Friday, September 25, 2015

Why Paper Trading Won't Help You Make Profits

Why Paper Trading Won't Help You Make Profits
Many traders make money on paper and with demo accounts yet when these same traders open real trading accounts 9 out of 10 lose their money, despite the success they enjoyed in paper trading. Why? The big myth is that if you can trade and win on paper you can trade and win with real money. This is simply not true.
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My view is paper trading and demo accounts are simply useful for learning order placement and that’s about it. Why do paper traders fail so often? Quite simply trading it is all about making and losing money and you don’t feel this on paper. The major reason people trade has been removed. There is no emotion and of course with no emotion, it’s easy to trade. Controlling emotions is the key trait that can make a great trader.
You have heard that discipline is one of the keys to successful trading and it is, but you won’t fully understand this in online forex trading until you risk REAL money. When money is on the line your emotions of greed, hope and fear kick in and it’s a whole different ball game.
Moving From Paper Trading or Demo Account to Live Trading Tips -
1. Understand that your emotions are now coming into play and you need to stop emotions interfering with your real trading. Yes, it’s the real world now you’re on your own, against the market where 90% of traders lose. Most lose because they lack discipline.
2. Make sure you execute your signals EXACTLY as per your trading method with no variation.
3. The major error novice traders make is not setting stop levels or holding a stop mentally in their heads. They think: “It wont matter the stop has been missed. It will come back”. Of course, in the highly leveraged forex market this ends in disaster. They end up getting wiped out.
Holding your discipline is the key!
The key to making money in Forex trading is holding your discipline when confronting your emotions. The above of course is absent in paper trading and traders are not prepared for the reality and inevitabley lose.
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Build Your Own Profitable Forex Trading System in Five Simple Steps

Build Your Own Profitable Forex Trading System in Five Simple Steps
If you want to make big profits, then you should know that the best way is do it for yourself and not rely on others. Any trader, even a novice), can build a successful Forex trading system and this article shows you how to build a profitable system in five simple steps.
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What Makes a Successful FOREX Trading System? Successful trading systems have three main characteristics:
1. They are Simple
Forget complicated systems with lots of rules. It’s a proven fact that simple systems work better and are less likely to fail in the brutal world of trading.
2. They Run Profits and Cut Losses
You need to have a longer term Forex trading system that milks the big trends for profit, and cuts losses quickly.
3. They Follow Long Term Trends
There is no point in trading for small profits, i.e. day trading, as you will never cover your inevitable losses with small profits. Focus on long-term trends. It’s these that yield the big profits as they can last for years. Now let’s get down to the five steps of building a Forex trading system:
1. Your Method
We have said to keep it simple and this is exactly what you should do. Just a few rules and a robust money management system.
2. Spotting Opportunities
Look for the long-term weekly trends and then move to daily charts to time entry. When we say long-term trends, we mean months, or years, not just a week or two.
3. The Best Way to Trade Currencies is via a Breakout Method.
Breakouts occur in all currency markets all the time so base your system on a trend following breakout system. There isn’t space here to describe exactly what a breakout system is, but we have articles on breakouts posted on our web site. It’s a fact that most of the world’s billionaire traders use breakout systems in their trading and you should use a breakout system as well.
4. Timing Entry
The best way to time an entry is to watch for a break on the chart, confirmed by stochastics crossing with bullish or bearish divergence – this is a great timing tool. When you are in strongly trending markets you can also use Bollinger bands to time your entries and take profits. The Bollinger band is a great filter indicator and all traders should consider it.
5. Money Management
If you are following a breakout method either the trade runs quickly in your favor or the break is “false” and quickly reverses. Don’t put your stop just below the breakout point! If the trade does not follow through within the day, exit the market, and use a monetary stop in the day session.
A Simple Forex Trading System for Profit
With the above system, you will focus on the longer-term trends and milk them for maximum profit. You will also not trade frequently and you will liquidate losers quickly. We don’t have space here to go through how to use the indicators, but with a bit of research and testing you will see why a Forex trading system built on the above principles will work and will continue to work. The system will give you a lot more profit than the so called predictive, over hyped complicated systems, sold by vendors and gurus. These systems only work in back testing. Build yourself a Forex trading system and see for yourself just how profitable they can be!
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How to Get the Most Out of Your Forex Trading

