User:LizaChabot944

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Forex Trading Strategy - Ready your Chart

I'm able to think of few business endeavors that don't incorporate some kind of daily, weekly, or monthly planning. Trading Forex isn't any different. Whenever you take a seat for an unprepared chart you've little idea why one trade might run forever and another turns on a dime.

This is easily solved by preparing your chart. The most frustrating thing about being an unprofitable Trader is never knowing why a trade worked in your favor and why the next trade did not. This leads to an inability to decide where to trade from, when to take profit, where you can place your stops, and when to cut a losing trade. Inevitably, losing trades far outpace in both number and size the profitable trades. A prepared chart will help you to take trades with less risk which means smaller losses and much more frequent gains.

The Forex trading strategy parts of every Forex forum website are probably the most popular. Be honest, if you are an unprofitable trader the number of hours would you spend reading the latest brain-fart from some unknown who swears that because two trades worked that he or she finds the following best system.

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The main reason the forum strategy gurus always fail and will still fail is that they concentrate on all the wrong things. They've a lot of rules and indicators and spend so much time adjusting those rules and indicators that they your investment most significant thing... it is where you trade from that makes all the difference.

Do this exercise and find out what a difference it can make. I refer to this as my " setup method #2." Pull-up a regular chart of your favorite pair. Zoom out before you can easily see two months price of price data. For instance, it's July now, so pull up a chart and make sure you can observe the daily candlesticks for May and June. Place a horizontal line in the a lot of June, our prime of May, the reduced of June, and also the low of May. You should are in possession of a chart with four lines. There you have it!

Now hold back until price approaches the area of 1 of your four lines. You can trade any timeframe, but only trade when price is approaching one of these four lines. Only take a trade when:

   Price is touching or is very close to one of your lines AND
   Your trading plan provides you with a signal.

Ignore other signals that occur from wrinkles. As price approaches the areas on my small pre-prepared chart, I search for simple price action candles, but you can use candlestick patterns or even that latest, greatest strategy you found in a Forex forum.

This will permit you to trade less and trade from better places. Observe how much better the worst system performs whenever you take signals generated only if prices are near an essential place.