Saturday, January 19, 2008

Forex Trading Strategy - 3 Basic Steps For Forex Success

If you want to trade forex you need a forex trading strategy, which will allow you to enter the elite 5% of traders who make money and avoid the 95% who lose all their money. Let’s look at a forex trading strategy for success. 1. Basics Many people think they can buy success from a vendor on the net but you can’t â€" most of the advice sold is junk and you can get better info for free. Any one who promises to give you success for a few hundred bucks is lying â€" success comes from within only you will make yourself rich, no one else your on your own. Educate yourself from the great free resources on the net as the basis of your forex trading strategy. Use a technical approach it’s far easier than fundamental analysis. The latter, will get your emotions involved and with news instantly discounted, its impossible to trade it so don’t try. Your Forex Trading System If you educate yourself on technical analysis then you need a system and here is what you need to look at: 1. Learn about breakout methodology (see our other articles) its easy to understand and apply and works. 2. A fatal mistake made by most traders in their forex trading strategy is they try to predict where prices will go.If you do you will lose. You are relying on hope and if you rely on hope like in any venture your are going to lose. 3. Trade the odds and this means price momentum should support your view and confirm the trade before you enter. Two great momentum indicators are - the stochastic and the Relative Strength Index â€" look them up and use them. 4. Money management is essential and you need to protect what you have - with a breakout methodology that’s easy, your stop will be close behind the breakout when it occurs. If you follow the above 4 steps in constructing your forex trading strategy, you will have the basics of a system that’s easy to understand apply and makes big profits. 3. The Key To Success The key to success is to have confidence and discipline The above system will give you that. Confidence is essential as it leads to discipline and if you don’t have the discipline to follow your system you have no trading system in the first place. The other key is to work smart not hard â€" You get no rewards for effort just for the success of your forex trading signals, so trade infrequently. Using a breakout system and only trading the best trends means that you can learn everything in about a week and your forex trading strategy will take around 30 minutes a day to apply. If you base your forex trading strategy on the above 3 points you will have the ingredients needed to enjoy currency trading success. Good luck! NEW! 5 X Critical Trader PDF s and Much More Claim your FREE PDF s and demo account and learn Forex Trading and also get: Breaking financial news, tight pip spreads, guaranteed stops $100.00 minimum investment and 400:1 leverage at

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