Forex and Stocks Trading: Baby Bird Capital

In order for a person to reach their goals there are certain steps that they need to take. To reach the top of the mountain, you need to climb the mountain one step at a time. Similarly, to become a good forex trader you need to focus on making a dollar first, then focus on making ten dollars, then a hundred dollars and so on. A trading journal has proven to be an effective performance and confidence booster when executing trades. Trading without a diary is like shaving without a mirror.   ~Dr. Alexander Elder, Author of Trading for a Living. What is a trading journal? A trading journal is a record of observations, experiences, ideas, or reflections kept regularly for tracking progress and for future reference. Why do you need a trading journal? Tracking progress When you keep detailed records on your profits and losses it becomes easier to study mistakes made when entering or exiting trades Enhances performance Psychology and mental state plays a big ro...

A candlestick is a Japanese price chart that is formed by the following elements: Open: refers to the open price Real body: refers to the filled part of the candlestick  Upper and lower shadows: the lines above and below the real body. High: refers to the top of the upper shadow Low: refers to the bottom of the lower shadow. Close: refers to the close price. There are two types of Candlesticks: Bullish candlesticks and Bearish candlesticks. If the close price is above the open price this means that the candlestick is bullish. However, if the close is below the open, it means that the candlestick is bearish. Advantages of Japanese Candlestick Charts They provide a visual representation of what is going on in the market They accurately indicate a market trend, i.e. whether the market is going up or down. They can be used alone or with other technical analysis tools such as trend lines, moving averages or the elliott wave theory Types of candlestick chart patterns Hammer A hammer i...