Qw Q asked:

what is the flaw in not using stop losses but instead risking only two percent of your account everytime ina trade and wait for it to eventually be profitable? (what are the chances that you get margin called when you put ina 1000 dollar trade with a 50 000 account?)

Check out some more more FOREX tutorials/strategy videos

Finding a profitable and established Forex trading system can be a difficult thing to do. This can be frustrating to many traders, because without a trading system that they can trust, without that time tested strategy, their chances of making solid profits consistently are next to nothing.

The Forex market is extremely volatile, and while leverage can turn that volatility into a gold mine for a successful trader, it can also cut out the legs from even the most seasoned traders. The Forex offers great potential reward, but also just as much risk to go with it.

One of the first things to look for is a system that adapts to market movements. If a system claims one strategy to be used all the time, it’s hard to believe that you’re making profits in sideways markets if you are trading a trend system. But if you have a Forex trading system that has strategies that adapt to changing markets, that can be a good sign of having a system that will make you profit over the long haul.

That being said, you should be able to adapt relatively easily. If the system takes twenty pages of text to explain how to make a “minor adjustment” according to what the Forex markets are doing, then you’re probably looking at the wrong system for what you need to do. Most of the best systems are either sold with the understanding that they’re only there for use with a specific type of market (which in a way, actually disqualifies those from being among the best systems) and the other has “multi-pronged” approaches that allows you to trade whether the market is in trend, counter-trend, or breakout.

There are many Forex trading systems out there, not all of them can deliver on promises. There are several things you should look for when considering purchasing a Forex trading system. Some of these questions include:

Is there a money back guarantee? Reputable systems should allow for you to get your money back if you’re not satisfied.

How well established is this system? Has the company been around for years? Does it fit your style? If you’re strong into fundamentals and long term trades, you don’t want a system designed for quick day trading or scalping. Likewise with the roles reversed.

If you take these factors into consideration and find a good Forex trading system that adapts to market conditions (like the Triad), you will be all set to make a killing in the Forex market!

By: Jason Fielder

Once you’ve identified a trading opportunity, the next step is to decide EXACTLY when to buy – and this is where many traders go wrong.

Here we explain how to incorporate better market timing into your FOREX strategy – so that you can make bigger profits.

Most traders time their entry levels incorrectly, so here’s the right way to do it:

Using Support and Resistance Correctly

A basic wisdom of market timing is “buy low, sell high” – well, the reality is, if you try this in FOREX trading, you’ll end up losing money. First, let’s define what support and resistance means

A support level is a historical price that traders come in, and buy to “support the market” – and the more times it’s tested, the more valid the support will be.

Conversely, a resistance level is a level on the charts that “resisted prices from moving higher”- again the more times it’s tested, the more significant it becomes.

Why Buy Low and Sell High doesn’t Work

“Buy low, sell high” is accepted wisdom by the majority of traders – but this logic is fundamentally flawed – use it in FOREX trading, and you’re asking for trouble. Why? – If you wait for a pullback, you’re going to miss some of the biggest moves.

Think about it – what if a currency starts to trend and doesn’t pullback? (How often have you seen this?) If you’re waiting for a pullback that never comes, you’ll never get in on the trade – and you’ll miss a major opportunity.

You Need to Feel Uncomfortable

When Trading in the FOREX market, you should usually feel uncomfortable (and that’s why most traders don’t make these trades) – as no one likes to buy or sell after the market has started trending – but doing this will make you money.

The fact is, the more comfortable you feel when entering a trade at support, the less likely the trade will be a big winner.

During any given year, most of the big moves in currencies, take place from new MARKET HIGHS with NO pullback.

If you base your FOREX Trading strategy around waiting for a warm comfy entry, at key support, you’re going to miss the biggest and most profitable trades – so step away from the losing majority of traders.

Your FOREX trading strategy should give you a different mindset – most traders “buy low and sell high” – so you should “buy high and sell higher” – i.e. you should be doing the opposite of what the crowd are doing.

Don’t worry – most traders lose money, and their FOREX Trading strategy is based on the flawed logic we have just discussed – so not doing what they do makes total sense. Therefore, look for breakouts through support and resistance – and sell and buy respectively.

Its Tough Mentally – But it Makes Money!

Sure, it’s hard to do – the majority don’t agree with you – and no one likes to go against the majority. However, it’s the right thing to do, to make your FOREX trading successful. Think about what we’ve just said, and you’ll see it makes logical sense.

Has this Happened to You?

How many times do traders buy into support, and the market breaks support, stops them out and continues to decline. On the other hand, another common scenario is, price never get to support – it simply goes higher – and the trader misses the chance to get in on the trend.

This type of trading is tough mentally – that’s why 90% of traders don’t do it – they want to be comfortable – well being comfortable is great, but you’ll lose money.

Breakouts work, and if you use them in your FOREX Trading strategy, you won’t be comfortable on entry – but you’ll make money – and that will more than compensate.

The way to succeed in FOREX trading is to do what the losing majority don’t do – then you can join the elite 10% of traders who make the big profits – try it and see!

By: Sacha Tarkovsky

AhTee asked:

Is this a proven forex trading strategy?
Been searching for one that can make me some real money.

http://www.ebooksos.com/forex3.php

FAP Turbo Expert Guide – Optimise your forex trades

For people starting out investing on the Forex market, Good Forex strategies are important.

So, what do you need to do to develop a good trading strategy on forex? Well a good basic understanding of how the forex market works is obviously important. Without that you cannot hope to understand how you can develop an effective trading style.

