Forex Trading Strategies – Developing a Strategy to Make Triple Digit Gains

In this article, we will look at developing a Forex trading strategy which can help you make big gains trading global currency markets. The basics of successful trading can be learned by anyone so, let’s look at Forex trading strategies which can make you money and lead you to success.

The first point to keep in mind is what sort of trader are you?

Do you like to action of trading or are you more patient and want to trade long term. If you like the action, you should swing trade and trade moves that last from a few days to a week and if you are more patient, focus on long term trades which can last for weeks or months. You can make money with either method and the one you choose, will simply reflect your personality. You will notice, I haven’t mentioned day trading as a way to make money because – it doesn’t make money! You day trade, only trading the noise of the market and if you do that you are destined to lose.

Now let’s look at the principles that make a strategy successful.

The first point to keep in mind is to keep your strategy simple and based on trading price action. You won’t need to read the news or listen to other traders opinions, you can just trade trends on a chart. A strategy which is simple can make money and there is no need, to make your strategy to complex or complicated. All the best traders use simple trading strategies and if its good enough for them, its good enough for you.

Your strategy should have objective entry and exit points and these should be CONFIRMED by price action! Don’t do what most losing traders do which is to try and guess where the market may go, simply act on confirmation.

There are a lot of different ways to make profits in Forex but the way to lose it is – to let losses run. Allowing losses to get out of control is the most common reason why traders lose. You should have stops in place straight after you enter a position and the risk to reward you should be looking at, should be at least 3:1

The strategy should have consistent rules for trading all currencies the same way and should also be traded the same in all types of markets.

Developing a simple strategy which can make money is something anyone can do with a few weeks of study. You have to make your strategy make money though and that means trading it with discipline, keeping losses small and not being tempted to deviate from your strategy or override trading signals. You need to keep in mind that – most traders can’t follow a fixed strategy set of rules but if you deviate from them in anyway you don’t have a strategy.

So there you have some simple tips, on how to devise your own Forex trading strategy for success. If you follow the above tips, you will soon be making some nice profits in under an hour a day and generating yourself a great second income.



Source by Kelly Price

Forex Trading Advice – What Gains Could You Make Trading Global Currencies?

What gains can you expect from trading global currencies and how much effort do you need to make to generate a great second income? In this article I will give you some realistic targets to aim for and also give you an idea of the amount of study and work you have to do to make these gains.

Forex trading is easy to learn and there is no need for ongoing education, once you have a system you are happy with and have confidence in. No system is perfect but if you have a simple system based on charts, you can make a lot of money with it. So how long will it take to learn a simple chart based system? My own view is it will take a couple of weeks to around a month, to learn all you need to know and that’s it – no further study is required.

Many traders waste their time, researching new systems when they get a few losses but all systems will experience losing periods. Instead of swapping systems, if you have confidence in your system trade it through periods of losses with discipline. If the systems soundly based, it will make money over the long term. Short term dips in equity, happen to all traders so accept them, trade with discipline and focus on the long term.

Your system should also be based on following long term price action, if you focus on the longer term, you will find you make more profit and do less work and an hour a day off work can make you a lot of profit.

So How Much Money Can you Make Trading Forex?

Of course, this will vary between traders and systems but here are some general points in relation to how much you can make and the size of equity dips you can expect.

The best traders will make between 30 – 100% per annum and this can be achieved even by new traders. You will see lots of gurus and cheap Forex robots saying you can make 100 – 1,000% per annum and also have very small losses( normally under 5%) but there lying and they don’t achieve these figures.

If you make 30 – 100%, your drawdown will increase with the amount you are targeting typically, if you are aiming for 30% annual gains, your drawdown will be around 10% and on 100% gains it will be about 30 – 50% and periods of losses will always last a few weeks to a couple of months so its important to keep your eyes focused firmly on the longer term – cut your losses and run your profits.

The above is an honest assessment of how much money you can make trading Forex and the time it will take you to do it so good luck and I hope, the above Forex trading advice helps you enjoy long term trading success.



Source by Kelly Price