How to Get the Most Out of Your Forex Trading
The reason that you entered Forex currency trading is to make money and the more the better, right? First thing to do is to have a written and clear Forex currency trading system, preferably a proven one. Even better, if your decision points are defined in a manner by your system that are purely technical, as any judgment calls (discretion) do not allow for automatic orders.
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A Forex currency trading system is a fully developed process that is repeated over and over again. Your goal is consistent profits and the more consistent you can make what you do, the more consistent your results. This is of course the biggest benefit of having a Forex currency trading system in the first place, but you must take it one step further.
There have been numerous traders over the years that have developed very profitable Forex currency trading systems and made them available to the public. Hundreds of traders will take those same systems and not even come close to the creator’s success and there are reasons for that.
The first reason is that the creator back tested and refined the system during its development. That testing gave the creator a level of confidence in the system such that when it came time to put money on the line, they could stick to the Forex currency trading system, even during drawdowns.
The second reason is that the backtesting gave the trader practice with the Forex currency trading system that they had developed, thus improving their proficiency with it and the efficiency of the system.
The third reason is that many “followers” will only be concentrating on making money and they miss the critical metrics that make the bottom line what it is. Any Forex currency trading system will have certain performance aspects to it, aspects that have direct influence on its profitability and most of all predictability. While the followers that don’t make money with the system may not even know of the metrics, the creator kept their primary focus on them.
The fourth reason that the creators make money with their Forex currency trading system is that they will not only back test and analyze their system’s performance, they track specific metrics over time. This is critical to the goal of consistency and most of all continuous improvement.
While some traders will occasionally back test their Forex currency trading system, this is better than never doing it. However most often only look at profit for the period back tested and miss out on the valuable information found in the proper metrics. Tracking and recording the performance of your Forex currency trading system is absolutely crucial to truly maximizing your profits as well. For those who wish to truly make the most with their system, tracking your equity balance is important, but regularly analyzing your system’s metrics is what will allow you to really get the most out of it.
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Thursday, September 24, 2015

Beware of Curve Fitting or Lose

Beware of Curve Fitting or Lose
If you are thinking of buying a currency trading system, then you will find that well over 95% of systems sold have great track record, but lose in real time trading. The reason is curve fitting. So if you want to find one that works, learn what it is and how to spot it.
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I would say that of the currency systems sold on the net, most are curve fitted on purpose, to allow the vendor to show a profit so they can sell the system. If you don't know what it is then you will lose. Forget the track record you see, in most cases that's not what you're going to get!
Curve fitting in simple terms means optimizing the system to fit the data. A trader I know once likened this to shooting at a barn door and then afterwards, drawing a bulls-eye around every one, to make them look like a bulls-eye! In currency trading, a system vendor will simply find his system doesn't work on a segment of data, so he makes it work and bends the system (curve fits it) until it does. The clue to a curve fitted system is:
Lots of rules and parameters, different rules for different types of market and different ways of trading individual currencies. If you see a track record that shows extra ordinary profits with low drawdown it's probably curve fitted.
Many vendors don't realise that the more they bend the system to fit the data the more likely it is to collapse in real time trading. No one bit of data is going to replicate itself exactly again. If a currency trading system is soundly based, it should work across all markets and use the same rules all the time and be simple with few rules and parameters.
As long as a vendor puts this disclaimer on he is free to present any track record he likes. Here is the standard CFTC one:
"Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
This allows unscrupulous vendors to present any gains they like and they do! They know that the system won't work but they know that the naive trader will fall for a track record of gains. The vendor makes a profit and the trader has a guaranteed loss!
Lets face it anyone can make a profit in hindsight but the problem is that we need to trade without knowing the data. If you buy a currency trading system look for the evidence of curve fitting. The majority of systems use it whether it's done on purpose or in error. Stick with simple systems which are easy to understand, where the logic is fully revealed - or even better, insist on some evidence the system works, by asking for a real time track record over at least two years.
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Trading the Longer Term Trends for Bigger Profits

