Financial Freedom Tips

Posts Tagged ‘Triple’

Let’s take a look at the opportunity in more detail and the logic behind the trade.

Our view is the Dollar is set for a huge move up on all the major currencies with the exception being the Yen and selling the Dollar and buying the Yen, is a great contrary trade and while most people are not bullish Yen, that doesn’t concern me as most traders lose.

Everyone is bearish on the Asian economy and you can see numerous reports on why it should go down but bearish news is NOT actuation it lower and that’s a bullish sign.

If you look at a chart of Dollar Yen, you will see it has heavy resistance around the 84.00 level and while prices might break above the move will be short lived and the Yen will near up to comprehend why we need to look at the global economic backdrop.

Most of the time the Yen moves with the other major currencies against the Dollar but in times of risk aversion and financial turmoil, the Yen not only trades in the same direction as the US dollar it outperforms it.

For this to occur, risk assets such as equities, have to start heavily and they look set to do just that. The stock market is at a bullish extreme – prices have risen on low volume and the put/call ratio is at an extreme and warning of a top. The stock markets in the US are overbought but so are stocks all around the world. Were trading above levels before the Lehman Brothers collapse but the economy this day is in far worse shape than it was then.

The Dollar will rise on stock market falls but so to will the Yen, its happened in the past and will happen again. There will be a high demand for Bonds and the Asian who are the among the world’s biggest savers will repatriate funds and boost the Yen.

For traders looking for a good long term trade the Long side of the Yen on the Dollar looks an excellent opportunity, the risk is low and the reward is high and the fact most commentators are looking for a Yen start which is a bullish sign.

Look to key of resistance and sell the Dollar on a downturn in momentum and get ready for a great trend and profit.

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The first point to keep in mind is what sort of trader are you?

Do you like to action of trading or are you more patient and want to trade long term. If you like the action, you should swing trade and trade moves that last from a few days to a week and if you are more patient, focus on long term trades which can last for weeks or months. You can make money with either method and the one you choose, will simply reflect your personality. You will notice, I haven’t mentioned day trading as a way to make money because – it doesn’t make money! You day trade, only trading the noise of the market and if you do that you are destined to lose.

Now let’s look at the principles that make a strategy successful.

The first point to keep in mind is to keep your strategy easy and based on trading price action. You won’t need to read the news or listen to other traders opinions, you can just trade trends on a chart. A strategy which is easy can make money and there is no need, to make your strategy to complex or complicated. All the ideal traders use easy trading strategies and if its good enough for them, its good enough for you.

Your strategy should have neutral entry and exit points and these should be CONFIRMED by price action! Don’t do what most losing traders do which is to try and guess where the market might go, simply act on confirmation.

There are a lot of different ways to make profits in Forex but the way to lose it is – to let losses run. Allowing losses to get out of control is the most common reason why traders lose. You should have stops in place straight after you enter a position and the risk to reward you should be looking at, should be at least 3:1

The strategy should have consistent rules for trading all currencies the same way and should also be traded the same in all types of markets.

Developing a easy strategy which can make money is something anyone can do with a few weeks of study. You have to make your strategy make money though and that means trading it with discipline, keeping losses small and not being tempted to deviate from your strategy or override trading signals. You need to keep in mind that – most traders can’t follow a fixed strategy set of rules but if you deviate from them in anyway you don’t have a strategy.

So there you have some easy tips, on how to devise your own Forex trading strategy for success. If you follow the above tips, you will soon be making some nice profits in under an hour a day and generating yourself a great second income.

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Do you have a good money management rule in your forex trading? Many traders think that money management in forex trading is just by putting a stop loss and a target profit, that’s all. This is far from true because that is only part of a forex trading system. Let’s look at some forex tips on how you can triple your forex trading profits.

1. Always prepare for the worst, think how to protect your trade first!

Nearly all the traders will think how much money or profits they are going to make when they trade. This is a wrong mindset. If you are a newbie in forex trading, then you should adopt the worst first and not thinking about profits in the first place. You should be very hot to protect your trade from losses by shifting it to break even after your trade has around more than 40 pips in profits. The trade is also considered won even it has broke even.

2. Don’t take high leverage for granted.

Many forex brokers offer a high leverage of 100:1 to 400:1. True it is very tempting, but you should not use very high leverage for a beginning and for a small forex account, it is not advisable to use more than 50:1 or 100:1, so as to prevent your statement from going bust. Traders thought they can win huge using high leverage, but what if they loose? Their trading capital goes into the drain too.

3. Not risking more than 1% to 5% of your trading account.

This is a very important money management rule. How much do you risk for each trade? Forex trading is all about high probability and calculated risk. If you think you can’t take risk at all, then you shouldn’t be learning to trade forex at all. For a small $1000 account, it might seems by risking 1%, the gains are very small too, but that’s the right way to build your capital. For me, I’m a conservative trader and I risk only 2% of my trading statement per trade.