I would like to share with you guys a technique I think is timeless.It involves using fundamental and technical analysis,market structure,capital(money),You(personality) and a bit of what other people think about the market currently(sentiment analysis).
Before I drive into the process,I would like to inform you guys that
I have been trading Forex for about 8 years and I do know one or two things about the game.And most of those early years I have being trading at a loss.
I created this topic to keep myself under a guide and the need to encourage others to pursuit their personal goals towards success.
Kindly note I am not selling anything but only sharing my ideas on how to profit from the Forex market using a combination of tactics or edges, I believe’ll make an average of 20 percent monthly using a strict Forex management technique,applying the market structure to my trading plan to reduce stress while trading,use of stop-loss and take-profit,selected currency pairs and having the right mindset towards trading.
The goal of this Forex trading strategy is to make consistent source of income from the Forex market.
Sounds interesting. I am always going to be interested in any approach that uses inherent market behaviour rather than clever candlestick patterns or exotic indicators. Please go ahead, and good luck.
At this point I might as well add that I would personally be happy with +6% per month and might be able to adapt this system or parts of it for my own use.
Why 6%? If the capital and gains are compounded, 6% per month represents a doubling of capital every year. Nice dream…
Okay guys I promised to release the full package of the strategy.
on my next post.
But before posting the details,I need to inform you guys that each
rules outline here comes with a reason for better understanding.
Rules.
1.Trade only EURUSD and GBPUSD currency pair.
Reason:Tight spreads and good currency pairs for scraping trading.
2.Open one trade per section per day using the 4 hour chart formation.Trade either London opening section(5:00 GMT) or (13:00 GMT) afternoon section.
Reason: Avoid over trading and stress that comes with trading.And most of all,the chance to catch big pips give-away.
3.For each trade’s stop-loss must not exceed 30 pips.
Reason:To keep you still in the game if you have some consecutive losing trade.(if you have 5 losses,you are still in the game)
4.Take-profit of all trade must be 30 pips or above.Note all trade opened must have a sl and tp.
Reason:Target 30 pips and above for every trade,always make sure your take profit are big.(above 50 pips is ideal)
5.Total pips size is 500 pips.(total number of trade is about 16,which would keep you in the game for about three weeks,if you where to have all losses which from my own perspective is not possible for a discipline trader.
Reason:You only need 100 pips monthly to get monthly expectation.
6.Resistance and support lines to find Forex signals.
Reason:With the 4 hour chart,it gives you a clear perspective of
market direction.