80 Trading stategies for forex
Currency Trading Strategy Number One:
When you are just starting out, strive to carve out 20 pips per
session, and thats it. Then, turn it off, and study some more. When
you get really good at it, you can then graduate to higher returns.
So, set your goal at 20 pips and stick to it, until you are a grand
master at this wonderful business called forex trading. I stress the
word business. This is not a game, especially where your hard-
earned money is involved.
****************************************************
Currency Trading Strategy Number Two:
Spend most of your time on the 15-min chart.
****************************************************
Currency Trading Strategy Number Three:
When you first start out in any particular session, look at the 1 hr
chart to get an overall perspective on trend from one session to the
next, and what its likely shaping up to be at the beginning of the
upcoming new session.
****************************************************
Currency Trading Strategy Number Four:
Only look at the 5 min chart if you absolutely have to see whats
behind the current 15 min bar especially where the bar is
elongated, and may have just penetrated a pivot point; in other
words, is price reversing course on the 5 min chart, which would
obviously not yet be reflected on the 15 min chart?
****************************************************
Currency Trading Strategy Number Five:
Dont dwell on the 5 min chart, as it contains a lot of noise that will
whipsaw you to death.
****************************************************
Currency Trading Strategy Number Six:
MACD rules on the 15 min chart. Even if MACD is, say, trending up
on the 1 hr chart, if it is trending down on the 15 min chart, thats
what you take your cue from. Thats not to say a shift in price
direction is not in the works. It just means its coming, but not yet.
In the meantime, you dont want to miss whats happening in the
now, which is what is reflected in the 15 min chart.
******************************************************
Currency Trading Strategy Number Seven:
If MACD is trending down on the 15 min chart, and price is wanting
to go north, price will sooner than later head south as it perhaps
bounces off a pivot point, or gets turned around at a juncture caught
by one of the other three tools you should be using (reading
bars, MACD divergence, or trendline analysis). Same thing if MACD
is trending up, and price is trying to head south.
******************************************************
Currency Trading Strategy Number Eight:
Only use MACD for divergence, not for buy or sell signals. It is a
lagging indicator, and as such is useless as a trigger. It is too slow
for that in the forex world.
*****************************************************
Currency Trading Strategy Number Nine:
Again, MACD divergence on the 15 min chart is more significant than
what you see on the 1 hr chart in the near-term. For those of you
who dont understand what divergence means, keep looking at my
own personal forex trading examples on this page on a daily basis for
examples of divergence. Basically, what it means is where you see
MACD waves waving in the opposite direction to price action. Thats
why I connect the top of the waves (in a downtrend) and the bottom
of the waves (in an uptrend) to illustrate that the waves are waving
higher in an uptrend and lower in a downtrend in the opposite
direction to where price is going.
********************************************************
Currency Trading Strategy Number 10:
Always protect your money by using 20-30 pip stops. Mental stops
are okay, but not if you are dead serious about using a disciplined
approach to managing your money. You will lose three out of ten
trades. The three losses should be kept to 20-30 pips. Your wins will
by far surpass your small losses, and thats what stop-losses are all
about. Dont be afraid to lose. Even professional batters strike out six
out of 10 times. Lions are only successful 20% of the time in their
chase for the kill. Professional golfers lose 95% of the time.
Professional poker players lose 50% of the time. So, your chances
are better at trading the forex, using my system of course, than in
any other venue. Even businesses have bad inventory. And, life in
general is not always 100% for sure.
*******************************************************
Bookmarks