Forex Blog: Currency Trading

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Ok, you’ve read my forex blog, you’ve joined my forex training program, may be you bought the courses individually too, and you just can’t get yourself to do the work…but you want to place a trade.

It pains me to be making this post, but the fact is people don’t want to do the little work I set them in order to make money with trading forex.

Nonetheless, for those of you seeking a lazy way to trade for forex profits, here’s a couple of suggestions for you.

1) You can forget about the news, forget about searching out forex tips for preparation purposes (see http://www.sambeatson.com/?p=29 and http://www.sambeatson.com/?p=33

And go straight for your charts.

No indicators required here at all.

Just look at your monthly and weekly charts at a glance and ask yourself, what is the trend direction here?

Having identified your trend direction, you can decide that the “trend is your friend” and decide that you are going to look for trades in that direction.

Moving down to your 4 hourly chart now and 1 hourly (perhaps also 30 and 15 minute charts too to confirm) you are looking for areas of support/resistance from the past in relationship to where the price is right now.

If your overall trend is long, then look for support and you will buy from that support level after you find a trade (see the next step).

So, let’s assume for example you’re trading the GBP/USD right now. We know the resistance is around the high - 2.0635 or so. This is because of the monthly candle and its great long wick showing sellers came in at that point last time and kept the price down to the end of the month so far.

The overall trend is long as I just said. Looking at the chart below, resistance is at 2.0235/2.0205 and there was also a bit of a spiky drop to 2.0175.

So, I’m going to be looking to buy at 2.0225 or so. Ideally my stop will be tight under 2.0225. I will only trade this if I find a good pattern to help me enter the trade.

For example, I will be looking for a bearish reversal pattern on the 4 hourly, 1 hourly or even half hourly charts around the time we hit 2.0225 and will enter on confirmation of the pattern.

Again, no indicators or “homework” required here, just common sense and more importantly PATIENCE.

Patience is absolutely key.

That’s an important statement so I’ll say it again.

PATIENCE is absolutely key.

The reason for that is that we will be waiting for an entry signal using probably a Japanese Candlestick pattern interpretation. Either that, or if we’re moving sideways at that level again and waiting for a breakout, I will use one of the three strategies for successful forex trading that I teach in my online currency trading training program and have a tighter stop loss - http://www.fasttrackforex.com/members

2) You can use Woodies CCI + Turbo CCI (which I call ‘Double CCI) by Ken Wood - see http://www.woodiescciclub.com to download a pdf document about it. Yes, you will have to invest some time in learning and getting to know the different entry and exit patterns given for this indicators (hint for forex use 15 minute chart and the default 14/6 settings to trade it “as Woodie does).

I like the above indicator a lot and have made a lot of money from it. So I will rant about it at length over the course of the development of the growth of this forex blog. Thanks and that’s all for right now. Please “digg” the post at the top right if you liked it, so others can join the forex trading community I have started to create here.