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I am a forex trader. My forex experience started 6 years ago when I invested my 500 dollars in the forex market. After losing all of the initial sum I reconsidered my trading and developed a succesful trend trading system. That's when I became profitable. I came back to forex market with a... More
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fibo777
  • Top Trading Strategies For Any Financial Market 0 comments
    Jun 9, 2012 10:44 AM

    When one thinks about making profits investing in securities one naturally thinks about having a good trading system. And that is natural, if you want to have progressive profit you must know and understand why, how, where and how long you are doing what you are doing. If you jump from one trading method to another you will probably lose more, to say nothing of having long term profits. I can speak from my own perspective. I have traded both stock market and Foreign Exchange market and when I started the only thing I had was losses. Why? I was using a dozen of strategies at the same time without really understanding how each one of them worked. It changed when I started noticing prevailing tendencies in currency market and developed my own unique trend following system.

    At that time (in 2004) dollar was constantly declining and after the New Year (2005) eur/usd pair formed a very interesting reversal pattern. It was actually head and shoulders pattern. After a few months the pattern was confirmed and the pair nosedived over a few thousands pips lower. For some it was great profits. For me it was a good lesson to always trade in the direction of the move. That's how I got interested in various trend and swing trading strategies. So tendency trading is the best method to make profits in any financial market of your choice.

    Second best is range trading system. Having mastered the first method you can move on to the second one. Isn't the first system not enough? Yes, and no. Markets can stay for too long in a range before a trend develops. And if you analyze various peculiarities of a range bound market you will sooner or later notice that it is full of opportunities. When price is contained within narrow boarders price usually goes to the top of them and then back to the bottom. This creates wonderful opportunities to buy low and sell high (or buy cheap and sell expensive). I prefer placing a few more filters to avoid bad trades and pick up the best ones.

    The last strategy is breakout trading method. This used to be one of the best trading ways for famous technical traders, investors and speculators of the past. It is a bit too complicated now as we have too many false breakouts nowadays. One often finds himself in such a situation when markets breaks through top or bottom of the range just to come back to the same level (back to range) within a couple days from the time of breakout. However, market finally does breakout and a trend begins and all your losses are covered and profits start growing.

    I hope the article was useful. I have recently written an article that covers many more profitable trading strategies and you can find it there:

    http://trend0.blogspot.com/2012/06/top-15-forex-trading-strategies.html

    For more resources on similar subjects visit websites:

    http://www.forextradingstrategies.org/

    http://forex-strategies-revealed.com/

    http://www.fxstreet.com/technical/forex-strategy/

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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