1) What is your approach to trading in periods between news releases?
2) Do you trade in these times of more gradual market activity, and if so, what are your rules for entry and exit?
3) Which charts (1 min through monthly) do you refer to for entry and exit in these periods and the relevance of each?
• At the time of government officials talking, closely observe and monitor the market. When any sudden price move than assume that the reason behind is government officials statement. This is an effective technique for new forex trader for forex trading.
• Acquire real economic releases and any relevant articles published. This is an effective technique for new forex trader for forex trading.
• Find out the up to date misforecast and its impact on economic release’s instant price shock. This is an effective technique for new forex trader for forex trading.
• Precisely I look for forex trading routes inside forex trading channel, preferably 5 minute forex trading channel within 30 minute forextrading channel. When both are concurrently close to top or bottom of channel I begin a trade with a tight stop that reinforce my analysis. I frequently study trad EURUSd. This is an effective technique for new forex trader for forex trading.
• I study for 30 min visual plus 60 period moving regular and I also study 5 min visual plus 60 period moving regular. I am looking inside for a trend. For instance, when EURUSD price is less than 60ma on 30 minute visual than I search for openings to sell EURUSD if price bore into 60ma on 5 minute visual to the lower side than I ponder that 30 minute is suggestive of today’s trend and 5 minute a timing pointer. This is an effective technique for new forex trader for forex trading.
• When within a short period of time prices rise quickly I look for short term adjustments and recovery. I find a limit on 1 minute visual plus 60 period moving regular is remarkable for profit taking or beginning for a brief period of time “bounce” trade. This is an effective technique for new forex trader for forex trading.
• My main focus is on high and low end that is within reach of forex trading range that earlier responds to real accomplishment of main points and forex trading plan that I possibly can employ. This is an effective technique for new forex trader for forex trading.
• To understand the indicators of patterns of higher high and higher lows and vise versa I look at bar charts. While discovering the patterns of early change I will join at a level that permits me to connect the patterns at a price that consider for tight stop loss and validate that the pattern is broken. For instance if EURUSD seem to place in a short term bottom as pointed by two successive bars with higher highs and higher lows. Than I will enter a trade when the third bar that is rather close to low of second bar (consider tight stop as if price goes under low of second bar pattern is broken and no reason for trade, and pattern continuation exists) and expectations of getting in at the beginning of a new brief period inclination. This is an effective technique for new forex trader for forex trading.
• Finally the series of bars with higher highs and lower highs will run in a sequence of trends and proceed downward. I look for patterns when they no longer able to approach important tops, forex trading channels tops, vital and effective regular lines. Many times I change to candle charts for more validation when these patterns arrive at their logical stopping place. There are many ways to trade this 1) sell immediate top of earlier bar with stop higher than earlier bar ( tight stop, potential to catch full turnaround) 2) sell vital top with tight stop 3) sell top of forex trading channel with tight stop 4) sell lower but with regular line and stop higher than regular. This is an effective technique for new forex trader for forex trading.
• Taking any position you need close analysis of crucial moment, so that you can monitor your stop loss level and your ability to risk taking. This is an effective technique for new forex trader for forex trading.
• The large number of trades you do than the chances are that you will end up self defeating because of paying spreads (difference between bid and offer late) on each transaction you carry out. Once you start a trade the odds are 50-50, the spread (for example 3 to 5 points in EURUSD ) the success chances are inclined towards brokers favor. For instance, suppose you are forex trading on four point EURUSD spread, by committing two trades a day your additional payment (spread cost) is 8 points, if you do 40 trades than your additional payment (spread cost) is 160 points in commission’s daily and thrive. Do some effort in learning this. This is an effective technique for new forex trader for forex trading.
• The main point access plan favor close points were I will wither be stopped out quickly or take part in short term movement turnaround. Correcting my exit level is firm by the subsequent price action. Preferably I get quick price spike turning in my favor. I happily exit. In EURUSD when the trade goes 30 points my favor I move my stop to neither profit nor loss scenario and most of the times not fortunate enough to become my exit strategy. My forex trading strategy is never to let a profit into loss. End result with exit points is to have an exit plan before you enter the trade and stick to it unless you have real cause to change it. What looks sometimes like a 50 point trade might be 150 point trade with endurance and order.
• Trades turnaround tendency is an effective exit plan that is 38%. Sometimes price move in opposite direction and many forex traders jump in there when they anticipate the tendency to go on afterwards that may turn out to be only an adjustment, creating 35% initial tendency change turnaround have to be fine, as well as the Fib level does not grip you can always enter again.
• If you are sharp and patient your results will improve considerably, no matter where you enter or exit the market.
• More than 30 minutes visuals are good for big picture. More than 30 minutes for 300 periods is not good. As they say in Waynes World, “Stay in the now man”
1) What is the relationship between fundamentals and technical in these periods?
If there is no imminent risk of news associated spikes, prices are inclined to slower movement in a well defined direction (technical forex trading). When prices touch a crucial levels instability starts to surge and the possibility of a huge earning trade emerges. Without any news alarm, fault lines can be broken, on the other hand huge position shift cause news shocks. In the absence of fundamental news, technical take over takes place.
2) What is a minimum acceptable ratio of profitable trades (to develop a forex trading system)
• Right or wrong is not the standard for a successful forex trading, in fact its all about return on equity, if the money in your forex trading account is growing you are successful. The great Chicago commodity traders in 1980’s applied breakout system that lost 90% of their trades but they made profit by positive three digit percent returns for years. All they did was when they got it right they rode it for all that was worth and when they were not right they exit without any further delay.
• On the other hand the broker, he invests his money by buying at his buy price (bid) and selling at his sell price (offer) and usually seize the price difference between them. That’s how your broker makes money and you lose money in forex trading
• The importance of profitability forex trades ratio is irrelevant in shaping forex trading success; on the other hand psychological effect can be important. It becomes much more difficult to pull the trigger on the trade, once you have lost money on successive trades. This is an effective technique for new forex trader for forex trading.
Focus on risk/reward.
3) What is the average frequency that you trade (5 times a day? once every two days?)?
Once every two days?
4) What is the average number of points per profitable trade a new trader should expect over a period of 6 months?
New comers in forex trade should consider a no profit no loss result to be good during the first 6 months of forex trading period.
5) While results will inevitably vary from person to person, what is a reasonable benchmark profit expectation for a new trader in the first 6 months of forex trading one contract?
• In forex trading if you choose a results that is neither profit nor loss than you are doing good. If you participate in an active forex trade then the chances are that you will loose your stake. Exceptions are rare.