To learn how to trade forex successfully using a simple, time-tested and proven forex trading system, download my FREE 56-page "Forex Trading To Riches" ebook at http://www.forextradingpower.com.
The author, Daniel Su, is the founder of http://www.ForexTradingPower.com where you can get free premium forex trading tips and resources. Daniel Su specializes in teaching real people how to trade the Forex market for long term financial success.
First of all, I want to stress that this trading system of mine is no holy grail and anyone can use it to such high success rate if they follow the rules of the trading system. I have been trading for years and this is one of my forex trading strategies that have kept my consistency well.
I have always kept my trading systems simple because it's the simple system that works in this ever-changing brutal currency market. Surprised by that? Did you ever think that a successful trading system has to be sophisticated and difficult to use? Doing well from the forex market depends on how effectively the trader himself uses the trading system and not how the trading system does the wonders.
So now I will reveal a forex strategy that I use very often to profit consistently from the market. After you read it, you might think that actually it's such a simple system. But like I said earlier, trading should be simple, don't complicate it. Below are the steps of my forex day trading strategy.
Step 1: Look at the main trend using daily chart. The first look from left to right of the chart should tell you it's a down trend or up trend.
Step 2: After knowing what the main forex trend is, I will go to Forex Factory website to check for fundamental news release. If there is upcoming news 2 hours in front of me, I won't even go to step 3 and onwards to look for trading signals because there might be whipsaws.
Step 3: If there is no news, I will have a forex trading plan. For example, if the main trend is up, I will only be looking for buy signals generated from my forex indicators, I will not look to selling. Vice versa if the main trend is down.
Step 4: Now this is the most crucial stage, my trading decision lies here. I use the crossing of 4 EMA (Exponential Moving Average) and 23 EMA to define buy and sell signals on the 30 minute chart. There are other indicators involved, the weekly pivot, Stochastic and MACD (Moving Average Convergence Divergence) must also follow the trend and cannot look flat. I filter whipsaws by trading only during high liquidity sessions and checking whether the trend is the same using 4 hourly chart. That's all!
Step 5: The trade is set at a tight stop loss of around 35 pips while I have 2 methods of targeting profit. One is using healthy risk to reward ratio of at least 1:2. The second is using daily support and resistance.
That's my successful forex trading system and it seems simple isn't it? Of course risk management, money management and psychology should be combined in this trading system for it to work properly.
- Related Videos
- Related Articles
- Ask / Related Q&A
- Forex Day Trading - Short Term Trading, Not for Beginners
- Forex Strategy - Forex Scalping - Scalp Forex
- Forex: Robots Vs. Humans, Automated Trading Vs. Manual Trading
- Choosing the Most Profitable Forex, Futures and Stock Trading Time Frames
- Forex Money Management - a Simple Strategy for Bigger Gains and Less Risk
- Free Forex Trading Tip - Forex Global Trading Tips For The Forex Currency Trading System
- Potential and Beneficial: Basics of Currency Trading in Forex
- Trading Software Forex Day Trading
Forex Avalanche Review
By: Rob Trader | 04/01/2010Get your free report exposing an emergining trend that is taking place in the forex markets today. This report divulges some lucrative trends that traders are taking advantage of today, which is how the Forex Avalanche robot will take advantage for its users as well, but on autopilot.
Forex Managed Accounts: The Best Alternative To Trading On Your Own
By: wilbrendan@gmail.com | 04/01/2010Trading forex is a time consuming and complex process that frankly not everybody is well suited. The idea of trading forex, using large amounts of leverage to achieve big profits sounds very appealing to a lot of investors but at the same time it is an investment strategy that is fraught with danger.
The 2010 Resolution: Trading Strategies for Trending & Range-Bound Markets
By: Rob Trader | 04/01/2010Join me Thursday, January 7, 2010 at 3 p.m EST and 9:00pm EST as I reveal "The 2010 Resolution: Trading Strategies for Trending & Range-Bound Markets"
Using Information From Forex Trading Books Will Be Of Great Help
By: reza desita | 04/01/2010Book forex trading is a popular search because individuals trading are constantly searching for hints and tips. Book forex trading can help individuals who would be considered novices at forex trading. Many books about currency trading teach the good deals on forex market. The question is whether or not these books are any good or not.
