If you want a Forex trading
strategy that works, is simple to understand and make money
with you will find two enclosed which you can soon enjoy
currency trading success with...
You have a choice in terms
of time frames you can trade in, you can either swing trade
( a few days to around a week) or long term trend follow
for weeks or months. Do NOT bother trying Forex day trading or
scalping it doesn't work, as all volatility is random.
There are lots of systems sold saying it does - but there
all simulated backwards on paper and have no chance of
making real money. Let's look at our two forex trading strategies
for profit.
Breakout Long Term Trend
Following
This method makes really
big gains because all big trends start and continue from
new market highs or lows. By buy buying or selling these
breaks, you have the odds on your side and most big trends
last for weeks or months so profits can be huge. Most
traders can't do it though!
Why?
Because they think they
have missed a bit of the move and wait for the pullback -
but prices don't pull back on good breaks, they sail over
the horizon and the trader waiting for the pull back,
laments on what might have been.
If you are selective with
breakout trading you can make big gains. I know traders who
trade less once a month and in 30 minutes a day, they
compound triple digit gains!
Forex Swing Trading -
Taking Advantage of Overbought and Oversold
Forex swing trading suits
the trader who likes more action and profits and losses
come quickly and there are plenty of opportunities. Within
any major trend prices hit over bought and oversold levels
and you sell and buy into these areas and make
profits.
Swing trading is a great
way to make money and keep risk low, because humans always
push prices to far in either direction and these spikes can
be traded for profit. Whichever method you choose, keep this in
mind - don't predict!
Wait to trade the
confirmation of price change on the chart and use some
momentum indicators to confirm your trade, that way you
will have the odds on your side and a greater chance of
success.
Either methodology will
work, you can learn to do either in a couple of weeks and
remember - you should always keep your Forex trading
strategy simple, add to many indicators or make it to
complicated and it will have to many elements to break,
Forex trading is simple so keep it that way.
So pick the method that
suits you, get the right Forex education and in a few
weeks, you could be trading with confidence and enjoying
Forex trading success.
