Forex Blog: Currency Trading

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I am publishing this post on my forex blog at 12.45pm on Monday August 27th 2007.

In order to become a winner on the forex market I feel that you need to have such an edge that you are able to ‘unconsciously’ know when to trade competently so that your trades meet a specific target you set yourself or at least go in to a profit so that you have the opportunity to get out of them with a small profit and wait for another opportunity.

I teach people my exact forex trading strategies that do this particularly through my membership program which is http://www.fasttrackforex.com/members Due to putting in tremendous amounts of time, patience,persistence, homework, research and study I can now confidently enter the market pretty much at any time and know I’m going to reach my goal sooner or later.

Last night was a great example of that. One of the things I teach in my one to one session for members is how to siphon out a lot of junk that is online and to get right down to finding information for yourself that plugs you in to the mind of the market and helps you to become more financially intelligent in terms of this constantly changing currency market that we have.

Because I do my homework often (see some of the earlier posts on this forex blog) I tend to find that important information about the market tends to just drop into my awareness. You will find that great information and ideas you can use when planning your trades will drop in to your awareness as well if you take the time to do some study or research each day as to what is going on in the market, what do forex analysts think at the moment in the intraday, short,medium and long term about the currency pair you are focused on.

Last night was a classic example for me where I have done homework and I understand fully with perspective what has been going on with the GBP/USD, why I believe it has dropped to 1.9700 and why it then bounced back up towards the recent highs again. A source (in fact it was an article by a Chinese writer I particularly like on Bloomberg) stated something that made a lot of sense about the USD weakening and also this lined up with some thoughts from an analyst at a high interest offering investment bank.

On this basis, some technical analysis of my own and with the market opening in New Zealand, I placed a buy order for GBP/USD with an extremely tight stop at 2.0136. After I got in to 12 points profit I set a trailing stop loss of 12 points so that the trade was guaranteed to make money after gaining an additional 1 pip or more and let the trade run for a while. Soon I was 41 pips in to profit and I went to bed knowing I had locked in at least 29 pips of profit. After getting up I checked my computer and had made 41 pips profit.

Not bad going for about 30 minutes of work I am sure you would agree. It is this reason why I believe that going for a profit target of 10 pips as your forex trading plan works, This is because once you get very good at recognising movers which are going to go your 10 pips and getting in to them, you are going to start making moves that go a whole lot more than your 10 pips and realise why Sam Beatson’s forex blog told you to go for smaller targets and get real about the past (ie drop the hindsight method of “if only I’d known I could have got in to the beginning of that big 300 pip move” and trade in the present moment. Then you might learn to actually get into decent moves…Good luck!