Forex Trading is not that easy, all FX traders before they enter
this business, they think that they will be rich very quickly and make
$20 000 in one or two weeks, but when they begin trading currencies
they discover it is not true, it is not easy to make money especially
when we work with money. Very tricky business, many of us think that
there is a conspiracy planned by "THE BIG GUYS", they know what we
think what we plan to do and they do the opposite to steel our money,
many times we think to make the opposite of our decision (if I see the
market is going up then I will sell). And we begin searching for
someone to help us making at least 200 or 300 pips a month, probably
many of us work with signals advisors who simply took our money and
probably do not help us making decent profit. Many of us thought stop
trading many of us quit FX trading but I think most of us will not quit
easily because we see in it a golden opportunity to have our own
business and make our fortune!
Foreign exchange is an opportunity to make a fortune and in
same time it is an opportunity to loose our money, we can make a
fortune if we knew how to handle Forex, if we don't know how to control
Forex it will destroy us, so we must be stronger than it, and if we
don't know how to control it with our own hands it will destroy us too.
So how I can be stronger than this ferocious beast? It is simply by
learning, observing, and practicing. The FX market will not go anywhere
it will be trending and ranging for ever, so learn from experienced
traders how they became that good, observe charts and look for common
points look for the reason why the price change direction, and when you
discover the reason which influence a currency you will have in your
hand the first tool that gives you control. And each new thing you
discover, try it on a demo account, see if it is valid and develop it.
In this Forex article I am helping you to find your way, this Forex
article does not give you the fish but it teaches you fishing. There is
no conspiracy theory in this business, no big or small guys, we loose
because we don't know, and the first thing we must do to become good
traders is to admit that we don't know and we must always learn.
In this Forex Article I will give some clues and I will leave you learn, observe and practice.
First of all you must know that you must use fundamental and
technical analysis in conjunction, both complete each others, so don't
rely on one and leave the other. Fundamental is one of the reasons
which influence the market, so if you are in a long trade and suddenly
the trading currency went down so go and see if a report was released
and see what its forecast and what was the released data and compare
this data to your chart and you will have your first tool to control
Second, in my opinion all the technical indicators didn't
help me at all, I tried all the combinations nothing work, and
indicators describe the status of the market but don't give you
information about the next direction. I read a Forex article about a
guy who describes his Forex Trading strategy in a Forex article, I was
completely lost, he uses a combination of 12 indicators EMA340,
SEMA890, EMA2900 etc: and he inserted FIBONACCI in it. I was totally
lost. Even if his strategy worth 95% success I will not use it because
I can control the market by using simpler techniques. So we don't need
to seek indicators, only one indicator I use the Bollinger Bands which
is the perfect weapon in my battle against Forex trading. So I want you
to look at the Bollinger Bands and see how it affects a currency, focus
on it and read well this Forex article and you will discover a lot of
things, and you will have your second tool.
Third, suppose you are in a long trade and suddenly for no
reason the Forex Trading price went down, there are no released reports
it just turned down, this is weird. But weird things are those we don't
understand, but if you observe your chart and go back several hours or
days and drop a break line from higher swing points you will see that
the price turns down because it reached that break line, you see there
is no mystery. So this break line will be your Resistance and if price
breaks it, it will continue going up, but going where and till when?
Observe very carefully and you will learn as I did. And no need for
midnight or afternoon candles, be simple as you can, that beast is not
as ferocious as you think. So breakout is your third tool.
Fourth, what timeframe to use, it is up to you to choose the
suitable timeframe, H1, H4, D1: I don't know, compare the charts and
you will see the suitable timeframe. Timeframe is important and when
you find it you will have your Fourth tool.
And that's it, I repeat observe your charts and focus and
think in these clues in this Forex article and the more you think the
more you discover, read Forex article, learn strategies and get foreign
I do good profit from my Forex trading strategy because I
program it, I gave my system the data and leave it do his job. This
eliminates the fear factor and gave me more time to go out and have
I hope this Forex Article gave some tips and techniques which help traders in their Foreign Exchange trades.
by Joe Chalhoub