BergenCota165
Forex Trading Strategy - Prepare Your Chart
I'm able to think about few business endeavors that don't incorporate some kind of daily, weekly, or monthly planning. Trading Forex isn't any different. Whenever you sit down for an unprepared chart you have little idea why one trade might run forever and the other activates any money.
This really is easily solved by preparing your chart. The most frustrating thing about becoming an unprofitable Forex trader is never knowing why a trade worked in your favor and why the next trade didn't. This can lead to a failure to determine where you can trade from, when to take profit, where you can place your stops, and when to chop a losing trade. Inevitably, losing trades far outpace both in number and size the profitable trades. A prepared chart will help you to take trades with less risk which translates to smaller losses and more frequent gains.
The Forex currency trading strategy parts of every Forex forum website are by far the most popular. Be honest, if you are an unprofitable trader how many hours would you spend reading the most recent brain-fart from some who swears that because two trades worked that he or she has found the next best system.
The reason the forum strategy gurus always fail and will still fail is that they concentrate on all of the wrong things. They have so many rules and indicators and spend so much time adjusting those rules and indicators they your investment most significant thing... it's where you trade from that makes all the difference.
Try this exercise and find out exactly what a difference it can make. I refer to this as my " setup method #2." Pull-up a daily chart of your favorite pair. Zoom out until you can easily see 8 weeks price of price data. For example, it's July now, so pull up a chart and ensure you can observe the daily candlesticks for May and June. Place a horizontal line at the a lot of June, the high of May, the low of June, and the low of May. You need to now have a chart with four lines. That's it!
Now wait until price approaches the region of one of the four lines. You can trade any timeframe, only trade when prices are approaching one of these four lines. Only take a trade when:
Price is touching or perhaps is not far from one of your lines AND Your trading plan provides you with a signal.
Ignore other signals that occur from these lines. As price approaches areas on my pre-prepared chart, I look for simple price action candles, but you can use candlestick patterns or even that latest, greatest strategy you found in a Forex forum.
Doing this will allow you to trade less and trade from better places. Observe how much better even the worst system performs whenever you take signals generated only if prices are near an essential place.
