replace the previous stop loss order after the market has made a new high (low).

5. Don’t set a profit limit order. Stay in the market until you are automatically exited when the market hits your stop loss order price (when you are stopped out).

Strategy #4: This forex trading strategy works well in trending markets and modestly in sideways markets. To trade the fourth forex trading strategy, follow these steps:

1. Enter with two lots.

2. Place your stop loss order at the last level of support if you are a bull (you are buying) or the last level of resistance if you are a bear (you are selling).

3. Analyze the potential risk compared to the potential reward in the trade. Keep your potential losses small.

4. Exit with one lot for a small profit before the market makes a new high or low. Exit as the market passes through the previous level of support (resistance) to make a new low (high).

5. Exit with the second lot just before the market hits to Fibonacci extension bounce point (you will be going for a larger profit with this lot).

Strategy #5: This forex trading strategy works well in trending markets and poorly in sideways markets. To trade the fifth forex trading strategy, follow these steps:

1. Enter with multiple lots (5 or 10, for example).

2. Place your stop loss order at the last level of support if you are a bull (you are buying) or the last level of resistance if you are a bear (you are selling).

3. Analyze the potential risk compared to the potential reward in the trade. Keep your potential losses small.

4. Place limit exit orders for each lot at different pip increments (e.g. place your first exit order to exit one lot at 40 pips away from entry; place your second exit order to exit one lot at 60 pips away from entry; place your third exit order to exit one lot at 100 pips away from entry; place your fourth exit order to exit one lot at 150 pips away from entry; place your fifth exit order to exit one lot at 200 pips away from entry).

5. Once the market has started to trend and has moved 100 pips or more away from entry, cancel and replace the stop loss orders for your remaining lots to eliminate your risk. In this case, cancel your original stop orders for the fourth and fifth lots, replacing those stop orders at the breakeven point (the market price 100 pips away from entry).

Strategy #6: This forex trading strategy also works well in trending markets and poorly in sideways markets. To trade the sixth forex trading strategy, follow these steps:

1. Enter with multiple lots (5 or 10, for example).

2. Place your stop loss order at the last level of support if you are a bull (you are buying) or the last level of resistance if you are a bear (you are selling).

3. Analyze the potential risk compared to the potential reward in the trade. Keep your potential losses small.

4. Place limit exit orders for each lot at different pip increments, just as you would in the fifth trading strategy, except this time don’t set a limit exit for the last lot (the fifth lot, in this case). Instead, allow your trade to take advantage of potentially huge moves.

5. Once the market has started to trend and has moved 100 pips or more away from entry, cancel and replace the stop loss orders for your remaining lots to eliminate your risk. In this case, cancel your original stop orders for the fourth and fifth lots, replacing those stop orders at the breakeven point (the market price 100 pips away from entry). As you follow the market with your fifth lot, continue canceling previous stop loss orders and replacing them at new highs or lows, to lock in your profit.

Now you have 6 different forex trading strategies for different market situations. Mastering a few of these could become your bread and butter as a forex trader. The rapid forex blog will continue to teach you more forex trading strategies, but knowing these will add valuable tools to your forex trading toolbox!

Posted in Money Management

3 Ways to use Stochastics for Forex Trading

Stochastics, like MACD, are also momentum oscillators, reflecting the strength of market movement, which is helpful for online forex trading.  Stochastics are one of the most important technical indicators for online forex trading.

Three fundamental ways to use stochastics for FOREX trading Online:

1. Compare the movement of the stochastics to the movement of forex trading prices.  If forex trading prices are making new highs (solidly trending upward) or lows (solidly trending downward) and your stochastics are also making new highs (trending upward) or lows (trending downward) then the market trend will most likely continue.

Key Point: if prices and stochastics are in agreement, then currencies are being traded at what the market deems a fair value, and there is no immediate reason to believe that the market will change course.

If, however, prices are making higher highs (trending upwards) while your stochastics are making lower highs then the market is heading toward a reversal (toward a new downtrend).  The stochastics, in this case, are saying that the market is overbought, that the currencies are being overvalued.  The assumption, then, is that traders will realize that the currency is overvalued and sell, bringing the market into a new downtrend.

It is in this way that stochastics can forecast market corrections – adjustments that the market makes when the price of a currency does not actually reflect its perceived value.

If prices are making lower lows (trending downwards) while your stochastics are making higher lows, then the market is heading toward a reversal (toward a new uptrend).  The stochastics, in this case, are saying that the market is oversold, that currencies are undervalued.

The assumption here is that traders will realize that the currency is undervalued and will buy, bringing the market into a new uptrend.  Again, stochastics can forecast market movements to correct for undervalued or overvalued currencies.

2. The second way to use stochastics is to look at the interaction between the %K and %D lines.  If the %K line crosses over the %D line it offers a buy (bullish) signal.

If, the %K line crosses below the %D line it offers a sell (bearish) signal. Be careful to not use this stochastic crossover indicator is markets that are in consolidation (moving sideways) because they will not generate reliable signals.

3. Stochastics are plotted on a scale of 0 to 100. The third way to use stochastics to generate useful information about market movement is to look at the movement of the two stochastic lines (%K and %D) across different levels.  The levels between 0 and 100 reveal the strength of price movements in one direction or another.

When either stochastic line (%K or %D) is above 80 it’s signaling strong upward price movement in the market.  If either stochastic line crosses above 80, then reverses to fall below it, that offers a strong sell signal because it is a sign that the uptrend is reversing.  When the stochastic is at 80 or higher but the market is trending downward, that sell signal is called a sell crossover.

Conversely, when either stochastic line is below 20 it’s signaling strong downward movement.  If either stochastic line crosses below 20, then reverses to rise above it, that offers a strong buy signal because it is a sign that the downtrend is reversing.  When the stochastic is at 20 or lower but the market is trending upward, that buy signal is called a buy crossover.

There are two additional trading strategies to consider when trading with stochastics on a 0-100 scale:

Strategy #1: a buy 40/40 is a buy signal to trade purely on the momentum of the trend.  When the stochastic is at about 50 and trending upward, trade in the direction of the uptrend with a 40-50 pip stop loss and profit limit order.

Strategy #2: Conversely, a sell 40/40 is a sell signal to trade purely on the momentum of the trend.  When the stochastic is at about 50 and trending downward, trade in the direction of the downtrend with a 40-50 pip stop loss and profit limit order.

Posted in indicators