Forex Trading Success - If You Don't Have the Following in Your FX Strategy You Will Lose
If you want to enjoy forex trading strategy you need to have the key component in this article, or you will lose and it's easy to find out if you have it just read on and try and answer the question correctly...
The question is (and you need to answer it with confidence and quickly):
What is your trading edge - why will you succeed when 95% of traders lose?
Simple - but be aware, what most people think is edge is not!
Here are common answers and there a recipe for equity wipe out
- I am going to use a forex robot that has a simulated track record (most have check!)
- I am going to day trade or scalp the market for profits
- I have a system based on science which predicts market movement
- I follow breaking news stories online and act on them
- My broker gives me research
- I am clever and that's my edge
- I trade on instinct and gut feeling
- I have a course form the net from a guru and he's an expert
Think any of the above are an advantage and you're in for a reality check and a swift wipe out of your equity.
The above are not edges at all they are misconceptions about what forex strategy you need to win yet most traders fall for them. A trading edge is something that you have confidence in and that doesn't come from not working, or someone giving you success.
A forex edge comes from an understanding of what you're doing and the right forex education.
Only if you have understanding, will you have confidence and discipline to apply your method for success.
Your edge can be anything you like, no two traders have to have the same edge - but it must be something that sets you apart from the crowd and you can apply, with discipline, to ride out losing periods until you hit a winning streak.
Most traders lack the discipline to execute their trading signals in the market because they don't have confidence in what they are doing and throw in the towel.
You have to lose to win in forex trading and most traders simply don't have the discipline to ride out losing periods but you must otherwise you will never succeed.
So if you want to win learn currency trading the right way, get a simple system you understand and have confidence in and apply it for success.
Tuesday, October 20, 2009
Friday, August 28, 2009
Forex Swing Trading - The Best Methodology For Novices For Seeking Big Gains Quickly
If you want to get started as a forex trader, forex swing trading is the perfect place to start and is one of the easiest methodologies for novices to start with. You can soon put together a system and be making big profits in just 30 minutes a day...
The reason it's so good for novices is, it requires less patience and discipline than long term trend following, as you get plenty of action and profits and losses come quickly.
Many novice traders try forex scalping or day trading - but these short term methods of trading don't work, as all volatility is random. Swing trading is the only short term method you should consider, as the time period is long enough to get the odds on your side.
The Aim of Swing Trading
Swing trading typically catches moves that last from a couple of days to a week and is designed to swing trade into overbought and oversold levels. To swing trade you first need to understand support and resistance, then target levels where prices are becoming overbought or oversold and get ready to trade. To do this, you should also understand volatility and using the Bollinger Band to measure overbought and oversold levels is an essential tool.
Once you have spotted a potential overbought or oversold scenario, with prices coming into resistance or dipping to support, its time to look to execute your trading signal.
Confirming Trading Signals
Never buy into support or sell into resistance and hope levels hold, wait until they have so you are not predicting, you wont win if you predict, as this is really hoping or guessing.
For this you need to become familiar with momentum oscillators and there are many to choose from. We like the stochastic and the Relative Strength Index (RSI(, both are visual indicators and you can learn them in 30 minutes or less.
They will give you clues to changes of momentum and then when they do, you can use them to time your entry into the market.
Stops
Stops are easy once you are in the trend, you can simply place your stop behind the resistance or support you are trading into.
Taking Profits
With swing trading profits can disappear quickly, so you need to take them early.
Take them before the next level of resistance or support is tested. By getting out early, you avoid the problem of a counter trend which can eat into your profit.
Forex swing trading is an excellent method for novice traders and simply requires an understanding of volatility, support and resistance and momentum. This does not take long to learn furthermore, you get plenty of action and never have to sit on a big open profit and all the discipline this entails.
Swing trading is simple, fun and can be very profitable. It's simple to understand and easy to build a robust forex swing trading system.
The best reason to get your hands on an automated Forex trading software is that it can make much more money for you because it works on sound mathematical models and doesn't make stupid mistakes which every person does.Automatic Forex Trading software reveal.
The reason it's so good for novices is, it requires less patience and discipline than long term trend following, as you get plenty of action and profits and losses come quickly.
Many novice traders try forex scalping or day trading - but these short term methods of trading don't work, as all volatility is random. Swing trading is the only short term method you should consider, as the time period is long enough to get the odds on your side.
The Aim of Swing Trading
Swing trading typically catches moves that last from a couple of days to a week and is designed to swing trade into overbought and oversold levels. To swing trade you first need to understand support and resistance, then target levels where prices are becoming overbought or oversold and get ready to trade. To do this, you should also understand volatility and using the Bollinger Band to measure overbought and oversold levels is an essential tool.
Once you have spotted a potential overbought or oversold scenario, with prices coming into resistance or dipping to support, its time to look to execute your trading signal.
Confirming Trading Signals
Never buy into support or sell into resistance and hope levels hold, wait until they have so you are not predicting, you wont win if you predict, as this is really hoping or guessing.
For this you need to become familiar with momentum oscillators and there are many to choose from. We like the stochastic and the Relative Strength Index (RSI(, both are visual indicators and you can learn them in 30 minutes or less.
They will give you clues to changes of momentum and then when they do, you can use them to time your entry into the market.
Stops
Stops are easy once you are in the trend, you can simply place your stop behind the resistance or support you are trading into.
Taking Profits
With swing trading profits can disappear quickly, so you need to take them early.
Take them before the next level of resistance or support is tested. By getting out early, you avoid the problem of a counter trend which can eat into your profit.
Forex swing trading is an excellent method for novice traders and simply requires an understanding of volatility, support and resistance and momentum. This does not take long to learn furthermore, you get plenty of action and never have to sit on a big open profit and all the discipline this entails.
Swing trading is simple, fun and can be very profitable. It's simple to understand and easy to build a robust forex swing trading system.
The best reason to get your hands on an automated Forex trading software is that it can make much more money for you because it works on sound mathematical models and doesn't make stupid mistakes which every person does.Automatic Forex Trading software reveal.
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