Since you are reading this article I can assume that you are familiar with trading currencies in Forex market. Probably you already know that it is not an easy task to become a consistently profitable trader. If you are someone like I was when I got started my journey in Forex then you are probably looking fro a perfect system that can help you consistently take the profit from market. Unfortunately there is no universal system that suits everyone. But you can make a system to be a perfect one for you by adapting it to your personal traits.
I don't know about you but I was jumping from system to system trying to find a perfect one. I tried scalping. I tried to trade New York session, London session. I traded economic news. I wouldn't say that I completely failed but what I noticed from my experience is that the higher the time frame I traded the better the overall results in the long run.
In my opinion the long trade works out better because of have two major reasons. First reason is that when you look at the chart of higher time frame it has much less noise. It is easier to identify patterns, support and resistance etc. The second reason is that trading longer term almost completely eliminates emotions that interfere with the trading decisions. I see the signal, enter the trade, set up stop loss and take profit orders and leave the trade to mature. I come back to the charts the next day to see if the trade is still evolving or if it hit the stop loss or take profit levels. Once I see the appropriate signal I enter the market again. In the long run it turned to be much more profitable than if I would spend long time in front of the charts babysitting my trades.
That's why I always recommend beginner traders or someone who struggles to make consistent profit in Forex start practicing swing trading strategy first. Pick a system with the simple rules and apply it over and over again. Over time your execution of the trades will become perfect. You will see how much easier it becomes to make consistent profit in Forex. First you spend less time setting up the trades. Second you save you emotional energy by not overreaction on the price action.
Here is one simple swing trading system I would like to share with you. First you need an indicator called Heikin-Ashi candles. Second and most important thing is you need to learn to identify significant support and resistance levels. If you learn it you are well on your way to become a successful trader. Now attach Heikin-Ashi to a daily chart. Look for the candle to change its color. Once the color has changed look if price has bounced from support or resistance level. When you have those two conditions met enter the market. Place your stop loss order a few pips behind the support or resistance level. What about taking profit? I believe it's an art not a science. I personally take profit at the next resistance/support level. You can do it when Heikin-Ashi candle changes its color or any other way you like.
Albert Schmidt is a part-time currency trader. After quite a long time of struggle he learned to make consistent profit trading in Forex. Review a trading strategy he successfully uses in his trades. |
No comments:
Post a Comment