You Can Win at Trading Forex, Here’s How
You are unsure you can trade Forex or you tried and failed. Maybe you are skeptical that anyone can trade in a market this big against all the central banks, large banks, hedge funds and professional traders. You would be right to wonder about this. It shows that you are a prudent and thinking person.
But let’s face it, people like you and me are making money every day in Forex. People that is who understand a few simple principles. What are those principles?
First, you must understand the basics of what pips are, what currencies are, why they are in pairs. All the basics. You don’t need to know all the of the things taught in the $5-10,000 dollar courses. In fact, you are being taken to the cleaners if you buy into one of those systems in particular after you are finished they asked you to pay a monthly fee for some reason or another.
Second, you need to learn where the market has weaknesses. It’s that simple. When you find a weakness, you exploit it. This is not rocket science although people seem want to make it that way.
Where are the weaknesses?
If you have played any sports you know that one of the main principles is to locate the teams weakest link and exploit it until they take that away from you. The market acts the same way. However, one thing never changes and that is momentum.
Momentum is the current of the market. If we know with a high probability when the current is going to change or when it is going to get stronger than we can make money in Forex.
The RSI, the Relative Strength Indicator, which is part of every chart trading system can give you this information.
What do I mean when I say “can”?
RSI on its own on your chart tells you nothing. There is a line that moves up and down over a range of lines from 0 to 100. Blogs and websites will tell you to use it for determining overbought or oversold conditions. This is wrong.
You will need to become adept in understanding divergences and reversals. These are tradable signals found on RSI. They occur in large numbers so that it is difficult to keep up drawing them manually. That is why I developed The RSI Paint Indicator which draws them automatically.
These signals tell you when to enter and when to exit at times of momentum change and they can be traded on any time frame and on as many currency pairs as desired.
You can win at Forex. I have taught many people to use this system and for much less than the thousands of dollars that some sites are asking. Within a couple of days you can become an expert in trading Forex by understanding how momentum works on your charts. You will be amazed at the results.