At the start of this week we gave you four trades and made four profits. We are not going to tell you how clever we are, or were gurus – We are however traders with 25 years experience and here we will share an important forex lesson with you:
Trade the odds and act on momentum changes and you can do it to.
Lesson 1 – Don’t Predict!
You will read a lot about how you need to predict markets – this will simply mean you will lose.
You need to wait for confirmation and then trade.
You can see how logical and profitable it was, if you followed the trades.
The background
Speculator positions were at an extreme, with speculators to long:
British Pound, Euro and Canadian Dollar
and
Short Yen v Dollar.
The market has flushed out the top heavy speculative long positions – but this does not mean the primary trends are over – we just needed a correction.
Support and Resistance
We simply looked for momentum to wane, into significant support and resistance.
Then we looked for price momentum to turn up, in line with our view and the primary trend.
For this we used:
The Relative Strength Index (RSI) and stochastic indicator.
If you don’t know how they work, learn how to use them there essential indicators.
The key when entering a trade is not to hope levels of support or resistance hold, but to have positive proof.
This means you are not hoping or guessing – you are acting on the reality of price change.
The change in momentum below resistance in the yen and above support in the other currencies, was the trigger to enter our trades.
The number 1 Rule for executing forex trading signals is:
Have price momentum on your side and never trade against it.
There are other momentum indicators, but the two we used above are, simple to learn, simple to apply and can and do, let you trade with greater accuracy for bigger profits.
Use These Tools There FREE!
Unlike many people who write on the net, we are traders, NOT selling junk systems, which don’t work and tell you to predict.
We know that forex trading is an odds game – not a game of Prediction.
This is a lesson you need to learn too.
We have just proved how effective it i and best of all:
These Tools are FREE!
You don’t have to pay anyone to find out how they work or use them.
Every good chart service uses them so make use of them. As you have seen they can and do make big profits.
GRAB 3 X FREE TRADER & FREE TRADER PROFITS NEWSLETTER
More on becoming a profitable trader some critical FREE Trader PDF’s and more FREE Forex Education visit our website at http://www.net-planet.org/index.html