I have been trading Forex full time over 7 years now and have discovered numerous Forex trading systems and methods.
Further to many trials and errors I've come to the realization that simple is best, therefore I have reduced my trading into 3 categories:
1. Forex news trading - this means trading the volatility surrounding economic announcements such as Jobs, Claims, Interest rates and others. For this I use software that broadcasts the news as it is announced and can actually click the sell or Buy buttons. Quite often your order will not be fulfilled so it is possible to enter on a bounce back, based on the news direction.
2. My own Forex trading methods and strategies, these basically come down to 2 simple methods:
2.1. Going short at resistance and long at support, based on ascertained pivot points, Fibonacci numbers and trend lines.
2.2. Rapid scalps which involve executing short and sharp trades taking a very small risk. This requires some practice, but once mastered it can be easy to profit .
3. Purchased Forex Trading systems - there are numerous systems for sale and most of them are useless, written by Internet marketers for the one reason only of making money for the system vendor. These systems are a complete waste of time but the sales pitch is very good. I have found some that work well and complement my own trading methodology.
Timing and time in Day Trading
It is very important to understand the time of day that you choose to trade in and appreciate what you potentially expect at that time of day. This is different from instrument to instrument, so it is important to understand market behavior for your trading instruments. I generally trade only 4 instruments; the DAX, Euro, Japanese Yen and the GBP/USD, and I am pretty familiar with their behavioral patterns during the trading day.
Other trading vehicles have different behavior patterns and I will only trade them (I do occasionally trade WTI, Nat Gas, and other currencies) after I've got to grips with their time related behavior. Most of my trades bar the DAX and GBP/USD are economic announcement related and of course, when figures are broadcast a different volatility exists which is usually out of the ordinary patterns.
The prime time to trade the DAX (German Index, and moves in tandem with the DOW often) is near the London open at 08:00 (03:00 EST), as the open usually brings a large rush in volume and it's an easy time to scalp. Sometimes the scalp will turn into a longer term trade, if a trend ensues, however it is sometimes possible to achieve a gain of 20 - 40 points in the first half hour of trading. As my daily target is 30 points and it is often hit within 30 minutes, I can then relax and look for absolutely perfect set ups that will not risk the win.
Some of my fellow traders will stop trading then and do something else. It certainly gives one plenty of time, but those 30 minutes require intense attention.
If you'd like to learn more please check my blog by clicking the link.
The blog also contains videos, charts and discussions.
Forex Options Trading - The Basic Factors You Need To Consider
Doing your homework and starting out from the very basics can help groom you capable of playing in this complicated game. After all, this is a powerful investment tool if you plan to stay in the currency trading business for long.
Foreign Exchange Trading Systems - How To Find The Most Profitable One, How To Test It, How To Apply It
You can find lots of websites online which offer advice on the newest and the best trading systems that you can use in the forex market. New traders are often fooled into purchasing these trading systems in the hope of earning more profits. Don't make the same mistake.
Training For The Foreign Exchange - Benefits Of Beginning With A Simulation Trading Account
You will open an online 'account' using the simulation system. You will then be able to read the news, find and compare markets, and you will be able to make 'fake' trades so you can watch your money build or be eaten away by losses
Forex Trading Software Applications: How Do They Assist You In Boosting The Success Rate Of Your Trading Efforts?
Using forex trading software gives you more access and control of your own accounts. Instead of relying on brokers to negotiate deals for you, you are empowered to handle a lot of the work yourself, and you can constantly check on how your investments are doing in the market.
Currency Trading Programs - Why Are They Necessary And How To Find The Right One?
Be wise in choosing the appropriate software program that you will use in forex trading. Trading in a very complex market is not as easy as you think and you need to be prepared for everything with the help of the trading software.
The Two Most Important Types Of Forex Brokers And Why It Is Important To Understand Their Differences
If you have already figured out your forex trading strategy by now, you are not in the clear yet. Now comes the part where you get to choose the type of brokerage firm that will fit in seamlessly with your plan.
Forex Trading: Make Forex Signals Work For You To Become A More Successful Speculator
Forex signal services are very popular nowadays. You may even refer to them as an indispensable tool for any trader. Brokers even provide their own unique platforms that will cater your information requirements. When you sign in with them for an account, they give you this service with a fee or free.
