How To Trade Forex
I hope all is well, what a trading day yesterday, 100 pip swings in the market. Let’s not try and make every non-tradable day a tradable one. I ask all our clients to at least decrease their personal risk to around 0.5% in high volatility and markets that sense fear. Every trader will have good days and bad days. I was speaking to a client yesterday and explaining to him how emotionally we should be balanced in Good days and bad days.
On one day, you should never have more than 2 trades per currency pair if you have you are not being selective enough. One of the most annoying habits of retail traders is sitting in front of your desktop 24/7 as a retail trader is called the trader itch. This is called the need to place a trade. This is when you take trade after trade and you revenge trade and your account become a total mess. Traders that were trading GBP/JPY In the market got slaughtered yesterday. Personally, on GBP/JPY guess what I did. I waited for JPY to hit the 122.00 before taking any trade. This was major support on the yen trading blindly is not called trading fx.
IF YOU ARE TRADING FX BLINDLY:
“THIS IS DISREPUTABLE TO THE ART OF TRADING FOREX AND YOU SHOULD GIVE UP WITH IMMEDIATE EFFECT”
Trading is not for everybody but 90% of my traders are successful. They are now either running their own funds or trading as full-time traders. The main reason that I am being very opinionated and making my voice heard on trading blindly is because it has taken me a long time to learn How To Trade Fx. I am writing articles from almost 5:30 in the morning to improve our client’s ability to trade by 1% each and every day.
When you see a cross-currency pair falling through the floor, don’t try and buy blindly you should observe the following rules:
- Never Buy the currency pair blindly
- If you want to trade, trade like a professional forex trader by observing the base support. For example GBP/JPY, the major support levels of GBP/USD and USD/JPY and GBP/JPY. This will give you and indication of where the currency pair is most likely to stop Just as I quoted in my paragraph above. We had a major support level of 122.00.
- In the particular currency cross above JPY has in inverse relation to gold so you also should be observing the resistance level of GOLD
- No More than 2 Trades should be per currency pair in a day.
- Risk Management.
- Use your system with CSA. Common Sense Approach.
- There are several factors in trading cross pairs.
Conclusion On How To Trade Fx:
Again if you are not able to devote time to cross pairs, then you should not be trading them stick to the majors. My theory of selectivity has been key to my success. How to trade fx is a question to which you will only get the answer to by being more focused. The more focused you are on a handful of currencies the more profitable you will be.
Have a fantastic and profitable day