Free 5 Day Video Trading Course
The 2009 financial environment is leaving many people uneasy about Share Trading, one only has to watch the daily movements and listen to reports of companies in trouble, to realise how fraught with risk the Share market is. Yes there is still plenty of money in it, and with many investments available at basement prices, there is plenty of chance to make good long term profits.
Because of this, many investors are now switching their gaze to the Forex markets as an alternative source or income. There are many ways to trade Forex, Day Trading or swing trading, the list goes on, but there is one thing they all have in common, a high level of risk if you start trading thinking it’s easy.
There are two core analysis techniques; Fundamental Analysis, basing trading decisions on news events and Technical Analysis, which involves interpreting the charts using a variety of indicators. This is how I like to trade as I am not reliant on news feeds. It doesn’t matter which you choose, to minimize potential losses, you are going to have to learn Forex trading before you start committing any hard earned cash.
A good starting introduction to the basics is offered by Babypips.com, at no cost, but they do not train you into how to create Forex trading strategies.
What is a Forex trading strategy? Simply put, it is a system for setting money management rules, analysing the progression of a chart, establishing a possible trade entry point (Setup), confirming the entry point, opening a trade, establishing an exist strategy to both minimise losses and to take profits.
A trading strategy is of the utmost importance when Forex trading, it establishes and guides your every move when formulating, entering and exiting a trade, and without it, you will find it very difficult to work out why things work and why they fail.
In your early days of trading, a trading strategy provides the system for trading on a Demo account. These are provided by most brokers and allow you to get your feet wet, without risking real money. You set an account balance and trade as the charts move using your trading strategy and watch your balance either profit or crash. You’ll soon find out what works or not as the time goes by!
To get you started with a specific trading strategy for profiting from market rebounds, there is a free video course which will teach you a trade called the “Rubber Band Trade” so give it a try to get you started.
It’s a great little series put together by a Professional Trader and teaches all the steps for this specific trade. Once you have watched this strategy on a Demo account and made it work consistently, you can apply it to a real account and start catching some profitable pips whilst you develop and test other trading strategies that will make your Forex trading a success.
I studied and tested this trading strategy and still trade it when the charts set up correctly. A quick 20-30 pips? Why would you miss the chance?
To start grabbing rebound pip profits get the Free 5 Day Video Trading Course.