Trading the Longer Term Trends for Bigger Profits
How to Make Big Profits with Currency Trading Systems
Forex markets turn over trillions of dollars per day and are the world’s biggest investment medium. In recent years, Forex trading systems using technical analysis to predict trend changes have become increasingly popular as a way of catching the big profitable trends.
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Catching the Longer Term Trends for Big Profits
The longer-term trends in Forex markets mirror the underlying health of the economy. As periods of expansion and contraction take years, so do currency trends and a good Forex trading system can help you lock into and profit from these trends. When picking a currency to trade, it is important to have good long-term trends and liquidity. Good major currencies to trade include the US Dollar, Swiss Franc, Euro, Japanese Yen, British Pound, and Canadian Dollar. Forex trading systems remove the emotional component from trading, which is the major reason the majority of traders lose.
Removing the Emotion from Trading with Systems
One of the best starting points on the effect that emotions have in trading, are the works of legendary trader W. D Gann, whose works on the subject are essential reading. Other authors worth reading are: Edwin Lefeurve, Jake Bernstein, Larry Williams, Ken Roberts, Van Tharpe and Jack Shwager whose book “Market Wizards & The New Market Wizards” interviews some of the top traders of all time, including the legendary “turtles”.
Forex Trading Systems for Profit
The developments in computer software and the growth of the Internet have seen system trading reach a wider audience than ever before. Packages such as Tradestation, Supercharts and Omni trader, allow traders to build and back test systems, using technical indicators such as stochastics, Bollinger bands, moving averages, RSI etc., to realistically see how the system would have performed in the markets over time. Traders who do not have the time, or inclination, to develop their own Forex trading systems, can buy a variety of systems off the shelf.
What Makes A Successful Forex Trading System?
If you are buying a Forex trading system from a vendor, there are several things to consider:
1. Do you want to be a day trader, or a longer-term trader? You need to pick a system that suits your personality.
2. Do you want to have any manual input into the system, or do you want it to make all the decisions for you?
3. Do you want to trade just one currency, or a spread? Trading one currency can increase the profit potential, but keep in mind that it can also increase the risk.
4. What is the logic of the system? It is a fact, that if you understand the system and its logic, you will have more confidence in it, than if you buy a black box system where the logic concealed.
5. What is the profit potential and what are the drawdowns? The important point here is that any system will have periods of drawdown or losses, and you need to be able to have the confidence to follow the system through good periods and bad. Generally, the bigger the profit potential, the bigger the drawdowns tend to be.
When you are buying from a vendor, check out their experience, record of accomplishment, customer support etc., and make sure you are comfortable with them.
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Wednesday, September 23, 2015

Forex Hedging - Low Risk Strategy

Forex Hedging - Low Risk Strategy
One of the low risk trading strategies is hedging. The technique might give an impression of being too complicated, however when done right, a trader can reduce the overall risks and make profits. What is involved in hedging? How complex is it? What can you expect from this strategy?
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Forex Hedging reduces some amount of risk when holding an open position. What kind of risk are we talking about here? How about market falling down unexpectedly leaving you with losses you can't handle. This is a well defined reason for using hedging in case you suspect that the currency pair of your choice may reverse against you.
A hedging technique involves holding a trade with one pair and opening another trade (or more) with a different pair which is related to the first pair. The idea behind it is to reduce the risks involved. In case one trade goes bad, there still might be profit with the other trade.
Consider opening a position with, let's say USD. Simultaneously you open a reverse of that position on the same currency, USD in our case. In case the first position starts losing, the second one backs it up and therefore protects a trader from getting a margin call and gives a trader a chance to profit even if one of the trades fail.
Hedging, if done correctly, can play an important role in saving your account from losses. In fact, many professional traders with wide experience in market rapid movements and timing use hedging in their trading plan.
100% Hedging Technique
This technique is considered the safest and the most profitable among traders. The idea behind this is:
· You trade with 2 different brokers, one that changes/pays roll over rates at the end of the day and another that doesn't. 
· Open a trading position with currency A with the first broker. 
· Open a reverse position for the same currency A with another broker that doesn't charge interest for carry over.
With this technique, you have to be careful and consider several important factors:
1. Which currency to trade with?
Different brokers credit different amount of interest to the trading account for every 1 regular long lot.
2. Who is interest free broker?
You have to find a forex broker that allows opening positions for an unlimited time and that charges a small flat fee for every night of each lot held. Why is that a good thing, you may ask? In most cases, when a broker charges money for holding the position, you are most likely to be able to hold the position for an unlimited period of time, which is exactly what you need.
3. How much money do you need?
If you don't have enough in your trading accounts, hedging won't work. The last thing you need is a margin call in the middle of your profitable deal. The only way to keep this from happening is to maintain a large account balance or a way to perform quick money transfers between two brokers.
4. How to maintain the "losing account"?
You must have a smart money management plan. One of the well-known techniques is to take out the profits from one account and deposit the excess to the losing account. The main problem is that some forex brokers do not allow a withdrawal while your position is still open, therefore this is another thing that you need to check before starting trading.
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Just What is a Limit Order in Forex Trading?

