How to Make your Forex Trading More Profitable

Forex trading means buying the currency at one price and its immediate resale at a higher price to get profit. Another variant is possible, at first you sell, then buy at a lower price, but the goal is the same – making a profit. At the first view, this activity seems to be simple but in fact, it hides the serious work, concerned with the market analysis, the choice of time for entrance, checking the current market trend, the choice of the point to close the order. Such process can take as minutes as the months. You can never predict the result, it can be profitable or not.

Forex Strategy
Forex Strategy

 

There are many methods to analyze the market, to make the decisions. These methods are the fundamental, the technical, psychological analysis and others. As the rule, trader uses some methods of the analysis, combining them in the comfortable proportion. As the consequence, he gets the own best Forex trading strategy.

The result of his trading depends on the effectiveness of the strategy. The work on Forex is unpredictable, and it’s impossible to determine the future movement of the exchange rate. However, it’s possible to increase the probability of success through the effective trading strategy. The trading strategy is the model of your work on the Forex market. It doesn’t allow emotional decision-making and shows the trader how to act.

All the professional traders know that the effective Forex trading strategies, with the skillful management of capital, can afford to earn on Forex market. It is obvious, since only a good trading system explains when and what should be done in any market situation.

When traders use trading strategies, they save their time and efforts, making the necessary decisions; they exactly know what actions will prevent their money from the unnecessary risk and what actions are needed to increase trading profits.

The work of traders is the constant fight with the emotions, greed and fear. It’s the ability to be always balanced.  I wish you win in this fight, and develop your own Forex trading strategy, which will bring you profitable and enjoyable trade.

Also try to use some Forex trading tools that can make trading more profitable. Use such tools as Fibonacci and Camarilla calculators and don’t forget about Metatrader custom indicator that can show live major Forex news directly on your chart.

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Using Forex Indicators For Technical Analysis

One of the popular trading methods used by forex traders is the automated trading robot. This is the idea that someone has programmed a series of instructions so that when specific forex indicators are met or matched, a trade in your software platform would be initiated. Then, when specific profit targets are reached, the trade would close or if the trade goes in the wrong direction, there would be a stop-loss that would be triggered.

Some of the indicators used to determine the programming behind the automated robot include the moving averages, Fibonacci sequences, Elliot wave trading, and anything indicating a trend in one direction or another.

The difficult part of using these is finding one that has a proven track record with multiple currencies over multiple time periods. These would be based on sound fundamentals that although they may not produce the results claimed by some of these robots, they would be very likely to produce results in any market and with multiple currency pairs.

You could also use these to hedge one currency against another or multiple currencies at the same time if the method itself is working. In some cases and in some circles, this hedging is also known as forex arbitrage.

Once a robot has been created by using software and programming the signals, ins and outs of the trade, then it can be run on the software platform against historical data or charts covering the past year, 2 years, or even further back.

Some trading robots are designed to work with only one specific currency pair and based on the trend of a currency pair over a given period of time, would be profitable. But if that currency pair trend was changing just now in the opposite direction, it may prove to be a loser instead of a consistent winner.

Those robots that are based on sound principles of trading and are able to generate successful trades on one currency pair, should be able to do this on multiple currency pairs. Testing should also be done on multiple historical periods as well both short term and long term.

Several websites have these types of robots that can be downloaded and reviewed by other traders. One other downside to this is that some traders who have a mindset of scarcity first of all wouldn’t want to share their program and wouldn’t necessarily give it a good review, even if it did produce revenue for them.

This shouldn’t be a worry, however, as the market itself is a multi-trillion dollar market and millions of transactions are occurring on a regular basis. Forex indicators can play a big role in developing these trading robots and if they aren’t at least considered, there is usually no basis for any automation at all.

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