In the beginning Forex Trading can appear to be a simple task. I mean there are only two places where the price can go either up or down. By having this concept you have already won half the battle. It is the remaining half battle which makes the traders sweat if they do not apply powerful profitable forex strategy in their approach.
1) Trader Types - Position / Momentum / Day / Scalper
These are different types of currency traders having their own personality and skill sets. None of them are better than other and each one of them have their own trading styles. You need to decide which type of Forex trader you would like to become and then work for it and acquire all the skills required to master it.
2) Keep a close watch on the momentum.
This can be very simple by applying the right indicator you can easily identity if the market has any moment to it or not. If your trading strategy is based on the momentum then it is imperative that you first evaluate if momentum exists in the market.
3) Look for the oversold and overbought conditions
You can make good returns when you trade by relying on the oversold and overbought conditions of the currency pair. Indicators like Stochastic and RSI can provide some powerful market turning points much before they happen only if you keep a close watch on them.
4) Always use multiple time frame analysis in your trades
By trading only one time frame you are only applying the horse vision whose eyes are closed from both the sides and can only look front but not around him. Yes, you may find an excellent trade opportunity and that particular time frame is telling you a unique story however when you change the time frame you may be surprised to see a completely different perspective to the market.
5) Entry Price
Your entry should be based on any important trading concepts like divergence, oversold or overbought, pivot points, daily support and resistance.
6) Stop Loss
Even the best of the trader will loose many of the times in spite of having simple profitable strategy. This does not mean he is not a good Forex trader. You must be prepared to bag a loss as much as you seek to bag the profits. Always trade with a predefined stop loss or at the minimum a mental stop loss.
7) Exits
The mantra in most profitable forex trading strategy for the winning trades is let the profits run and cut your losses short. Always try to have multiple exit points. First exit should be very mechanical wherein you exit at the predefined price point. Once price reaches this point you must move the stop loss of your remaining position to break even. Thus allowing yourself for a free trade which can get you windfall of profits if it continues to go in your favor or at the worst you get out of the market at the break even.
These are some of the important concepts for profitable forex strategy that you as a Forex trader needs to incorporate in your FX Trading System if you want to ensure you settle for nothing but success.
Article Written By Vijay Shah
1) Trader Types - Position / Momentum / Day / Scalper
These are different types of currency traders having their own personality and skill sets. None of them are better than other and each one of them have their own trading styles. You need to decide which type of Forex trader you would like to become and then work for it and acquire all the skills required to master it.
2) Keep a close watch on the momentum.
This can be very simple by applying the right indicator you can easily identity if the market has any moment to it or not. If your trading strategy is based on the momentum then it is imperative that you first evaluate if momentum exists in the market.
3) Look for the oversold and overbought conditions
You can make good returns when you trade by relying on the oversold and overbought conditions of the currency pair. Indicators like Stochastic and RSI can provide some powerful market turning points much before they happen only if you keep a close watch on them.
4) Always use multiple time frame analysis in your trades
By trading only one time frame you are only applying the horse vision whose eyes are closed from both the sides and can only look front but not around him. Yes, you may find an excellent trade opportunity and that particular time frame is telling you a unique story however when you change the time frame you may be surprised to see a completely different perspective to the market.
5) Entry Price
Your entry should be based on any important trading concepts like divergence, oversold or overbought, pivot points, daily support and resistance.
6) Stop Loss
Even the best of the trader will loose many of the times in spite of having simple profitable strategy. This does not mean he is not a good Forex trader. You must be prepared to bag a loss as much as you seek to bag the profits. Always trade with a predefined stop loss or at the minimum a mental stop loss.
7) Exits
The mantra in most profitable forex trading strategy for the winning trades is let the profits run and cut your losses short. Always try to have multiple exit points. First exit should be very mechanical wherein you exit at the predefined price point. Once price reaches this point you must move the stop loss of your remaining position to break even. Thus allowing yourself for a free trade which can get you windfall of profits if it continues to go in your favor or at the worst you get out of the market at the break even.
These are some of the important concepts for profitable forex strategy that you as a Forex trader needs to incorporate in your FX Trading System if you want to ensure you settle for nothing but success.
Article Written By Vijay Shah
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