Chapter 11


You now have in your hands the tools to help you carve out a very profitable trading career in the forex market. The path is simple: Determine your dominant trading style, and employ strategies specific to that style.

If you are a scalper, stick to the rapid-fire or piranha strategies outlined in Chapter 6. If you are a day trader, either one of the four strategies discussed in Chapter 7 will give you lasting success. If you are a swing trader, following the trend rider or the power ranger is an absolute must.

Trading is simple but it’s not easy. It’s simple because there are only a few rules to follow—five to be exact. Here they are:

1. Ensure the correct time frame. Be careful to check the time frame on your trading platform before you trigger a trade. An uptrend on the hourly chart may be a downtrend on the daily chart. Also, the strategies discussed in this book are specific to certain time frames, so pay extra attention to the time frame before you fire off a trade.
2. Overlay the necessary indicators. Some strategies require the use of indicators. Remember to check that the indicators have the correct settings. Failure to check could give rise to a false setup. If you are using the Meta Trader 4 trading platform, make use of the template feature, which allows you to save various customized templates with the required indicators.
3. Execute long or short based on the strategy rules. Take note that while the market may give you a setup, you are allowed ...

Get 17 Proven Currency Trading Strategies: How to Profit in the Forex Market, + Website now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.