The Daily Forex Trading Routine

Here’s a daily routine that I’ve used in the Strategy:10 system. Some of the most successful months of my trading career happened when I followed this plan. Up at 3:00 am EST. 

Check the charts. Ask the following questions: 

 1. Where did the USD close (5pm EST) yesterday against the majors? 

 2. What effect will today’s economic reports have, if any, on the forex market? 

         a. FED interest rate movements 

         b. ECB decisions c. Unemployment – Weekly Moving Average above or below 400k? 

         d. Greenspan speaking? 

Forex Trading Profiting Strategy using The 7/10 Principles.

 

1. Buy and sell on breakouts. I teach this in the 1 on 1 training, and I do it myself. 

 2. Stop trying to make $8 million on every trade. 

 3. Set a 10-pip limit only. Exit the trade at 10. Exit the trade at 10. Stops are set based on market conditions, but are always set. 

 4. Goal: + 10 pips every day.

 5. If I earn more than 10 pips on a trade because the trade moves so fast in my direction, I can set my stop to protect the 10 and then go for more. I like to teach traders to just start going for 10. There are advanced strategies that go for more than 10, but we just start here. 

 6. There is no ‘makeup’ strategy. If I take a loss, then I’m just trying to end up with a 10 pip gain for the day. If I can’t get it, then I don’t try for 20 the next day, or whatever. I can keep trying for the 10 pips gain as long as I haven’t lost more than 5% of my capital. 

 7. Time: I can trade for 5 hours per day, meaning I can have the trading platforms open and sit at my computer for a max of 5 hours per day. If I can’t earn my 10 pips during that time, then I can set my stops and limits and walk away, but I can’t actively watch the market any longer.

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Simple Trading Strategy That Make Steady Income In Forex

 

It’s as simple as this: I don't try to make a ton of money on each trade, and I never try to get revenge. I’m not a scalper (someone who sits and makes 20-second trades for a few pips at a time). 

 Instead, I set up good trades, that have a lot of potential, and then I shoot for 10 pips. Just 10 pips. That’s it. I don’t let myself lose a lot of money. I

Why Many Lose Money On Forex Trading

 Losing Money in Forex is a common thing. We make money and lose money. Below are some the reasons why many traders lose money.

Greed;

Most traders in the forex market try to make a zillion dollars on every trade. They're greedy. This leads them to stay in a good trade, hoping to get more money out of it. This can lead to disaster -- the trade can move against them and they get creamed. This happens all the time, and it still happens to me from time to time. It's the single greatest threat in trading. But you can already understand why that's probably true. But how do you overcome greed when trading?

 Revenge:

   This is the other big one. A lot of traders get creamed in the market and then want to strike back. So they double their last order and go for broke. This is natural, and I still deal with this emotion every day. The problem is, how does one combat this? Do not underestimate this emotion. It will drive you to ruin if you let it. The market is not your friend. The market is so much more powerful than you are. You cannot get “back at” the market. Trading when angry or vengeful will be a total disaster. If you get rocked on the market, then back up, take a deep breath, and talk to a mentor. Re-read the charts. Take a break. Even if you think you see the best opportunity in the world after you get blasted – just take a break. There will be trades tomorrow. 

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Edward Freedom is a Forex Trader and Coach.

If you need a one -on-one coach send mail to edwardfrdm@gmail.com

Understanding Forex Pips

 Okay, now back to our program. To start, you have to understand what a "pip" is. 

A pip is the last number to the right in a currency. 

For example: If the EUR/USD traded at 1.1335 this morning. The "5" is the pip. 

If it moved to 1.1535, which it did today, that would be a 200-pip move. 

The next concept that you need to understand is the concept of leverage. 

 It’s a lot like margin in stock trading, only on steroids. It’s a simple concept.