Author: Monica Hendrix | Posted: 08-09-2007 |
The Forex trading strategy we are going to look at here is not complicated and anyone can do it, but if it is executed correctly it can make you triple digit gains or more with very little effort or monitoring.
So here is your simple forex trading strategy for big gains.
Fundamentals
The first place to start is with the fundamental supply and demand situation.
This sets the tone for the longer term trends that last for months or years and these are the trends you want to be in on.
Currencies move in line with these fundamentals longer term and you are really looking for strong GDP growth. If you look at the currencies that did best against the Dollar this year its countries with strong GDP and Australia led the pack against the dollar.
Two Countries that have economies that doing well compared to the US at present are Australia and Canada and these are set for far higher prices into year end.
Getting In on The Action
Currencies trend for years we all know that but its getting in on the trends that is the hard part and your aim is to get in and then simply hold the trend.
Any currency that is bullish will become overbought at some point and break and when these breaks come you buy them
Use Sentiment tools
Always use these two sentiment tools – Net Traders Positions and % Bullish to check that sentiment is not in over bought territory when you enter the trade. Start with your weekly charts and loo k for support and time your entry with your daily charts.
Risk – Reward
Don’t over do the leverage!
You can get 200:1 but on a trade about 10:1 is fine for a buy and hold strategy.
What you are going to do then set a stop and leave the currency alone.
Hopefully it will trend for months and make great gains if you have been careful in your selection.
That’s your Forex trading strategy! It’s extremely simple but it will make money if executed correctly.
The real key is not to overdo leverage have a wide enough stop, so you are not taken out by normal volatility and let the trade run.
There are some excellent trading opportunities around that will enable you to do the above so take a look at them and try it.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment