Long Term Forex Strategies

By: Charles Nash

If you want to be successful long term with forex youneed to learn a few things. You always need to protect leverage oryou'll be wiped out. Many traders make errors that are very simple andit hurts them in the long term, changing a very profitable forexbusiness into a game a craps at the casino.

1. UnderstandStandard Deviation of the Price - Most traders don't understand this.Standard deviation comes from the math of statistics and it's basicallythe difference between data points. The reason this is important isbecause the data that comes in isn't going to be linear or contain allnumerical posts. That means there could be differences of 0.5 inbetween the data.

Basically to put that into the real worldyou're going to be using software like Forex Killer to handle tradesand you're going to give it variables on when to buy and sell. You needto understand that if the standard deviation is 0.5, than if you put ina number like 100.7, it's never going to get hit. 100.5 and 101.0 willbe hit. When we're trading forex we're talking about very little finechanges to the hundredths of a number. 0.5 is a significant amount ofchange if you have thousands of dollars in the game. You have to beaware of this or you're going to give up much of your gains by simplythe gap between data points.

2. Earn Slowly - Many traders getgreedy or get on a high of making money. They try to make as much asthey can as fast as they can. This is trouble. Rapid gains of currencyhappen, but they're not common. If it's not common, you can ride thewaveFind Article, but eventually it's going to stop and you're going to burn. Takeit slow. Don't aim to get rich on one trade. Aim to get rich by slowlymaking money over time.

This are very good strategies for longterm forex gains. These work best if you're using software like ForexKiller which puts your forex business on auto-pilot. It's nice to viewthe graphs and have a piece of software calculate trends and allow youto work the standard deviation to your advantage.

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