Just What is a Limit Order in Forex Trading?
There are two varieties of conditional orders that one can use with foreign currency trades: the stop loss (in some cases written stop/loss) and the limit order. These are named conditional orders for the reason that they'll not come into effect except if particular conditions are attained.
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The stop loss is a really well known instruction that controls the risk associated with the trade. With a stop loss, you're saying to the broker "In case the price goes this far against me, I want out." So should you have purchased the foreign currency pair hoping for a rise in price, but then the price drops, you'll not see your total account balance wiped out. The stop loss will kick in and protect the majority of your capital.
Limit orders are similar but relate to the opposite scenario, the situation where there is a winning trade. By using a limit order, you are saying to the broker, "When the price gets to this particular level, that is enough, I will close there and take the profits." The limit orders are going to be activated if your pre-arranged price is achieved and the trade is going to be closed at that price.
A lot of traders are unwilling to use limit orders as it appears counter intuitive. When the market is going your way, why would you need to close the trade? Wouldn't you want to hang on as long as possible to get the most profit from it? The issue with that strategy is sooner or later the price will reverse and frequently it does it sooner rather than later. If you do not place a limit order, when will you close the trade? Just how will you realize when it's gone as far as it is going? When you wait too long, a sudden reversal could possibly see your gains eliminated. So unless you have a method which is defined with really precise criteria to tell you when to close a trade, you will likely be better off if you use limit orders.
And where does one set them? Back testing your system can be helpful here. You can check through the past months and years of forex markets that would trigger a trade under your system and figure out what exactly would have been the perfect setting for the limit order. Don't forget of course that previous results are not always going to be repeated in the future. Testing in a simulated demo account can also be helpful.
Usually you will want the limit order to be further from your starting point than your stop loss, even after spread is considered. This will likely mean that you only have to score a 50% success rate to be in profit. Establishing the limit order at twice the pips of the stop loss, either before or after spread, might be suitable. On the other hand, this is dependent upon your system. Never bypass the testing.
Working with limit orders has another valuable advantage as well. Once you have both stop loss and limit orders set up, you are able to leave the computer and get on with your day. You don't have to watch every single little fluctuation of price until either is activated. This lowers tension and makes it more unlikely that you will not panic and deviate from the original strategy. Therefore, applying orders that limit in currency trading trades can produce a happier, more profitable trader.
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Tuesday, September 22, 2015

Moving Your Stop in a Forex Trade

Moving Your Stop in a Forex Trade
I had an email from a client today regarding the movement of a stop loss. First of all, I'm going to start off by assuming that you do, indeed, use a stop when you're trading the forex, especially when short term trading. If you are trading without the use of a stop, you can plan on something very bad happening to your trading account at some point. It's just a matter of time. It's not a question of "if" it will happen, it's "when". I have seen absolute horror stories in my many years as both a trader and a futures broker. What really bugs the heck out of me is that a stop is something that is completely controllable by the trader! It means that we can control the size of our loss! I hope you truly appreciate what this means.
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Back to the question: how and/or when, do we move our stop once a trade starts to move in our favor? Well there is no exact, black and white answer. However I'm going to give you some very good tips and effective ways of limiting risk. First of all, I'm going to make the assumption that we're talking about day trading, however what I'm about to tell you can be used on any time frame. Let's assume that we've take a long position and we'll further assume that price starts to go up. Where would you think that price will stop? The answer is very simple - at expected, or at least potential, resistance. Doesn't that just make sense? So if price hits potential resistance, shouldn't we start reducing or eliminating risk? Of course!
So what can we use to help us identify resistance? Well, there are several tools available. First and foremost, the most important resistance is given by past price action itself. Nothing is more important than price. If price is rallying up and hits an old high, expect resistance. Therefore move your stop up to either mitigate risk or even put it at break even.
Another place to expect price resistance would be at prior swing lows in price. In other words, if we start off from a low point on a chart, and price rallies up, watch for previous old support levels to become resistance. These levels are very often price reaction points. When they're hit, it's time to get the risk out of the trade or at least move the stop up.
Other places you can look for resistance would be pivot points. Pivots are mathematically derived support and resistance levels that can be pre-determined a day ahead of time, using the prior day's data (in the case of daily pivots). If price rallies up to a pivot from below, watch for that pivot to cause resistance. Therefore, again, take the risk out of the trade or at least move your stop up to get some of the risk out.
Other points of resistance could be Fibonacci levels as price rallies up. These can be easily drawn on charts (most software has a Fibonacci drawing tool) and you can use Fibonacci levels as support and resistance levels too.
So these are some general guidelines. Of course there can be other factors that could also cause you to remove risk or at least greatly mitigate it, such as a pending news release, or a need to be away from your computer, etc.
Obviously there's a lot more to be explained that would best be shown on charts, but I hope you found these tips useful.
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Trading Forex - Exploiting Weekend Gaps

