Are there
any foolproof methods for long term Forex trading? Well...there
are, but
they only work for people who are not fools! Foolproof methods
of Forex
trading exist for those who realize that the Forex market is
bigger than
they are; for those who are going to engage in strict money
management;
and for those who understand that they need to actually
stick with
their chosen strategy and not flit about with impatience when
they take a few inevitable losses. Long term
trading on the Forex is
the only
authentic way to make money. Going for the "Big Money" with one
or just a handful of trades is the way to
biting the dust, not the way
to that big
money that you seek. Therefore, if you're nobody's fool, you
will want to use methods of Forex trading that
keep you focused on
making long
term profits-so you will have to go for and expect smaller
gains and a
gradual building of your Forex fortune. You will sometimes
have luck on
your side and make a big killing in one day, but then again
losses are inevitable, too, in this highly
volatile market. Over the
long term,
cutting your losses and mounting up your smaller gains is the
only way that you can get rich in the
Forex.So, let's look at the
"foolproof"
basics of long term Forex trading.1. Trade the trends. There
is possibly nothing more important to making
money in the short and in
the long
term with the Forex than trading on trends. Forget about the
usual error
of trying to predict highs and lows. These are not only
nearly
impossible to predict, but a new high or a new low is where the
new trending
starts. When you spot-not predict, mind you, but spot-a new
high or low, a movement that ends an old
resistance point by at least
three pips,
you probably have a new trend in the Forex market. This is
when you get
in. Most investors, those who are trying to predict the
highs and
lows, wait for the currency pair price to come back down, or
move back
up, beyond the old resistance point, and then it's tool late.
They failed
to understand a trend. They lost out on most of the
opportunities
to make profits, and they often take heavy losses from
this folly,
too. Spend your time learning how to accurately spot trends
and you'll
make money in the Forex.2. Swing trading. Swing trading is
likely the
best method for the novice Forex trader. This is because it
doesn't
require the discipline or the experience with trend-spotting
that trend
investing does. Swing trading is about looking for a price
spike either
up or down, then mentally defining a particular area of
resistance
and support, and then watching like a hawk for the momentum
to shift
while the level holds before entering your trading signal.
Swing trades
are for quick entry and quick exit. You only hold your
position
most of the time from two to seven days. Swing trading works,
ironically,
because of folly. But not your folly. It works because short
term price spikes get caused by emotional
trading driving the pair
price too
far too quickly; and as a result, the prices very soon return
to fair
value. You as the swing trader seek to over-by and over-sell the
resistance and support levels and then trade
into them.
3.
Confirmation. This is a part of trading the trends, but it should be
viewed as a
method in its own right. Confirmation means confirming
breakouts
(newly starting trends) so that you don't get fooled by false
(illusory)
breakouts, which as you can imagine do sometimes occur. (A
new trend
fails to materialize as anticipated.) Confirmation involves
the
placement of a few momentum indicators and using them to more deeply
analyze whether a perceived trend is likely to
materialize. The two
most
important movement indicators for you to learn as a novice are the
RSI and the
stochastic movement indicator.
There you
have it. Practice and master these three foolproof methods for
Forex trading and over time you could become
very rich indeed.
Hope You
Enjoyed It
Emmanuel
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