50 Pips A Day Forex Strategy

-

50 Pips A Day Forex Strategy
How To Build A Solid Trading System 
By Laurentiu Damir


Introduction
 Before you start to construct your trading system, you must first think about what is the trading style that suits you better. Do you want to sit in front of the computer the whole day entering and closing trades on the 5 minutes time frame or do you think that trading on a higher time frame will suit you better? My advice to you is very simple and clear: always seek to trade on the higher time frames. It is easier to trade this way and it will make you much more money in the long term. If you are a beginner in trading, it is best for you not to day trade until you gain experience. Trading on small time frames carries high risk due to short-term random moves that are almost impossible to predict. Not to mention that trading this way makes you vulnerable against economic news events that come out multiple times per day and usually have a big impact on the small time frames. Even after you get more experienced by trading successfully on the higher time frames and you think you are ready to day trade, my advice is do not trade on any interval smaller than the 30 minutes. Moreover, when you do decide to day trade, consider it as a backup trading style, day trade only when there are no trade setups according to your system on the higher time frames. Always seek to trade on the higher time frame. Nevertheless, as I said before, if you are a beginner trader, and you probably are, I strongly recommend that you develop your trading system around a higher time frame like the 4 hours or the daily. Forget about day trading for a while. Build your trading system and trade on the 4h/daily charts until you start to add to your account consistently.
Let's Begin!

Comments

Post a Comment

Popular posts from this blog

FX Trading & Inflation Protection, Various Forex Options & Technical Analysis

-
Image
Forex Trading Learn About: FX Trading & Inflation Protection, Various Forex Options & Technical Analysis Introduction Ever since stocks were first bought and sold in 1792, the stock market has only grown in size and volume. It has transcended boundaries and is now popular all over the world. There are many stock markets (places of exchanges) in the world including physical and virtual. As you know, the stock market as a whole, (composer of these many local exchanges around the world) is a very vast place where thousands of trades take place on a daily basis. These trades are carried out locally and also internationally. The stock market deals with a very big amount of what we call “financial instruments” Shares, CFD, Futures, Indexes, etc., but as big as grown and known to be, we have another Financial market that has become even bigger in the last 10 years. Estimated to exceed the stock market with 10x the daily volume traded of all stock exchanges combined. Such...
Read more

Forex Freedom Bar Indicator

-
Image
Freedom Bar Indicator One of the main elements of an indicator is that it shows price movement on a chart in a visual way to help the trader decide what is currently happening with the price action. Now whether you prefer a bar chart, a line chart, or a candlestick chart (recommended) they are all designed to help you see what the price is currently doing. If we use the definition of the indicator itself there is no reason why we should not be using indicators to our advantage as traders. It is going to show you an additional indication of where price is going and what price is going to do in the future.
Read more