The Base Conditions of Trading
- Respecting some simple rules
- A lot of Discipline
- A great control of your emotions
Here are a few successful strategies on the Forex market, as requested from some friends of mine. The best method is to test them repeatedly, even if they are failing, until they would become automatic reflexes.
Intraday trading
In the past months, I started to observe an increased interest for intraday strategies, especially on the futures market, which is a sideway market. This is why the next method looks more like a sideway strategy.
The common mistake made by the beginner Forex Traders is not identifying the right trend, because they don’t understand that the graphic model is formed by the high-low oscillations such as:
- An uptrend is formed by a higher low than the previous ones (the minimums are greater) and a higher high (the local tops are higher).
- A downtrend is identified as a lower low and a lower high.
- If you are able to read those tendencies on the graphic, you made a huge, but not sufficient step in understanding those principles.
Another mistake made by the Forex traders is not appreciating the consistency of the trend, so how much the trend would keep its current direction before a pullback or a breakout.
As we are talking about Forex, not about stocks where we could see 10 years cycles, we must resume ourselves at following graphics for days, weeks or maximum a month. For the Swing Forex strategy, you will only need a graphic for 1 hour and 10 minutes, but there are also strategies based on one or two days carts.
Some traders could identify major trend changes and they are entering with a few seconds before the beginning of the trend, without waiting the clear confirmation of the new trends.
In this case, you will have to apply the strategy of three days, especially if you had a reversal during those days.
The solution is safe. With a little patience and without overtrading, you will be able to wait the correlation of the direction of the trend with the three charts and the timeframe.
This correlation will always be made. 35 % of the traders can identify it, and you could make some consistent pips in a single day.