By: kelly Price
Forex trading strategies
Here we will discuss 3 tips which if you include them in your FX Trading strategy can turn a trading account making marginal money into big forex profits. These tips don not conform to the consensus way of making money but most forex traders don't win!
1. Cut Back Trading Frequency
Most traders simply trade too much and you need to remember you don't get rewarded for the amount you trade - just how many trades you get right and the profit they produce. The high odds big trades only come around a few times a month so look for them and trade them.
For example, I know traders who trade less than 10 times a year yet make 100% + annual profits and you can to.
Forget short term trading like forex scalping or day trading and hit the high odds trades only - the big trends that last for weeks or months. Look at any forex chart and you will see them, so lock into them and trade them.
2. Hit High Odds Trades Hard
When you have a high odds trade - hit it hard in terms of money you are prepared to risk. You hear a lot about risking 2% per trade but for a retail trader this is ridiculous. If you invest $1,000, that's 20 bucks and your risk is so small, your going to get stopped out by random volatility. If you have a high odds trade risk up to 20%.
This is not being rash. If you have a high odds trade your confident in then you need to take a meaningful risk to make a worthwhile profit.
3. Don't Dilute the Above!
Only run high odds trades and forget about diversifying. Diversification is supposed to reduce risk and maybe it does - but one fact is clear, it will dilute your profit potential at the same time.
Why when you have a great high odds trade do you want to dilute and reduce its profit potential?
Many people diversify so much, they never make anything! So don't bother spreading trades around, hit the high odds trades, risk as much as you can afford and focus on it.
Many traders try so hard to reduce risk they actually create it and ensure they will never make any decent gains.
Trading is all about taking risk but this is not being rash, it's about taking calculated risks, at the right time and knowing when to bet, how to bet and what stake to risk.
Your not trading forex to make 10 or 20%, you can do that with less risk elsewhere!
Your out to make 50 - 100% or more and the above is really common sense and if you try it, you will reduce your risk, turbo charge your gains and enjoy currency trading success.
About the author:
NEW! 2 X FREE ESSENTIAL TRADER PDFSESSENTIAL FOREX TRADING COURSEFor free 2 x trading Pdf's, with 50 of pages of essential info and more on F X Trading Strategy visit our website at: http://www.learn currencytradingonline.com.
Forex trading strategies
Monday, December 1, 2008
Wednesday, November 12, 2008
Forex Trading Strategies - Come up with Your own Strategies to Implement
by Pete Miguel
If you are a seasoned investor and knows the nitty-gritty of things when it comes to investing and making profits, why not consider becoming a forex investor and jump right into the exciting world of forex market? As a forex investor, it really doesn't matter from whichever part of the world are you located at. As long as you have access to a computer and an internet connection, you can have total control over your account at any preferred convenient time of the day. With careful planning and implementation of the right strategies, you can be expecting to reap surmountable amount of profits from your investment.
Habits of a good forex investor
Although it is absolutely true that the potential for making big money as a forex investor is huge, you should also take into consideration that the forex market is no place for sheer gamblers who are only experts at betting with only chances and luck as their basis. If you want to become a good forex investor, the first habit you should definitely adopt is being updated regularly with the latest news and happenings globally.
A wise forex investor would always enter a forex market with a fairly small capital at hand. This must be an imperative decision to make, as the currency market tends to fluctuate sharply and regularly. And with the ever constant changes happening around the world brought about the political and economic situations of every country, forex trading can just be a highly unpredictable game to play around with.
Coming up with the right plan and strategies
Keeping fully updated with what's going on around is not even enough to come up with the right strategies in mind to implement later on. You must take special attention and focus on analyzing the information from all the news you are getting. Based on these analysis, you should be able to come up with the right strategies before even deciding to get involved in buying or selling.
One good characteristic of being a good investor is not having to make weak and abrupt decisions that are only based on sudden spurt of emotions. The best basis for an investor in making decisions is by carefully studying proven and dependable market statistics. It is always better to depend on data reports rather than hearsay or sudden gut feel. After all, numbers cannot lie.
