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Forex Trading: Historical Currency Price Chart – Why is it Important to Me?

Short term trading as commonly known as day trading strategy is the most forex traders strategy. Day trading are consider to be more psychologically excited and more profitable compared to long term trading strategy as it can be done frequently. Personally, i’m agree with that. Eventhough, day trading is not the first choice in my forex trading.

I treat my forex trading, mostly as an investment, not a game, nor gambling. As a common investment, it has to be done by the way that i thought it has to be done. As for me, investment ia a matters of patiently, high precision of forecasting and calculation which backed by a solid and responsible historical data. I’m using 75% of my forex trading funds to trade long term, and 15% to trade short. I treat the other 10% as an ‘account maid’ as i dislike to see my account shows $0 in its account balance holding. (These numbers isn’t an exact numbers, its just mostly close to that). That’s not particularly important. What i want to is, for these several years, i kept profiting in my trade by using my own simple rules, isn’t that whats traders want?

By writing this article, i want to share my simple method in my long term trading to other traders which may still confuse in determining what trading strategy should be used in their trading. There are 2 important factors that should be remember in running this method.

1. DON’T use too safe stop-loss order

I’m protecting my own trade by using stop-loss order at 50pips or more. Many traders may thought that the lower stop order are more safe. By my own experience, setting a ‘too low’ stop loss order is just means that i’m betraying my own trading syste, its killing this system.

2. DON’T use too high leverage

I’m using a mazimum of 10:1 leverage, less is better — if you’re looking for a higher profits, start to consider to funding your trading account with a larger funds, it’s much better than taking a higher risk.

The only tools what i need in running my trading strategy is a complete the last 3 months historical data of some pairs of currency (i usually pick for USDJPY or EURUSD in my trade) — thanks to the amazingly of internet technology which made it easy to find. Then, simply find the lowest currency price rate from the chart.

Whenever the currency rate price that you pick is nearly that lowest rate (10pips or so) just buy it. And check the new chart daily. But always remember to don’t be too greed. When it rise up for 20pips or so.. sell it! as easy as that. It just need to be a little patient to do that.

Compared to the frequent day trading, my methods are nothing when you’re searching for high profits trading. It might seem like just wasting a time to do so. But ask yourself, ‘would rather you choose, risking your money all day long (and may be your eyes health if you’re starring at your computer or notebook monitor all the time), or a more certain profits with a little patient?

You may try at 25% long : 75%short or 50% long : 50% short to test this method if you want to. Or you may stick with your old trading behavior. In the end, its all up to you treat your trading. However, our greatest teacher of all is still our own experience. Personally, i’d rather choose a sports gambling than a day trading if comparing the risks and the frequency within both of them…

Happy trading,

Octa

forexocta.blogspot.com [http://forexocta.blogspot.com]

This article is free for republishing as long as the article resources is remain as it (unedited) and all links are clickable.

Octa is a private investor, an online writer and the owner of forexocta.blogspot.com – a forex trading blog [http://forexocta.blogspot.com]. She own an

online bookstore

with a numerous collection of preferable investment educational books. Octa also a contributor in a some finance categorized blogs :||: stockside.blogspot.com & ccsolutions.blogspot.com :||:

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