You need to keep a trading journal. Journaling?!? Isn’t that only for silly high school girls who write about their silly crushes on silly high school boys? Heck ya! Ok, not really… high school girls keep DIARIES. Boys also (we don’t discriminate). Forex traders keep trading JOURNALS. Two entirely different things! Get it right! Geez! Keeping a…
There are many systems out there that work, but many forex traders lack the discipline to follow the rules and as a result, still end up losing money. Your mechanical trading system should attempt to accomplish two goals: Be able to identify a trend as early as possible. Be able to find ways to avoid…
As you can see, we have all the components of a good forex trading system. First, we’ve decided that this is a swing trading system and that we will trade on a daily chart. Next, we use simple moving averages to help us identify a new trend as early as possible. The Stochastic helps us determine if it’s still ok for us to…
What time frame should you trade your system on? The smaller the timeframe, the more difficult it is to develop a successful system. In other words, developing a system to trade on a 5-minute chart is more difficult than developing a system that trades on a daily chart. There is a lot more noise on…
Now that you’ve learned the basics of technical analysis. Let’s now combine all this information and build a simple trading system. This should give you an idea of what you should be looking for when you develop your own forex trading system. This system is a moving average crossover system, which uses moving averages to determine…
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…