4 Forex Strategies All Forex Traders Must Know
January 28, 2009 by Kelvin
Filed under Forex Strategies
Forex trading is not an easy task if you do not have enough experience or advice from a good forex mentor. When I first started trading, I lost $2,400 within 3 days because I thought that I am very skillful after reading 5 to 6 Forex trading books and I decided to go for a mini account. However those Forex strategies that I have learned from those books seem to be not working for me during the actual trading.
Therefore, I started to look for a good forex trading course that can help me turn the table over. I ask around for advice from experienced traders and they direct me to some courses that they find useful. After buying those courses, I have learned several forex strategies and it has been working successfully for me till today.
Therefore I will like to spend some time on this posting to share with you 4 forex strategies that has been working for me and hope that you can spend some time to understand and put the strategies to work for you as well.
Here are the 4 Forex strategies
1) Top Down Trading – This is by far one of the most important forex strategies you must learn. You need at least four chart of various time frames to help you determine the trend. For me, I am using the daily, hourly, 15 minutes and 5 minutes charts. Your daily and hourly chart will help you to identify the trend direction while the 15 minutes and 5 minutes will help you get your entry and exit point of your trade. For more information regarding the using and analysis of chart, you can take a look at my “forex chart analysis strategy” post.
2) Pivot Point Trading - Next you must learn how to calculate pivot point as it can help you to identify the price movement zone. The pivot point will serve as a trading zone for you to know where the price can move to.
3) Forex Trading Tools – You can then add in the indicators of your choice and observe them on the 15 and 5 minutes charts for signals that can help you to trigger your trade.
4) Proper Money Management – The reason why most trader never made it is because they have poor money management. You must always know how much you can afford to lost in any trade so that you can live to fight another day. A guideline that I have been using is 2% of your capital is what you can afford to lose in any trade. You can read more about my forex money management at this post.
I have been trading pretty successfully with these 4 Forex strategies I have written above and I hope that you spend some time to digest what I have written above. If you are really interested in learning more about Forex trading, you can visit Forex mentor to learn out more.
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