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

Earn Additional Money With These Forex Strategies

If you are new to Forex, begin by focusing on a single currency pair then expand as your skills improve. When you first enter the world of currency trading, professional traders suggest that the best way to practice and tone your trading skills is to trade only liquid and widely traded currency pairs, at first.

As stated previously, the information, tips and advice of experienced traders is invaluable to anyone, who is just starting out in the Forex market. Using the tips in this article will help you with your interest in the Forex market. Profitable opportunities are vast for new traders, who are willing to invest their time and energy into learning about the market and follow expert advice.

These suggestions are directly from people who have been successful with trading on the Forex market. Although we cannot guarantee you will be successful in your trading, these tips will assist you in becoming successful. Apply these tips and begin making some money!

Because the values of some currencies seem to gravitate to a price just below the prevailing stop-loss markers, it appears that the marker must be visible to some people in the market itself. This is not true. Running trades without stop-loss markers can be a very dangerous proposition.

Some traders think that their stop-loss markers show up somehow on other traders’ charts or are otherwise visible to the overall market, making a given currency fall to a price just outside of the majority of the stops before heading back up. This is absolutely false; in fact, trading with stop-loss markers is critical.

Forex is the largest market in the world. Investors know how to study the market and understand currency values. The average trader, however, may not be able to rely on their own skills to make safe speculations about foreign currencies.

Traders that are new to Forex become excited and somewhat obsessive, staring at charts all day and reading all kinds of trading books and other literature non-stop. Forex people’s attention starts to wane after they’ve put a few hours into a task, and Forex is no different. Take breaks from trading, and remember that the market will be there when you get back.

When you trade currencies in Forex, try to buy based on trends. Picking currencies that are top and bottom pairs may seem more lucrative, but it is a much more difficult way to trade. Following trends will give you more long-term success and therefore, more long-term profit in your Forex trading.

A good tip for beginners trying to become a successful foreign exchange trader is to set up a demo account. These demo accounts help the individual to have a feel for the interface of the software as well as get valuable practice in trading. These are free and are easy to set up.

Change the position in which you open up to suit the current market. Some traders open with identical positions and invest more funds than they can afford or an inadequate amount to begin with. Your opening position should reflect the current trades you have available for the best chance of success with the Forex market.

To be successful in Forex Trading, remember to follow trends. Rather than trying to beat the game, work with it. When the trend is up, it’s not time to sell, and when the trend is down you don’t want to buy. Trying to work against the trends will require more skill and attention, which will develop with more experience.

It is important to stay current with the news. Make sure that you know what is transpiring with the currencies that are relevant to your investments. Speculation has a heavy hand in driving the direction of currency, and the news is usually responsible for speculative diatribe. Get some alerts set up so that you’ll be one of the first to know when news comes out concerning your markets.

Placing successful stop losses in the Forex market is more of an art than a science. You are the one who determines the proper balance between research and instinct when it comes to trading in the Forex market. What this means is that you must be skilled and patient when using stop-loss.

As has been discussed, Forex is a program for the exchange of foreign currency for global business. By using the information that the above article has provided, you will be better able to understand the benefits that Forex has to offer business and how best to apply these benefits with regards to your situation.

When trading, try to avoid placing protective stops on numbers that are obviously round. When you do have to place a stop, make sure to put it below those round numbers and on short positions instead. Round numbers include 10, 20, 35, 40, 55, 60, 100, etc.

People tend to be greedy and careless once they see success in their trading, which can result in losses down the road. Lack of confidence or panic can also generate losses. When in the Forex trader driver’s seat, you need to make quick decisions that reflect the real “road” conditions, not your wishes and emotions



Source by Artur Aghajanyan