I've always believed in keeping things simple with most things in life and when I trade I use the same way of thinking.During my normal day I'm a joiner in the construction industry in the UK.But as things this year have been pretty slow I have started trading Forex since January 2011.
I opened a mini account with £1000 which to date has now grown to just over £3500 within 6 months.Below is an example of how I usually trade and so far I'm pretty pleased with my strike rate of around 70%.Apologies for any errors I may have made in the details below but hopefully you'll get the general idea.
PLEASE READ ON
Identify 4 main currency pairs to trade for the day.These are usually the main pairs such as GBP/USD - EUR/USD - USD/JPY and EUR/JPY but you may choose any.
Using the latest TECHNICAL ANALYSIS you should clearly mark these out onto each chart.It’s recommended that you use 30 minute or hour charts which covering 4 pairs during on 24 hour period should give you several trade opportunities.
Now,access your account and check your balance from the previous day’s trading.Each new trade should limit risk to 1% of your balance.
For example;
Lets say we are opening a trade in EUR/USD. If we enter that trade at 1.4516 then using a 10 PIP stop then the amount of that stop should the trade go against us would mean we’ll lose only 1% of our account balance.
I opened a mini account with £1000 which to date has now grown to just over £3500 within 6 months.Below is an example of how I usually trade and so far I'm pretty pleased with my strike rate of around 70%.Apologies for any errors I may have made in the details below but hopefully you'll get the general idea.
PLEASE READ ON
Identify 4 main currency pairs to trade for the day.These are usually the main pairs such as GBP/USD - EUR/USD - USD/JPY and EUR/JPY but you may choose any.
Using the latest TECHNICAL ANALYSIS you should clearly mark these out onto each chart.It’s recommended that you use 30 minute or hour charts which covering 4 pairs during on 24 hour period should give you several trade opportunities.
Now,access your account and check your balance from the previous day’s trading.Each new trade should limit risk to 1% of your balance.
For example;
Lets say we are opening a trade in EUR/USD. If we enter that trade at 1.4516 then using a 10 PIP stop then the amount of that stop should the trade go against us would mean we’ll lose only 1% of our account balance.
- Balance of £3664 means we limit risk to just £36. Then divide £36 by 10 PIPS which = £3.60 per PIP. As each currency pair varies in price it’s a good idea to get used to these first.This can be worked out quite easily and make a note of them.In time you’ll know in advance what they are.
- So if you think the pair will go DOWN you will need to set your STOP @ 1.4526 (10 PIPS above).Using a ratio of 2/1 the LIMIT should then be set at 1.4496.
- Using this formula and the amount shown a profit of £72 is made which would be 2x the amount risked. A strike rate of around 71% can be achieved using this method.
- With time and patience it would be quite possible to be soon earning around £30k per year from home……..and some days you might only need to trade 2 or 3 hours.