Forex Trading - Four Live Trades Given 4 Right and a Forex Lesson For Bigger Profits

By Kelly Price

At the start of this week we gave you four trades and made four profits. Were not going to tell you how clever we are or were gurus were not - were simple traders with 25 years experience and will share an important forex lesson with you that you can use for big profit potential to:

Trade of the odds and act on momentum changes and you can do it to.

Lesson 1 - Don't Predict!

You will read a lot about how you need to predict markets - this will simply mean you will lose.

You need to wait for confirmation and then trade.

You can see how logical and profitable it was, if you followed the trades.

The background

Speculator positions were at an extreme, with speculators to long:

British Pound, Euro and Canada Dollar

and to short yen / dollar.

The market flushed them out - but this does not mean the primary trends were over - we just needed a correction.

Support and Resistance

We simply looked for momentum to wane into significant support and resistance and then looked for price momentum to turn up in line with our view above or below these levels.

For this we used:

The Relative Strength Index (RSI) and stochastic indicator - if you don't know how they work learn how to use them.

The key when entering a trade - is not to hope levels of support or resistance hold but to have proof - that way you are not hoping or guessing, you are acting on the reality of price.

The change in momentum below resistance in the yen and above support in the others, was the trigger to enter.

The number 1 Rule for executing trading signals is:

Have price momentum on your side - never trade without it.

There are other momentum indicators, but the two we used above are:

Simple to learn, simple to apply and can make great profits - as you have seen in a live trading scenario.

Use These Tools There FREE!

Unlike many people who write on the net, we are traders, NOT selling junk systems that don't work that tell you to predict.

We know that forex trading is an odds game - not a game of Prediction and this is a lesson you need to learn to.

We just proved how effective it is and you can use it to and best of all:

These Tools are FREE!

You don't have to pay anyone to use them - every good chart service has them so make use of them and as you have seen they can and do make big profits as we have shown you.

About the Author

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