Forex Trading Methods - Articles And Verdicts

I have been trading Forex for a living for over 7 years now and have found many Forex trading systems and methods.

Further to many trials and errors I've come to the view that less is more, 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 employ software that delivers the news as it happens and can actually bang the sell or Buy buttons. Quite often your order will not be fulfilled so it is possible to enter on a reversal, based on the news direction.

2. My own Forex trading methods and strategies, these fundamentally come down to 2 simple methods:

2.1. Going short at resistance and long at support, based on computed pivot points, Fibonacci numbers and trend lines.

2.2. Very fast scalps which involve trading for 2-4 points and keeping very tight stops. This requires some practice, but once mastered it can be easy to profit .

3. External Forex Trading systems - there are various systems for sale and most of them are useless, written by Internet marketers for the one reason only of making money for the system owner. These systems are a complete waste of time but the sales pitch is often good. I have found several that work well and add to my own trading methodology.

Timing and time in Day Trading

It is very important to understand the period that you choose to deal in and appreciate what you potentially expect at that time of day. This is different from instrument to instrument, so it is highly important to study market behavior for your particular instruments. I ordinarily trade only 4 instruments; the DAX, Euro, Japanese Yen and the GBP/USD, and I am very familiar with their behavioral patterns during the trading day.

Other trading vehicles differ dramatically and I will deal in 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 excepting the DAX and GBP/USD are news related and of course, when figures are published a different volatility is in place which is usually out of the ordinary patterns.

The prime time to deal in the DAX (German Index, and moves in tandem with the DOW often) is soon after the London open at 08:00 (03:00 EST), as the open usually brings a large surge in orders and it's easier to scalp for sharp moves. 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 made within 30 minutes, I can then relax and look for absolutely perfect set ups that will not risk the win.

A few of my fellow traders will stop then and do something else. It certainly gives one plenty of time, but those 30 minutes require intense concentration.

If you'd like to find out more please check my blog by clicking the link.

The blog also contains videos, charts and discussions.

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Practical Forex Trading Strategies Using Trend Lines: Can You Really Make Money With Them?
There are many forex strategies that you can master or devise for yourself but one of the simplest involves using trend lines to indicate when you should buy or sell.

Online Currency Trading: How You Can Utilize It To Earn A Living From The Comfort Of Your Home
Electronic currency trading is simply a way of dealing in currency exchange online. You may have seen it described as foreign exchange, forex or fx trading. It is something that appeals to many people who are looking for a way to make money on the internet using their home computer.

Foreign Exchange Trading Systems: How To Find The Best One For Optimal Trading Performance
There is a wide choice of foreign exchange trading software for the forex market. When you are just getting started with forex trading, you will need to shop around to find the platform that will suit you best. But what types of programs are available and what features should you look for?

What Does Yen Carry Trade Means And What Type Of Impact It Could Have On Your Currency Trading Performance?
The JPY is the currency most frequently involved in carry trade. This is because over the past years it has consistently been a major currency with the lowest interest rate. The BoJ, which controls Japanese interest rates, has set them at a a very low level.

How To Be A Forex Trader And How To Remain A Winner Long Term In This Business
Nevertheless, forex is a very volatile market. This means that the prices can rise and fall steeply and quickly. The risk is high. It is easy to lose money.

What Is Forex Trading And How Could A Newbie Trader Get Engaged In It?
Many people already have some experience of exchanging currencies when they are going to an other country for business or on vacation. You probably realize as well that the banks are constantly changing money for businesses who have an import from or export to foreign countries.


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