Tuesday, January 6, 2009

How to trade Forex ??!

Choose a longer time frame for direction analysis and a shorter time frame to time entry or exit.

Many traders get confused because of conflicting information that occurs when looking at charts in different time frames.
What shows up as a buying opportunity on a weekly chart could, in fact, show up as a sell signal on an intraday chart

Calculate your expectancy.

Expectancy is the formula you use to determine how reliable your system is.
You should go back in time and measure all your trades that were winners, versus all your trades that were losers.
Then determine how profitable your winning trades were versus how much your losing trades lost

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