People trade in a daily basis. Some trade their services for money, while others trade products like food, toys and other things for money. People trade with the purpose of earning money to properly live their everyday lives.

This is the reason why people work, why people put up businesses and why people trade in the financial market. Today, it is all about money in order for you to get yourself and your family a comfortable life.

If you are taking into consideration making money aside from your day job or starting a career, you can do so by trading in Forex. Surprisingly, most people don’t understand how Forex course works but are still interested in trading in this financial market. Besides, people would really want to trade in the largest, the most liquid financial market in the world.

Forex operates 24 hours a day and 7 days a week with no centralized location unlike other financial markets. It involves all the currency in the world and trillions of dollars are being exchanged everyday in this market, what has made it the worlds largest and the most liquid financial market in the world.

The Forex market offers traders a promising way to earn money. However, Forex also has its risk and people can lose money trading in this market. But, there are also people who became millionaires in the Forex market almost overnight. Education is the key to start trading in the Forex market. Without the proper knowledge in Forex trading, chances are you will end up losing money.

Firstly, before you trade in Forex, this market operates by buying and selling currencies. In simpler terms, you, as a Forex trader, will be purchasing one kind of currency against another kind of currency. This gave Forex a trend to trade in pairs.

If you traveled to another country, you have probably traded your currency against the local country’s currency to enable you to buy things from that country. If you did this, you have a good idea on how Forex works.

If you want to trade in this ever liquid market, you have to get the best education possible in trading currencies. A good education will allow you to trade in Forex more effectively and increase your chances of earning a considerable amount of money. It is even known that lots of people have given up their day job to concentrate in Forex trading.

Getting a good education about Forex trading is essential to increase your chances of profiting and decrease the risks involved. In getting the proper education in Forex trading, you will also learn how to read Forex charts. Forex Signals charts are one of the most important things you should learn in order to successfully trade in the Forex market. Without this knowledge, you are doomed to fail in this very liquid market.

Expert Forex traders said that the best way to learn Forex is by actively trading in the Forex market. For this, website and software developers have developed a program that you can use to practice trading Forex. There are websites available that will enable you to open a dummy Forex account where you can trade in a simulated Forex market using no money at all. With this kind of software, you can really learn the way Forex works. It is also a great program to get in touch with the Forex market and you can even consider it as a stepping stone to start trading in a real account.

Thanks to the internet and the improvements in technology, anyone can trade in this financial market. Unlike in the past, only the multi-national companies and financial institutions, such as banks are allowed to participate in the Forex market.

Trading Forex is relatively simple to start. All you need is a computer with a high speed internet connection, a funded Forex account, and a trading system.

Always remember that apart from the fact that Forex can give you the potential to earn a lot of money, the risks involved are also equally great. So, you should first read books about Forex trading that is readily available in the internet for purchase or for download. You have to learn about the major currencies traded in the market, about leverage, and also about minimizing the risks in trading.

Jack Maben – Author, Editor, Marketing Manager, Authorized Representative, Website Co-ordinator. For more information about Forex Course and Forex Signals visit at: http://forexandpips.com/

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This article will give a brief explanation of one of my favorite forex trading strategies. It is simple and extremely effective.  All it involves is a 1 hour bar chart and observing price action on the GBP/USD.  I refer to it as  the “4 hour Sterling Strategy”.

Here are the steps:

1. Open up a  1 Hour bar chart for the GBP/USD.

2. Wait the GBP/USD  has demonstrated “tight-range consolidation” for at least 4 consecutive hours.  By “tight-range consolidation” I mean that the range is very well defined, usually with no more than 50 (preferable) to 70  pips in the range (they will be very short bars on the hourly chart).You do not have to wait and watch by the computer the entire time. You can check in every few hours to see if a set up may be coming. 

3. When you identify 4 back-to-back hours of tight consolidation, you will continue to monitor the GBP/USD more closely as you will watch for a breakout from the consolidation range.   

4. If the price goes 7 pips above the upper range price, then go LONG.  Alternatively, if price moves 7 pips below the lowest value of the range, then go SHORT.  Don’t forget to adjust for the spread. So if your spread is 2 pips, for example, you would then use 9 pips above or below the range value to place your entry.

5. Set the stop loss at 30 pips. Set the take profit to 70 pips.

The GBP/USD is notorious for being a very active currency pair. The set up does not happen every day, but does happen on many days. The best time to find 4 hours of tight consolidation is during the US afternoon or during the Asian session.

I recommend that you demo trade this strategy for awhile. Back test it on your charts if you wish. You will likely agree that this easy strategy really works!

Have you discovered the forex strategies that are best for you? The “4 Hour Sterling” strategy is a variation of one of Avi Frister’s price action based forex strategies. Get more information on this strategy at Ann Pevey’s site FX Strategy Hub. You will also find more simple forex strategies and Ann’s actual “real-time” trading results!

Article Source:http://www.articlesbase.com/currency-trading-articles/forex-trading-strategies-the-simple-4-hour-sterling-strategy-965473.html

This Forex trading strategy is simple to understand, easy to apply and catches the big profits from the really big trends in around 30 minutes a day. Anyone can learn this trading method quickly so let’s take a look at it.

Most traders never focus on the big long term trends but if you look at a Forex chart, there are trends which last for many weeks or months and if you catch these trends, with leverage on your side you can make huge gains.

So how do you get in on these great long term trends?

