Forex Trading Profits – Fundamental Vs Technical Analysis, Which Method is Best For Bigger Profits?

While the vast majority of traders prefer to trade using short-term methods based around forex day trading, the majority of traders lose money. This is because despite the fact that turning a profit requires following the big long-term trends, to do this you have to accept or not, for example, buy low sell high is not an option for most traders so they try forex scalping or day trading.

This article is all about finding the method that suits you for long-term currency trading success.

Let’s look at the benefits of forex swing trading:

It’s based on reality of short-term price spikes which are a reflection of human emotion. Humans push prices to far up or down as greed and fear come into play and prices become overbought or oversold. The swing trader buys into fear and sells into greed.

As prices become overbought or oversold and the momentum of price falls momentum falls and this can be seen on any forex chart you like. Now you can see how a forex swing trader doesn’t ever buy into greed or sell into fear!

This is the critical point for your forex trading system.

You have to decide – when do you buy into fear and when do you sell into greed?

This means you have to take into account the data from price momentum.

You need a level you think will hold which tests the level and when does momentum turn down on your side?

This is the critical point to enter with the right judgment and use the right currency trading time frame – the correct one for you.

2. Find the right currency trading time frame

The best way to do this is to use a forex chart and pick a time frame that’s right for you.

Many traders make the mistake of trying to swing trade and day trade all they can and lose. You’re swing trading at the extremes so pick a daily chart.

3. Use the LESS is MORE Tool

The best swing traders use the tools that are in their forex trading strategy.

Why?, because they know that by using the RIGHT tools and the right methodology you can gain a head start.

The tools need to be tested.

They need to be shown that they are effective and then they need to be shown how to use them.

This means you need to use them in real time.

To do this you need a simple system, a methodology and this is the area most traders fail.

They normally think that there is some holy grail and in trading circles this term is the “holy grail” of forex trading. This terms is used so commonly because so many people want to believe in it, yet 99% of traders losing money with it!

So how can a novice or a greenhorn trader prosper with a mechanical system that has no hype?

First you need to keep your method simple.

You Don’t need to give your method too much credit, or else you will never follow it with discipline.

The fact is simple systems work best and you can use either a long term trend following system or a swing trading system.

trendy sells are great but not so much in forex trading

Many traders are constantly going for the holy grail and coming up with ridiculous theories.

They are either claiming they have found the system better than others ( in which case they don’t really have a system) or that they have found a forex robot with 90% accuracy ( again debatable use of this statistic), or that they can trade with over 50 pips a week ( again electronic devices don’t have this many kids these days) and the list goes on.

the fact is all these electronic applications are used for show purposes and to give traders a enjoyable time when trading the markets.

If you want to succeed you need to do the same – have confidence in what you are doing and trade your method with discipline, through losing periods and keep in mind if you don’t you will join the losing majority.

If you want to enjoy currency trading success don’t seek perfection – seek to make money.

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