I have a confession to make. Forex trading can be brutal to learn. In fact, many new traders trade their broker account to $0. So why is it that you keep reading how the Forex is such a great business? The reason for the discrepancy is how new traders begin trading. I know, as I almost failed. Fortunately, I found an automated currency trading method that works incredibly well.
There are lots of way to approach trading the Forex. You can earn by reading books or taking seminars. Maybe you want to try the high risk, rapid fire trading called scalping Or maybe day trading is the way to go. There’s also swing trading and long term investing. First thing you need to decide is how you plan to trade.
Scalping is extremely difficult. If you are a new to intermediate trader, don’t do scalping. It requires nerves of steel, total confidence in your trading skills, and a large amount of funds. In my opinion, this is the least enjoyable way to trade.
Day trading is a little better than scalping but not much. You still stay glued to your screen and watch every little tick of price movement. It too can be stressful and is no place for a new trader.
Swing trading is when you hold a trade from 1 hour to 1 week. It’s slower paced trading than scalping and day trading. You can do well with this if you find a currency pair that’s trading nicely on a longer period chart like the daily. You find a solid entry point on the 30 minute or 15 minute chart and ride the trend. I used to trade this way but found an even better method.
You can also do long term trading. This is when you monitor the monthly and weekly charts and look for a trend reversal that’s confirmed by a trend line break. At this point, you enter a trade with a stop loss that’s pretty far away from your price enter point. Then you just let it ride. You can check on it every couple of days to see if you should tighten up your stop loss if you are ahead some decent profits.
The way I trade now is automated swing trading. With advancements in technologies, you can throw out your charts and indicators and let a software system do it for you.
Automated currency trading is the wave of the future of Forex trading. Believe me. Once you apply this method, you’ll be incredibly happy you did and you’ll never look back!