This is a page where I would like to share with you my trading strategy (trading system). I bet you must've heard of profitable trading systems and how the owner of these systems are making huge profit by selling it. I am now going to reveal a secret about these system..Okay are you ready to take up the secret??SSSSHHHH....
You must be thinking that okay we know what you are going to say.. that these trading system doesn't work ..right?
NO ..A big No..These systems work but if you ever bought these systems you would know that they ask you to follow certain steps and you would realize after some time that following these steps are psychologically impossible and in some case you might not have that much capital to make a profitable system out of it.
So In that case I just came out to share with you my simple trading system without taking a penny from you..
Here it is....
REMEMBER THIS IS STRATEGY FOR SWING TRADERS NOT FOR THE SCALPERS
I will just write the steps below which you can easily follow to make your daily setups:
STEP1 : See the general outlook of the market/currency pair- uptrend, downtrend or ranging. I am a hardcore believer of swing trading so First and foremost rule in my trading is NEVER GO AGAINST THE TREND.
STEP2 : Look into the longer time frame, say weekly or daily, if you are setting up your trade in 4 hour chart. Look for major support and resistance level or the fibbonaci levels. Mark these levels so that you would get alarmed once these levels get hit.
STEP3 : Now see if any new announcement is there or not. If the major new announcement is there you should wait for the market reaction on that news and then you should setup your chart accordingly. I recommend you to read the news release the website given below :
STEP4 : Now come back to your setup chart where you want to read the price action. See what exactly price is doing right now. Is it making any chart patterns or testing the S/R levels or anything. By looking at the charts you should able to mark the key levels where the confluence to 2 or more setups take place.
If you are new to this you can follow my blog. I share daily chart setups on my blog's home page:
STEP5 : Psychology is very crutial for trading. They can be of 2 types : Market psychology and individual or your own mind setup. In this step you have to make up your mind that what do I have to do after placing the trades according to your setup. No matter what the result be you should be ready to face it. You have to decide how much you can afford to loose and how much you want to make by this trade. That should be decided by your money management rules. In short , Mark the entry, S/L and T/P levels.
STEP6 : Most important thing to decide is how long you want to carry your trade. That depends on what time frame are you setting up your chart. Say if you're setup chart is 4 hours then you must close your trade within two days and not more than that. That is the important part of strategy.
