Forex Trading - What You Need to Learn and Where to Get it Free

By: Kelly Price

If you want to learn forex trading you don't need to buy forex advice you can get it all from free sources online and here we will show you what to look for and where to get it...

The first point to keep in mind is that you don't buy success - you can buy forex courses and use the knowledge in your own forex trading strategy but you can't blindly follow. To trade forex successfully, you need to have confidence, as this will give you discipline to execute your trading strategy, through short term losses and stay on course to win longer term.

The first thing to do is to locate a good free chart service and we like futuresource.com. It's free and has all the indicators you need and some good free information.

Next you need to learn the basics of "support and resistance" and you can do this by simply typing in the term to a search engine.

By far and the best way to trade is to use "breakouts".

These are as they sound when a price breaks a new high or low on the chart.

These are high odds set ups yet most traders hate them. They want to wait for the price to dip to get in at a better price but of course prices don't dip - they carry on and the trader who waits, misses the trade.

Keep this fact in mind as part of your forex trading education:

Most big moves start from new market highs or lows and these are the trades to focus on.

Next you need to trade valid breakouts.

Not all breakouts are created equally, generally the more tests ( a minimum of 3) in 2 time frames ( the more the better ) and wide apart ( the wider apart the better) is what you are looking for.

Look for breaks of support and resistance which are considered valid by the market.

Now you need to confirm the price break is strong and here you should look at some momentum oscillators (we have covered them in our other articles so look them up) but a good couple to start with are - the "stochastic" and "RSI".

Use these to confirm that price momentum is strengthening through the breakout and if it is execute your trading signal.

Then place your stop below the breakout point - and wait!

The real key is not to trail the stop to quickly otherwise you will get knocked out the market by random volatility - you must understand this concept so look up "standard deviation of price" and oscillator which helps you put it into practice the "Bollinger Band"

Then you need to trail your stop and a good indicator to use is the 40 day Moving Average, so look them up.

The above is the framework of a simple breakout forex trading strategy which is robust and will get you in on all the big trends.

Note: This is a long term forex trading system, designed to trade a few times a month and you need to be selective.

You only want high odds trades and you want to hold them - it's not about excitement it's about making money.

If you are selective, confirm your trades with momentum, then trail your stop correctly, this simple system will work and will continue to work.

Simple sure it is, the best systems are, as they have fewer elements to break than complicated ones in the brutal world of trading and can lead you to long term currency trading success.

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