Foreign Exchange Trading Systems - Major Trading Systems

I have been trading Forex full time over 7 years now and have discovered diverse Forex trading systems and methods.

Subsequent to many trials and errors I've come to the realization that less is more, therefore I have reduced my trading into 3 categories:

1. Forex news trading - this means trading the volatility surrounding economic announcements such as Non Farm Payrolls, GDP and others. For this I have software that broadcasts the news as it is announced and can actually hit the sell or Buy buttons. Quite often your order will not be executed so it is possible to enter on a bounce back, based on the news direction.

2. My own Forex trading methods and strategies, these fundamentally come down to 2 simple methods:

2.1. Selling resistance and buying support, based on calculated pivot points, Fibonacci numbers and trend lines.

2.2. Rapid scalps which involve executing short and sharp trades and minimizing risk. This requires some practice, but once mastered it can be easy to make money .

3. Purchased Forex Trading systems - there are various systems for sale and most of them are useless, written by Internet marketers for the sole purpose of making money for the marketer. These systems are a complete waste of time but the sales pitch is very good. I have found some that work well and balance my own trading methodology.

Timing and time in Day Trading

It is highly important to understand the time of day that you choose to deal in and know what you potentially expect at that time of day. This differs from instrument to instrument, so it is important to study market behavior for your trading instruments. I regularly trade only 4 instruments; the DAX, Euro, Japanese Yen and the GBP/USD, and I am very familiar with their behavioral patterns during the trading day.

Other instruments have different behavior patterns and I will deal in them (I do occasionally trade WTI, Nat Gas, and other currencies) after I've studied their time related behavior. Most of my trades outside of the DAX and GBP/USD are economic announcement related and of course, when figures are published a different volatility is in place which is usually out of the usual patterns.

The prime time to deal in the DAX (German Index, and moves in tandem with the DOW mostly) is close to the London open at 08:00 (03:00 EST), as the open usually brings a large rush in orders and it's easy to scalp. Sometimes the scalp will turn into a longer term trade, if a trend develops, however it is sometimes possible to achieve a gain of 20 - 40 points in the first half hour of trading. As my daily target is 30 points and it is often made within 30 minutes, I can then relax and look for absolutely perfect set ups that will not risk the gain.

Some of my fellow traders will stop trading then and do something else. It certainly gives one plenty of time, but those 30 minutes require intense attention.

If you need more information please check my blog by clicking the link.

The blog also contains live trade examples and videos.

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