Veteran Trader Finds Successful Forex Trading Strategies and
Techniques
Forex trading strategies and techniques along with the market
are unique. It doesn`t sleep, so there are no opening or closing
gaps. Forex trading strategies are highly liquid, and difficult
to influence. There are no commissions and few, if any,
regulations. It`s the largest market out there, and it`s more
than a little intimidating. However, with a good trading system,
a disciplined approach, and a willingness to learn, the forex
market can become a very lucrative place to trade. Here are a
few pointers to get you started in the right direction.
I recommend that traders with small accounts ($25,000 and
under), always trade with the trend. Good Forex trading
strategies for beginners to use is to look for trades that flow
in any direction, which can be somewhat unreliable. While forex
trading easily permits bi-directional trades, trading in the
direction of the trend will improve your odds over the long run.
One of many other excellent Forex trading strategies to use this
way to improve your odds is to have at least two accounts,
including at least one real account and one demo account. You
don`t stop learning when you start trading real dollars. Use
your demo account to test any alternative trades you might be
considering. For example, you can shadow your real trades with
identical ones in your demo account, but you can widen your
stops in the demo to see if you're being too conservative.
If you have the right amount of money, try Forex trading
strategies that allow trading two lots rather than one. Or even
three lots. This is safer than only trading one. When everything
is riding on one trade, it`s hard to make good decisions. Having
a few positions going is a good way to take the intensity out of
a trade. Conversely, you may also want to consider extreme
trading, which can be the most conservative trading, when you
think about it. Trading at the extremes increases the odds that
you have chosen the right direction.
No Forex trading strategies would be good if you did not take
the time to examine the daily charts, the four-hour charts and
one-hour charts. These exist to help you time your trades. When
you are trading at 30- and 15-minute time increments, it can
take a great deal of dexterity, and it`s good to have this
knowledge at your fingertips.
Some other Forex trading strategies means that you don't trade
the time frame that is offered. Trade the pattern instead.
Reversal patterns, hesitation patterns and breakout patterns
show up a lot. Learn to look for these patterns in any time
frame. While the patterns are always there if you look for them,
leading indicators aren`t there. Don`t spend all your time
looking for them, there simply aren`t any. Some firms make a lot
of money selling software that predicts the future, but the
reality is that if those products really worked, they wouldn't
be telling you about it. Also, try and follow the Upside Down
Rule. If you can turn a chart upside down and it still looks the
same, avoid it all together.
You should fully check the Big Five: the dollar/yen,
euro/dollar, Swiss franc/dollar, euro/yen and pound/dollar
before you decide to take a position in any one of them. There
might be something obvious that you`ve missed. Finally, this is
the best out of all the Forex trading strategies I know. Don't
keep count of your profits in your first 20 trades. Keep track
of the percentage of wins instead. Once you know you can pick
directions, your profits can be increased with multi-plot
trading and by using variations in your stops. Then, you`ll be
ready to fine-tune your system, and start realizing substantial
profits.