Before You Take The Forex Trade

Making it simple. Is probably one of the most complex thing we have to discover. With a lot of indicators around, forex traders tend to think that the more indicators they have, the more money they make. What is the difference between a forex trader with no indicators and a forex trader with indicators?

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The forex trader with NO indicators keeps it simple. Indicators tend to confuse forex trader when a lot of indicators doesn’t match. They tend to think too much and not rely on their own decision making to take a trade. This is present among new forex trader where they will try every indicators available and use it. Up to the point where they get their first loss then drop it.

A forex system will bring losses. It will bring winning trades. Some will have more losses than wins. It is ok. As long as the winning trades can cover the losses up to the point that you’re still profitable.

A forex trader will have emotion. But must not be affected by it. This is what makes forex trading addicting. To constantly in the roller coaster ride. You know you are safe, but its still a death defying experience. With a profitable trading system, you know you will win but the price action still affects you.

There are questions that a forex trader can ask himself before taking the trade. Before entering, after the confirmation signal. He asks:

  • What is my profit?
  • Where is my stop loss?
  • Why do I take this trade?

Can simply summarized by asking oneself of the reason for entry (evidence of a profit potential, a set up or confirmation signal), what’s your target profit and how much risk are you willing to make?

These questions are simple. Three questions that a forex trader can answer easily. The problem lies to whether he can keep his emotion. Psychology plays an important role. Forex trading systems work. Banks use them to earn money. But its the person using it makes it possible to NOT to work.

How To Trade Forex with Ichimoku Part 1

There are lots of ways to trade forex. And I have tried most of the indicators out there. Some of them work, some of them don’t. Some did work, but I’m not particularly comfortable using. And thru the years, I came to settle down with candlesticks and ichimoku.

Ichimoku or short for Ichimoku Kinko Hyo is a japanese indicator that tries to complement where the candlesticks left of. When using candlesticks, it tells us the story what happened during the trading day, but there’s something lacking when you look at the charts as a whole. Where are the support? Where are the resistances? Where is the trend going? Is it going strong or weak? What is the future of the trend? Ichimoku as its name implies, is a “one glance” indicator. When looking at it once, you’ll immediately know where are the important levels are.

In ichimoku, you will know where the resistance and support are. The Japanese who made the indicator believed that support and resistances are not flat lines. They vary wherever the price goes. It can be strong or weak, as indicated by a big or small cloud. And with ichimoku, you’ll also have an idea of the “future” with its future kumo cloud.

If all these things sounds confusing to you at first, bear with me. During the course of the following weeks, I’ll teach you how you could harness the power of this great indicator and hopefully share to you my knowledge on how to use them. You will know why I started to love this indicator.

So without further ado, I welcome you to the “How to Trade Forex with Ichimoku” series.