How to trade forex profitably like the banks.

How to trade forex profitably like the banks

Trading profitably has always been a challenge to majority of traders. Statistically, it has been stated that 95% of traders lose all their money. It all boils down to that which this percentage of traders do wrongly. Could it be that there is a stereotypical approach that makes most traders to fail in the forex market? Today, I am to officially let the cat out of the bag and expose these things that professionals, as listed above, do to stay profitable in the forex market. I am going to spare you all the professional jargon and ensure an easy understanding. Tighten your sit belt. It is going to be an interesting ride.

Profitable traders don’t trade based on indicators. It is difficult, if not impossible, for an indicator trader to stay profitable in the market. Traders don’t trade in isolation, you have to be where the rest are: where the major players are. How does one spot the position of the major players? Do indicators show where they are? No. Obviously, there is a zillion settings to an indicator. It is impossible to locate where they are based on these indicators. Moreover, indicators are what it is used for: analysis reporting. It is what analysts at CNBC, CNN and other news agencies use to report the market. It will be fatal to use these indicators to trade.

There are mainly two categories of traders in the forex market: buyers and sellers. Their activities are represented in the charts that we see. Every news, economic policies and event are represented in the chart.

The movement of the market is monitored horizontally. Market movers trade base on these levels. The movement of the market forms swings (peaks) as it progresses. It takes the activities of a trained eye to locate these levels, mark them and continue to watch them in order to take trades base on them. Below is an unmarked chart.

EURGBPDaily

Trades cannot be made based on this. There is no pivotal point. (click to view)

EURGBPDaily1

Trades can be monitored and executed based on this chart. Levels are identified.

Lines above the current price are called the ‘sell area or supply area’ because these are where sellers abound and likely to sell the currency and push price down while lines below the current price are called the ‘buy area or demand area’ because buyers abound there and are likely to buy the currency and push price up. Screen time and training are what is needed to locate these levels. The more one spends extra time and employ the services of a trainer, the easier one can locate these levels.

In conclusion, horizontal levels’ trading is the most profitable method of trading. Market movers trade base on these levels. Traders are advised to stick to this method of trading. Future articles are going to reveal how to take trades and the quantity of lot a trader is advised to execute. So, keep coming back and invite all your friends, let’s make forex trading profitable once more.

Let me know what you think

(Visited 263 times, 1 visits today)
Categories: Trade Articles
}