Tuesday, 20 December 2016

If You Are Tired Of Losing On Your Trades Then Follow This Simple Strategy To Buy Low And Sell High

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If You Are Tired Of Losing On Your Trades Then Follow This Simple Strategy To Buy Low And Sell High

Buy Low Sell High

Are you losing forex trader? then If you are tired of losing on your trades then follow this simple strategy to buy low and sell high. Learn this simple forex blog from forex friend loan about buying low sell high trading strategy. Here’s a great ‘ten simple steps’ forex trading strategy which you can use to maximize your trading profits whilst at the same time minimizing risk to your trading capital. If you already do your own trading and can set automatic buy/sell orders then this strategy is perfect for you.

No matter which forex trading strategy you read about or try, they all share one fundamental principle, that is to buy low and sell high. Sounds simple enough, but then why do some 90% of traders manage to get in and out of the market at the wrong time, over and over and over again?

What over-powering force is in place which steers the 90% to do this? The answer is human nature and the counter-intuitive manner in which the forex market operates.
The 10% of traders who consistently make money in the forex market do so by buying when the masses are selling, and selling when the masses are buying.

They do this by following a dozen or so strategies, some simple, some more complicated. It is not within the scope of this forex blog to go into each and every strategy, but here's one anyone can use.
The links at the end of this blog point to the web page where you can see this strategy in the form of charts and graphs which make it much easier to understand. Take a look if you're finding it difficult to picture it.

Top Ten Steps For The Buy Low Sell High Strategy

1. Study the 12-month charts of several reasonably all forex pairs and pick out forex pairs that have been on a steady UPWARD trend throughout the period. There are always plenty of them, even in a falling market.

No forex is ever a sure thing, but give yourself a head start by choosing one which is going in the right direction! Fundamentals don't mean anything if the price of your chosen forex is trending downwards. Don't care what the company is or what it does. This is irrelevant, you are just here to make money, period.

2. Check out the trading volumes and eliminate any which lack decent liquidity.
Avoid forex with not much liquidity (not a lot of buyers/sellers) as you need to be able to get in and out easily and without affecting the price yourself.

3. Study the 3-month chart and check the recent levels of resistance. These are points where the forex price has peaked and then pulled back, before breaking new heights again.

4. Place a mental note to buy at a price just above the most recent top. Note you are not actually buying at this point, just making a mental note to buy when it hits this price.
The stock will need to reverse upwards again and 'breakthrough' that last resistance level to effectively 'buy you in'.
If the forex price does not reverse but instead further drops away, simply lower your 'mental buy order' to just above the resistance levels going down and wait for the forex to turn back upwards again.
The great part is the more it drops the better as you have still not bought in.
If it is a well-known company and there's temporary bad news surrounding it (anything except impending closure) you can be sure this stock will eventually bounce back and catch up with (or even temporarily over-take) its long-term trend.

When it does it will catch up quickly, over a few weeks perhaps. Follow the next steps and you will be sitting on it all the way up to next top. Gains as much as 30% are common.

5. When the forex price eventually reverses direction back up and passes up through your buy order, immediately buy at market price.

6. Now set your stop loss. Study the last couple of months of the chart and check the rising levels of support. These are points where the forex has resumed its upward direction following a pullback.

7. Place a 'note to sell' at a price just below a recent support level. Not too close but not more than 5-8% below your buying price. Your sell order is now your stop-loss.

I cannot stress more - you MUST use a stop loss. Your stop loss will protect your capital if the forex unexpectedly reverses down again. You can always get back in later when it recovers from a very deep pullback (and make even more money in the process).

8. As the forex price moves up, but as soon as reasonably possible, move your stop loss (sell order) up to your buying price. Your stop loss is now your break even. Don't do this too soon as the forex pair price may possibly test the support level above your stop loss before heading up again. Give it a few days to do that if it's going to.

9. As the forex price continues up, keep trailing your sell order up with it to just below the support levels going up.

10. When the forex price reverses direction and passes down through your sell order, immediately sell at market price. Your sell order is now your stop gain.

On a final note, one of the greatest obstacles to success will likely be you. One of the hardest things to do is to actually sell when your stop is triggered. There's always the voice in the back of your head telling you to hold on a bit longer if the price moves against you. This could be the death knell of your trading because if the price continues to fall it will erode your trading capital.

To counteract this danger you should try to automate many of these processes. Set your stops and if the stop is triggered you can find out why afterward.

If You Are Tired Of Losing On Your Trades Then Follow This Simple Strategy To Buy Low And Sell High