Forex Trading Strategies 4

Currency Trading Strategy Number 18:
If there is nothing to do, then don't do it. Don't just do something
because your "gut" tells you to. That can get you in a lot of trouble in
this business. Only react to bona fide signals provided by the four
indicators talked about above – "reading bars," MACD divergence,
pivot points, and trendline analysis.

Currency Trading Strategy Number 19:
Only use an "industrial strength" market maker with the lowest pip
spread in the industry. If you would like more information on this,
please send me an e-mail: prbain@tradingsmarts.com

Currency Trading Strategy Number 20:
Occasionally, you will see a huge spike up in price, as we did 11 May
03. This just happened to be on a Sunday, shortly after recommencement
of trading, after the weekend respite. Ordinarily, I
would take the OHLC numbers from Friday, but given the nature of
the wild swing up that evening on one of the 15 min bars, I would
then use the OHLC numbers from Sunday night's session close to get
a better reading on support and resistance levels for the next
session. This is, of course, if you are using a market maker that
delineates its break between trading sessions in the late evening -
anywhere between 20:59:50 and 24:00 (midnight).

Currency Trading Strategy Number 21:
I often get asked by fellow traders why my pivot points aren't the
same as theirs. Good question. The answer is, of course, that you
may be using a different market maker, where a daily 24-hour
session is "cut off" at a different time. Some end at 20:59:50. Others
at five pm. Where you take your OHLC from will have a direct
bearing on the pivot points that you calculate using my program. The
results will obviously not be the same. But, that is okay – because
you want to use the pivot point calculations that are reflective of the
last 24 hours at the market maker you are trading with. That way,
the resulting numbers will be truly indicative of the support and
resistance levels you should be working with during the next session.
If you are trading with a firm that cuts off at 5 pm, and using OHLC
figures from another source that cuts off at a different time, your
figures will be "out-of-sync." I hope this all makes sense. If not,
please send me an e-mail: prbain@tradingsmarts.com Also, in your
message, you can ask me how to get a copy of my program, if you
don't already have one. You can also ask me where you should be
trading – i.e., which market maker you should be using. I only
recommend "select" providers, after considerable research, and
feedback from my clients.

Currency Trading Strategy Number 22:
Former stock traders take note: I say former because I don't
honestly know why you would ever want to go back to stocks after
having tasted the forex. Don't over-trade the forex. This is not a
scalping market! If you have to scalp, do it in slow motion.
Currencies trend well. Don't buy too soon in a downtrend, and don't
sell too soon in an uptrend. Watch for trendline breakouts to know
when to make your move.

Currency Trading Strategy Number 23:
You cannot succeed at trading the forex unless you are TOTALLY
committed to trading, and trading it. This is not something to be
played with. If you are not going to take it seriously, then try
something else.

Currency Trading Strategy Number 24:
Put your emotions in your hip pocket. This is a business, and should
be treated as such. If you have any bad habits, the forex will fix
them real quick.