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My FOREX Trading Strategy
My FOREX Trading Strategy
by Timothy Rohrer
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Copyright 2006 Timothy Rohrer
I ventured into the FOREX market a little more than 1 year ago.
I have tried and tested many different types of trading
techniques and styles. Most were failures and some were
successful. From my experience, traders making money in FOREX
will not reveal their trading system, simply because somebody
has to lose money in order for you to make money.
Currently I have two strategies working for me. I started with a
demo account a little more than one year ago and used the
obvious techniques such as technical analysis and fundamentals.
Technical analysis seemed to be the easiest method for an
inexperienced trader since it only required looking at charts as
opposed to watching the news. I used indicators such as MACD,
Fibonacci, and RSI to help assess the market and make a
prediction on price movement. Needless to say I was successful
in my demo account, however when I went live, fear set in and I
could not trade using the same techniques I had developed over 4
months of trading with a demo account.
The stress was too much and like a lot of people, I started
looking for a FOREX signals provider to minimize the time spent
and stress. After some due diligence on quite a few FOREX
signals providers, I did find a reliable FOREX charting software
package that provided excellent signals. To my surprise, the
signals worked. The only difficult part was to discipline myself
to take each signal whether I agreed with it or not. After all,
the company I chose had a winning track record for 3 consecutive
years.
Now that I had a positive flow of income from a FOREX signals
provider, I decided to open a second account using my own
trading system. This is where I discovered what I
feel is a full
proof system when it comes to making a fast 30 to 50 pips in
FOREX.
Trading now for a little more than 1 year, I noticed that the
market moved on speculation. Speculation based on fear and news
events, such as the CPI and retail sales. I noticed that between
the times of 4:30 am eastern and 8:30 am there was a lot of
critical news in majors such as the Euro and the British Pound.
The market would move at the exact moment these major news
events were released. If a news event was due out at 4:30 am on
the British Pound, more than likely the market spiked at that
exact moment 30 to sometimes 50 pips up or down. What I started
to do was trade on these news events. I would wait until that
exact moment the news was due out and execute a trade when the
market moved more than 7 pips from its current price 15 seconds
before the news is released. A stop-loss should be set at 10
pips above or below the current price.
The trick to this method is executing the trade at the right
time and discipline yourself to keep your stop-loss very tight,
setting it to no more than 10 pips after you got into the trade.
The reason being, this works all of the time, but if you click
too soon or too late you could fail to predict the direction of
the market. However, when you are right, your winning trades
will outweigh your losing traders significantly since you are
looking to make a gain of 30-50 pips and if you a wrong a loss
of only 10 pips. I have used this method for 5 months and it
works.
About the author:
Tim Rohrer is an established FOREX trader. To learn more about
reliable FOREX trading techinques and systems, visit
http://www.forex-investing.us
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