Another important thing you need to consider as a forex investor is that you need to familiarize yourself really well with the entire forex market and everything that is happening from within and around it. You should learn everything from knowing who the big players are that you need to keep watch at, up to the political figures that can actually influence the market. Never rely only on your own personal opinion before making any conclusions, seek the opinion of fellow forex investors and study their own versions of analysis with the market as well.
If there is one ultimate characteristic that you should really develop as an investor, that is to become very good at analyzing forex news. The market tends to react very swiftly based on the latest news release. If you are not quick and don't know how to analyze correctly, then you will always loose the chance to take advantage of the opportunities that may arise brought about these most recent changes.
Want to discover and constantly share interesting and useful forex news and research with professional forex traders?
Freshpips.com delivers to your e-door step the most relevant Forex news and research including currency trading news on the Web. Find and learn the forex knowledge that you need and at the same time, be able to share your own expertise with others.
Article Source: http://www.articlesnatch.com
forex trading strategies
If you are a seasoned investor and knows the nitty-gritty of things when it comes to investing and making profits, why not consider becoming a forex investor and jump right into the exciting world of forex market? As a forex investor, it really doesn't matter from whichever part of the world are you located at. As long as you have access to a computer and an internet connection, you can have total control over your account at any preferred convenient time of the day. With careful planning and implementation of the right strategies, you can be expecting to reap surmountable amount of profits from your investment.
Habits of a good forex investor
Although it is absolutely true that the potential for making big money as a forex investor is huge, you should also take into consideration that the forex market is no place for sheer gamblers who are only experts at betting with only chances and luck as their basis. If you want to become a good forex investor, the first habit you should definitely adopt is being updated regularly with the latest news and happenings globally.
A wise forex investor would always enter a forex market with a fairly small capital at hand. This must be an imperative decision to make, as the currency market tends to fluctuate sharply and regularly. And with the ever constant changes happening around the world brought about the political and economic situations of every country, forex trading can just be a highly unpredictable game to play around with.
Coming up with the right plan and strategies
Keeping fully updated with what's going on around is not even enough to come up with the right strategies in mind to implement later on. You must take special attention and focus on analyzing the information from all the news you are getting. Based on these analysis, you should be able to come up with the right strategies before even deciding to get involved in buying or selling.
One good characteristic of being a good investor is not having to make weak and abrupt decisions that are only based on sudden spurt of emotions. The best basis for an investor in making decisions is by carefully studying proven and dependable market statistics. It is always better to depend on data reports rather than hearsay or sudden gut feel. After all, numbers cannot lie.
Another important thing you need to consider as a forex investor is that you need to familiarize yourself really well with the entire forex market and everything that is happening from within and around it. You should learn everything from knowing who the big players are that you need to keep watch at, up to the political figures that can actually influence the market. Never rely only on your own personal opinion before making any conclusions, seek the opinion of fellow forex investors and study their own versions of analysis with the market as well.
If there is one ultimate characteristic that you should really develop as an investor, that is to become very good at analyzing forex news. The market tends to react very swiftly based on the latest news release. If you are not quick and don't know how to analyze correctly, then you will always loose the chance to take advantage of the opportunities that may arise brought about these most recent changes.
Want to discover and constantly share interesting and useful forex news and research with professional forex traders?
Freshpips.com delivers to your e-door step the most relevant Forex news and research including currency trading news on the Web. Find and learn the forex knowledge that you need and at the same time, be able to share your own expertise with others.
Article Source: http://www.articlesnatch.com
forex trading strategies
Sunday, November 9, 2008
Online Currency Trading Strategy
Developing your own strategy for a successful online currency trading is as important as your investment decisions. Online currency trading without a strategy is to rely entirely on chances for your success or failure. Making the right trading decisions and developing a sound and effective trading strategy is therefore the most important foundation of forex trading.
For developing an online forex trading strategy, you should have a working knowledge of forex, how the market works, different methods of technical analysis, and knowledge of some of the popular technical studies. A successful trading involves strict guidelines for return on investment as well as an optimized risk management. With the rise of the internet, forex trading is almost instantly. Your online currency trading strategy therefore should be full proof to handle instantaneous decisions.
