True concepts of trading

Written by Peter

Hi every one I'm Peter. I'm glad about forums like this cos its obvious lots of people are reading it. I've being trading fx for years & I know what it feels like to loose consistently with false hope that tomorrow will be better. Well, it for sure can be but your may have to consider some few concepts I'm going to share with you.

Please before I start I'd like to beg you not to buy any indicator or system. Any real stuff can't be sold; one of this days your will understand it.

#1. The first concept is to decide what kind of trader you'd want to be
i.e a long term trader or a short term trader, & then focus on one for now cos if your don't master one you'll loose.

#2. The second concept is multiple time frame analysis.
If you trade only a single time frame & I give you the best system in the world you'll still loose big time. What I mean is that M T F (Multiple time frame charting) is one of the greatest indicators you can have cos its the true indicator of a trend & it is free.

#3. The third key concept is currency pairs divergence.
You can only make profit when you trade currency divergence or simply say spread. I'm not saying MACD or CCI divergence I mean SPREAD. Those indicators you see every where will only tell an up or down TREND but wont tell you why. E.g. if you trade GBP/USD pair your indicator says sell, it could be that both GBP&USD are falling in strength but GBP is just falling faster. In a real sense are you going to trade that? Of cos not. Reason is that GBP can just start gaining strength or USD falls faster & this will lead to a quick loss. To place a profitable trade is to wait until the pair you are trading are moving in the direct opposite direction. E.g. a sell of GBP/USD pair is only a sell when GBP is falling & USD is rising.

#4. The forth key concept is MOMENTUM.
This is simple to get only if you can get the divergence of your currency pairs. The ideal value should be at lest 45% difference. i.e in a sell of GBP/USD pair, GBP should be lets say -35 & USD should be about +80 this would provide a wonderful trend that will make you happy, the truth is that it happens all the time.

#5. The fifth concept is entry point.
This should be based on PIVOT POINTS, DIVERGENCE & MOMENTUM showing in all you time frames {3 time frames}. PLEASE, use pivot points only for entry & trailing stops & for gravity but not for exit.

#6.The sixth concept is EXIT.
PLEASE let your winners run & exit you loosing trade on time. The best way to me to exit is to use your middle time frame by the formation of a reversal candle stick colour change. E.g. if you're using 15min, 1hr, 4hr time frames, you'll enter a trade on the 15min time frame when there is set up in all three TFs & exit with 1hr candle colour change(close). STOP loss is not a concern cos you can ignore it
& still make profit. In fact if you're not a master of it you may blow of you account by yourself & finally you're trading currency & not a country. So don't restrict yourself to just one pair; open as many pairs as possible at the same time, don't execute orders on too many pairs at a given time. This will help you catch up opportunities.
LIFE provides us with clues. What I've shared is not a system but clues which experts use. If you google on each I promise you'll do well. Stay well & young & MERRY XMAS.

Edward Revy,
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed