Profitable FX Trading Strategies

There is no standard strategy that can be safely applied when it comes to Forex currency trading. Basically, what may work for one may not necessarily fit your trading needs and you must therefore devise your own strategies that can guarantee success in the long run.

You need to first analyze the market using a technical analysis approach or the fundamental analysis approach to plan your moves. While technical analysis refers to forecasting future movement based on past performance, fundamental analysis refers to studying current accounts and impact of imports and exports on currency flow.

Understanding how volatile this market is, every experienced trader understands that it is not practically possible to generate profits from every trade. However, as you study this market closely, you will be able to work out better strategies that can minimize your risk levels.

How To Get Rich In FX Currency Trading

Can you get rich in fx trading? Yes you can, anyone has the potential to learn to be a trader - it's a learned skill but 95% of traders lose, so what do they do wrong and what do the elite 5% who win do right? The forex trading advice enclosed will give you the answer and the answer may well surprise you.

Let me start with a well known story which shows anyone has the potential to be a winner at forex trading:

In the 1980's trading legend Richard Dennis set out to prove that anyone could be a winning trader and trading was a learned skill. So he got a group of people who had never traded before and taught them in 14 days. He then set them off to trade and the rest is history. They made Dennis over $100 million dollars in 4 years and went onto become trading legends.

So if it's that easy how come everyone doesn't win? Well first you need the right education - but you need something more which Dennis understood and you need to as well.

The trading method taught was simple ( essentially a long term breakout strategy with strict money management) but Dennis knew it would be hard to follow it so he taught them everything about it, to have confidence in it and execute it with rigid discipline through long periods of losses to achieve long term success.

Currencies Technical Perspective

EUR/USD Current price: 1.4374

By the end of American session and with volume still thin, DJIA managed to close the day slightly positive still at the highest close since October 2008, favoring a late dollar recovery that will likely extend to regional stocks markets.

Hourly charts show the pair losing upside momentum and turning lower after breaking under the 20 flat SMA. 4 hours charts show indicators exhausted to the upside, favoring also a slightly bearish perspective for next hours.

Support levels: 1.4350 1.4320 1.4280

Resistance levels: 1.4420 1.4460 1.4485

GBP/USD Current price: 1.6000

Holding to earlier upside strength, Pound is attempting to hold above the 1.6000 level, still with no confirmations of an upside continuation.

With hourly indicators turning lower and price action above 20 SMA still slightly bullish, only above 1.6030 resistance area pair could regain some bullish momentum, thus bigger time frames indicators look a bit exhausted to the upside, limiting rallies to the 1.6060 resistance zone.

Support levels: 1.5965 1.5920 1.5880

Resistance levels: 1.6010 1.6030 1.6060

USD/JPY Current price: 91.66

Favored by Wall Street, pair holds the bullish perspective despite still in a tight range. Hourly charts show indicators flat, with price above 20 SMA acting as dynamic support for the pair. Bigger time frames indicators are also flat, not giving clear clues; however, an acceleration above 91.85 highs area, likely to open doors for further upside runs in the pair, with 92.40 as next key level yo watch.

Support levels: 91.30 91.10 90.80

Resistance levels: 91.85 92.10 92.40

USD/CHF Current price: 1.0353

Slightly bullish after testing 1.0320 support zone, hourly chart show pair mostly flat with 1.0360/70 area as first level to watch, followed by 1.0400 where we found 40 SMA in the 4 hours charts with a strong bearish slope.

Only above that level pair could confirm an upside continuation. Remember official and non official SNB intervention has took place in the last days of the month, for the past 3 months. With EUR/CHF at 9 months low, some movements could be expected during next European session.

Support levels: 1.0320 1.0280 1.0230

Resistance levels: 1.0365 1.0400 1.0440

How To Be A Successful FX Trader

To be a successful FOREX trader you need a trading strategy. There is no one set strategy that is good for all traders; rather, each trader needs to develop his or her individual approach to the FOREX. Some traders rely solely on technical analysis while others prefer fundamental analysis,
but many successful FOREX traders use a combination of both to get a broad overview of the market and for plotting entry and exit points.

Technical analysis relies on one key concept: Prices move by trends. The common saying in FOREX is 'The trend is your friend.' Market movements have identifiable patterns that have been studied over many years and a thorough understanding of these trends and how they can be read forms the basis of a good trading strategy.

There are many analytical tools available to understand market movements. The beginner FOREX trader is well advised to study each one separately for getting a working knowledge of their concepts and application. Once one has been understood, keep on using it while studying others. Each tool tends to reinforce the others.