Just one long term position can potentially yield a lot more profit that hundreds of smaller positions. You have to think on your feet and react quickly to the movements of the market. You also have to contend with requotes and being monitored by your Forex broker if you are doing a lot of very short term trading. Are there any foolproof methods for Long term currency trading?
Well… there are, but they only work for people who are not fools! Foolproof methods for currency trading exist for those who realize that the Forex market is bigger than they are; for those who are going to engage in strict money management; and for those who understand that they need to actually stick with their chosen strategy and not flit about with impatience when they take a few inevitable losses. A Long term Forex trading system is essential to making money when you choose to go Long term.
You will sometimes have luck on your side and make a big killing in one day, but losses are inevitable, too, in this highly volatile market. Over the long term, cutting your losses and mounting up your smaller gains is the only way that you can get rich in the Forex. There is possibly nothing more important to making money in both short and long-term Forex trading than trading on trends. Forget about the usual error of trying to predict highs and lows. These are not only nearly impossible to predict, but a new high or a new low is where the new trending starts.
When you spot — not predict, mind you, but spot — a new high or low, a movement that ends an old resistance point by at least three pips, you probably have a new trend in the Forex market. This is when you get in. They failed to understand a trend. They lost out on most of the opportunities to make profits, and they often take heavy losses from this folly, too. Swing trading is likely the best method for the novice Forex trader.
Swing trading is about looking for a price spike either up or down, then mentally defining a particular area of resistance and support, and then watching like a hawk for the momentum to shift while the level holds before entering your long term Forex trading signals.
Swing trades are for quick entry and quick exit. You only hold your position most of the time for two to seven days.
Swing trading works, ironically, because of folly. But not your folly. It works because short-term price spikes get caused by emotional trading driving the pair price too far too quickly; and as a result, the prices very soon return to fair value.
You as the swing trader seek to over buy and over-sell the resistance and support levels and then trade into them. Check out this Guide to Swing Trading.
This is a part of trading the trends, but it should be viewed as a method in its own right. This happens when a new trend fails to materialize as anticipated. Confirmation involves the placement of a few momentum indicators and using them to more deeply analyze whether a perceived trend is likely to materialize.
The two most important movement indicators for you to learn as a novice are the RSI and the stochastic movement indicator. There you have it. Practice and master these three foolproof methods for Long term currency trading and over time you could become very successful indeed!
Zero in on Profits with the Momentum Breakout Strategy. You must be logged in to post a comment. Contact Us Search Login. By Market Traders Institute. Many traders trade the markets several times a week, or even several times every day, but it's important to note that a Long term Forex trading system can be just as profitable, if not more so.
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