Wednesday, November 28, 2012

Profitable Gold Trading Strategy

All you need to be a profitable forex trader is one simple strategy and mechanicaly to follow it, no matter what.

Here is one very simple, but very powerful and profitable trend following strategy.

Profitable Gold Trend Following Strategy:

1) Choose your market: gold. Use 4 hour charts.
2) Look at the chart and decide which way the main trend goes. If the trend is going down, there will be lower highs of candles and lower lows. Like yellow line shows on the image below.
3) Let´s assume that the trend is going down, so you will be selling. But you have to wait for the best time.
4) Entry points. In our example you will sell. Even though the trend is downward, there are some retracements back up and then it will turn down again. So you wait for these retracements. When they hit a resistance level (red line on the image below), there is a strong possibility it will bounce and go down again.
That is the point of your entry, where you place your sell order.
5) Always place a stop loss.
6) If the market is going your way, let your profits run and move your stoploss above previous candle.

Sometimes, you will have losing streaks, 3,5 or even 7 trades in a row in loss, but that is normal for trendfollowing strategy. You have to keep placing your trades exactly according to this strategy. When you catch your trend, you will get profit big enough to cover all your losses and you will have additional profit above that.

So put this simple and profitable trend following strategy in work and make money.
Open your trading account with InstaForex and get 30-40% bonus on each deposit!