Foreign Exchange Trading Techniques - Major Trading Systems
I have been trading Forex as my main income source over 7 years now and have come across many Forex trading systems and methods.
Subsequent to many trials and errors I've come to the view that less is more, therefore I have reduced my trading into 3 categories:
1. Forex news trading - this means utilizing the volatility surrounding economic announcements such as Jobs, Claims, Interest rates and others. For this I use software that relays the news in real time and can actually bang the sell or Buy buttons. Quite often your order will not be executed so it is possible to enter on a reversal, based on the news direction.
2. My own Forex trading methods and strategies, these fundamentally come down to 2 basic methods:
2.1. Going short at resistance and long at support, based on ascertained pivot points, Fibonacci numbers and trend lines.
2.2. Aggressive scalps which involve trading for very small moves and keeping very tight stops. This requires some practice, but once mastered it can be easy to make money .
3. External Forex Trading systems - there are various systems for sale and most of them are ineffective, written by Internet marketers for the one reason only of making money for the system vendor. These systems are a complete waste of time but the sales pitch is professional. I have found a few that work well and add to my own trading methodology.
Timing and time in Day Trading
It is highly important to understand the period that you choose to deal in and understand what you potentially expect at that time of day. This is different from instrument to instrument, so it is important to understand market behavior for your trading vehicles. I commonly trade only 4 instruments; the DAX, Euro, Japanese Yen and the GBP/USD, and I am very familiar with their behavioral patterns during the trading day.
Other instruments differ dramatically and I will deal in them (I do irregularly trade WTI, Nat Gas, and other currencies) after I've got to grips with their time related behavior. Most of my trades beside the DAX and GBP/USD are figures related and of course, when figures are released a different volatility is in place which is commonly out of the usual patterns.
The prime time to deal in the DAX (German Index, and moves closely with the DOW often) is near the London open at 08:00 (03:00 EST), as the open usually brings a large rush in volume and it's easier to scalp for sharp moves. Sometimes the scalp will turn into a longer term trade, if a trend develops, however it is sometimes possible to achieve a gain of 20 - 40 points in the first half hour of trading. As my daily target is 30 points and it is often made within 30 minutes, I can then relax and look for great set ups that will not risk the win.
A few of my fellow traders will stop trading then and do something else. It certainly gives one plenty of time, but those 30 minutes require intense focus.
If you'd like to find out more please check my blog by clicking the link.
The blog also contains live trade examples and videos.
Electronic Forex Trading: How You May Utilize It To Make An Income From Home
Electronic currency trading is simply a way of dealing in currency exchange online. You may have seen it described as foreign exchange, forex or fx trading. It is something that appeals to many people who are looking for a way to make money on the internet using their home computer.
Psychology Of Forex Trading: If You Want To Make Money, You Have To Be Able To Lose
You have probably heard before that it is important not to let your emotions rule your trading. Making decisions based on our feelings of fear, greed or anxiety is a surefire way to lose money in the foreign exchange markets.
How To Become A Currency Exchange Trader And How To Remain Successful Long Term In This Industry
Nevertheless, forex is a very volatile market. This means that the prices can rise and fall steeply and quickly. The risk is high. It is easy to lose money.
4 Forex Trading Hints To Support You Make Profits In The Currency Markets
If you have a profitable forex trading system that doesn't often offer the opportunity to trade so it is not making you much money, don't be tempted to widen the criteria so that it lets you trade more often. This will certainly turn your profitable system into an unprofitable one.
Currency Exchange Trading Signal Services: Important Things To Look For And How To Use Them
As the popularity of trading the currency exchange markets online from home increases, the number of forex trading signal providers is increasing too. In fact they are proliferating to such an extent that it can be very difficult to know how to find the best one.
Currency Trading Brokers: What To Check Out When Searching For The One That Fits You Most
Everybody starts out currency trading with hopes of having big returns and some of the publicity that you will see will make this sound almost inevitable. In fact currency trading is of course full of risk and many people get their fingers burnt.
Forex Trading Funds - How Much Is Required To Be Successful In FX Trading
Another problem with starting forex trading with a very small account balance is that you will be tempted to overtrade. You may begin to treat it as a game.
Related Articles
Blogroll
|
|
|
