Forex | 8 months ago
Do you want to be a successful trader? Do you want to make a consistent source of income from forex trading? Are you tired of losing money on your trades?
If the answers to all the above 3 questions are Yes, then please continue reading. In this post I will be sharing you one of my best trading strategy that gives me consistent profit. I will teach you my trading strategy from entry to exit. Always remember that there are only two types of traders, the first type of traders is who follow a trading plan and the second type of trader is who does not follow a trading plan.
The objective of my trading strategy is very simple. It just identifies the conditions with a high probability outcome with acceptable minimum risk. Timing is a very important factor of this strategy. As a successful trader you must know the optimal time to buy and sell a position. If your timing is not good you may lose a lot more for just a little gain. My strategy is based on trend is your friend. Yes, you might have heard it hundreds and hundreds of times that you should always trade with the trend. But many of the traders make mistakes in identifying the stages of trend. They have many questions in their mind like is the trend in the early stage? or I just missed the bus and the trend is in the late stage? They try many lagging indicators to answer these questions, but those lagging indicators do not give a proper answer. It is always easy to draw a trend line on any chart long after the trend was already established.
Based on my years of trading experiences, talking to hundreds of traders I found that the most common mistake they do is that they think momentum indicators represent price trends. This is absolutely false. Momentum indicators represent momentum trends. Momentum is basically described as the rate of change of price. Momentum indicators use the open price, the highest price, the lowest price and the close price of a price bar to calculate the rate of change of price in any time frame. So while using any momentum indicators like stochastic indicator, never expect price to reverse when the indicator makes a reversal. Price and momentum may not trend in the same direction always. You can only make money on price trends and not on the momentum trends.
I call my strategy as multiple timeframe momentum strategy. Being a swing trader myself, I choose the daily chart and an hourly chart. This daily chart is my larger time frame. So I always trade in the direction of the larger time frame momentum trend unless it is overbought or oversold. This larger time frame momentum position helps me identify the trade direction. The smaller time frame helps me for trade execution setups. I only execute that trade if and only if these two timeframes of momentum are moving in the same direction. This is it. this is the whole strategy. just follow this strategy with the patience and you will be profitable over the time. If you do not have a trading account we recommend Trade Global Market. Open your trading account with Trade Global Market and share your experience.