Forex Charting For Beginners - 3 Simple Steps to Big Profits
Written by OnlineLoan on 22:38Forex Charting For Beginners - 3 Simple Steps to Big Profits
By: Monica Hendrix
Here we will give you three simple steps to making money with forex charts. Anyone can learn forex charting and it represents a time efficient and profitable way of trading.
Here we are going to look at charting the longer term trends that yield the big profits and these trends can last for week's months or years and can be very profitable.
Avoid trading low odds trades in short time frames and day trading ( the most popular method for novices) is compete waste of time, as you can never get the odds in your favour.
Be patient and wait for the high odds trades and they can't be forced and don't come around everyday.
Right, let's look at forex charting for beginners and how to pile up some big profits quickly, with a simple robust system.
Step 1
Getting a Robust Forex Trading System
The first think you need to do is construct a simple trading system and it only needs to be a few indicators, combined with support and resistance.
Simple systems work best. There more robust than complicated ones and have fewer elements to break in the brutal, hard world, of real trading.
Start with a breakout system. This is buying new market highs - it's a fact that most major forex moves start from new market highs NOT market lows.
A breakout should be past at least 2 x tests of resistance and the more the better and wider they are apart the better too.
Most traders hate breakout trading that's why its so effective - they want to wait for the pullback - but they wait in vain as the price accelerates away and their not in.
Step 2
Confirming the Trade
Once you have a breakout you need to confirm that price velocity and momentum is going to carry prices forward and here you need to learn about leading momentum indicators.
We have covered these fully in our other articles and they will help you put the odds on your side.
Step 3
Money Management
With breakout trading money management is simple - your stop goes just below the breakout point and as the trend unfolds you need to lock in profit but be careful!
Most traders make the mistake of locking in profit to quickly and your forex trading strategy must give the market room to breathe. Don't aim for perfection or trying to second guess the market; act on the reality of price change and trail your stop way behind normal market volatility.
You must learn to do the above and be disciplined or you will never make any real money.
Putting it all Together
The above sounds simple and it is. In fact, anyone can learn to trade forex the hard part is applying your method with discipline. You need to take losses and calculated profits when your charts tell you and ride the trends with discipline.
The method above works and will continue to work as it's based on sound logic and your challenge to acquire the discipline to apply it to make big forex profits.
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