As a 'full time' trader of many years experience I look at the systems and threads within this Forum with great sympathy and understanding. It is clear that there are numerous guys and gals out there who are struggling to make a living from Forex trading with little or limited success. Many, it would appear, jump from thread to thread looking for the holy grail only to be disappointed and disillusioned when they finally take the plunge and start trading there own hard earned cash.
I too struggled for many years until it finally clicked that trading is really very very simple, very easy and very profitable.
I can reveal my 'wonderful system' if this is demanded but there is nothing new or unique about my trading style. Indeed it is clear from the threads that there are traders out there who are far more knowlegeable than I about the fundamental and technical aspects of trading but fail because they cannot see the bigger picture..
Here is the bigger picture
1. DO NOT waste your time piddling around on 5, 10,15,30,60 or even 4H charts. Anything less than 4H charts are for adrenalin junkies who are addicted to trading. I you do make money on these lower time frames 95% of you will give it all back over time. The other 5% must lead shallow lives in front of their screens. Personally I NEVER spend more than half an hour a day looking for trades. The rest of my time I fish, travel, sunbathe and make love.You make more money by trading minimally. Overtrading=loss
2. On daily charts look for curreny pairs that are ranging. DO NOT attempt to trade these pairs but wait for a break out of the range in either direction.
3. Get into the trade.
4. Stay in the trade until the trend turns into a range or reverses,(several weeks or months) Use a trailing stop loss to lock in your profits but the stop loss must be wide enough to keep you in the trade during retracements.
5. If you have just missed a new trend (.eg. current USD strength) wait for the inevitable retrace and then get in in the direction of the trend.
And that's it. If you want to use MACD, stochastics, gymnastics, heimlich maneuvers etc then thats fine but don,t forget the basics
IDENTIFY A TREND/ GETIN/ RIDE THE TREND TO THE END OVER WEEKS/MONTHS YEARS. /MAKE LOTS OF MONEY
Find two good trends a year, thats all you need to do to make real money.
I too struggled for many years until it finally clicked that trading is really very very simple, very easy and very profitable.
I can reveal my 'wonderful system' if this is demanded but there is nothing new or unique about my trading style. Indeed it is clear from the threads that there are traders out there who are far more knowlegeable than I about the fundamental and technical aspects of trading but fail because they cannot see the bigger picture..
Here is the bigger picture
1. DO NOT waste your time piddling around on 5, 10,15,30,60 or even 4H charts. Anything less than 4H charts are for adrenalin junkies who are addicted to trading. I you do make money on these lower time frames 95% of you will give it all back over time. The other 5% must lead shallow lives in front of their screens. Personally I NEVER spend more than half an hour a day looking for trades. The rest of my time I fish, travel, sunbathe and make love.You make more money by trading minimally. Overtrading=loss
2. On daily charts look for curreny pairs that are ranging. DO NOT attempt to trade these pairs but wait for a break out of the range in either direction.
3. Get into the trade.
4. Stay in the trade until the trend turns into a range or reverses,(several weeks or months) Use a trailing stop loss to lock in your profits but the stop loss must be wide enough to keep you in the trade during retracements.
5. If you have just missed a new trend (.eg. current USD strength) wait for the inevitable retrace and then get in in the direction of the trend.
And that's it. If you want to use MACD, stochastics, gymnastics, heimlich maneuvers etc then thats fine but don,t forget the basics
IDENTIFY A TREND/ GETIN/ RIDE THE TREND TO THE END OVER WEEKS/MONTHS YEARS. /MAKE LOTS OF MONEY
Find two good trends a year, thats all you need to do to make real money.