Forex Trading Strategies – Best Way to Make Money Trading Currencies

my name’s Andrew welcome to this video which is all about the best Forex strategies to trade for profits and what we’re going to look at is not only the best strategies we look at strategies you should avoid as well and the strategies to avoid are probably the most popular, but don’t let that worry you, because 95% of forex traders lose the first place, I’m going to start in terms of the worst strategies are any that are connected with day trading or scalping day traders and scalpers don’t make money you hear a lot of people saying that they do, but they’re mostly people selling day trading and scalping systems the volatility in short term time periods within a day or within a few hours a totally random and any standard deviation test you do would show you this why do forex traders day trade I think, because basically they’re gamblers or they’ve just fall for the myth of the action you know being in there they’re going to make money or hit the big one, but really they should go to a casino they’ll make more money and have more fun now another strategy which I want to discuss which is extremely popular, but it’s total nonsense is the Fibonacci number sequence you’ll see serious bankers brokers recommend this is a good trading strategy, but, let’s just look at what Fibonacci actually was in terms of a strategy and it wasn’t a strategy at all it has nothing to do with forex it was done in 1202 I think by an Italian guy called Leonardo Fibonacci and the Fibonacci number sequence comes from a problem to do with the copulation of rabbits and the basic formula comes from this it’s like, if you have a pair of rabbits and they produce another rabbit, and then a month later you get a rabbit pair producing more rabbits you obviously got increasing numbers of rabbits there you might be saying what’s that got to do with forex trading the there is absolutely nothing it’s complete nonsense, but today you will see people selling systems based upon Fibonacci apparently there’s retracements in the number sequence which equate to universal law and all this sort of thing, if you take the retracements just test them they don’t work I mean they work sometimes, but most time they don’t work on from Fibonacci look to other scientific systems which are Gantt and Elliot wave theory both again say they can predict the future you should try them, because of ease accuracy horoscope they should be avoided now the next bad trading strategy would be any forex trading robot just generally, but specifically the ones that say they use artificial intelligence and neural networks to make money it will sounds very complicated it all sounds wonderful, but forex markets are simple artificial intelligence and neural networks has to do with science forex markets don’t move to science and you’ll often see robots saying they can predict the future they’ve got artificial intelligences predicting where the markets are going to go and working really hard just for this in perspective I’ll give you how far we are with artificial intelligence most sophisticated robot can actually fold a towel and that’s a major breakthrough done by the University of Berkeley California, so you can see how far you are away from actually having a robot the commitment avoid all this nonsense to do with robotic trading you know markets do not move to science they only moved to the odds, so what we’re doing is we’re only dealing in probabilities not certainties, so now we’ve trashed a few theories what strategies work in the market well, I’m going to look at you know my two favorite ones here actually and the first is, if you really want to make money in forex markets there’s one theory of market movement you should study and it’s Dow Theory Dow Theory is terrific, if you understand Dow Theory you can build a system to make money now I haven’t got time to go through everything to do with Dow Theory, but it’s basically an odd spaced excuse me an odds based method of trading where there’s certainties, but it gives you some really fantastic insight into how the market is moving from accumulation the trend following to distribution which you can trade for a profit, so, if you got to build a trading system make sure you study Dow Theory another great way of making money in forex trading is to trade breakouts breakout trading is simple what you do you look at a currency and, if you’re trading it all you wait for is a break of resistance to a new high all big trends start by breaking the new high in a bullish market and new lows in a bearish market you just need to go with the breakout most traders won’t do that, because they want to buy the very low of course when the breakout moves they’ve missed it, but the odds are in your favor, if you do this it’s a timeless way to make money and any trader should study breakout trading, I’ve only got time to give you a couple of the best strategies, but, if you study the two I’ve given you can make a lot of money with them and all the ones that we mentioned before that remember they might be popular the majority might use them, but the majority lose always remember forex trading is an odd scape, if you play the odds you’ll make money thank you very much for listening and I hope you enjoyed my little look at the best forex trading strategies.

This entry was posted in How to Drive Traffics, Passive Income Ideas. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *