Webring - Forex
Image via Wikipedia
Forex Strategies
When it comes to Forex strategies there are many ways to skin a cat , there is no such thing as one size fits all. The reason for this is simple, every person has a different personality, some people are fast, some are slow, some are analytical and some are instinctive. It does help to know what type you are, some so some don’t.
So when it comes to Forex strategies there are several that I deploy, that fit the way I am, so let me tell you what I’m like and what I use.
I am a keen gamer, love fast video games and am happy to respond fast and furiously to emerging situations. I also have an analytical side which means I love testing new strategies, creating what if kind of spreadsheets and play around with figures, until they make sense to me. The combination of the two does not always result in trading success, but as I am very very risk averse, I have no problem cutting losing trades short, letting my profits run is more difficult, but will trailing stops I am learning to overcome this.
So, for the ‘fast and furious’ trading strategy I use 2 methods which on the whole make up most of my winning trades and these are the ones I like most of all.
- Scalping – I mainly scalp the Euro, Dax and the Dow using 1 minute charts, this suits my temprament nicely and on occasion I trade up to 300 times a day, each trade for 2-10 pips with no tolerance for risk. What that means is that I enter with momentum and expect to cover the spread and hit profit fast. If it goes against me, I exit immediately. These trades are best executed when there is volatility in the market, so best for market open (UK and US). There are videos and descriptions of this method in the blog. Use search or see links below this post.
- News Trading strategies – here I use 2 methods, first is the pre news trade, simply go with the rumor (flow), so if for example US CPI is expected to be up 0.3 then I will buy the USD about 5 minutes before the news and exit with whatever profit I can before the news. I used to use ‘fast economic news’ software, but I eventually burnt it out as brokers started to place my trades on manual, forcing me to set up new accounts. The second method is after the news, if the figure deviates a lot from the expected figure, there will be a spike, I wait for a 50% retracement and then enter in the direction. Knowing what deviation to use is an art and a science, and as I have been doing it for so long, I have a pretty good idea what they should be. If you want me to let you know, join my mailing list and I will try to send out my deviations before the news. Once again, I have a low risk tolerance, so I enter with momentum and exit fast if it doesn’t work. If the price moves to pre news levels, usually means that the punters don’t trust the news or the price was already factored in.
For the analytical trades I use my own Pivot Point Forex strategy, you will find videos and posts in this blog. I also use 2 purchased Forex trading systems, which I bought from traders I like and trust, the first one is Forex Rebellion which is best for 4 hour charts, I use that a few times a week and on the whole make a good return. The other one is Rover North which involves watching 3 time frames , 5, 15 and 30 minute charts and is more of a scalping method, although for me scalps are usually faster. Both systems work for me, but some people have bought them and not liked them, really depends on how you use them, and if you can follow instructions. (I am not good at that, usually buy a new gizmo and faff with it till I get it to work, part of my inquisitive/impatient nature).
So, as the the saying goes, know thyself and then trade, as you trade more you will learn a lot more about Mr/Mrs/Miss/Mz You, a nice little bonus indeed.
Wishing you a great trading day, watch out for the US open potential fireworks.
Best,
Mark
“Do not seek to follow in the footsteps of the wise. Seek what they sought” Basho
Comments
Powered by Facebook Comments