Further to many trials and errors I've come to the realization that simple is best, therefore I have reduced my trading into 3 categories:
1. Forex news trading - this means trading the volatility surrounding economic announcements such as Jobs, Claims, Interest rates and others. For this I use software that broadcasts the news as it is announced and can actually click the sell or Buy buttons. Quite often your order will not be fulfilled so it is possible to enter on a bounce back, based on the news direction.
2. My own Forex trading methods and strategies, these basically come down to 2 simple methods:
2.1. Going short at resistance and long at support, based on ascertained pivot points, Fibonacci numbers and trend lines.
2.2. Rapid scalps which involve executing short and sharp trades taking a very small risk. This requires some practice, but once mastered it can be easy to profit .
3. Purchased Forex Trading systems - there are numerous systems for sale and most of them are useless, written by Internet marketers for the one reason only of making money for the system vendor. These systems are a complete waste of time but the sales pitch is very good. I have found some that work well and complement my own trading methodology.
Timing and time in Day Trading
It is very important to understand the time of day that you choose to trade in and appreciate what you potentially expect at that time of day. This is different from instrument to instrument, so it is important to understand market behavior for your trading instruments. I generally trade only 4 instruments; the DAX, Euro, Japanese Yen and the GBP/USD, and I am pretty familiar with their behavioral patterns during the trading day.
Other trading vehicles have different behavior patterns and I will only trade them (I do occasionally trade WTI, Nat Gas, and other currencies) after I've got to grips with their time related behavior. Most of my trades bar the DAX and GBP/USD are economic announcement related and of course, when figures are broadcast a different volatility exists which is usually out of the ordinary patterns.
The prime time to trade the DAX (German Index, and moves in tandem with the DOW often) is near the London open at 08:00 (03:00 EST), as the open usually brings a large rush in volume and it's an easy time to scalp. Sometimes the scalp will turn into a longer term trade, if a trend ensues, however it is sometimes possible to achieve a gain of 20 - 40 points in the first half hour of trading. As my daily target is 30 points and it is often hit within 30 minutes, I can then relax and look for absolutely perfect set ups that will not risk the win.
Some of my fellow traders will stop trading then and do something else. It certainly gives one plenty of time, but those 30 minutes require intense attention.
If you'd like to learn more please check my blog by clicking the link.
The blog also contains videos, charts and discussions.
Forex Options Trading - The Basic Factors You Need To Consider
Doing your homework and starting out from the very basics can help groom you capable of playing in this complicated game. After all, this is a powerful investment tool if you plan to stay in the currency trading business for long.
Foreign Exchange Trading Systems - How To Find The Most Profitable One, How To Test It, How To Apply It
You can find lots of websites online which offer advice on the newest and the best trading systems that you can use in the forex market. New traders are often fooled into purchasing these trading systems in the hope of earning more profits. Don't make the same mistake.
Training For The Foreign Exchange - Benefits Of Beginning With A Simulation Trading Account
You will open an online 'account' using the simulation system. You will then be able to read the news, find and compare markets, and you will be able to make 'fake' trades so you can watch your money build or be eaten away by losses
Forex Trading Software Applications: How Do They Assist You In Boosting The Success Rate Of Your Trading Efforts?
Using forex trading software gives you more access and control of your own accounts. Instead of relying on brokers to negotiate deals for you, you are empowered to handle a lot of the work yourself, and you can constantly check on how your investments are doing in the market.
Currency Trading Programs - Why Are They Necessary And How To Find The Right One?
Be wise in choosing the appropriate software program that you will use in forex trading. Trading in a very complex market is not as easy as you think and you need to be prepared for everything with the help of the trading software.
The Two Most Important Types Of Forex Brokers And Why It Is Important To Understand Their Differences
If you have already figured out your forex trading strategy by now, you are not in the clear yet. Now comes the part where you get to choose the type of brokerage firm that will fit in seamlessly with your plan.
Forex Trading: Make Forex Signals Work For You To Become A More Successful Speculator
Forex signal services are very popular nowadays. You may even refer to them as an indispensable tool for any trader. Brokers even provide their own unique platforms that will cater your information requirements. When you sign in with them for an account, they give you this service with a fee or free.