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Copyright 2006 Timothy Rohrer
I ventured into the FOREX market a little more than 1 year ago.I have tried and tested many different types of tradingtechniques and styles. Most were failures and some weresuccessful. From my experience, traders making money in FOREXwill not reveal their trading system, simply because somebodyhas to lose money in order for you to make money.
Currently I have two strategies working for me. I started with ademo account a little more than one year ago and used theobvious techniques such as technical analysis and fundamentals.Technical analysis seemed to be the easiest method for aninexperienced trader since it only required looking at charts asopposed to watching the news. I used indicators such as MACD,Fibonacci, and RSI to help assess the market and make aprediction on price movement. Needless to say I was successfulin my demo account, however when I went live, fear set in and Icould not trade using the same techniques I had developed over 4months of trading with a demo account.
The stress was too much and like a lot of people, I startedlooking for a FOREX signals provider to minimize the time spentand stress. After some due diligence on quite a few FOREXsignals providers, I did find a reliable FOREX charting softwarepackage that provided excellent signals. To my surprise, thesignals worked. The only difficult part was to discipline myselfto take each signal whether I agreed with it or not. After all,the company I chose had a winning track record for 3 consecutiveyears.
Now that I had a positive flow of income from a FOREX signalsprovider, I decided to open a second account using my owntrading system. This is where I discovered what I feel is a fullproof system when it comes to making a fast 30 to 50 pips inFOREX.
Trading now for a little more than 1 year, I noticed that themarket moved on speculation. Speculation based on fear and newsevents, such as the CPI and retail sales. I noticed that betweenthe times of 4:30 am eastern and 8:30 am there was a lot ofcritical news in majors such as the Euro and the British Pound.The market would move at the exact moment these major newsevents were released. If a news event was due out at 4:30 am onthe British Pound, more than likely the market spiked at thatexact moment 30 to sometimes 50 pips up or down. What I startedto do was trade on these news events. I would wait until thatexact moment the news was due out and execute a trade when themarket moved more than 7 pips from its current price 15 secondsbefore the news is released. A stop-loss should be set at 10pips above or below the current price.
The trick to this method is executing the trade at the righttime and discipline yourself to keep your stop-loss very tight,setting it to no more than 10 pips after you got into the trade.The reason being, this works all of the time, but if you clicktoo soon or too late you could fail to predict the direction ofthe market. However, when you are right, your winning tradeswill outweigh your losing traders significantly since you arelooking to make a gain of 30-50 pips and if you a wrong a lossof only 10 pips. I have used this method for 5 months and itworks.
About the author:
Tim Rohrer is an established FOREX trader. To learn more aboutreliable FOREX trading techinques and systems, visithttp://www.forex-investing.us
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