Currency Trading – We Published 5 Trades On Monday and ALL Made Big Profits! Why?

xIf you read our “currency trading big profits for the week ahead” from Sunday and took the trades you will now be sitting on huge profits for the week.

Are we gurus or knew what was going to happen of course not! The lesson is in timing moves with a sensible strategy that anyone can use.

Lets look at how you could use the tools we used to pile up huge gains.

The Importance of entry

We all know this is the key how do you get in with the best risk reward with your currency trading?

The answer is the Bollinger band and simple support and resistance the bands give you targets and support areas to focus on.

Now for the hard bit, timing your entry!

Timing the entry

Many traders like to predict the market and get in early this is a mistake.

You should always wait for strength if you want to go long or weakness if you want to go short.

This is where the stochastic indicator is so effective. As a short term momentum indicator it is un rivalled and trading bullish and bearish divergence is extremely effective.

The result

We focused on 5 trades (while we gave advice on the yen we decided to stand aside although the advice was correct) but the other 4 we took and piled up huge gains for the week.

Focus on the long term

Our view last week was to get in to our trades focusing on the long term dollar downtrend.

We had a good dollar correction to the upside that was obviously running out of steam and acted accordingly and got some great profits.

Keep it simple!

Many traders will say or currency trading last week was simple strategy, we will take that as a compliment that’s what trading should be!

The more complicated your strategy is the more likely it is to fail. There is no correlation between a complicated strategy and profits in fact the reverse is true, the simpler the strategy the more robust it is in the face of brutal market conditions.