The main focus of this lesson is to guide you through the process of designing your own forex trading system. While it doesn’t take long to come up with a system, it does take some time to extensively test it. So be patient; in the long run, a good forex trading system can potentially make you a…
So far, we’ve taught you how to develop your trading plan. We’ve also discussed how important it is for you to discover which type of forex trader you are. Now it’s time to teach you how to add some meat to your thin trading plan by showing you how to create a forex trading system. …
In the previous lessons, we went through a variety of trading styles. Hopefully, you can identify which one may match you the best. If you already forgot what trading style is which, fortunately, for you, it’s time to review! There are four main types of trading styles: The Scalper The Day Trader The Swing Trader The…
Position trading is the longest-term trading and can have trades that last for several months to several years! Position traders ignore short-term price movements in favor of pinpointing and profiting from longer-term trends. It is this type of trading that most closely resembles “investing”. The crucial difference is in markets outside forex, “investing” usually means you…
Swing trading refers to the medium-term trading style that is used by forex traders who try to profit from price swings. It is trading style requires patience to hold your trades for several days at a time. Swing trading stands between two other popular trading styles: day trading and position trading. Swing traders identify a possible trend and then hold the…
Day trading is a popular trading strategy where you buy and sell a financial instrument over a time frame of a single day’s trading with the intention of profiting from small price movements. Day trading is another short-term trading style, but unlike scalping, you are typically only taking one trade a day and closing it out…
Scalping is like those high-action thriller movies that keep you on the edge of your seat. It’s fast-paced, exciting, and mind-rattling all at once. Scalp trading, also known as scalping, is a popular trading strategy characterized by relatively short time periods between the opening and closing of a trade. These types of trades are usually only…
Each trader is unique. There are over 8 billion people in the world (including space aliens disguised as humans and automobiles) and not one person is exactly the same as another. Even identical twins will have different fingerprints. Everyone has their own look, personality, talents, and pizza topping preferences (we like pepperoni and potato…
The difference between making money and losing money can be as simple as trading with a plan or trading without one. A trading plan is an organized approach to executing a trading system that you’ve developed based on your market analysis and outlook while factoring in risk management and personal psychology. No matter how good your trading plan…
A forex trading plan is only effective if it’s followed. You have to stick to it. It sounds simple to do. It is really just common sense but most traders still can’t do it. Why, oh, why? Trader incompatibility. A trading plan should be a personalized plan for you, a plan that fits your…