Because the forex market is huge (3 trillion dollars a day) it is a –place where anyone feels they have the prospect of making money. Then, you hear that 95% of people who take a trip into the forex market place – lose their money and give up. Actually this is true of so many other aspects of life. Most people are looking for a cheap and easy way to earn a living. We actually know it doesn’t work, don’t we?

The truth is, if you want to trade on forex, don’t bother unless you are prepared to learn how it works. You have to develop your own successful strategies. If you are not prepared to learn trading methods and techniques, and test ideas learnt from others or developed by yourself, then unless you are incredibly lucky, you have no chance of success.

So where do you start? By, first of all, signing up to a good broker. One who provides online training, helpdesk support and allows you to trade using small amounts. Yes, a practise account is OK, but, will you make the same trading decisions if there is no money at stake. If a practise account gives you $100,000 to trade, will you treat it seriously? How about if you were actually trading with $25 of your own money? The truth is, for the home investor, playing around with $100,000 is like playing a video game. If you crash and burn then you will laugh about it. If you have to go and tell your wife or partner that you just wasted 25 real dollars, then that’s a whole different story.

The moral of this story is that unless you understand how forex, and trading on forex, really works then you cannot develop your own trading style. The good news is that, for anyone who was OK at high school math, forex trading is not complicated.

Getting the right broker, and then taking the training seriously cannot be a bad thing. It is up to you.

By: Craig Summer

Vande Mataram DharmYodha asked:


I am looking for a book with practical and realistic hints, tips and strategy which is also written in a very coherent way.

Thanks

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watch the Trend- 3 Rules to Make serious profit

Most beginner traders don’t bother trying to trend following forex longer term – instead they try forex scalping or day dealing. These methods focus the trader on small moves and they hope to catch small gains however as most short term moves are random, this leads to equity eliminate.

The other picks are swing dealing and long-term term forex trend following and this article is all about the latter method. If you look at any forex chart, you will see long-term term trends that last for months or years. These moves can and do yield serious profit – present we will outline a simple method to catch them.

Looking for Breakouts

By far the greatest way of catching the serious moves is to use a forex trading strategy based around breakouts. A breakout is simply a move on a forex chart where a new high or low is made and resistance or support is ruined.

New High and Lows

While it might appear that you are not buying or selling at the greatest level, you are in terms of the odds of the trend continuing. Most forex traders make the mistake of waiting for the breakout to come back and get in at a better price but these traders never get on board. The grounds for this is if a breakout occurs, then you have a new strong trend and a pullback is not very likely to occur.

Most traders don’t buy or sell breakouts and that’s exactly why it’s such a important method.

The only point to keep in mind is a support or resistance which is ruined, should be valid and that means at least 3 points in at least 2 different times frames. The more tests and the wider the spacing between the tests the more valid the level is.

Confirmation- Make sure you confirm before the trade

Of course not all breakout keeps and some reverse, these are false and can cause losses. You therefore need to confirm each move. All you need to do to achieve this is to put a few momentum indicators in your forex trading system to confirm your dealing signal.

These indicators give you an estimation of the strength and velocity of price and there are many to choose from. We don’t have time to discuss them present (simply look up our other articles) but two of the greatest are – the stochastic and Relative Strength Index RSI

STOPS AND  YOUR TARGETS

Stop levels are easy with breakouts – Simply behind the breakout point.

If you have a huge trend then you need to be careful you can milk it, so don’t move your stop to soon and keep it outside of normal volatility. If it is a huge move, trailing stops should be held a long-term way back and the 40 day moving average is a good level to use.

You have to keep in mind that when the trend does eventually turn you are going to give some profit back. You don’t know when the trend is going to end, so don’t predict.

The above is a simple way to trend observe forex and catch the high odds moves that yield the serious profit. If you are learning forex trading and want a simple method that is robust and will help you catch every superior move, then you should base your dealing on the above method.

Now that you all the money skills to start trading you need to find the right Forex Broker. Recently the CFD FX REPORT

 has researched this area an have come up with who they believe to be the Best Forex Broker so if you would like to know who you should be using feel free to visit our website or email us at support@cfdfxreport.com

By: singapore trader

Enclosed we will show you one of the best Forex trading techniques which can be the core of your Forex trading strategy for big gains. The method of trading enclosed is the one the pro’s use and you can use it to for huge FX profits. Let’s take a look at it.

Currencies trend and the big trends can last for a few weeks or even longer with some lasting years. If you can get into and hold these trends, you can make a lot of money and the Forex trading technique which will get you in on all the big trends is buying breaks to new chart highs in any bullish currency.

Look at any currency pair you like, on any chart and you will see that all big trends start there trends from breakouts and continue their trends from breakouts.

This is a logical and easy to understand strategy which will always work as long as markets trend but most Forex traders don’t do it but don’t let that bother you most Forex traders lose money! These traders, simply want to predict the exact market turn and they lose because prediction is another word for hoping or guessing and that simply is not a way to make money.

While the trader who buys a breakout doesn’t get the exact market turn, that doesn’t mean he isn’t going to make money – he can make huge gains, because he has the odds on his side and chances of a continuation of the trend after a breakout are high.

If you want to trade breakouts watch out for levels which the market sees as important and this will normally be a level which has been tested numerous times, over weeks or months. The more times the level has been tested the better and the best breaks, often see double digit tests before the breakout occurs. To get the best breakouts and to keep the odds on your side, never trade less than six tests.

If you think “buy low and sell high” is the way to make money in Forex trading, think again because the real way to make money is – to “buy high and sell higher”, trade the best breakouts and you could soon be making huge profits, in around 30 minutes a day or less.

By: Kelly Price

The Butterfly asked:


i want to know a proven strategy for forex trading (swing or long time) and will appreciate if it’s from a pro trader.
thanks

Forex earnings: $10K to $34K in 91 days