Trading Forex: Final Thoughts

Filed under: Learn Forex Trading |

Screen shot 2013-08-29 at 10.43.29As this will likely be my last forex article with you, I thought it might be appropriate to just sum up a few final thoughts from the ruminations of the past couple of years. In that time, I’ve pretty much covered every forex-related topic, and of course you’re more than welcome to go over these articles again and again for reference. So what have been the most prominent lessons to be learned during this time?

 

I think it has been very evident from the live trades and trade examples, that the daily charts are much more stable timeframes to trade off. The intraday charts are much more volatile, have a lower probability of success, and are affected more by the spread – so much so that over the past few months I have been exclusively trading from the daily charts.

 

It has also been apparent just how powerful levels of support and resistance can be on the daily charts. These areas, in conjunction with price action signals, can provide very high probability setups that over the long-term can be very profitable. However, over the short term, we must remember that anything can happen, and no trade, no matter how good it looks, can be a certainty.

 

All in all, I would say that trading price action signals such as pin bars, inside bars, and engulfing patterns at significant areas of support/resistance is a solid trading methodology, and one that works over a long series of trades. However, this must be done with good money management and risk-reward scenarios, otherwise, this edge could be lost. And with that – there is really nothing else to say as I am out of topics! I wish you all the best with your trading, and I hope these articles have been of some use to you. The best of luck, and “may the candles light your path”…

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