Forex Trading Strategies 11

Currency Trading Strategy Number 55:
There is nothing that says you have to trade often, or even every
day. In other markets, most professional traders catch only three to
four really great trades a week, if that! Not so with the Forex. Here,
the timeframe is more like a day. However, if you don't see any
"ironclad" trades, then don't trade. Turn if off and go golfing.
Slow down, and drive the speed limit. This isn't a race. After all, you
are in control of the market, not the other way around. Don't feel
pressured into doing something you feel uncomfortable about. Wait
for those "perfect set-ups" to make your move. Same goes for those
"bad-hair days." If you are feeling out of it, sit on your hands, or go
do something else. Take charge of your trading life, before it takes
charge of you, and your money.

Currency Trading Strategy Number 56:
I often get asked what parameters I use for MACD. I use the
standard default settings. They work just fine. After all, all you
should be using MACD for is divergence.

Currency Trading Strategy Number 57:
I have said it before that you should only trade in and around pivot
points. The only exception to that rule is if you see a trendline
breakout or a bar pattern, like price rejection, that gives a clear
signal that price is about to reverse course. If price is in between
pivot points, and you are not sure what to do, don't do anything! If
there's nothing to do, don't do it. Patience is the hardest thing to
master in the forex, or any market for that matter.

Currency Trading Strategy Number 58:
The major trend for the Euro usually starts revealing itself as the
London hours kick in. Up to that point, price may "bait and switch"
you into thinking it is going one way, when in fact it is setting up to
go the other way. It can easily fake you out, before the London hours
start to unfold. So, be patient and wait. Look for clues coming out of
the previous session as to where price might be going ultimately. Did
you see a "head and shoulders" pattern? Did you see a triangle
pattern? Do you see price trending in any one direction over a period
of time. Do you see any divergence in MACD (on the 1 hr and 15 min
charts)? Do you see any channels, where price is looking to break
either way? Play Sherlock Holmes. A little bit of detective work will
go along way before you dive into the new session. Like the Boy
Scouts say, "Be prepared!" Be in charge of your trading. Put your
emotions in your hip pocket, and save them for later. Run your
trading as if you were running a "bricks and mortar" business. Same
principles and rules apply. No different. This is not about betting and
gambling. This is serious business. After all, your hard-earned money
is at stake. Protect it at all costs.

Currency Trading Strategy Number 59:
I have people asking me all the time why I don't post my trades in
real time, or why they can't call me while I am involved in my own
trading activities. The answer is quite simple. This page is dedicated
to my belief in the old adage: "Give a man a fish, and feed him for a
day - teach him how to fish, and feed him for a lifetime!"
Plus, it would be very stressful and time consuming for me to take
time away from my own work (and quiet time) to interact with a
discussion forum. I am sure you will understand my position on this.
I have customers in over 30 countries, and it would be a nightmare
for me to react to each and every nuance that came along. A chat
room is in our business plan, but at this writing, I don't have any
idea of when that might happen. When it does, I will certainly give
you lots of advance warning.
I teach people how to fish. I don't give them the fish. I can
remember when I first learned how to trade. I had my mentor sitting
right by my side each and every step of the way. Then one day he
upped and moved, and changed cities. He actually moved to a
remote and secluded island to get away from city life. Nice move for
him, but it left me in a state of panic. How could I possibly survive
on my own? I can tell you, ladies and gentleman, that I really
learned how to trade when I had to do it on my own, and those were
real drops of sweat rolling down from my forehead all over my face.
This is about you and the market, and you mastering your innermost
psyche. Anybody can learn to trade the forex my way. But, what will
get you every time is that little inner voice doubting your every
move. And, then there's fear and greed that will bite you real hard
too. It's the psychology of your mind that you must master. You
must become disciplined and patient to a fault. You must react only
to bona fide signals, that I teach here. Otherwise, you would be
better off heading out to your local casino, and taking your chances
there.
The forex is not about gambling. It is about running a business,
where there will be gains and losses. Your every effort and constant
struggle should be to get a grip on those times when price goes
against you. You are in charge. You can get the upper hand on price
by trading "smartly," and using good money management
techniques, that I also teach here. You won't win every time. But,
with my system, you should come out ahead seven out of 10 times.
The trick is to limit your losses to small ones, and let your profits
soar.
Getting back to going solo without an instructor at your side during
each and every step of the way, I recall a friend of mine telling me
how he learned to fly. After several practice flights with his instructor
in the cockpit with him, they landed back at the airfield, and the
instructor turned to Pal and said, "Now, it's your turn to take it up.
I'm getting out. You're on your own buddy." Talk about anxiety and
stress. Well, Pal took off and landed all by his little 'ole lonesome.
But, he was pale and his knees were knocking when he got out of the
plane back at home base. He has soloed ever since. It's his passion
now. There's something about being able to do it yourself, without a
partner holding your hand all the time. It's called "confidence
boosting." If you can fly or trade by yourself successfully, there
probably isn't anything else in life you couldn't do equally as well.
Actually, Navy pilots who land on aircraft carriers make the best
traders. But, that's another story for another time.
I can tell you my friend learned more about flying in that one solo
session than he did all the times his instructor went up with him.
Same with trading. You can do it. Just believe it so. Dedicate yourself
to becoming a master at it. Analyze, read, study, think. Ask
questions. There is no such thing as a stupid question. Become
passionate about your trading. Don't think of it as a get-rich-quick
scheme. Do it because you love it. Do it as if you would do it
anyway, even if you weren't making money. There has to be an
element of fun in it for you. If it's all work, and no play, well you
know the answer to that one.
Don't get me wrong. I am here to answer your questions whenever
you need my help. I am dedicated to your success, and your happy
times with your family. Nothing would give me greater pleasure than
to get an e-mail from you telling me how this has turned your life
around, and that you are now happily making money trading the
forex my way.

Currency Trading Strategy Number 60:
Don't get hung up on reading bars when you think you have caught
the major trend. Once the trend is unfolding, you then look for a
place to enter - around a pivot point. You look to reading bars to
signal a change in the direction of the major trend.
A double top in a downtrend means nothing. A double bottom does.
So, a price rejection bar or double bottom in a major downtrend
would signal a short-term reversal, and that's all. But, once you see
the major trend unfolding – say, on the short side – you pretend you
don't know how to spell the word long. Stick with the overall major
trend that is unfolding.
These comments relate specifically to the beginning hours of London
trading, which is when the major trend reveals itself.