Trading Forex - Exploiting Weekend Gaps
Most trading is done using some type of technical analysis. There is an almost infinite number of indicators which can be used in myriad of ways. Trend lines, retracement levels, Fibonacci numbers, Elliot wave analysis, candlestick patterns, point and figure charting are widely used. Just about any form of technical analysis can be used for trading Forex. Yet there is a trading application popular in other in other financial markets that is not widely used in currency trading - price gaps.
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There are couple of reasons for that. Forex is a 24 hour market, therefore markets don't stop, providing a continuous stream of price quotes. Even during important fundamental announcements, when it is possible for price to move substantially, creating gap, it would only be visible on tick charts and hidden on any larger magnitude graphs. Most traders wouldn't even notice it, making it useless for any practical approach. Also, the Forex market is the most liquid and deep of all financial markets. This means that just at about any price level there are enough buyers and sellers to make price gaps almost impossible to form.
The only time when gap analysis and trading is of any value happens at the start of a trading week. Typical retail platform closes at 17:00 EST on Friday and opens at 17:00 EST Sunday. Some banks start trading 3 or even 4 hours earlier, which might create price gap when platforms open for trading. Also, heavy order build up on one side will create sudden price shift, a gap. In most instances these events can be exploited.
Most of the time these gaps are filled within 4-8 hours. If the gap is to the downside, one can establish a buy position and hold it until the price fills the empty spot. It is not advisable to chose an arbitrary buy point, but rather look for shorter term reversal signs on 5M or 15M chart. Also, the target should not be the absolute width of the gap, but rather a point about 2/3 into the gap. For example, if GBP-USD closed on Friday at 1.6200 and opened on Sunday at at 1.6140, we wouldn't try squeeze every possible pip, but rather settle for an objective around 1.6180. This vastly improves success rate.
Another trading strategy is "fading the gap". This means, that as the gap is filled, we are looking for a trade in opposite direction. Using the GBP-USD example from above, we would try to sell it when the price is inside the gap. Here also the 2/3 rule applies- our sell order would not be placed at at 1.6200 but rather 1.6180 or so. Target for this trade would be an area of the low formed before this gap was filled. This technique is even easier to use than the first one.
A few additional rules are helpful when qualifying gap for a trade. Small ones are not good candidates for trading. This will vary form currency to currency, but anything under 20 pips will be better left alone. We are looking for 40+ pips in difference. Gaps not filled within 24 Hours are no longer considered for "fading" trade. Statistically, price tends to keep on going rather than reverse in this situation. Perhaps most importantly - confirm gap existence on at least more than one platform. Once it is confirmed on another charting server, chances for successful trade are greatly enhanced.
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Monday, September 21, 2015

Trade The Right Forex Currency Pair

Trade The Right Forex Currency Pair
Neither all currencies nor all currency pairs are created equal. Selecting certain currency pairs over others may give you a better chance at success in the foreign exchange (FOREX) market. This article will help you analyze and navigate the uncertain waters of trying to decide which currency pair(s) will bring you the greatest probability of success in trading.
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Is the Pair Liquid? 

Liquidity indicates whether there are enough participating buyers and sellers in the marketplace to facilitate the trading transactions with ease. If liquidity is lacking, then a buyer may have a tough time closing out the trading position at or near the desired price. The consideration here is whether the international investment community finds the currency pair interesting and profitable enough to trade and to what extent it is desirable. You must determine whether the currency pair is traded in sufficient volume, preferably during all three major sessions constituting the 24-hour trading day. Financial journals and brokers can help you with this information.
How Much Is the Spread? 