Forex Signals For Your Profit
By: Sutikno Slamet | 03/01/2010The foreign exchange market is the biggest in the world in terms of the amount of money traded every day. It represents a true opportunity to make money for the savvy and smart investor.
Forex Exchange Rate - How Does It Get Calculated?
By: Sutikno Slamet | 03/01/2010In the Forex market the value of two separate currencies and how they relate to one another is what is known as the Forex exchange rate. Usually the Forex rate is how much of one currency is needed to buy a unit of another. Knowing the basics regarding the Forex exchange can help you get started in understanding it even better.
Forex Secret Trading: Get Known To It Now
By: Alan Lim | 03/01/2010Do you want to know about forex secret trading? If your answer is yes, then here are some good information for you.
Forex Currency Trading System - How to Get the Most Out of Yours
By: Sutikno Slamet | 03/01/2010The reason that you entered Forex currency trading is to make money, and the more the better, right? First thing to do is to have a written and clear Forex currency trading system, preferably a proven one. Even better if your decision points are defined in a manner by your system that are purely technical, as any judgment calls (discretion) do not allow for automatic orders.
How to Make Money Online - Trade Forex to Grow Rich
By: Daniel S. | 19/04/2009 | Online BusinessTrade the forex market or currency market can be a highly profitable experience. Learning to trade forex right is the first step to gain possible riches on what could be an enriching journey. To do that, you'll need to know these 2 factors of how a forex trading system can bring success to you and how it should be done.
Automated Forex - How You Can Benefit From Forex Trading Software
By: Daniel S. | 06/04/2009 | Currency TradingEveryone is always looking for an extra edge when they are involved in the forex trading niche. Automated forex trading software just may be the tool that brings you up to the next level. It can help you to decrease losses and of course it can make your trades more profitable. You have to use every tool available to protect your bankroll, and this tool will do just that.
Learn to Trade Forex and Start Making Money Online Now
By: Daniel S. | 05/04/2009 | Online BusinessIf you are thinking about making money online using forex trading, you may want to consider a free forex ebook that can supply you with some basic information and get you on track in your new endeavor. There are plenty of helpful hints and forex trading tips in them that are the basis of trading that you need to know about.
Forex Trading Made Easy - How to Automatically Make Money Fast at Home
By: Daniel S. | 03/04/2009 | Home BusinessThe forex market is a twenty-four hour per day, seven day a week, three-hundred and sixty-five days a year foreign currency exchange market that's truly massive - to the tune over two Trillion dollars in currencies traded on a daily basis. Using automated forex trading, to help you time this market correctly can help you make money fast at home.
Make Extra Money Online - Why Pay If You Can Get Free Forex Trading Advice?
By: Daniel S. | 03/04/2009 | Currency TradingI know everyone who wants to succeed in forex trading and make extra money online thinks that they will only be successful if they have something special. They think they need the 'holy grail' of forex trading. Well, I hate to repeat this for so many times when people asked whether I have a forex trading guide that can win 100% of the time.
Forex Trading Scams and the Great Hunt For Best Forex System
By: Daniel S. | 03/04/2009 | Currency TradingEvery forex trader will need a good forex trading system to help them make consistent profits from the forex market. But how do you select the best forex system that suits you, especially the internet is full of scams and false claims? Well, here are some forex tips that can help you on your hunt for good forex systems.
Forex Education As a Way to Gain Wealth
By: Daniel S. | 02/04/2009 | Currency TradingThere's a lot of money being made on foreign currency exchange (forex) markets these days. Using forex education to gain wealth can be a good opportunity for somebody looking for a bit of excitement. It also presents a chance for good income potential. The first thing a person who wants to try his or her hand at this kind of trading should do is seek out organized forex training courses.
Easy Way to Money at Home - Get Started in Currency Trading With Forex Courses
By: Daniel S. | 02/04/2009 | Currency TradingTrading the Foreign exchange or forex market can be a wildly profitable experience. Deciding on taking forex courses to gain possible riches is the first step on what could be an enriching journey. Courses in foreign exchange trading come in a variety of delivery systems. And you can sign up through local community colleges, where large groups of people are taught all at once, or study from home.