Tips For Making Currency Trading Made Easy

Currency trading made easy is the goal of all the traders out there. It isn't an impossible task, it just requires you to apply some basic rules on a daily basis to keep your trading as simple as possible.

• Become Emotionless: We are emotional creatures and we cannot change that. What we can do is control it. Emotions over the long term always lead to losses. You need to learn to control yourself. One of the most common emotions you'll get is the "gut feeling". Something inside of you is just telling you to buy, sell or even avoid. It almost seems counter-intuitive, but your emotions can really play tricks on you. Trading should be nothing more than a logical move. You need to make moves on numbers because numbers never lie. Number aren't biased and you definitely can't weasel yourself out of numbers. I find the best way to be emotionless is to make rules for a trade before you even make it. You should already know the points where you're going to sell this currency for a profit or to avoid a loss.
• Economic News: Very important to pay attention too, but many people miss it. The economic news of a country is the foundation that holds up a currency. The last thing you want to do is buy into a trade hours before the Federal Reserve is about to announce something. You need to watch out for the news related to central banks, like the federal reserve, and any other economic news like GDP, unemployment rates, etc. If you don't you could buy into a trade that goes in a completely different direction based completely on the news.

How to Pick a Profitable Forex Trading System

In the beginning of my trading career I was jumping from one trading system to another as soon as it gave me a few failing trades. I think it's a common thing among beginner traders to change system without even testing it.

Oftentimes I can hear traders argue which system is better or which trading style is more profitable. I believe that it all depends on trader's personality. One has a greater emotional control so he can sit and continuously monitor his trade. Some type of short-term trading strategy will suit him the best. Another trader is more patient. He can wait for his trade to mature for a few days. For this trader long-term trading systems are more relevant.

It is surprising to see that even very successful traders do not realize that a trading style must suit a personal trait of the trader to make him successful. Usually traders advocate their own trading style or system. Anyone who wants to become a successful trader needs to study himself before studying the market to know what is best for him.

Personally I dislike short -term trading suchlike scalping. Besides that it's emotionally challenging for me to watch continuous fluctuation of the market, there is another reason I don't practice scalping.

Scalping is a trading style that targets very few pips per trade. Therefore to make a significant profit one needs to make several trades a day. Brokers nowadays do not charge commissions for trades, but there is a spread. The more trades you execute the more pips in spread you lose. Let's say you scalping a currency pair that has 3 pips spread and you need to make 10 trades a day. By doing so you are already 30 pips behind. It will add up into 150 pips in a week.

A long term trading strategy on the other hand usually targets quite a large profit for a single trade. This style of trading suits me the best. I can analyze the market, set a trade and keep coming back to see how it evolves. No emotional overreaction. No huge number of trades to lose spreads on.

I don't mean to put down any trading style. What I mean is that you are the one who needs to choose what trading style suits you the best. Once you find that out buy studying yourself then success in trading will come easy to you.

Technical Levels Forex Trading System - Easy to Use, Almost Automated

A forex trader without a specific trading system is like a seaman going on a voyage without a compass. Any wind is good because he doesn't have a specific predetermined direction. He is called a discretionary trader. At the end of the day he arrives at the destination called frustration.

However, most of the forex trading systems that have been developed could be very tedious to trade because you just have to sit there for many hour watching out for the right set up, and sometimes not helpful at all due to the fact that they make use of market following indicators that just actually tell you what has just happened. So the essence of this writing is to give you, free of charge, a system that helps me overcome these challenges and trade profitably.
 
This system is meant for day traders because it makes use of daily technical levels i.e. daily pivot levels with some considerations for Fibonacci levels. Don't worry about the stress involved in the determination and placement of these levels; there's an indicator called fiboPiv_v2 which is available at the online library of Metatreder4 trading software that does all the hard work for you.
 
Currencies: This system works well on EUR/USD, GBP/USD and AUD/USD. These currencies obey technical rules quite well.
 
Time Frame: Hourly.
 
Indicators: FiboPiv_v2. Just double click on Meta editor at the tools bar of MT4, click on the online library, then on indicators and scroll down the list to find it. Once you find it click on it to highlight it, and then click on download. Once it's correctly done it will give you a report with zero error. Then go back to the platform and open the indicator window, you'll find it among the custom indicators. Double-click on it while the chart e.g. EUR/USD (H1) is open and just click on OK. It will automatically give you the support and resistance levels every day at 5p.m EST.
In addition to this you would also impute RSI 14, and Bollinger band 3 for detecting trends and their tops and bottoms.
 
Chart settings: Use candle stick charts at about 75%, and set the period separators. You could do that by right clicking on the chart and selecting properties at the end of the list. Click on common and check the period separator.
 
Risk-Reward: 1.5. (20pips stop loss and 30pips take profit).
 
Strategy: The settings have to be done anytime between 5p.m EST and London open at 3a.m EST. Let's assume that at 5p.m EST the price is above the pivot point and below R1, just place a buy pending order between 7-10 pips above R1 and a stop loss 20pips from that price, and your take profit should be 30pips from the entry price. For the sell place a sell pending order 7-10 pips from the pivot point and a stop loss 20pips from the entry price, and your take profit 30pips form the price.
 
Note: The middle line of the Bollinger band will let you know the trend, while the RSI will give you top and bottom hint through divergence and overbought or oversold. Be careful about selling at the bottom or buying at the top. Better still avoid it all together.
 
Caution: A ranging market day or more usually follow a trending day, while the range between the technical levels will be wide. So you may want to adjust your take profit and stop loss according to what is expected e.g. 20:15.
 
If the system is properly used you could expect between 60-70% winner which should be profitable on a 1.5 risk reward. Please demo trade it first! The major advantage of this system is that you don't have to be there 24/7 because it makes use of pending orders at technical level. This affords you the luxury of logical, emotion and stress free trading. That's why I call it an "easy to use; almost automated" technical level forex trading system.

Forex Trading Review

Where do we go from here? A Forex trading review is a tough subject to handle in only a few hundred words so I'll be as succinct as possible. We all know that the market is tough and a wise investor will always be looking for a good ongoing education. It is true, most people lose money in the Forex market and a big part of this reason is that they are not prepared. It is really silly to be impulsive when it comes to currency trading. I strongly suggest you get the following when you are looking for a course or software to help you trade better.

Who runs the Forex software company?

Try and find a well established company that has a proven successful Forex trader as the head of that company. Too many software companies and Forex courses are run by people that are looking to just make a buck and really don't know a thing about the the market. For example the software company that I favor is developed by a prior Deutsche Bank Forex consultant/advisor. I made sure that he had a successful background in trading the Fx market. If you would like to know more about his company there is a link at the bottom otherwise let's move on.

Make sure that the software is reliable and the product is trustworthy.

Have there been positive testimonials about the product? Who gave the testimonials and what is their track record? Have there been interviews or reviews on television or radio?

I believe the most helpful products available to Forex traders are those systems that have a signal generator. This type of software prompts the trader when it is time to buy and sell. A proven Forex trading system that is accurate and reliable is priceless, especially if you are serious about making serious money on the market.

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