What is your best pitch in Forex?
Not everyone plays baseball that trades Forex but they have a lot in common. To become a good trader in Forex you have to think like a good hitter. Good hitters have a "best" pitch to hit. They also have a pitch that is "almost best" and then it goes down from there. In baseball much depends on the circumstances. If the pitcher throws a strike on the first pitch and again on the second, as a batter you are not going to see the pitch you are looking for. However, if you are a good hitter you are going to do everything in your power to stay alive by fouling off pitches that are close to the strike zone and by trying to make the pitcher throw some balls.
Pitching and hitting duels are part of baseball lore. It is what makes the game special. Forex traders can learn a lot from this kind of transaction.
The first lesson a trader should learn is that they don't have to swing at the first pitch. In other words, waiting for the right pitch is important. But what is the right pitch?
That is the second lesson and it may take some time to develop. Traders need to develop their trading "game" until they know what kind of trades that they trade best. To do this a trader needs to explore the world of trading to determine what kind of trader they are. That will be determined by when they are available to trade. This is not much different then where batters are placed in the lineup and what they are expected to do when they get to bat.
If you trade in the Asian time zone, you will probably develop a different trading style than someone trading in the London or New York time zone. Regardless of where and when you trade you need to develop 2 or 3 trades that you recognize; trades that repeat themselves.
Again, when the count is 3 and 1, the batter is looking for a particular kind of pitch from the pitcher. Whatever that pitch is, he needs to learn how to hit it. Forex traders should learn to recognize certain conditions and understand the probability of what is most likely to occur.
To improve your trading in Forex you need to learn what your best pitches are and then stick with those pitches until you can hit them well enough to be a top trader.
Questions and Answers
When I started in Forex, I wouldn't have known a good Forex trading system if it had walked up and slapped me in the face. Would you? Many traders I talk to have studied trading for many years, have taken expensive courses on how to trade, spent more money on trading systems, read many books, traded hundreds of hours if not thousands and still lost money.
When I first started trading Forex I spent hours drawing trend lines trying to figure out what price was going to do. I read everything I could about trend lines but no matter how I drew them or how many I drew, prices never seemed to obey them.
I trade Forex everyday and I teach Forex everyday and the most significant thing that helps losing traders become winning traders is reducing the number of indicators on their charts, learning to trade 4 RSI signals and understanding that a trade without momentum is not a trade.
Can you imagine trading and seldom getting a trade wrong? Can you imagine that it happened at about the same time each day so you didn't have to sit in front of your computer and watch hour after hour? Better yet can you imagine trading and getting the direction of the trade right more often than you got it wrong and that when you entered a trade momentum in the market immediately moved price in the direction of your entry and put you in profit?
What do you know about the indicator or set of indicators that you use when trading Forex? Have you actually made a list of the things that they tell you about what price is going to do? When was the last time you knew with a better than 70% chance that price was going to go in the direction you predicted and you knew why?
Is it possible to trade one hour a day in Forex and make money? Many people who want to trade Forex don't have the time to trade all day or even part of the day. So can you trade one hour a day and make money, perhaps enough money to live on?
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Created by David Lambert, the CCI was first used as an indicator for determining reversal points in the Commodities Markets. It was then discovered to be very useful in the share and forex markets. It is based on the theory that all activities move under the influence of cycles. The Maxima (+100) and the Minima (-100) occurring at regular intervals. The CCI measures the speed of price fluxuations as determined by oscillators.
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Leverage is the greatest asset for Forex over stocks and shares. For stocks, you are buying single shares with single share price. For forex you are getting 100 times more with leverage 100:1
When I first started trading Forex I spent hours drawing trend lines trying to figure out what price was going to do. I read everything I could about trend lines but no matter how I drew them or how many I drew, prices never seemed to obey them.
What do you know about the indicator or set of indicators that you use when trading Forex? Have you actually made a list of the things that they tell you about what price is going to do? When was the last time you knew with a better than 70% chance that price was going to go in the direction you predicted and you knew why?
When I started in Forex, I wouldn't have known a good Forex trading system if it had walked up and slapped me in the face. Would you? Many traders I talk to have studied trading for many years, have taken expensive courses on how to trade, spent more money on trading systems, read many books, traded hundreds of hours if not thousands and still lost money.
Depending how you started in Forex and depending on your method of trading, you may have begun to trade live already. But if you haven't traded live and you are wondering when the right time would be, perhaps this article will be of help.
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