It is advisable to form the online trading strategy based on some technical analysis, such as, Simple Moving Average (SMA). With huge online and conventional resources, with some research you can understand the theory of many such technical analyses. For example, you can formulate a set of discipline like: if the price of the currency crosses above a 12-period SMA, you will treat it as a signal to buy at the market; when the currency price crosses below the 12-period SMA, you will ‘stop and reverse’. So you will always have either a long or short position after the first signal.
Many seasoned traders combine more than one strategy for their online forex trading. For example, they use SMA and apply other indicators to support their assumptions. These indicators work as a filter for them. You may formulate your online forex trading strategy based on technical analysis to find out support and resistance levels of the market. The market tends to trade above the support levels and below the resistance levels. If you find that a support or resistance level is broken, the market will then follow through in that direction. Therefore, if your online forex trading strategy helps you in finding out these breaks you can invest in the direction of the market.
The best way to be a successful forex trader is to study and get experience. There are many web sites with free articles, seminars, forums, which can help you in developing your own forex trading strategy. Simple logic and rational thought process will strengthen your strategy and earn huge profit from the trading. Few tips for preparing your strategy will be:
- Always trade with the trend.
- Never risk all your trading capital in a single trade.
- Follow strict discipline to limit your loss.
- Whenever you are in doubt, get out of the trade.
In this highly volatile and liquidated forex trading market, a strong strategy, which is free from any emotions, will ensure high profits for you.
About Author
To learn more about developing your own Forex strategy please visit Online Currency Trading Strategy
Source: ArticleTrader.com
Friday, October 31, 2008
Forex Strategy-Which Strategy is the Best?
Forex Strategy-Which Strategy is the Best?
Author: John Callingham
Investing in any kind of business or industry entails not only knowledge and hard work but also the perfect and best strategy for a winning game. Forex trading business has been one of the most attractive moneymaking opportunities for lot of people these days. You read it in the papers; you watch it in the news. Everybody's is raving for a piece of winning from it.
Staying on top of a big and risky business, such as forex trading, needs the best forex strategy, wherein you can continuously use all throughout the trade and still not lose in the game or can upgrade and develop over time. Such strategies should keep maximizing your profits and giving you a big slice of the forex cake.
But did you know that to establish the best forex strategy, it is important for a trader to understand other strategies that the market has been dealing with for sometime? These strategies will be your basis in formulating your own workable forex strategy.
Normal Trading Day. This happens when the market is experiencing a normal trading day, wherein the currency price begins quite below or above 75ma. Next, it stretches a little, and then back to 75ma. This event refers to a certain currency being stable, showing the smallest sign that you should make some adjustment son your position.
Slow Trading Day. This happens when the market is witnessing a slow trading condition, wherein the currency price starts at 200ma, but stretches no over than 20pips,a and goes back to 200ma on that same trading day. When it happens, this paves the way to a normal trading day. After which, you make some adjustments on your strategy because it indicates stability of the value of currency.
Fast Trading Day. It happens when the market is having a fast trading day, wherein the currency price is quite below or above 21ema. It ascends and descends afterwards. Then, returns to 21ema. This signifies optimistic movements of the features that affect the mother country's currency, although such movements can be both for the good or bad.
Big Range Day. This pertain to the lows and highs of the range of the subject - that is 20pips apart. It signifies the currency's instability. It can also be good or bad. At this case, your strategy should be flexible enough for anything that might happen.
Any forex strategy have to be taken with flexibility, vigilance and utmost caution. Most traders have learned to establish their own strategy to ensure the success of their financial ventures. However, there is no perfect or absolute forex strategy or method over time. Strategies have to be updated and enhanced every now and then because the market conditions are dependent on a per day basis.
To learn the real art of forex trading is never that easy. It takes a lot of patience, observation, critical mindedness, awareness, motivation, wisdom, and understanding to really get into the business for the longest time.
Article Source: http://www.articlesbase.com/finance-articles/forex-strategywhich-strategy-is-the-best-519313.html
About the Author:
John Callingham shows you which forex strategy techniques, systems, and strategies actually work and which ones do NOT. Learn how to profit off of rising world currencies at
www.ForexReviewInsider.com
Author: John Callingham
Investing in any kind of business or industry entails not only knowledge and hard work but also the perfect and best strategy for a winning game. Forex trading business has been one of the most attractive moneymaking opportunities for lot of people these days. You read it in the papers; you watch it in the news. Everybody's is raving for a piece of winning from it.
