If you read our currency trading big profits for the week ahead from Sunday and took the trades you will now be sitting on huge profits for the week.
Are we gurus or knew what was going to happen of course not! The lesson is in timing moves with a sensible strategy that anyone can use.
Lets look at how you could use the tools we used to pile up huge gains.
The Importance of entry
We all know this is the key how do you get in with the best risk reward with your currency trading?
The answer is the Bollinger band and simple support and resistance the bands give you targets and support areas to focus on.
Now for the hard bit, timing your entry!
Timing the entry
Many traders like to predict the market and get in early this is a mistake.
You should always wait for strength if you want to go long or weakness if you want to go short.
This is where the stochastic indicator is so effective. As a short term momentum indicator it is un rivalled and trading bullish and bearish divergence is extremely effective.
The result
We focused on 5 trades (while we gave advice on the yen we decided to stand aside although the advice was correct) but the other 4 we took and piled up huge gains for the week.
Focus on the long term
Our view last week was to get in to our trades focusing on the long term dollar downtrend.
We had a good dollar correction to the upside that was obviously running out of steam and acted accordingly and got some great profits.
Keep it simple!
Many traders will say or currency trading last week was simple strategy, we will take that as a compliment thats what trading should be!
The more complicated your strategy is the more likely it is to fail. There is no correlation between a complicated strategy and profits in fact the reverse is true, the simpler the strategy the more robust it is in the face of brutal market conditions.
When trading currencies keep in mind the following:
1. Focus on the long term trend
This is the way to make huge gains forget small moves the odds are not on your side and profit potential is not there to cover your inevitable losses.
2. Look at charts for areas of support & resistance
Then use Bollinger bands and stochastics to define and implement your entry points and stop levels.
3. Hold on to the trends
Its always tempting to bank and snatch profits, but if you have confidence in your trading and the trend is in your favour hold on keep in mind currency trends last many months or years and you need them to make big profits.
Is it really that simple? We think so. We were right last week on all our trades, ( and we did even better in energies check out our reports ) of course we could have been wrong, but our entries were timed well and had close stops for risk control.
Try the above for yourself and see if the tools and tips above can help you make bigger profits from your currency trading!
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