Trading can be fun and exciting when you daytrade and very boring when you position trade.
Our motto: get in, get out and go play!WHY We Want To Day Trade Versus Position Trade
1) We want to spend only a few short hours each day trading, sometimes just a few minutes!
2) We don't want to hold any overnight positions!
3) We don't want to hedge!
4) We want the fun of the quicker action and quicker profits!
5) We want more profits with less risk!
So keep these goals in mind as you learn our trading techniques!Be patient in your learning process and keep in your awareness that if you learn this trading system successfully, you will have a cash cow system FOR LIFE that is safe, independent, portable and highly profitable. It will give you the freedom to quit your J.O.B. (Just Over Broke) and travel the world and earn a great living, with just a portable laptop and your debit card!The currency pairs are made to swing, so trade with ease and without fear.
Quickly close out a losing position...don't dream/hope that it will turn back into profit! It often doesn't!Don't be radically bullish or bearish, swing trade within the trading range of the day, go with the short term trend.If you can develop the mental and emotional disciplines to trade according to these guidelines, you'll do very well and become very successful!I
deas About Trading in the Different Time FramesEach person needs to experiment with the different time frames and moving averages to find out what he/she is most suited for, time-wise and personality-wise. This takes time and lots of practice and patience in your demo account.If you have a J.O.B., then what we teach is perfect for you if you can trade during the busiest hours, between 3 am to 11 am EST.
Even 1 hour of trading in the 1-5-10 or 15 minute chart will make you enough money for the day. You can do multiple scalping trades in the 1 and 5 minute chart, or one trade in the 10 or 15 minute chart, and then go to work. If you get lucky and hit a breakout or breakdown, no matter what time frame you are in, you can make as much as 30 -100 pips in a few minutes!
YOU ONLY NEED 20 PIPS A DAY TO BE RICH!Some people love scalp trading, which are quick trades in the 1 and 5 minute charts for small but quick profits; and some love day trading, mostly done in the 10 and 15 and 30 minute charts, which simply means you close out all positions before the end of the trading day.If you do one or more trades in one day that rides the price up and down and you close each position out, that is called day trade swing trading. And some prefer swing trading over the course of several days or weeks, which I call position trading, mostly done in the 1 or 2 or 4 hour charts.
We personally scalp and short term day trade, which is really just one-day swing trading. If you use a 1 or 5 minute chart with a 20 pip initial stop loss with a 10-15 pip trailing stop after breakeven, and/or a 10-50 pip limit, you will do very well without big risk or staring at your computer screen until you fall asleep or go blind! Our motto: get in, get out and go play!The beauty of this method is that you don't have to have your PC on all the time or be glued to it or worry about overnight positions.
The trade-off is that the longer plays make more money, although, they do carry more inherent risk. So again, staying with your trade in the beginning until you've moved your stop to a breakeven, is your first goal, and this is true for every time frame you decide to trade in.Keep a trading journalFinally, it is a good practice to keep a simple trading journal. This way you can keep track of your trades and progress and be able to analyze, improve and hone your trading skills.
Simply include the time you entered and exited the trade, the currency pair, the chart time frame (this is important), and the strategy (breakout, trend or top or bottom). Also include write down what happened and what you could have done differently for future reference.Not every trade can be a winner but in order for you to be a consistent winner, you need to do two things: keep your losses small and manage your margin conservatively.We recommend that you trade no more than 5-10% of your account size in each trade. 5% is safer. It's easier to make up the losses, when they happen, and they will happen!!!
And ALWAYS use stops! Learn to manage your money wisely...invest small amounts each time and keep your losses small and when you're in profit, let your profits run with a trailing stop.What "Rich Dad, Poor Dad" says about trading:"It's not gambling if you know what you're doing. It is gambling if you're just throwing money into a trade and praying. The idea in trading is to use your technical knowledge, wisdom and love of the game to cut the odds down, to lower the risk.
Of course there is always risk. It is financial intelligence that improves the odds."Robert T. Kiyosaki"Knowing how to take a loss for the trader is as significant for him or her as learning to overcome the fear of death was for the samurai warrior."Robert KoppelWhat's the best way to stay positive no matter what? Celebrate your losses! Get up and dance, do a little jig, blow a horn, yell yippie, another loss!
Remember, you love the game and winning and losing are both part of the game!
Article Source: http://www.dk-article.com Web Directory: http://www.dk-seek.com
Erol Bortucene and Cynthia Macy are co-authors of The Day Trade Forex System: The Ultimate Step-By-Step Guide To Online Currency Trading: The Day Trade Forex Trading Systems
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