Staying on top of a big and risky business, such as forex trading, needs the best forex strategy, wherein you can continuously use all throughout the trade and still not lose in the game or can upgrade and develop over time. Such strategies should keep maximizing your profits and giving you a big slice of the forex cake.
But did you know that to establish the best forex strategy, it is important for a trader to understand other strategies that the market has been dealing with for sometime? These strategies will be your basis in formulating your own workable forex strategy.
Normal Trading Day. This happens when the market is experiencing a normal trading day, wherein the currency price begins quite below or above 75ma. Next, it stretches a little, and then back to 75ma. This event refers to a certain currency being stable, showing the smallest sign that you should make some adjustment son your position.
Slow Trading Day. This happens when the market is witnessing a slow trading condition, wherein the currency price starts at 200ma, but stretches no over than 20pips,a and goes back to 200ma on that same trading day. When it happens, this paves the way to a normal trading day. After which, you make some adjustments on your strategy because it indicates stability of the value of currency.
Fast Trading Day. It happens when the market is having a fast trading day, wherein the currency price is quite below or above 21ema. It ascends and descends afterwards. Then, returns to 21ema. This signifies optimistic movements of the features that affect the mother country's currency, although such movements can be both for the good or bad.
Big Range Day. This pertain to the lows and highs of the range of the subject - that is 20pips apart. It signifies the currency's instability. It can also be good or bad. At this case, your strategy should be flexible enough for anything that might happen.
Any forex strategy have to be taken with flexibility, vigilance and utmost caution. Most traders have learned to establish their own strategy to ensure the success of their financial ventures. However, there is no perfect or absolute forex strategy or method over time. Strategies have to be updated and enhanced every now and then because the market conditions are dependent on a per day basis.
To learn the real art of forex trading is never that easy. It takes a lot of patience, observation, critical mindedness, awareness, motivation, wisdom, and understanding to really get into the business for the longest time.
Article Source: http://www.articlesbase.com/finance-articles/forex-strategywhich-strategy-is-the-best-519313.html
About the Author:
John Callingham shows you which forex strategy techniques, systems, and strategies actually work and which ones do NOT. Learn how to profit off of rising world currencies at
www.ForexReviewInsider.com
Tuesday, October 21, 2008
Forex Trading Strategies - Technical Indicators
Forex Trading Strategies - Technical Indicators
There are innumerable technical indicators available to today's forex trader. You can find all sorts of technical indicators, from the simple and intuitive to the incredibly complex and completely worthless. It seems more are being produced daily with the improvement in today's trading software and technology such as MetaTrader 4.
There's no requirement for learning about all of the technical indicators available and discussing each of their nuances. In fact, there's more value in learning how to use a few indicators very well. Along these lines, you want to focus on learning a couple of key concepts relating to technical indicators and applying these concepts to determining good entry points and exit points, and even determining the size of a stop loss. You can accomplish as much by focusing on four technical indicators: the Average True Range (ATR), Moving Averages, Stochastics, and Moving Average Convergence Divergence (MACD).
The concepts that you'll learn when applying Moving Averages, Stochastics, and the MACD are applicable to most other technical indicators. Indeed, the application that you'll learn with Moving Averages, Stochastics, and the MACD is transferable to most other indicators. Focus on the concepts rather than the indicators themselves. Don't worry too much about the parameters at this point.
The ATR is much different than the Stochastics and MACD because of the way it's calculated. The ATR is rather unique in this regard.
Technical indicators are powerful tools that can help you to organize and measure movements in currency pairs. A lot of traders, especially beginners, are led to believe that technical indicators are some sort of secret that will take them down the path to riches. While technical indicators can be used to determine objective entry points, they are far from the holy grail of forex trading.
The most common application of technical indicators is determining entry points. But you can use technical indicators in different, unique ways. You can use these tools to exit both profitable and losing trades.
