Successful in the trading FOREX
To be successful in the trading game, there are some rules to follow. By violating the rules, you will definitely on the losing side of the game. Regardless of all the trading books and newsletters that have cropped up, all of the market gurus are sharing and following the same trading rules. You can't live without them if you want to succeed in your trading. Here are the rules to successful trading, in random order, and they apply in all trading situations:1. PLAN YOUR TRADE AND TRADE YOUR PLAN
2. THE TREND IS YOUR FRIEND
3. FOCUS ON CAPITAL PRESERVATION
4. KNOW WHEN TO CUT LOSS
5. TAKE PROFIT WHEN THE TRADE IS GOOD
6. BE EMOTIONLESS
7. DO NOT TRADE BASED ON A TIP FROM A FRIEND OR BROKER
9. WHEN IN DOUBT, STAY OUT
10.DO NOT OVERTRADE
Happiness Trading...
I have been trading with success, my own trading system, called KAS37 Forex Trading System. I Hope every Forex Trader would benefit from it.
Try it in demo account first, get the feel.
SETUP :
1. Bollinger Band (BB), 20,0,2 - Default.
2. RSI 3 and RSI 7
3. Stochastic 7,3,3
4. Simple Moving Average, SMA 3 and SMA7
5. Pair - GBPJPY, 5 Min Chart. (the rest of the other pair, I wouldn't guarantee of success)
ENTRY RULES:
Buy Entry
a. Stoch cross up from below 20 (or less than 30)
b. RSI 3 and RSI 7 cross up from below 30.
c. SMA 3 and SMA 7, cross up between Lower BB and Mid BB.
Sell Entry
a. Stoch cross down from above 80 (or greater than 70)
b. RSI 3 and RSI 7 cross down from above 70.
c. SMA 3 and SMA 7, cross down between Upper BB and Mid BB (for sell entry, This doesn’t matter)
STOP LOSS (SL) & TARGET PROFIT (TP)
a. SL is 30 pip, (or 2 pip plus spread above or below previous swing High or Low)
b. TP is 30 pip (or trail the profit if you are in profit)
c. Move SL to breakeven when in 20 pip profit.
d. If price doesn't hit target profit within 30 min to 1 hr, Close it at best profit.
IMPORTANT NOTES:
1. The rules must follow step a, b then c, NOT b, a then c, as you would not get valid signals.
2. Exception of entry rules, of RSI (cross above 70 or below 30) and Stoch (cross above 80 or below 20), can only be done, if and only if, u see divergence with 3 Spikes of Higher Highs or Lower Lows.
3. You may enter early by following signal a. and then b. without waiting for c. to confirm. BUT, it has 90% success rate - i choose to enter on this entry.
4. It is that prior to entry based on the rules stated above, that the previous 2-3 bars length shall be less than 25 pips