If you want to become more adept at trading foreign currency exchange, just pretend that you’re a highly intelligent Cheshire cat. Such animals are very patient. They save their energies for the big catch of the day. While waiting, they continue to research and analyse the scene to make sure that nothing important is escaping their attention. Use some technical indicators on a daily or 4-hour chart to help you narrow down your trading options. For instance, using a “Know Sure Thing” indicator on the same chart with a “Williams Alligator” is a very powerful microscope for discerning which way funds are flowing and how. For confirmation, just use a “linear regression” on the same chart.
For short-term trading, almost nothing beats a pair of moving averages for generating potential trading signals. Try an 8-period weighted moving average (“WMA”) and a 20-period WMA on a 5-minute AUD/USD chart, for instance. Use a “Fisher Transform” for signal confirmation, leveraging your trades as high as you feel comfortable with.
What It Takes To Profit From Foreign Currency Exchange
Trading forex is not rocket science. It just takes a bit of diligence and determination. For instance, try out this “day trading” strategy on a “demo account”. Open up a 5-minute chart of the AUD/USD and place 2 weighted moving averages on it. Calibrate the first WMA for 8 time periods; input the second WMA for 20 periods. Trade whenever the 8-period WMA crosses over the 20-period WMA. Add a standard Fisher Transform for signal confirmation as well as an “Awesome Oscillator” to keep an eye on momentum. With a little bit of practice, you should realise that when prices shoot down (or up) over the 8-period WMA, you have a good chance at bagging 10-20 pips per trade.
Why You Need To Defend Capital In Foreign Currency Exchange
The mark of an experienced trader is “cherry picking”, i. e., trading only the “juicy trades” – not all trades. The reason for this is that not all potentially profitable trades are equal. Some may be the result of high levels of volatility or an unexpected political event. In such situations, it may be best to stand aside, rather than risk your capital. For the same reason, you’ll notice that experienced traders are very willing to cut a losing trade rather quickly. They know that little loses will not hurt their average trading profitability, but a couple of large losses is a different story entirely. In fact, a large loss is indicative of a trading strategy that doesn’t work.
Top Tips For Foreign Currency Exchange Profits
For maximum profitability, only trade in the mornings of Tuesdays, Wednesdays and Thursdays. This is when trading volumes are the highest, bid/ask spreads are the tightest and you have the highest chance of getting your limit orders filled. On Mondays, just watch the pricing action and research whatever new ideas or charts you might have. On Fridays, start your weekend early. A tired trader is a distracted trader. You need to stay focused in order to make the correct decisions while you’re trading. In addition, forget trading during holiday periods (e. g., Christmas in Europe). Many major trading participants scale back their activities, during such time periods, and liquidity could be low. This could affect bid/ask spreads and order fills.
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