The biggest mistake that new forex traders make when applying technical indicators is that they rely too heavily on historical observations to make decisions in the present, which is where we all trade. Additionally, a lot of new traders get a little bit of experience using technical indicators and start to pile one indicator one top of another. This is known as indicator piling and is usually a very bad practice. You've probably seen charts on a blog or elsewhere online where a trader has applied four, five, six, or even more technical indicators all to the same chart. Indicator piling only ends with frustration and confusion as the signals from the different indicators conflict with one another.
A solution to these problems is to use just a few of the basic indicators, such as Stochastics, moving averages, MACD, and ATR. But even with these four, you'll probably only limit the application to two or three.
Another solution is to rely on analysis that is relevant in real time and doesn't rely too heavily on historical observations. There are only a few forms of such analysis. One is point and figure charting. It's a way to assess a currency pair in real time and to conclude whether the pair should be bought, sold, or avoided altogether.
About Author
Eric is a former forex industry indsider. He's been trading stocks, options, bonds, futures, and forex for over a decade. He first learned about point and figure charts in 2000 and has since become an expert in the method. He now applies point and figure charts to his forex trading. You can learn more about the FXPNF system by visiting: http://www.fxpnf.com
Source: ArticleTrader.com
Wednesday, September 10, 2008
Super Secret Forex Trading Strategies
by Sai Vallejos
I am going to share with you some strategies I have developed in global forex trading. I have been a GFT trader for a few years, and I am using some techniques to get the cutting edge of GFT. The trader is the most important element in global forex trading. There are some qualities needed to be able to be the best GFT trader. I have invested some years in studying the techniques of global forex trading and I am sharing it with you in this article.
One of the GFT strategies is watching market trends daily or even weekly. It is best to look for a trainer or a mentor who can teach you some secrets in global forex trading strategy.
Second is to read the business column of a newspaper all the time about GFT. It is good to invest in business magazines and study business news. Look for a person who works in a bank or in a financial institution who have successfully invested in global forex trading. Some even opt to pay this people for an hour of lunch to be able to ask them questions about global forex trading strategies.
Third, continuously master the terms used in global forex trading, this is to help you master the business language and lingo of global forex traders and thus giving you an sharp edge on speculations and projected trends. It is best to use your own gut feel based on your studied risk supported by an advice from a seasoned global forex trader, before making a major decision in global forex trading.
Taking Advantage of Demos of GFT.
Practicing helps you develop that "blink" capacity of the brain, that once you have mastered the ropes of global forex trading, it is easier to predict market trends in global forex trading and hopefully earn pips and lots in the process. GFT is not a quick rich scheme. Like in any other businesses, it has to be studied and mastered, so you can get the maximum benefit. First timers who give up at the slightest sign of difficulty will never become a successful GFT trader, Time and patience is necessary.
Minimizing Risk in Global Forex Trading
Global Forex Trading requires its traders to take studied risks. Studied risks are minimized risks.
This type of risk is different from irresponsible risk. GFT risks are minimized if the GFT trader studies the market diligently, to be able to discover possible profitable or loosing market trends which can earn millions or give you loses. Understanding market trends will also aid you in making sound decision in trading.
Understanding the secrets of GFT is actually held by a small percentage of traders and they are in control of the profits in the industry. Learning the ideas and practicing on line can make you learn their secrets, it is just a matter of time.
Online Trading Guide is the best place to go for tips and resources for online trading. Please visit our website at http://onlinetradeguide.blogspot.com/
Article Source: http://www.articlesnatch.com
I am going to share with you some strategies I have developed in global forex trading. I have been a GFT trader for a few years, and I am using some techniques to get the cutting edge of GFT. The trader is the most important element in global forex trading. There are some qualities needed to be able to be the best GFT trader. I have invested some years in studying the techniques of global forex trading and I am sharing it with you in this article.
One of the GFT strategies is watching market trends daily or even weekly. It is best to look for a trainer or a mentor who can teach you some secrets in global forex trading strategy.
Second is to read the business column of a newspaper all the time about GFT. It is good to invest in business magazines and study business news. Look for a person who works in a bank or in a financial institution who have successfully invested in global forex trading. Some even opt to pay this people for an hour of lunch to be able to ask them questions about global forex trading strategies.
