The Forex Strategy that I Use Daily

 

Not all of us are capable of sitting in front of the computer for an hour’s day and do trading. As a matter of fact, some of you have full-time careers, family lives that keep you occupied, yet you still want to join and trade in the forex market.

In many instances, these are the calls I received from friends and others, whereby they have the lives above and just have a few hours to trade after office. You do not want to handle positions throughout the day due to work actively and are searching for an organized way of trading.

In case this resonates with you as well as your condition, I suggest trading using my proven reliable techniques. Try my high win rate Forex strategy, I outline it completely in this video:

Opening Gap

The opening gap trading technique is a significant probability trading technique that can provide high gains to the active day investor. Let me start by briefly explaining what an opening gap is. It is made when after-hours trading drives the value considerably far from the closing value. Once the market opens the following day, there’s a huge difference between the value at the beginning of the new session and before the day’s closing price.

This makes a gap and a trading chance with a maximum probability of success as the study has revealed that gaps are filled approximately 70% of the time during that trading session.

Fading the Opening Gap

To fill down a gap, buyers should enter the market in strength as well as drive the value upwards so that it goes to, or beyond, before the closing price. This is known as fading the gap and results in a term known as gap fill.

For me, this is a perfect day trading technique. Fading the opening gap makes an ideal day trading technique. With a maximum probability that a significant gap will be filled during that session, investors are able to put either short or long trades. It depends on the gap direction, at the opening value as well as have a good expectation that value will move positively for them.

The price movement happens during that session and either leads to a successful trade or stops being hit once a gap isn’t obtained. The investor must always be in her position at the end of the day if neither of these cases has been reached.

This technique has a lot of known parameters, which makes it perfect for automated forex trading. The opening price is the trade entry point, while the trade exit point is called the gap-fill price. It is also relatively simple to calculate the stop loss position that comes into play once gap fill isn’t obtained.

You can program these recognized and identified parameters into an automated trading system, which can then put the trades as well as undertake efficient money management, all with no intervention from the investors or trader.

This only means that the number of instruments like the future can be traded all at one with no need for an investor to be at his or her computer during the time of trading. This is one of the best trading technique is usually use.

News

I also use the news as my trading technique. The first release of news concerning the events happening right now often substantially and directly influences the value of commodities, stocks as well as currency pairs. A lot of financial market traders or investors who trade economic data releases wait until the forex market shows performance suggests that investors keep in doubt ahead of the release prior to jumping into the forex market in a right way afterward.

If the news appears, the trader or investor watches for the forex market to run off the formerly observed consolidation pattern. Then, they kick off a position consistent with the way of the consolidation pattern breakout.

Typically news trader places their stop loss at what seems like a secure point under the breakout stage. Once the consolidation pattern is a triangle, then they would calculate the initial width of it and project that space from the breakout point to suggest again taking an objective. In case the pattern was a series or vary, then they utilize the width of the training varies to project as an alternative.

Always remember that the forex market can be superbly volatile when vital news became visible. News traders must therefore approach the stop-loss orders very carefully since they are able to subject to considerable slippage in such quick markets.

Prior to Day Trading

Prior to begin as a day trader, bear in mind that usually day trading involves investing a huge sum of money every day as you choose trade opportunities and then track resulting positions.

You will need to have a good research tool on hand to you as well as a clear and intentional way to opt to which trades to choose or to take. Generally, your trading method must be practiced ahead of time with the use of the live account and must all be integrated into the overall trading plan.

Another vital approach to ready yourself for this kind of trading includes getting the knowledge concerning the basic market-moving aspects which drive the financial markets you planned to trade.

Keep away from trading in forex markets you don’t totally comprehend yet- although you planned to utilize a strategy that is technically based- since the assumptions fundamental analysis is likely to break down shortly because the market instantly incorporates or takes in new information.

Conclusion

Regardless of what technique we use to trading, it is always a smart idea to pay close attention to the stocks with gap openings.

And certainly, it is vital and important to make use of a good and reliable risk management technique because there is no forex trading strategy that is full proof, and that is a fact. The bottom line is to earn a lot on your winning trades than you lose on the losing trades. Make this thing happen, and you will come out ahead in due course.