If you look closely at any currency pair, you will see that most of the big trends start from breakouts to new market highs and they also continue from them.

The way to make money therefore is to get on and hold the big trends, by buying breaks of resistance. It’s simple, its logical and it works but most traders don’t do it, before we look at how to make money at breakout trading, lets see why most traders ignore its profit potential.

The reason is simply most traders are obsessed with predicting the market in advance they want to buy low and sell high. When they see a breakout, they have missed the first part of the move and want to wait for a pullback to get in but the best breakouts don’t pullback and this trader misses the move.

The experienced trader doesn’t care about predicting or missing the start of the move and why would they? The best breakouts continue and pile up big gains, these traders are not interested in perfection, just making money and that of course is the aim of any Forex trader.

So what are good breakouts?

You can trade breakouts of any level which has been tested at least twice but not all breakouts continue in the direction of the break; the ones that do, are the ones which are considered important by the market and these are normally at least six tests, when breakout trading keep in mind the more tests the better.

You will normally get a few good breakouts each month and I know traders, who trade once or twice a month and earn triple digit annual gains and you can too.

Breakout trading is very low risk because your stop is always tight (just below the breakout level) so if your wrong, your out with a small loss and if the trend runs, the profit potential is huge.

Breakout trading can be done without indicators but we like to use a few to confirm price momentum is accelerating as the breakout occurs, to increase the odds of success and we will look at some of these, in the next article in this series.

As long as markets trend, breakout trading will work and make money. It’s so easy to understand and apply, that any trader can quickly put together a breakout trading strategy and make big gains in 30 minutes a day or less.

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Here we will look at how to build a simple Forex trading system which can make you big profits, in under 30 minutes a day so anyone can seek success with it.

Look at any Forex chart and what do you see? You see long term trends which can last for many weeks, months or even years in there duration. You will also notice that any currency in an up trend will start its trend by breaking new highs and it will also continue its trend from them.

The logical conclusion is if you buy these breakouts, you can catch any big trend and follow it.

Simple as this may sound, most traders simply cannot do it and the reason is simple:

Traders think they have missed the first bit of the move so they wait for a pullback in price, so they can get in at what they consider a better price.

The problem is prices on the best breakouts, simply carry on and don’t come back; the trader who waited, therefore waits in vain and misses the trend. The trader who took the move, didn’t care that he had missed the start of the trend, he knew there was more profit to come.

So how do you decide what breakouts to buy?

What you need to pick are levels that have been tested a few times and if the tests are widely spaced inn terms of time, the better the odds of success. Normally, the minimum number of tests is just two but you should really look for six or more, as these levels are likely to considered important by traders and when they break, the odds of a continuation are high.

When the break does occur, you need to have some stop loss protection, so you put your stop nice and tight – behind the breakout point. If you are wrong, your loss will be small and on the best breakouts, the rewards are fantastic, so you have low risk and high rewards.

By doing the above, you are basing your trading, on sound money management which is the key to long term success.

Should you Use just price action or add indicators?

I know traders who simply use price action but I always think a couple of momentum indicators to gauge the strength of the break, is a good idea and you can learn these quickly.

If you are trading a breakout method, you will get a few good breakouts a month and you can do all your Forex analysis in 30 minutes a day or less.

This method is simple to understand, easy to learn and have confidence in and it piles up huge gains, so you make more profits, in less time!

With breakout trading, you don’t have to predict anything, all you do is trade the reality of price change and if you do it correctly, you can earn triple digit gains and have a great second income.

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A larger time frame can be considered any time frame larger than the one you are looking at to identify a trade entry.

There are valid trading techniques and methods for almost any time frame however it is always important to be aware of what is actually taking place on the larger time frames such as the four hour and daily charts.

Support and resistance are key levels we must always be aware of even if we trade on a five or 10 minute chart.
Often times day traders will use a smaller timeframe to identify entries and profit targets and their focus becomes myopic and they no longer look at the larger four hour and daily charts.

I would like to discuss an example of using the four hour and daily charts to determine whether or not the market is trending or inside of consolidation which often times can be found using the larger time frames.

Knowing where support and resistance is on the daily or four hour chart isn’t always possible to see using the 30 minute chart. Always giving the larger time frames a quick look before making a trading decision will work in your favor.

When I conside entering a trade on the 30 minute chart (for example) price might be inside consolidation. When it appears price may be making a move, however looking at the daily chart might show a significant old resistance level that is now possibly acting as a support level, if only temporary. This daily support level might not noticeable on the 30 minute chart by itself.

Identifying this support level on the daily chart keeps me from making a trade decision to quick without looking for confirmation.  I may need to wait for some significant economic data that will make some kind of an adjustment and re-evaluation of this currency pair or it may simply take time before sentiment wins over in one direction or another.

At this point, I will isolate the consolidation area on the 30 minute chart and when I see a breakout candle, again I will look at the four hour or daily chart.  Hopefully at the time of the breakout candle on the 30 minute chart I will see some kind of candle pattern on the four hour or daily.  This could either confirm the bounce off of this possible support area on the daily chart or indicate that price will be moving lower and breaking through the support level.

No matter the outcome, what is very important is always to remember using the larger time frames as an additional source of confirmation for your Forex trading strategies.

L.C. is the head trading coach and mentor at udaytrading.com with over 7 years Forex trading experience.
He has mentored hundreds of students with his Forex trading startegies.
www.udaytrading.com

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