Forex DNA - Sharing Forex Strategies On How You Trade

There are so many ways and strategies/methods/systems to trade Forex. This section will cover strategies, tips, advises, and other considerations on how to trade Forex profitably.

*Commented-by*:	pipscounter (malaysia )	Date: 17-Nov-2010
*Comments*:	Hi, what is OMC. Can you elaborate further. Thanks

*Commented-by*:	pipscounter (malaysia )	Date: 17-Nov-2010
*Comments*:	Hi, what is OMC. Can you elaborate further. Thanks

How do we trade Forex?
Shared-by:	Chee Wan (Msia)	Date: 19-May-2010
Topic:	Trading Strategies
Info:	Risk comes from not knowing what you are doing. There are 3 criteria to determine which currencies to buy: a) The currency must have relatively higher interest rate than other currencies. Naturally investors will want to invest in currencies for their yield. Hence those currency that has higher interest rate will be attractive to investors. As more investors buy into those currencies, they will appreciate. b) The nation must have budget surplus. Budget surplus means that the nation is earning more than it spends. c) GDP growth must be healthy and positive. Healthy GDP growth increases confidence to investment community and hence higher probability of capital appreciating. After determine which currency to buy, we will check out the trend of the currency. The saying “the trend is your friend” is always true. We will use our Trend Identifying Strategy to determine the medium term trend of the currency pair. It is easier to ride with the trend rather than the go against the trend. Move onto next step if trend shows uptrend. Next we need to find out the behaviour of the currency pair that we want to trade. This can be performed using our FX Behavioural Software. After finding out the past behaviour of the currency pair, we can use this information to generate buy / sell signals. We will proceed to next step when the signals show buy. Identify the support level for the currency pair. We will always buy near a support level. If the current price is far from support level, we will wait for better entry level. Finally we will determine where is our stop loss and target loss. Make sure that we do not risk more than 2% of our capital for each trade. All predictions are a matter of probabilities, not certainties. Hence all trading decisions must come with managing losses. By risking only 2% or less for each trade is our way of managing losses. This is how we trade and we have been doing well in our trading. See here for our track record. To find out more, send email to us at metal.commodity@tradingeducationprogram.org.

*Commented-by*:	Mike Chan (Singapore)	Date: 19-May-2010
*Comments*:	Hi Chee Wan, Are you a trainer? Do you provide the course in Singapore? From your strategy, I guess it applies when the market condition is normal. With the current volatile market and the concern of Europe financial problem, can you still apply your strategy as per your explanation? -Mike Chan

My Forex Trade Preparation
Shared-by:	Ming SIng (Singapore)	Date: 19-Jan-2009
Topic:	Trading Plan/Preparation
Info:	I would like to share how I prepare my self to trade Forex. 1. Overview of Forex market on the fundamental/News 2. Focus on 8 currencies that I monitor, and see what happens to their trends. I will look at daily chart. Most of time, I will trade align with the currency trend. 3. See a correlation between strong and weak currencies. For example, I look at GBP/USD, EUR/USD, and EUR/GBP to see if EUR or GBP is stronger. Buy the strong currency and sell the weak one. 4. Apply the strategies manually to see which currency pairs have good set-ups. I do not share the strategies as each of traders have their own strategies. 5. (Most Important) Wait for the currency pair to reach my set-up zone. This is the part that psychology plays an an important role. I have to admit that I sometimes go into a trade too early. But as I have more experience, I can control it better. 6. Make a decision if I want to take a trade or not. For example, if the particular pair has a trade set-up but it is not aligned with the trend, I will not take that trade. Finally, if I do not feel comfortable, I will not enter a trade either. 7. I will put the stop-loss immediately after entering a trade. Based on my experience, during the volatile market, the broker will sometimes spike the price to stop me out. I avoid any trade during the volatile market (news announcement, etc.) 8. After monitoring for a while and if I make 20 to 50 pips, I will adjust my stop-loss to break even. Never give back the winning trade to the market. 9. I will sometimes take out a profit or keep adjusting my Stop-Loss until I stop out (with a profit).

*Commented-by*:	Ming Sing (Singapore)	Date: 22-Jan-2009
*Comments*:	It is not easy to explain my strategies here. Anyway, it does not mean that you can trade successfully using other people strategies. Once you have enough experience in Forex market, Forex strategies only account for SMALL percentage in deciding whether you can trade successfully or not. There are so many strategies on how to trade Forex successfully. You can try to refine and adapt it to your trading style. You can start looking at forexfactory.com if you want to learn about Forex strategies.

*Commented-by*:	Bill-Trader (Singapore)	Date: 19-Jan-2009
*Comments*:	Thank you for sharing this info. It is very helpful as guidelines for beginner traders. It would be nice if you can share your strategies.

Guide For Newbie Trader
Shared-by:	Kitty Trader (Singapore)	Date: 02-Feb-2009
Topic:	Trading Plan/Preparation
Info:	I read one of the article on how to guide beginner traders to join Forex market. This is how I summarize them: 1. Education on Forex Market You must learn from experts. You should either invest in good books or take the Forex workshop. If you do not invest in education, you will NOT succeed. 2. Time You must spend time to learn and understand the market. If trading Forex is important to you, you must spend time. If you do not have time, forget it. 3. Mentoring You must find a good mentor especially when you just start out. The mentor will short-cut your learning curve. But, finding a good mentor is a very challenging task. 4. Forex Price (Market) In any other trading, it is about to understand the price movement. You must spend time to understand the Forex market price movement. To be more specific, look carefully at the price in the morning, afternoon, evening, news announcement, Monday, and Friday. You try to figure out why the price moves little or much during that time. 5. Price Prediction Do not try to predict the price movement as the price will move in randomness. You do not try to predict (before looking at the charts/fundamental) where the price goes, and take the trade. Look at the price movement (and fundamental), and take action accordingly. It is better to go with the current price direction (trend) 6. Risk You must understand your risk (emotion, capital of your money, logic/common sense, etc.) If you want to last long in Forex trading, you must be disciplined about it. Do not do over leverage, and take too many positions at one time. 7. Patience If you do not see a good set-up, do not take any trade. It is very important to wait for a good trade, and not to be emotional to jump into the trader after winning/losing a trade 8. Strategy/System You must adapt a trading strategy as your own. This will allow you to be more disciplined in your trading. Note that there are thousands Forex trading strategies. If you can adapt one and make profit out of it consistently, you are already successfully. 9. Yourself If the Forex trading is not suitable to you, STOP. If you do not feel comfortable after trading for 1 year, STOP. If you like Forex trading, you have opened an opportunity to be able to reach a financial freedom.

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Trading foreign exchange carries a high level of risk, and may not be suitable for all investors. It is a challenging and potentially profitable opportunity for educated and experienced investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose.

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