Currency Trading Systems - Articles And Recommendations
I have been trading Forex for a living for over 7 years now and have come across numerous Forex trading systems and methods.
After many trials and errors I've come to the conclusion that simplicity is key, therefore I have reduced my trading into 3 categories:
1. Forex news trading - this means riding the volatility surrounding economic announcements such as Non Farm Payrolls, GDP and others. For this I have software that delivers the news in real time and can actually click the sell or Buy buttons. Quite often your order will not be filled so it is possible to enter on a retrace, based on the news direction.
2. My own Forex trading methods and strategies, these fundamentally come down to 2 simple techniques:
2.1. Selling resistance and buying support, based on calculated pivot points, Fibonacci numbers and trend lines.
2.2. Very fast scalps which involve trading for very small moves taking a very small risk. This requires some practice, but once mastered it can be easy money .
3. Third party Forex Trading systems - there are many systems for sale and most of them are ineffectual, written by Internet marketers for the sole purpose of making money for the marketer. These systems are a complete waste of time but the sales pitch is often good. I have found a few that work well and complement my own trading methodology.
Timing and time in Day Trading
It is of utmost importance to understand the time that you choose to execute trades in and have an idea of what you potentially expect at that time of day. This differs from instrument to instrument, so it is important to study market behavior for your particular instruments. I commonly trade only 4 instruments; the DAX, Euro, Japanese Yen and the GBP/USD, and I am pretty familiar with their behavioral patterns during the trading day.
Other instruments behave differently and I will deal in them (I do infrequently trade WTI, Nat Gas, and other currencies) after I've studied their time related behavior. Most of my trades outside of the DAX and GBP/USD are news related and of course, when figures are broadcast a different volatility exists which is usually out of the typical patterns.
The best time to execute trades in the DAX (German Index, and moves closely with the DOW mostly) is close to the London open at 08:00 (03:00 EST), as the open usually brings a large surge in volume and it's an easy time to scalp. Sometimes the scalp will turn into a longer term trade, if a trend develops, however it is often 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 achieved within 30 minutes, I can then relax and look for very low risk opportunities that will not risk the gain.
Some of my fellow traders will stop then and do something else. It certainly gives one plenty of time, but those 30 minutes require intense focus.
If you'd like to learn more please check my blog by clicking the link.
The blog also contains many video with live trades.
Currency Online Trading: What You Need To Bear In Mind To Make Money The good news is that you can learn to minimize your losses and maximize your gains. Having a clear plan and knowing how to implement it can help you avoid the worst of the loss situations, no matter what system you use.
Currency Scalping: Can It Be Done Effectively And Is It A Real Choice For Newbies? Fx scalping requires a very cool head and a good deal of experience in trading. There certainly are traders making money with this as their main tactic. But there are probably a lot more who are losing. This is probably because so many beginners are attracted to it.
