I wanted to talk to you about some of my forex trading strategy secrets that I have used to become successful in this market. I don’t think most people appreciate how amazing this market really is. There is over three trillion in currency traded around each day, which makes it the larger market on the planet by far. There are a lot of people that want to get involved, but truly don’t understand how to be good at it. I see so many people loose money because they choose to learn how to make it, rather than protect it. I want to share with you some of my forex trading strategy secrets.

My first piece of advice is to set an objective stop-loss point for each trade. You don’t know what is going to happen with a trade and some of them will obviously go down in value. You have to have an objective point where you’re just going to dump the trade after it goes down so far. It’s called cutting your losses. The reason I use the word “objective” is that in the heat of the moment, you might not be able to make a good decision. This is why it is important to decide very early in the trade, when you’re actually going to dump it.

Another one of my forex trading strategy secrets is to not play with all the equity available to you. Brokers will allow you to leverage their cash by 10 or 100 times what you put in. The problem is that if you’re using all that money, losses add up quickly. Only use around 10-20% of what you have available.

By: Tyler Ziggler

Trading forex successfully requires that you have a tried and tested strategy that you apply to your trading. Finding a forex strategy is not as difficult as it is sticking to it, so most traders often believe that the big issue is finding a good strategy… but from experience I have seen that just finding the strategy or building your own strategy is one part of the bargain, while following your strategy is another.

As a starting point it is advisable if you are not very experienced in forex trading to seek the advice of an expert before deciding to go with a particular strategy. Also visiting online forex forums is another way to accumulate information that can help you build up a strategy or better still help you acquire knowledge on strategies that are being used by other successful traders.

Forex charts are not just lines and numbers so you must make sure that your strategy deals with figures and real data and not just some hunch to always buy in the morning and sell in the evening like some will tell you. Even though this might work for some trades I can assure it is pure gamble and a sure way to loose your hard earned capital. As long as you take time to understand trends and the factors/indicators that suggest a trend change you are on your way to building a solid trading strategy.

In building your strategy do not go with just the amount you intend to make from trading, because you might find yourself adopting a strategy that will not work with your account size and trading style. So your chosen strategy must agree with your account size and trading style. If you can not build your own I suggest you look around on the internet and you will find strategies that you can try on a demo account and see how well it works for you.

Your strategy might lead you to trade a particular currency pair more than the others, this is perfectly fine as what you want is profit and not to have a relationship with all the currency pairs. If you have doubts about any strategy then discard it because you must be 100% confident in the strategy you use otherwise when things begin to go wrong you get into a panic.

By: Karen Fairham

As in any trading method, forex trading too involves a number of strategies and an investor in the forex market must adopt an excellent mix of strategies and analysis in order to make substantial financial gains.

Forex trading is nothing but buying foreign currencies at a certain rate and selling it at another rate making use of the difference in exchange rates of this currency in various markets. Profit is made when the selling rate exceeds the buying rate.

While there may be various Forex trading strategies adopted globally by a number of forex traders there are definitely certain basic ones that are a must for traders. The two main Forex trading strategies that try to bring a discipline in forex trading are as follows:
Simple Moving Average Support and Resistance Levels

In the first strategy, the important thing is to establish a 12-period simple moving average of the prices of foreign currencies. With this average, the price movements are plotted on a graph. Whenever the foreign currency prices cross the 12-period average above, it is a signal to buy the currency. On the other hand, when the price crosses the 12-period average below, it is time to stop and reverse that is to sell the currency. This strategy is a simple method that is easy to understand and follow. However, it has its limitations in terms of reliability and higher risk.

The second Forex Trading Strategy is to establish support and resistance levels in the price of the foreign currency. The support level is the base point or the lowest price point in a certain period while the resistance level is the upper price point in the same period. These levels can be determined by studying the price movements of the foreign currency using certain types of graphs. Whenever the support and resistance levels are breached, a new trend in prices occurs and the levels have to be established again.

Apart from the above strategies that provide a scientific way to understand and take positions in foreign currency trading, there are a certain set of basic rules to follow as strategies:

Always keep track of the amount exposed in foreign currency trading and ensure that it is within the accepted levels Keep in mind the return that is expected from the transactions and try not to be too greedy and breach the expectation too much Understand the actual risk involved in every transaction and compare it with your accepted risk absorption capacity. Keep track of your own experience in forex trading Always keep in mind your investment objective which may be capital appreciation, constant returns or high profits. Invest only up to the amount that you can afford to lose. Always rely on expert opinion, analytical statements and past history of prices rather your own instincts that may be effective only at times.

Thus with the adoption of the above Forex trading strategies, traders can make wise profits.

By: Tom Houser