GUN TO YOUR HEAD - HOW WOULD YOU REALLY TRADE THE FOREX?
One of the attractive aspects of the Forex Market is the ability to experiment and create 100s of systems using various combinations of Indicators, Candlestick Patterns, Economic Data, Support and Resistance Prices and Time Frames. You can choose to practice with these strategies to capture targets from as low as 10 Pips to as many as 500 Pips or more per trade. This process can continue for as long your heart desires with traders in the many trading fora providing you with opinions and assistance along the way.
But what if someone put a gun to your head and told you to NOW choose the strategy that you are most sure about that is most likely to provide you with profitability - or you would have to suffer the consequences of Failure and Poverty!
Which strategy would you choose?
THE GOOD THE BAD AND THE UGLY
All strategies and systems will have their drawbacks and advantages. None will be perfect from any persoective (Risk Reward Ratios, Win Loss Ratios, Small Stop Losses, Large Pips Per Trade etc.) and you can waste years trying to find it. However, there is a strategy that is perfect for you that takes into account your personailty, how calm you can remain after you have opened the trade, how you handle losses and gains and recover from the disappointment and euphoria of them that will almost guarantee your success!
In other words, your nervous system will tell you what you can handle when something real is on the line! So come on..time is running out...which one is it!!!???...
INDICATORS VS CANDLESTICKS VS SUPPORT/RESISTANCE
Indicators are very popular tools for trading and predicting market direction. But given the drawbacks of Indicators due to their lagged effect and use of past price data, will you put your life on the line for them?
What about Candlesticks? They allow you to keep your charts clean and see the movement of the market more clearly. But given that they require large Stop Losses when they are finally formed especially on the Larger Time Frames, are they worth it?
Support and Resistance can solve this problem by allowing you to enter with smaller Stop Losses before the Candlesticks are formed. Sometimes you can find yourself only needing 20 Pip Stops to enjoy a nice 100 Pip Rally! But given that you can never be too sure which Support/Resistwnce will actually lead to that rally, when it will lead to that rally and that the market breaks these areas several times before actually rallying, would you still risk taking these initial losses given the uncertainty of this rally? I'm sorry I can't hear you!!...
SMALLER VERSUS LARGER TIME FRAMES
This is one of the most critical choices and dilemmas that Retail Traders face. Should we trade the Smaller Time Frames that offer small Stop Losses and quick moves but more False Signals? Or should we use the Higher Time Frames that have Fewer False Signals but require Larger Stops, while offering fewer trades per month?
Day Traders and Scalpers prefer the Smaller Charts because of the speed of profits and the ability to accummulate large turnover within a day. However, the emotional toll can be significant given the limited time to recover between trades to remain objective and the larger number of false signals that can affect your confidence.
With the Larger Time Frames, you will have fewer trading opportunities per week and per month to take advantage of the Forex. Stop Losses are larger and the market takes a longer time to hit its targets. You can therefore become impatient when waiting for these opportunities and become frustrated if you missed a setup.
Nevertheless, many choose this approach because these trading opportunities tend to have a greater chance of success. With fewer false signals, you are more confident that each trade will be profitable. Even it means holding on for a few days, many Swing Traders believe it is worth the wait because of the greater guarantee of success from the fewer trades each month. But the question is, will you be able to patiently wait for these setups with the clock ticking and the gun still at your head and the deadlines fast approaching to meet those payments? Knowing that these trades have the best chance of giving you consistent gains? Can you?...
There are many well-intentioned Forex Courses and Mentors globally. However, most fall short of the mark in terms of what you really need to take advantage of the Forex because of the limited Testing and Research that went into creating their Systems.
This is why they only work in the Short-Term.
To correct this, you need to have a totally new approach from the ground level with theories that have been extensively tested for 10 years, during both Normal and Abnormal market conditions.
This is what you will finally get as a DRFX Subscriber.