It is time for the Forex FAQ session.
Below is the question for this week
Hi Kelvin, I have bought your Forex Trend Line Strategy book, which was brilliantly narrated with useful examples. I understand that the best trading strategy for a newbie like me is Forex Swing trading. I work from 8am – 4pm Mondays to Friday. My question to you is, would i be able to use this Forex Trend Line Strategy, while still working the hours i work? I would be grateful, if you could answer my question.
First of all, I will like to thank all of you who have bought my forex trend line strategy book which has given me such a successful launch.
The reason why I wrote the forex trend line strategy book instead of other strategies like swing trading is because the forex trend line strategy is one that can be used in conjunction with any trading strategy you are currently trading with. This is an added tool that can help those of you who currently are trading with certain strategy an improvement in your winning percentage.
For those of you who do not have a strategy yet, this forex trend line strategy can be a reliable strategy for you to use. No matter what strategy you are using, you definitely require the help of trend line and your entry will most probably be at the point where there is a trend line break.
However the main problem with trend line is the constant occurrence of fake outs which usually causes your position to be stopped out. The worst thing is the market started to move in your favour after you are stopped out and that is where you can make use of this forex trend line strategy to minimise the problem. Frankly speaking, there is no way you can totally eliminate fake outs and what we can do is to minimise them through certain techniques.
For those of you who are working in the day time and wanted to trade forex at night, you can still use what is taught in the book. The best time to use the strategy will be during the London and New York Session as these are the timing where you will see larger market movement which will also translate into profit if you get it right.
The essence of the forex trend line strategy is to help you
- Verify if there is a valid trend line break or breakout or is it a fake out.
- Know exactly when you should exit your position before the market takes the profit back.
- Know where the powerful support and resistance levels are so that you can use them for your entry and exit
I hope that I have answered the question and wish you all the best for your trading. For those of you, who have submitted your question, please pardon me if it has not been answered and I will try my best to answer them as soon as possible.