Forex Trading Strategies

Top Dog Trading Mini Course

The current economic climate is leaving many people nervous about Share Trading, one only has to watch the daily movements and listen to reports of companies in trouble, to realise just how unpredictable the Share market is. Yes there is still plenty of money in it, and with many stocks available at relative bargain prices, there is plenty of chance to make good long term profits.

With the deregulation of the Foreign Currency Markets or Forex in the 1990s, increasing numbers of people are exploring this as an alternative income generator. There are many ways to trade Forex, Long term, Scalping, Day Trading, the list goes on, but there is one thing they all have in common, a high level of risk if you don't know what you are doing.

There are two core analysis techniques; Fundamental Analysis, basing trading decisions on news events and Technical Analysis, which involves interpreting the charts using a variety of indicators. This is how I like to trade as I am not reliant on news feeds. It doesn't matter which you choose, to minimize potential losses, you are going to have to learn Forex trading before you start committing any hard earned cash.

Some very good basic information is offered by Babypips, at no cost, but they do not delve into  how to develop Forex trading strategies.

What is a Forex trading strategy? Simply put, it is a system for setting money management rules, analysing the progression of a chart, establishing a possible trade entry point (Setup), confirming the entry point, opening a trade, establishing an exist strategy to both minimise losses and to take profits.

A trading strategy is the backbone to Forex trading, without it there is no way of working out why you entered a loosing trade and how to correct it, or why the trade worked and how you could improve it.

In your early days of trading, a trading strategy provides the basis for trading on a Demo account. These are provided by most brokers and allow you to get your feet wet, without risking real money. You give yourself an account balance and trade it real time using your trading strategy and watch your account either grow or vanish. You'll soon find out what works or not as the time goes by.

To get you started with a specific trading strategy for profiting from market rebounds, there is a free video course which will teach you a trade called the "Rubber Band Trade" and shows you what is involved in developing a trading strategy.

Click Here To Get Your FREE Five Day Video Trading Course

It's a great little series put together by a Professional Trader and covers the technical analysis for all stages of this specific trade. Once you have trialed this strategy on a Demo account and made it work consistently, you can apply it to a real account and start making some money whilst you develop and test other trading strategies that will make your Forex trading a success. 

I studied and tested this trading strategy and still trade it when the charts set up correctly. A quick 20-30 pips? Why would you miss the chance?

Forex Warning