THE TRADING PACKAGE

Forex trading is never easy as many think. Many see it as a get rich-quick scheme whereas some see it as gambling. But me I call it a "complicated business". The main reason why I call it complicated is because you need to first study hard to know how it's done. And as you know very well forex trading is a double edged sword, you place a trade and it goes opposite.

So many have lost money and time, many have given up and many are confused. Most of us join forex trading for mostly two reasons:-
        - work effortlessly and earn
        - have more free time

So to many all those reasons are gone, they are trading and knocking losses all the time.

Remember forex trading is a business and that should never exit your head. If you master it very well then things will be fine and better. So for any business to exist, there must be a product or service being offered, so in forex they offer
-currency,
-cfds,
-precious metals and many more.

Inorder to gain better from forex trading the following factors must be considered:-

a) size of the product 
In forex trading the product is measured in lots and most forex brokers start from 0.01lot size as the smallest size of the product. Many traders have lost money because 0.01 is small and they want earn big, they end up widening the lot size and they get eaten alive.

Lot size should always reflect the size of your account and for me I recommend 0.01 lot size for every  $200. That means if you have  $1000, 0.05 lot size is affordable.


b) price of the product 
There is a big reason why brokers provide forex charts. The charts contain all the information needed to understand the market. Among the things displayed on the chart there's price and this is the most crucial factor in trading because it's where profits and losses are made. With price a trader is able to determine whether the prices are high or low, going up or down.

c) price trend
You have ever hard of the words uptrend and downtrend. Uptrend is when prices are moving high and a downtrend is when prices are moving down the chart. You can clearly tell the direction of the trend by just looking at the chart and some traders use indicators like moving averages to determine the direction of the trend.

Before you place a trade, it is better to know the trend and trade in the direction of the trendo or you can wait till one trend ends and trade in the direction of the new trend.

d) time
Many traders have lost money just because of not focusing on time. The forex charts display statistics based on different time frames from 1min,5min,30min,1hr.......1Month.

New traders are always advised to trade basing on higher time frames because they are easy to read since the smaller time frames are full of noise and they suit professional traders. Time frames have to be considered before placing a trade.

After considering the lot size basing on your account, knowing the price, determining  the trend whether it's up or down and picking the timeframe suitable for you, then go ahead and place a trade.

Let me share with you the trading strategy I developed that has helped me win trades but don't forget that forex trading is a business and all businesses recquire God and patience   to earn from them. Follow the strategy clearly, don't  change anything, trust God and be patient, you will thank me later.

1) Setting up the chart

a) open the chart of any  pair you want to analyse and select the timeframe of your choice. I prefer higher timeframes because of less 

noise.

b) on your chart, insert a simple 50MA and use red colour to differentiate it.

c)then insert a simple 30MA and use black as it's colour.

d)Insert the RSI indicator and set the levels to 20 and 80. The RSI will help to define the areas of overbought and oversold.

e) on the same indicator Window of the RSI, insert a simple 50MA and give it red colour

f) Mark the point on the RSI where the 50MA was overbought or oversold. Below  20 means oversold and above 80 means overbought.

g) make sure the last overbought/sold point of the 50MA on the RSI corresponds with the swing high/low of the price on the main chart.

h) draw a trendline starting from the last point corresponding with the overbought/sold points thus indicating the trend. After your chart should look like the image below.

Now our chart is done let's proceed to trading.

TRADING MANUAL 

We buy when:-

The 30MA crosses above the 50MA and then it crosses above the trendline.

We sell when:-

The 30MA crosses below the 50MA and then it crosses below the trendline.

Mind the way you draw your trendlines and be patient.


set the take profits of your own choice but please follow the procedure don't change anything. Relax and let God be in charge. Thank me later.

ahmadshakilu@gmail.com 
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+256708275168