Nowadays with the internet bubble at its strongest peak, there are several ways to win money online. One method to do so is the online trading solution of the Forex market. If you have been attracted to this market as the rest of the people that are attracted to liquidity you’re in for a surprise.
To keep the story simple, it is important to understand that when talking about this saturated market called the Forex market, keep in mind that there is you (the investor) and them (the brokers) who are all in it for the profit of making money.
The trader is in this market to receive profits based on his trades and the broker who’s in it to make profits based on his client’s commissions per trade which is deducted from their account.
In order to understand several methods of making money in that market, one needs to understand that the odds in the market are always going against the investor or the trader.
This is why it is important to learn about relevant broker, a Mercedes Benz is far a better car than a ford, and so are some brokers compared to the others, which get me to my point of reading online broker guidelines before choosing the broker.
Here are some tips:
- Make sure your broker has a clear history of payment of the funds
- Make sure that you learn that the broker is regulated in a country that you are based in or very close to that country.
- Do not invest a large amount of money prior to making several tests: withdrawals, commission’s calculations.
After you have made these forex tests, do not forget to take your time in the trading; 90 percent of the people who start trading lose their money because they either change their stop loss point, add more volume to their position or mainly impatient. Do not make that mistake and win.
Forex Strategies – How to Win in Forex Trading
To use the following method you need to use only 4 trading tools which are:
- Bars reading, trendlines, pivot points and the MACD indicator.
- Do not confuse yourself with a combination of additional analyzes.
- Sometimes simplicity is the best way to play.
- Trading Forex is a business. Act accordingly and be cautious and calculated.
1. Start small and strive to earn 15 to 20 pips at a time and then stop.
Once you begin to specialize and earn this amount regularly, you can increase your targets.
2. At the beginning of each trading session, review the hourly chart.
This analysis will provide you with information on inter-day trends and will give you clues about the possible trading direction in the following session.
3. After reviewing the hourly chart, open the 15-minute chart and analyze it in depth.
4. Only after going over the previous section, check out the 5 minute chart.
Is it supports your assumptions? Can you identify early signals which not yet reflected in the 15 minutes chart?
Do not waste much time on this graph, as it may contains a lot of “noise” and false signals.
5. Examined the MACD indicator.
The main signs will be taken from the middle graph (15 minutes)
If the indicator will reflect a positive trend in the longer graph (time), but a negative direction in the trend middle one, do not look for a buy..
6. If the indicator reflects a negative direction in the middle graph but prices are going up, then it probably jumps following a supportive pivot point or a trend line, and the price will drop down sooner than later. The same applies to the opposite case.
7. The MACD is a lagging indicator, so you should not use it by itself as a buying or selling signal, especially in the fast Forex market.
It is better to use it for divergence, which appears when the MACD is heading for the opposite direction of the price action.
Looking for near term opportunities, the divergence which appears on the 15 minutes chart will be more significant than the ones you will see on the 1 hour chart.
8. If you want to take a serious and disciplined approach, what you should do, then always use a stop loss in the range of 20 to 30 pips.
It is not recommended to use the mental stop approach, as it proved to be very difficult for most traders to implement.
Do not be afraid to lose, even the most expert traders lose in many of their trades.
The percentage of your wining trades will be sufficient, so your gains will be higher than these losses.
There is no 100% in anything in life, so accept it, and protect your money.
9. If a trade comes following a close pivot point, trend line, or a certain candlestick pattern, place your stop in the other end of the place where its signal was created.
The price has a tendency to go back and re-test the same area in the graph.
10. Although stops are designed to protect your money from losses in your trades, you can certainly use a Trailing Stop when you continue to move the stop point up or down accordingly, and move in the direction of the chart in order to protect your profits
11. For this strategy, use only the technical tools we’ve talked about. There is no need for more than that.
Tracking Fundamental news and analysis will cost you in a lot of time and energy but you will benefit just a little if at all.
All news contained already in the graph activity.