Forex Strategies – Daily Charts Are Your Friend

Forex trading can be a very profitable business if you know what you are doing and most importantly have the time to do it. Most new traders get into the game learn about scalping and making the quick bucks trading on 5min and 15min time frames. While the lower time frames do work for many people and many are profitable with that time of trading, I find it constraining with my lifestyle.

I started trading my freshmen year of college and with classes and a part time job; I could not afford the time to sit in front of a screen starring at charts. This is where the problem arises, scalping requires you to pay a lot of attention to charts and make sure you get in and out quickly. I tried this for a few weeks and could not keep up with everything in my life, and I found a lot of other traders facing this issue as well. This is why I have changed a lot of my trading strategies to higher time frames such as the 4H and Daily charts. Now this was not an easy move and I was hesitant, since I thought it was too slow and I would not make enough profits to be happy. I quickly learned I was wrong and over the last three years have made an effort to perfect my trading using high time frames.

There are many strategies to trade using higher time frames and they lend themselves for people who have full time jobs, go to school, or just do not want to sit in front of a computer while life passes them by. My normal trading day now is a lot less hectic than before, I look at charts 2 to 3 times a day, unless huge news comes out from somewhere. I do this by using support and resistance lines, which i will go into more soon, also browse just a small number of news sites and blogs to make sure I know what is going on in the world.

My main method of trading uses support and resistance lines based on 4H, daily and weekly candles. Support and resistance lines are used by traders worldwide to see where exactly price action has issues breaking through key levels. For instance when the EUR / USD goes above or below the 1.40 level, we would refer to that as a key S / R level, since many traders will put high emphasis on it. This is because if price breaks the 1.40 level price normally keeps going as many pending orders all filled right after by not just traders but banks and funds.

The main thing to learn about being a trader in the forex world is that you are insignificant; the real players in forex are the banks and hedge funds that can sell or buy millions and billions in a single order. This is why by setting pending buy and sell orders where they set their orders we can make profits. I also try to stray away from too many fancy indicators, since they clutter the charts and confuse more than inform you as you trade.

These are the basics of trading high time frames and being profitable without sacrificing your entire life. Remember you are just one trader go with the flow and do not fight price action, because you will lose.

Source by Gustavo Feliciano

Forex and Equity Trading Demos

Forex and equity trading demos are an easy way to learn the nuts and bolts of the forex market immediately and without the risks involved when you trade with a real money account. The foreign exchange is a dangerous financial market for beginners and intermediate traders too.

Of course you can learn the basics of forex trading by reading books and taking online courses, but the best way to understand the forex market is by doing, ie trading the forex with a demo account online … This way you can get real- time quotes and practice the currency exchange market at your ease.

Many forex brokers and financial websites offer forex and equity trading demos. Of course they give away the free software as a promotion for their paid services that you will pay for if you will open a real money account. This services cover many needs of the forex trader:

  • forex signals
  • reading the charts
  • managed accounts
  • automated trading, etc.
  • 24-hour Trader Support
  • Negative Balance Protection – No Debits

If you think that if you pay for a forex demo you get something better, think it again: there are a lot of reliable websites that offer free demonstrations. There's no plausible reason you should pay for it.

When you download a forex demo you get a user id and a password and then you have to download a forex trading platform (software). Some companies offer forex and equity trading demos with no software download needed , all trading activity is simply done over the Internet. After deciding how much virtual money you want at start, you can begin your forex training experience.

Now you can play your game in the forex market with all the fun and no risk at all: your currency exchange activities happen in the forex demo only and not in the actual market. When something changes in the real market you will see how much you should have gained or lost with a real account.

Sometimes you will lose a great amount and you'll breathe a sigh of relief because it was only a demo, but other times you'll come to regret if you'll see your money account increasing and you were just "playing a game. .. "

Source by Carlo Callone