Third, continuously master the terms used in global forex trading, this is to help you master the business language and lingo of global forex traders and thus giving you an sharp edge on speculations and projected trends. It is best to use your own gut feel based on your studied risk supported by an advice from a seasoned global forex trader, before making a major decision in global forex trading.
Taking Advantage of Demos of GFT.
Practicing helps you develop that "blink" capacity of the brain, that once you have mastered the ropes of global forex trading, it is easier to predict market trends in global forex trading and hopefully earn pips and lots in the process. GFT is not a quick rich scheme. Like in any other businesses, it has to be studied and mastered, so you can get the maximum benefit. First timers who give up at the slightest sign of difficulty will never become a successful GFT trader, Time and patience is necessary.
Minimizing Risk in Global Forex Trading
Global Forex Trading requires its traders to take studied risks. Studied risks are minimized risks.
This type of risk is different from irresponsible risk. GFT risks are minimized if the GFT trader studies the market diligently, to be able to discover possible profitable or loosing market trends which can earn millions or give you loses. Understanding market trends will also aid you in making sound decision in trading.
Understanding the secrets of GFT is actually held by a small percentage of traders and they are in control of the profits in the industry. Learning the ideas and practicing on line can make you learn their secrets, it is just a matter of time.
Online Trading Guide is the best place to go for tips and resources for online trading. Please visit our website at http://onlinetradeguide.blogspot.com/
Article Source: http://www.articlesnatch.com
Sunday, September 7, 2008
Types of Forex Trading and Strategies
Types of Forex Trading and Strategies
The foreign exchange market, or forex, being the largest financial market in the World has been the domain of government central banks as well as for commercial and investment banks in a scandalous manner and it exists wherever one currency is traded for another. But recently more numbers of individuals are handling the forex market as it offers trading 24-hours a day, five days a week, and the daily dollar volume of currencies traded in the currency market that exceeds $1.9 trillion daily, making it the largest liquid market in the world.
"Foreign Exchange" is the place where the money of one nation is traded with the other nation. The most popular pair of exchange in the forex market is "Euro Dollar". You can view these pairs in all forex display screens as "EUR/USD". Forex trading strategies are the key to triumphant forex trading or online currency trading. The management team of One World Capital Group bid proficiency in both Forex trading and internet technologies and proven track records that deals with large, global trading and brokerage operations as well. Forex made easy is as simple as you would want it to be.
Forex trading is different from trading in stocks entirely and it uses Forex trading strategies that will give you lot of advantages as well as help you to comprehend greater profits in the short term. There are wide ranges of forex trading strategies that are available to investors. It is one of the most useful of these forex trading strategies called as leverage. Knowledge of these Forex trading strategies can imply the difference between profits along with a loss and so it is essential that you fully grasp the strategies that are being used in Forex trading. The world of Forex trading is highly complicated and success requires education and familiarity with terms, charts, signals and indicators.
As you can be able to access it from home or office from any parts of the country, Global Forex trading is the most profitable and attractive internet income opportunity. And you do not need to do anything or there is no need of internet promotion for getting succeeded. Forex Capital Markets are nothing but foreign exchange markets where the currencies are been bought and sold continuously for profits. These capital markets of forex are present globally and their transactions are always non-stop in this forex cash market. A managed Forex account is forex made easy. Many different companies offer these accounts to their clients. The foreign exchange market is a worldwide market and as per to some estimates is almost as big as thirty times the turnover of the US Equity markets.
About Author
Usha Rani is a Copywriter of
www.1world-forex.com
She written many articles in various topics
contact her at usharani.articles@gmail.com
Source: ArticleTrader.com
forex trading strategies
Thursday, September 4, 2008
Online Forex Trading Strategies - Key to Success
Online Forex Trading Strategies - Key to Success
Online Forex trading strategies represents the chief key to successful forex trading or online exchange trading. An understanding of these online forex trading strategies can stand for the distinction among profit and loss and it is as a result very important that you completely know the strategies that are usually used in forex trading.
Forex trading is especially different from trading with stocks and using online forex trading strategies would certainly give you more benefits and assist you understand even superior profits in the short term investments. There are a huge variety of online forex trading strategies accessible to investors and one of the most helpful from these online forex trading strategies is a strategy acknowledged as leverage.
