Fishing in Forex Trading - Trading System Ideas
Teach us how you catch fish please!
Most traders just want to open a Buy or Sell trade based on their "Gut feeling".
Some traders just want to take a dive in Forex trading ocean.
Instead of catching a Fish in Forex trading, they get eaten up by Big Bank Fish!
Follow my six points "Check List" before you start Fishing for Dollars!
1/- Logic behind your trade: Why you want to Buy or Sell? Any technical reason?
2/- Trading time of the day: Which market session to trade? (Asian, London and USA)
3/- Money management: Position size or Lot size to trade with?
4/- Exit Plan: Where to place your stop loss? What is going to be your take profit level?
5. Trading Diary: Write down every trade result inside a trading diary and analyse it on weekend.
6/- Repeat the process!
follow the trend, the secrect is not a secrect at all. every time frame has a trend therefore, do the trade with higher time frame.
Todays discussion is related to Forex Day Trading System and Forex Day Trading Price Patterns.
It does not matter if you trade Manual trading systems or Auto trading softwares (Expert Advisor - E.A ), you will face stress in trading.
The Forex trading is not easy, it is a dangerous situation with real time risk involvement. A Forex trader could lose his all trading capital within few minutes. Meaning, all the money lost and never going to come back.
I have seen traders, using Expert Advisors or searching for an Ultimate Forex trading robot software that could make Million Dollar profit in Forex trading. The truth is nothing works all the time.
I understand, all of you are there to learn. So, below are the failure reasons:
1/- Trending market turns into a Sideways market.
All trend following trading systems and all Auto trading robots start losing money for sure. Why a loss? They were originally designed to only work in a trending market. So, in a sideways market environment, the same profitable trading method or Auto trading robot will lose money with 100% guarantee.
2/- Sideways market turns into a Trending market.
All sideways trading systems and all Auto trading robots start losing money for sure. Why a loss? They were originally designed to only work in a sideways market. So, in a trending market environment, the same profitable trading method or Auto trading robot will Lose money with 100% guarantee.
3/- Death of a trading method (temporarily or permanently)
Based on my 8 years of experience in back testing and forward testing more than 500 various Forex trading Systems, price patterns and trading ideas; some trading methods start losing money after few profitable trading years.
Some times, the trading system lose money, for just 1 to 2 years and then
again start making profit. Some times, the trading system starts losing money and never become profitable again with a particular currency pair or time frame.
There are several reasons behind the death of a trading method (temporarily or permanently) which I may explain later. However; you must understand that one trading method or Expert Advisor can not generates profitable trades in all kinds of Forex trading environment.
I have yet to see a Profitable Forex trading system that works in all kinds of market environment.
We have first discussed about Trading psychology.
: In one sentence ::
If you do not have the correct trading mind set then you will lose for sure.
Now in coming days, I am going to discuss about trading setups.
I am not going to start teaching complex technical indicators and fancy lines.
I will start with Candlestick patterns.
:: Out Side Bar Candlestick Pattern ::
Notice the Out Side bar candlestick pattern appearing on a daily chart of GBP/USD currency pair.
Some traders, try to use Outside bar candlestick pattern in 1 minute or 5 minutes chart and only lose money, in the end.
The candlestick patterns work best in daily time frame, not in 1 minute or 5 minutes time frame. The higher the time frame the better winning percentage you are going to get with your Forex trades.
There are two paths to make money in Forex trading.
You could use a Forex trading signal service. In this way you will get a fish and you will still survive for the time being. However; this takes a lot of money as well. Also, you are now on the sole mercy of a Signal provider. If a signal provider commits a mistake you will lose. However; you have no idea what that signal provider is using to generate trading signals.
It is true, this is one danger of using signals on trade, because if the signal provider make some critical mistakes, you are in no position to know as you swallow and use the signal however wrong line and sinker. The sad thing is that everyone is trying to catch a fair slice of the foex, and there a lot of signals in the market now, it becomes difficult knowing the ome that would work for your trading system particularly. Signals could turn out dangerous too during a losing streak.
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
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There are two paths to make money in Forex trading.
Path Number 1/- You can catch your own fish in Forex Trading!
Learn Forex trading. Now, this takes a lot of time, money and effort to fully understand and learn a profitable trading system or Price pattern. This is a short cut to hunt for dollars in the long run as you just learn a profitable method, one time. Next, you can start fishing for pips in Forex trading ocean.
Path Number 2/- You can get a fish from some one else!
You could use a Forex trading signal service. In this way you will get a fish and you will still survive for the time being. However; this takes a lot of money as well. Also, you are now on the sole mercy of a Signal provider. If a signal provider commits a mistake you will lose. However; you have no idea what that signal provider is using to generate trading signals.
I think, I did all kind of acrobats with my own Currency trading in last 14 years of trading. The good path is to learn Forex trading and take full control of your trading actions instead of using a signal provider or looking for other Forex traders to help you out in trading endeavor.
In coming days, I am going to share some Forex trading ideas to help fellow traders to catch their own Fish in Forex trading.