I admit I’m not the smartest person in the world. Far from it! I don’t want to re-invent the wheel if it’s already been invented. Let’s start with a few basic facts. There a few things most traders will be aware of after a few weeks of research:
- Go with the trend
- There is no perfect Entry and Exit
- Money Management is key
So how do I follow these rules in my basic trading? I cheat by going with the experts. On a Friday evening, or over the weekend, I check the forex forecasts by the experts. I don’t have a proper read. I squint my eyes, and within half a second gauge the colors on their website:
These forecasts are from a list of experts who live and breathe the forex market everyday. Not just one expert, but a list of independent experts. One or two may be wrong, but when most of the experts have the same opinion, it’s an obvious indication which direction the trend is going.
If most of the colors are RED, and the long term trend is Bearish, I will place a SELL order on Monday.
If most of the colors are GREEN, and the long term trend is Bullish, I will place a BUY order on Monday.
If I have to guess, or hesitate, or the long term trend is sideways, I stay out of the market for the whole week.
For this strategy, I only trade ONCE per week per currency pair. No risk of over trading with this strategy.
Stop loss will be at the closest support / resistance.
Take Profit will be the week’s or month’s average target, as per the forex forecast. Money Management is key. Only risk up to 5% of your balance in any trade.
The benefit with this strategy is that it is perfect for people with limited time, or lazy. However, as you are only trading once a week, profits will be slow to accumulate.