Foreign Exchange Trading Techniques - Major Trading Systems

I have been trading Forex full time over 7 years now and have found numerous Forex trading systems and strategies.

After many trials and errors I've come to the view that simplicity is key, therefore I have reduced my trading into 3 categories:

1. Forex news trading - this means trading the volatility surrounding economic announcements such as NFP, GDP, CPI and others. For this I use software that broadcasts the news as it happens and can actually click the sell or Buy buttons. Sometimes your order will not be filled so it is possible to enter on a reversal, based on the news direction.

2. My own Forex trading methods and strategies, these basically come down to 2 simple methods:

2.1. Buying support and selling resistance, based on ascertained pivot points, Fibonacci numbers and trend lines.

2.2. Rapid scalps which involve trading for 2-4 points taking a very small risk. This requires some training, but once mastered it can be easy money .

3. External Forex Trading systems - there are many systems for sale and most of them are useless, written by Internet marketers for the sole reason of making money for the system vendor. These systems are a complete waste of time but the sales pitch is very good. I have found several that work well and complement my own trading techniques.

Timing and time in Day Trading

It is of utmost importance to understand the period that you choose to execute trades in and know what you potentially expect at that time of day. This is different from instrument to instrument, so it is important to understand market behavior for your trading instruments. I normally trade only 4 instruments; the DAX, Euro, Japanese Yen and the GBP/USD, and I am pretty familiar with their behavioral patterns in the trading day.

Other instruments differ dramatically and I will only trade them (I do occasionally trade WTI, Nat Gas, and other currencies) after I've understood their time related behavior. Most of my trades beside the DAX and GBP/USD are economic announcement related and of course, when figures are made public a different volatility exists which is normally out of the typical patterns.

The prime time to execute trades in the DAX (German Index, and moves in tandem with the DOW chiefly) is near the London open at 08:00 (03:00 EST), as the open usually brings a large rush in orders and it's an easy time to scalp. From time to time the scalp will turn into a longer term trade, if a trend develops, however it is sometimes possible to achieve a gain of 20 - 40 points in the first half hour of trading. As my daily target is 30 points and it is often achieved within 30 minutes, I can then relax and look for absolutely perfect set ups that will not risk the profit.

A few of my fellow traders will stop trading then and do something else. It certainly gives one plenty of time, but those 30 minutes require intense concentration.

If you'd like to learn more please review my blog by clicking the link.

The blog also contains many video with live trades.

Trading Currencies - 5 Reasons Why You Should Learn How To Trade Currencies
There are many reasons why trading currencies has become popular. In this article we will discuss 5 of these reasons and why you should learn how to trade Forex and start using your internet to earn an income from home.

Simple Forex Trading Methods Using Trend Lines: Can You Actually Profit With Them?
There are many forex strategies that you can master or devise for yourself but one of the simplest involves using trend lines to indicate when you should buy or sell.

Spotting Currency Price Trends For Higher Returns: How To Find Trend Turning Price Levels As Precisely As Possible
It can take time to learn all the details of trading trends, but you do not necessarily need to know everything to get started and be making money. There are many different ways to use technical analysis to spot a trend.

The Truth Concerning Foreign Exchange Trading Systems - What To Examining When Picking The Most Suitable One
A trading system refers to certain rules and instructions that need to be followed in order to successfully venture into foreign exchange investing. The biggest advantage of these systems is that they require minimum effort and provide continuous income stream.

Scalper Trading: Can It Be Done Successfully And Is It A Viable Choice For Novices?
Fx scalping requires a very cool head and a good deal of experience in trading. There certainly are traders making money with this as their main tactic. But there are probably a lot more who are losing. This is probably because so many beginners are attracted to it.

Currency Exchange Trading Signal Providers: What To Check Out And How To Apply Them
As the popularity of trading the currency exchange markets online from home increases, the number of forex trading signal providers is increasing too. In fact they are proliferating to such an extent that it can be very difficult to know how to find the best one.

4 Forex Trading Hints To Support You Garner Profits In The Currency Markets
If you have a profitable forex trading system that doesn't often offer the opportunity to trade so it is not making you much money, don't be tempted to widen the criteria so that it lets you trade more often. This will certainly turn your profitable system into an unprofitable one.