Ive been trading for a number of years now and have come to grasp that if you are trading one of the major pairs, especially the British and European-based currency pairs like the GBP / Bucks and the EUR / Dollars , then this is the most productive period to trade. So because this session is arguably the most successful, it is those currency exchange merchants, ie those based in the United Kingdom ( and indeed Europe ) who benefit the most because this period is a particularly convenient time to trade. So many currency exchange amateurs set their sights on the large profits by attempting to call tops and bottoms of any price moves, but this will have a disastrous result on your capital as you are trading against the trend. If all currencies turned around when categorical technical indicators indicated they were overbought or oversold, then we might all be rich, but sadly it's not that easy. This is the reason why its way easier to trade with the trend. To identify the trend all you do is study the price chart and if the price is making higher highs and higher lows its in an uptrend, and vice versa for a downtrend. Click link for latest news on stock market investing. By that I mean that even if your entry point isn't that great, you'll fairly often find the trend will at last overcome and rescue your position. A good way of trading the trend is to use multiple time frames and look for instances where the the trend is in the same direction across each of these time frames. The critical point to recollect is that its a lot simpler to trade with the final trend than it is to attempt to call price reversals all of the time. Remember a trend is always much more likely to keep on trending than it is to reverse, so you know that you usually have chance on your side when trading with the overall trend. Sadly it isn't so convenient for US-based traders, for example, to trade the opening hours of the London session as it is the middle of the night for them.
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