The method we will look at here, can learned by complete novices and if you learn it, you can make some great Forex profits – let’s take a look at the method in more detail.
We are going to look at Forex technical analysis and how to trade with it the right way and its a fact that most traders don’t use it correctly so let’s take a look at this method of trading in greater detail. Forex technical analysis is a method of trading, whereby you simply follow price action on a chart and look to lock into and ride trends either up or down, for profit.
Most traders make the mistake of thinking that you can predict where prices may go with charts but this is not so. Forex prices are not predictable but that doesn’t mean you can’t make money. Rather than trying to predict trends in advance, you wait for confirmation of a trend change to be confirmed – BEFORE you trade.
While you will miss the start of the trend and the exact turn that doesn’t matter because you will still make a lot of money – if you caught just 60% of every major trend you would be very rich, so don’t try and be perfect the object is not perfection, that’s not possible but making money is.
The next point to keep in mind is the big profits are made by following the long term trends which can last for many weeks and these are the trading opportunities you should focus on and NEVER be tempted to scalp or day trade. Daily price action is random and if you do trade shirt term moves, you will make a lot of effort and end up losing your account equity. Instead focus on the long term trends and you will make bigger profits and spend less time trading.
Your Forex charting system should be simple! Many traders think that if their clever they can build systems which can beat the market and while their systems maybe clever, they fail in real time trading because they have to many elements to break.
In terms of enjoying Forex trading success, you only need a simple trading method and if you focus on catching and holding the big trends, you will have a simple method of trading which can make you triple digit gains in around 30 minutes a day.