Leverage is a forex trading strategy that is intended to permit online currency traders to advantage of more funds than are actually put down and by making use of this forex Ftrading strategy you could certainly make the most of the forex trading benefits. Using this online strategy you could make the most of as much as 100 times the sum in your deposit account against any other forex trade which would make support higher yielding dealings even easier and therefore permitting improved results in your online forex trading. The leverage online forex trading strategy is commonly used on an accepted basis and permits investors to take benefit of short term fluctuations in forex industry.
Another universally used online forex trading strategy is recognized as the stop loss order. It is a forex trading strategy that is used to guard investors and it generates a prearranged point at which investor would not go for a trade. Using this online forex trading strategy investors are allowed to reduce losses. This plan could nevertheless, go wrong and the investor could also run the risk of stopping their online forex trading which could really go higher and however it is up to the individual forex trader to desire whether or not to follow this forex trading strategy.
All these online forex trading strategies are especially intended to help investors on getting the most from their forex trading and assist to reduce their losses. As stated earlier information of these forex trading strategies is very important if you aspire to be successful in online forex trading.
About Author
Chris David is a SEO Copywriter of
Online forex trading. He written many articles in various topics.
For more information visit:
Online forex broker.
contact him at
chrisdavidseo@gmail.com.
Source: ArticleTrader.com
forex trading strategies
Monday, August 4, 2008
Forex Trading Strategies - 3 X Simple Ones That Work and Make Big Profits
Forex Trading Strategies - 3 X Simple Ones That Work and Make Big Profits
By kelly Price
Here we are going to look briefly at 3 forex trading strategies anyone can use quickly. There simple to understand easy to use have worked and will continue to work and that means big long term profits.
Let's look at these forex strategies and why they work...
Many traders make the mistake of thinking that the harder they work and the more complicated they make there trading strategy the more likely it is to work but there is no correlation between working hard and being complicated and forex trading success; you are simply judged on your market timing and the success of your trading signals.
A simple strategy will have fewer elements to break than a complicated one in the brutal world of forex trading and keeping it simple is always best.
Strategy 1 - Long Term Breakout Trading
FACT:
Most major trends start from new market highs or lows.
This is one of the simplest and most effective ways of trading, buying breakouts on the chart to new highs and selling new lows. Most traders cant do it, because they think they have missed a bit of the move and want to wait for the pullback but in strong moves, this never occurs and they are left watching the move pile up thousands of dollars and their not in.
If you focus on long term valid breakouts and time your entries with a couple of momentum indicators, you can make a lot of money. The key to this forex trading strategy is only to use levels that are considered important by the market.
They occur a few times a year per currency but lead to huge moves and huge profits.
Strategy 2 - The 4 Week Rule
This is one of the simplest most profitable, forex trading systems you will find and was devised by trading legend Richard Donchian. It will make sure you get in on EVERY major forex trend.
This sysmre is totally mechanical (and based upon the breakout philosophy discussed above) and consists of just one rule:
Buy a new four week calendar high and sell a new 4 week calendar low and maintain a position in the market at all times.
That's it!
Simple? Yes, but it works - back test it and see.
You can also add filters to smooth the equity curve which are discussed in our other articles.
We have used this system as part of our forex trading strategy for over 20 years and many great traders have been fans, such as Richard Dennis so, if it's good enough for him, its good enough for you and me.
Strategy 3 - Trading Overbought Oversold
The two other strategies just discussed are long term now, we will look at a short term strategy for profit - forex swing trading.
Swing trading simply aims to take advantage of overbought oversold scenarios within the major trend and you can do this with simple trend lines. All prices get pushed to far up or down, due to greed and fear and you simply want to trade into these extended levels.
Once you have identified areas of support or resistance, check volatility with the Bollinger band and then use the ultimate timing tool - the stochastic to confirm the move.
You then should take your profit early and then look for the next one.
Swing trading is fun, requires very little discipline, as you don't have to hold moves for long and can be learned in a few days.
So there you have 3 simple forex trading strategies for profit which are simple but don't think they can't be profitable, they are and can lead you to long term currency trading success.
So make the above part of your essential forex education and get on the road to profits.
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