WAIT FOR PROPER CONFIRMATION SIGNALS ~ forex trading guide book
The biggest challenge to being a successful trader is waiting for proper confirmation signals before entering a trade. Many traders play the guessing game with the market even when they understand that they should buy low and sell high. In a bull market when they think price has gone up far enough, they sell and when they feel it has gone low enough, they buy to get a jump on the market, for what they are hoping is a big pay check. This kind of thinking is often Market Suicide, and will get you killed.
Price in a trend is like a locomotive freight train, it will run you over and never even feel you. You have got to wait until the breaks are applied and the train does a u-turn before trying to sell tops or buy bottoms. YOU CAN NOT GET A JUMP ON THE MARKET unless you are psychic. The market has successfully tricked traders for hundreds of years and is very efficient at it.
YOU CAN NEVER OUT GUESS THE MARKET !!!!! You can only follow where it leads, hoping it doesnt turn on you like a mad dog.
Sometimes you will wait for a proper set-up and still get stopped out, but waiting for a proper set-up is going to give you the greatest chance for success and put the odds the most in your favor.
There is no perfect strategy, but you are looking for one that will put you on the right side of the trade most of the time. Remember everyday your market is different, so develop a strategy for every kind of trading market. (The bullish, the bearish, consolidation and choppy). As a trader you will take an occasional hit, but it is the end of the month profit that you are looking to, not the end of the day profit. It is ok to lose a battle every now and thenas long as you win the war.
The most simple trading strategy is to follow the current trend until your candlesticks tell you differently. A good trader spends much more time waiting than trading.LEARN THE PSYCHOLOGY OF YOUR CANDLES AND YOUR CANDLESTICK PATTERNS !!!!!!!!
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Forex Trading Strategy Steps Everywhere ~ forex trading book in gujarati
If you go back and check your chart on different time frames, you will find a wonderful treasure in plain sight. It is a low risk, easy to trade short term setup. The setups that I am referring to are your bullish and bearish steps. They are easy to spot as they resemble the steps you climb and descend on a daily basis.
The bullish steps:Your bullish steps are steps in which each candle is higher up than the preceding candle. When you notice the beginning of steps building, you want to look for your entry opportunity. In a set of bullish steps, price will drop below the high and often below the close (and sometimes close to the open) of the previous candle before continuing upward. First note the high and the close of the previous candle. When you note that price has fallen below the high, allow it to fall until you get a valid reversal confirmation in your candlesticks, going in the direction of your bullish steps. If you are trading a time frame that will allow you to do it, go to a smaller time frame and look for a valid reversal signal in harmony with that trend for an entry, so that you can have a tighter stop loss.
The bearish steps:
Your bearish steps are steps in which each candle is lower than the preceding candle. In your bearish steps price will climb above the previous days low and often time the close or even close to the open before resuming its bearish pursuit. Allow price to trade above the low, then switch to a smaller time frame and begin to look for your entry point on your candlestick reversal in the direction of the bearish steps. Your stop loss should be placed the number of pips that you are comfortable with above the candlestick reversal pattern.
Please note that this is a short term strategy as your steps will eventually disappear, but they are a relatively profitable trade set up while they are in force.
WARNING: DO NOT TAKE THE TRADE IN THE DIRECTION OF THE STAIRS UNTIL YOU GET A VALID REVERSAL PATTERN!!!!!!
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This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.
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