YountShaughnessy726
Forex currency trading Strategy - Ready your Chart
I can think of few business efforts that don't incorporate some sort of daily, weekly, or monthly planning. Trading Forex is no different. When you take a seat to an unprepared chart you have little idea why one trade might run forever and another turns on a dime.
This is easily solved by preparing your chart. Probably the most frustrating thing about being an unprofitable Forex trader isn't knowing why a trade worked in your favor and why the next trade didn't. This leads to a failure to determine where you can trade from, when you should take profit, where you can place your stops, so when to cut a losing trade. Inevitably, losing trades far outpace in both number and size the profitable trades. A prepared chart will allow you to take trades with less risk which means smaller losses and much more frequent gains.
The Forex currency trading strategy parts of every Forex forum website are by far the most popular. Admit it, if you are an unprofitable trader the number of 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 can continue to fail is that they concentrate on all the wrong things. They have a lot of rules and indicators and spend a lot time adjusting those rules and indicators they your investment most significant thing... it's in which you trade from that makes a big difference.
Do this exercise and find out exactly what a difference it makes. I refer to this as my " setup method #2." Pull up a daily chart of your favorite pair. Zoom out before you can easily see two months price of price data. For instance, it is July now, so pull up a chart and ensure you can observe the daily candlesticks for May and June. Place a horizontal line in the high of June, our prime of May, the low of June, and the low of May. You need to now have a chart with four lines. There you have it!
Now hold back until price approaches the area of one of your four lines. You are able to trade any timeframe, but only trade when price is approaching one of these four lines. Only take a trade when:
Price is touching or is not far from your lines AND Your trading plan gives you a signal.
Ignore all other signals that occur from these lines. As price approaches the areas on my pre-prepared chart, I search for simple price action candles, however, you can use candlestick patterns or even that latest, greatest strategy you found in a Forex forum.
Doing this will permit you to trade less and trade from better places. See how much better the worst system performs when you take signals generated only when price is near an essential place.
