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How do you trade the Foreign Exchange markets?

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One of the unique features of trading the FX markets is that there are an infinite number of right ways to trade and an infinite number of wrong ways.

If you are losing money trading FX then you have picked a wrong way although it may not be your method that's the problem.

People lose money for any number of reasons trading FX.

Obviously, if your method is flawed then you're not going to win but you might have a successful method that still loses if you have poor money management or your approach is flawed.

There is a common phrase in FX that goes "cut your losing trades early and let your winning trades run".

Unfortunately most FX traders do the opposite.

I've been trading FX since 2005 so I know how the markets move and I can place discretionary trades with a certain level of confidence especially as to placing stops and targets.

But I get it wrong.

Frequently.

Its the nature of trading.

It is generally better to have a rules based method.

If you have a rules based method that works when you paper trade (demo accounts) then you should go from paper trading to trading microlots.

This is a step most novice traders pass on and its a mistake.

Demo platforms do not paint a proper picture of what is happening in the market.

Brokers want you to succeed so the slippages and spreads you will suffer with real money you may not suffer with a demo account and this can paint a false picture.

You should ALWAYS trade a new method for a month or more with microlots as this will give you a true picture of how successful your method really is.

Once rules based method I use is by using 3 indicators on TradingView.

TradingView is a must for analysis as this gives far more scope than MT4.

There's nothing wrong with MT4 or MT5 and there are thousands of bespoke indicators that are available that can be added to your charts but TradingView has features not supported by MT4.

The free version allows 3 indicators.

I use the following 3 indicators on my TradingView platform and have developed a rules based method that is simple and effective.

Those indicators are Poki, Half-Trend and G-Channel.


Go to my website https://www.theforexportal.co.... for more about this method and here's a video explaining the technique.





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