In the Forex market, brokers are not paid commissions as a stock broker would receive. Instead, they are paid something called the spread. The spread is the difference between the ask (price at which the broker sells to the investor) and the bid price (price at which the broker buys from the investor) of a currency pair. A currency pair that does not have much liquidity tends to have a much higher spread than one which is widely traded. The less the spread, the more money the investor gets to keep. You should look for a currency pair where the normal spread is not more than two to five pips. Incidentally, during important economic news releases such as the U.S. Non-farm Payroll Report (NFP), the spread on the major currency pairs impacted by the report will usually increases tremendously, sometimes up to twenty-five pips.
Behavior of the Currency Pair 

Like children and pets, each currency pair seems to have its own unique personality as expressed in its behavior pattern. For example, the EUR/USD (Euro/U.S. Dollar) tends to be more stable than the GBP/USD (Great British Pound/U.S. Dollar). For the scalper or day trader, more erratic movement in a pair may be preferable to movement which stays the trend. If you like trading the news, it will be beneficial to observe how the currency pair reacts to important economic releases like the U.S. NFP report, when sudden price spikes occur in U.S. Dollar-connected pairs.
Top Two Currency Pairs 

Despite its general decline in the past several years, the U.S. greenback continues to generate attention from individual, corporate and institutional traders all over the world. Consequently, when paired with other strong currencies like the pound and the euro, it provides fantastic trading opportunities. Based on the liquidity, volume, international interest and overall stability of the underlying governments, the EUR/USD and the GBP/USD are generally regarded as two of the most desirable pairs for trading. Still, you must decide according to your own trading style, analysis and preference which pair(s) will work best for you.
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4 Steps to Swing Trading in Forex Successfully

4 Steps to Swing Trading  in Forex Successfully
Swing trading in forex is simple to do and it’s a great way for novice traders to start trading. It’s also fun and a great way to pile up big profits. Let’s look at swing trading in forex and 4 simple steps to help you succeed. Here are the 4 steps you need to make swing trading a profitable part of your overall forex trading strategy.
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1. Valid Support and Resistance
You need to spot it and use it to spot trades. Generally look for at least 3 tests of support or resistance. Tests that take place in time frames that are wide apart, tend to be more valid and while 3 is a minimum of tests, the more tests there are the better. Once you have spotted tests of support and resistance, then its time to execute your trading signal.
2. Confirm
The key with any form of trading and swing trading in forex is no different, is not to simply trade into support and resistance - this wont work. Why? Because you are simply hoping or guessing the levels will hold. Hoping and guessing are not good ways to seek profits in any venture and swing trading in forex is no different. You need to confirm that the levels are going to hold and this means using momentum oscillators. These can be used to measure shifts in momentum of price. For example, if prices move towards resistance and turn away with price momentum on your side, you have the opportunity to execute your trading signal in line with this shift and have the odds on your side. You’re not predicting or hoping – you are seeing the reality of price change on your forex charts and acting on the reality. Confirming a turn is an essential part of swing trading success. So what indicators should you use for indicating momentum shifts? A Great couple of indicators to start with are The stochastic and the Relative Strength Index (RSI). They're not the only ones but are a great place to start – so look them up.
3. Stop and Target
Your stop should be behind the level of support or resistance and you should have a profit target. When you are swing trading in forex you are seeking smaller FX profits and they can disappear quickly, so have a target to take profits earlier than most people, i.e before the text of the next level. When you hit your target bank it. The closer the trade comes to the next level, the more the odds of recoil against you are, so bank early.
4. Shop Rates
If you are long term forex trend following the cost of business is low as you are trading infrequently and have bigger profits per trade. With swing trading in forex, you are trading more often and pips mount up, so shop around and look for 2 pips on the majors. Another important point to keep in mind when swing trading is that you want liquid markets so stay with the major currencies such as euro, yen and pound, although you can trade the Australian and Canadian dollar as well.
The Best Form of Trading for Novices
Swing trading is great for novices, as it requires less patience and discipline than long term trend following. Profits and losses come quickly and you don’t need the patience to sit on trends for weeks or months on end. Swing trading in forex can be done using just basic support, resistance a few momentum indicators. This simple method can lead you to currency trading success.
While the above sounds like a simple system, keep in mind simple methods work best and are far more effective than complicated forex trading systems, as they are more robust and have less elements to break. Forex swing trading is easy and quick to learn. It's fun and exciting and best of all can make you big forex profits. So if you are trading forex, consider swing trading and you may be glad you did.
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