Today, we are dissecting and examining one of my favorite markets … the Forex market. The Forex market is the biggest in the world and is traded on a 24/7 basis.
What makes these markets so exciting is the fact that they have a very strong tendency to trend, that is, once they get started in one direction they tend to continue in that direction for some time.
I learned how to trade Forex in the trading pits of Chicago where I was a member of the IMM, a division of the Chicago Mercantile exchange. The CME has grown dramatically over the years, and I have many fond memories of trading in the old exchange in Chicago. Today, you can trade the stock of the CME (NASDAQ_CME). That’s a good idea for our next video, let us know if you would like to see a video on trading the stock of the CME.
I digress to today’s video.
Today we are exploring the relationship between the Euro and the Dollar (EURUSD). In this short video, which we are making available without cost or registration, you’ll catch a glimpse of a conservative way to trade the Forex markets. This approach will detach you from your computer screen and show you how to enjoy your free time without having to worry about the markets.
I would not recommend this movie if you are risk adverse. Trading in Forex, the futures markets, and in any market for that matter always has an element of risk.
I hope you enjoy this educational Forex trading video and that you’re able to see the value in this approach.
Every success in the markets.
4 thoughts on “How to Consistently Conquer the Forex Markets”
I looove all the pips, just a question, how big do you trade that?
Guess it depends on the account, but do you follow a certain rule of X% account risk per trade?
Feel free to check out my blog anytime!
Have a great day
My personal rule is to NEVER risk more than 10% of my account and to always use multiple entries. Thus each entry would represent a portion of that max 10%. Make sure you learn good money management skills because it plays an EXTREMELY crucial role in determining whether you become a successful trader or not.
Yep, I checked out your blog – I like it. By the way if you want to exchange links let me know. Your link would go in the “Link Exchange” section (link is available at the top of this blog)
When you say multiple entries are you adding to the position only if it goes in the direction of the trade or do you also add to the position when it gets closer to your stop loss?
It depends. Typically I just enter the market with several lots at the SAME or roughly the same price level. I then watch the market and assess the strength of the trend. If the trend proves to be particularly strong (ie key resistence or support level are broken on higher time frames) I enter the market with more positions. As to how many lots or total number of positions I go in with at this time depends largely like I said on the strength of the trend, but also on price momentum. I enter on retracements only.
If the markets turns indecisive and my analysis leads me to believe that a trend shift is likely or IS happening I gently exit out of my most expensive positions (ie bought the closest to the current price level) – bear in mind these are still profitable positions. I try to keep my earliest positions on hold and wait to see what price action does. Often it tries to fake me out with false breakouts or whipsaws, but I always have my previous lots bought at almost the start of the trend to protect me. I like to think of these positions as my “insurance policy.” Those positions I let ride until I sense a major trend reversal. Even then I still don’t close them all at once. I close only the majority and leave one or two open “just in case”. This is not a steadfast rule however as at times I do close them all, but at this point the positions are in massive profit (several hundred pips).
And that my friends is my trading style. As you can see I trade breakouts and put on “swing trades”
Happy trading to everyone!
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