Money Making Forex Techniques

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Money Making Forex TechniquesForex trading Techniques refers to actual Forex techniques you can use to trade the Forex market.

Forex Trading techniques normally provided great entry conditions, exit criteria and ways of managing open transactions.

 

Below are a number of popular Forex techniques

If you have any PERSONAL experience with any of the techniques below or you know of any really good EAs please let us know using the facility at the bottom of this page.

 

More on Money Making Forex Techniques

Forex trading can be as simple or as complicated as you want it to be. In the beginning forex trading seems like it is simple. It seems like your only job as a trader is to pick what direction a currency pair is going to go and collect your profit. Or, maybe you are thinking of trying to find a 100 percent accurate forex trading system on the internet. If only it were that simple.

Hedging

Hedging is a way to reduce risk by taking both sides of a trade at once. If your broker allows it, a simple way to hedge is just to initiate a long and a short position on the same pair. Advanced traders sometimes use two different pairs to make one hedge, but that can get very complicated. For example, say you decide that you want to go short on the USD/CHF, because you see it sitting at the top of a recent price range. You decide to initiate your short. After setting up your short, you start thinking that the USD/CHF is looking a little strong and you think that it might break upward and make your short an expensive one. To do an advanced balancing act, you start looking at other USD pairs. You find that the EUR/USD tends to move inversely to the USD/CHF. To complete your hedge, you go short on EUR/USD. The USD ends up breaking resistance and moves strongly against the CHF. Your short EUR trade becomes a winner and your USD/CHF trade is a loser, but your risk is limited because they almost even

Position Trading

Position Trading is trading based on your overall exposure to a currency pair. Your position is your average price for a currency pair. For Example, you might make a short trade on EUR/USD at 1.40. If the pair is ultimately trending lower, but happens to retrace up, and you take another short at say 1.42, your average position would be 1.41. Once the EUR/USD drops back below 1.41, you will be back in overall profit.

To read the rest of the above article please use this link:- http://forextrading.about.com/od/advancedtrading/a/advanced_forex.htm

 

 

 

 

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