Do you know guys what is the most beautiful thing in FOREX market?From my side it is TREND. Many of us search a market for big trend and they want to earn from trend. FOREX is that market. Here is a one and half years analysis of EU from November 2006 to May 2008. It made a gap of about 3500 pips within this time. It did give correction in many zones but the ultimately TREND was long. So what should be your trading approach in this market? Will you trade anti or the TREND direction? If you are a fool you will trade ANTI DIRECTION of TREND, and if you are smart enough then you will go for TREND DIRECTION.
For long term Trend Identification you can use many things. You can use Technical Analysis, you can use Macro Analysis for long term Trend Analysis. I use MACRO analysis for TREND identification. If you don't know Macroeconomics, it is no matter. Here just see I did use only 200 SMA for trend show. The reason is why I did use this 200 parameters? The reason is though the a year has 365 days, after deducting two holidays every week and other holidays for occasions, the year total trading days is 200 near. So many traders and me use 200 SMA. You can also use it.If FOREX is so easy then why people lose money here? People lose money here as they have no idea about risk management and their greed. You have to have your own risk management system then the TREND is reversing. You can use Price Action of Daily, Weekly or monthly for reversing your Trend. Here is a chart of USDBDT pair for the last two years. What will you do here? Go long or short? I can explain the reason of USDBDT uptrend. Will do it in some other post. Just I wanted to show you guys the REAL FOREX trading with proper Money Management.
For long term Trend Identification you can use many things. You can use Technical Analysis, you can use Macro Analysis for long term Trend Analysis. I use MACRO analysis for TREND identification. If you don't know Macroeconomics, it is no matter. Here just see I did use only 200 SMA for trend show. The reason is why I did use this 200 parameters? The reason is though the a year has 365 days, after deducting two holidays every week and other holidays for occasions, the year total trading days is 200 near. So many traders and me use 200 SMA. You can also use it.If FOREX is so easy then why people lose money here? People lose money here as they have no idea about risk management and their greed. You have to have your own risk management system then the TREND is reversing. You can use Price Action of Daily, Weekly or monthly for reversing your Trend. Here is a chart of USDBDT pair for the last two years. What will you do here? Go long or short? I can explain the reason of USDBDT uptrend. Will do it in some other post. Just I wanted to show you guys the REAL FOREX trading with proper Money Management.
