Aug 7, 2008

ForexGen Explains How to win

The way to enjoy currency trading success is not to attempt to predict - but to act on the reality of the price change.Let me give you an example that will make this clearer.Let's say you see a currency coming into test major support and you think it's going to hold.You do not simply execute a trading signal into the level of support - you wait.You wait for support to hold and prices to turn away from the level - supported by price momentum.Using Momentum if you don't know anything about momentum indicators, then make them an essential part of your Forex education.These momentum oscillators will help you confirm changes in price momentum and allow you to see visually when price is strengthening away from support. You may say I will miss the turn and sure you will - but you don't know it's going to turn in advance!There is an old saying:"A bottom picker becomes a cotton picker"And its right, try and predict market lows or highs and you will end up losing your trading account equity.Great momentum indicators to use are: The Stochastic, RSI, ADX etc - we don't have time to cover them here, just look them up in our other articles.They are excellent indicators and will get the odds in your favor.This is what Forex trading is a game of odds - not certainties.Don't let that worry you though if you can trade the odds you can make a lot of money.If You Want To WinTrading is not about trying to be clever and catching the exact turn, no one can do that - so don't try.Trading has one aim making money and don't worry if you could catch just 60% of all the major trends you would be very rich.