“What are the Rules of Forex Trading Successfully”
Forget the hype and false teaching that says you can “use my system/techniques to get the good trades” Rubbish.
No one has a way to predict what the market will do next, yet it IS possible to undertake forex trading profitably – how can that be?
The secret, if such a thing exists in forex trading, is to be in the market, on the right side, when a good move happens. And again – no one can predict when that will happen with anything more than pure luck. And THAT IS the key. Yes, you need to get lucky as Thomas Jefferson said, “I’m a great believer in luck, and I find the harder I work the more I have of it” So it is with forex trading; you can’t make any money if you’re not in the market, but you can’t determine with any accuracy just when the market will make a substantial move that will make you money.
So, what we really need to find is a way to get into the market, on the right side, with low risk so that getting it wrong costs less than the times when “we get lucky” and find ourselves in the market with it moving our way and adding to our profits. No one can make the market give you money yet so many traders and teachers seem to suggest you can. Any real trader knows that forex trading is simply being around at the right time and to “allow” the market to give you money.
So if we have a way to get into the market with low risk and slightly better than 50/50 chance of being in the right direction of the next major move then that’s as good as it gets. Add to that a forex trade management technique that “allows” the market to give us money when we get it right, and you have a complete and successful way of trading. Most people however are looking for something more accurate, more profitable, more guaranteed and so on. They spend years and thousands of dollars on courses, webinars, seminars, and so on from people promising to give them what they want. A guarantee, a “sure thing”, a “right way” to trade; they end up disillusioned and sceptical when success was there all the time.
So what is a low risk, better than 50/50, entry in the “right” direction?
Briefly, the “right” direction is the trend from the next timeframe up. So if you trade a 15 minute chart then take the trend from the hourly chart.
“Low Risk” is then accomplished by waiting for price on your timeframe (15 minute chart as above) to retrace to a level of resistance (assuming a short trade set-up) and then seeing a reversal where price doesn’t move too far.
Forex trade management looks to take some profit quite soon so that the risk on the remainder of the trade can be reduced to allow the trade to become a “free” trade where no money is at risk – from then on the exit order is trailed behind the price action to capture the move when you “get lucky” and see price move a considerable amount in your direction.
This really is the key to Forex trading, to get a "edge" in terms of low risk entries combined with a practical forex trade management techniques that rapidly reduces risk.