This past week or two has seen the US dollar rally hard against all other major currencies, and while the market is trending like that, either up or down, it’s fairly simple for us to make some money off it.
Using just a couple of moving averages and a stochastic for entry points, and support levels for exits, it was relatively easy to capture some profits on the EUR/USD, GBP/USD and AUD/USD.
Here’s an example of some of the conservative profits I made as the AUD dropped against the USD this past week or two.
AUD/USD trades
When you’re on a high and things seem to come easily, it’s important to keep a level head and keep the big picture in mind. Yes, the markets have been kind recently, moving in a relatively predictable way, but within a few days they might be biting back hard.
So, the important thing to remember at ALL times is to stick with your trading systems. It’s easy to think “I’ll just wager a small trade here because things are going well for me” without checking or analyzing things first. You must always ensure you are trading according to your proven system before hitting the buy or sell button. If you must have a wager – do it in a play account!
If you don’t have a proven, profitable system yet, then keep searching, keeping playing, but don’t waste your money in a live account. There’s plenty of profitable systems out there, sometimes you might have to spend a few dollars to get them, other times they’re free. Whether you pay for them or not, always ensure you trial them for at least 2 months before trading them live. Often a proven, profitable trading system won’t work for you due to factors such as: the time of day you can trade, your trading style (position, swing, day trading), your capacity for risk etc. etc.
If you’re interested, here’s a link to a system I’ve been using on and off for about a year now: FX Profits. It’s a good system for both beginner and advanced forex traders. It operates mainly on the hourly or 4-hourly charts, so sort of fits in between the day trader and the swing trader. It only takes a short time to learn, and even for advanced traders – it fits it with other profitable trading systems well.
Good luck and trade seriously!
