Good Forex Trading Tips

 

Forex Trading Tips

Top tips you should  know to make you be a successful trader. First entered the Forex market many year ago. I have experimented with

and tested a variety of different trading approaches. Numerous were failures, while some were successes. Traders who profit in Forex, in my experience, will not divulge their trading strategy, simply because someone has to lose money in order for you to profit.

Currently, I am employing two tactics. I began with a demo account many years ago and employed standard technical analysis and fundamental analysis approaches. Technical analysis appeared to be the simplest way for a beginning trader because it involved simply the examination of charts rather than watching the news. I used indicators such as the MACD, Fibonacci, and currency strength indicator to assist me in assessing the market and making price movement predictions. 

Needless to say, I was successful on my demo account, but when I went live, anxiety overcame me, and I was unable to trade using the same strategies I had perfected over four months of trial trading.

The stress became too much for me, and like many others, I began seeking for a Forex signals supplier to cut down on time spent and worry. After conducting due diligence on a number of Forex signal providers, I was able to locate a reputable Forex charting software package that generated outstanding signals. Surprisingly, the signals worked. The only challenge was disciplining myself to accept each signal regardless of whether I agreed with it. After all, the company I chose had a three-year winning streak.

Read: How To Earn A Consistent Pips in Forex Trading

Now that I was earning money from a Forex signal source, I decided to establish a second account and trade with my own trading method. This is where I discovered what I believe to be a fool proof strategy for quickly earning 30 to 50 pips in Forex.

Years ago, while trading, I realized that the market moved based on supposition. Fear and current events, such as the CPI and retail sales, serve as the basis for speculation. I noted that there was a lot of critical news between 4:30 a.m. and 8:30 a.m. eastern in major currencies such as the Euro and the British Pound. 

The market would react immediately upon the revelation of these significant news events. If a news event affecting the British Pound was scheduled to occur at 4:30 a.m., the market almost certainly jumped 30 to perhaps 50 pips up or down at that very instant. I began trading on these news occurrences.

 I would wait until the exact moment the news was scheduled to be revealed and enter a trade if the market moved more than 7 pips from its present price 15 seconds before the news was scheduled to be released. A stop-loss should be placed at a price that is 10 pips higher or lower than the current price. While it is dangerous, similar to gambling, it frequently pays off.

The most successful strategy for trading the new is to wait for a news release and then exit for 5 to 10 minutes. This way, you can see the direction in which the price is headed before entering.

The essential to this approach is to execute the trade at the optimal time and to maintain the discipline to keep your stop-loss extremely tight, no more than 10 pips after entering the trade. The reason for this is that while this method works 100% of the time, if you click too soon or too late, you risk missing the market's movement.

 However, when you are correct, your winning trades will substantially outnumber your losing transactions, as you are looking for a gain of 30-50 pips and a loss of only 10 pips if you are incorrect. I have been using this strategy for five months and it is effective.