How To Create Wealth From Short Term Forex Trading

[John Starks]

Do not be mistaken that you can only create wealth from short term forex trading and not long term trading. In fact, you can make money from both type of trading style but what I am going to show you are how you can create wealth from short term forex trading strategies like scalping and day trading.

The benefits of short term forex trading strategy are the ability to win you money within a shorter time frame. In addition, you will be spared from the sudden price movement that occurs during news release which is what the long term trades have to withstand.

Because of the short term nature of each trade, the entry and exit position must be well timed and properly executed and this is where most traders lost their money in short term trades.

If you enter a trade too early, there is a high chance that you will be stopped out due to false signal. If you enter a trade too late, the market has moved quite a lot and there is a high chance that it may reverse. Therefore having a good entry is very important for your success in short term trading.

Here is how you can plan your entry:

1) Drawing Trend Line: The trend line is one of the commonly used entry technique. A lot of people like to rush into a trade and tend to enter their position before a trend line break occurs. In the end, they find the market being repelled by the trend line and did not break through it. Therefore waiting for a valid trend line break is a must before you enter your position.

In the case where you have missed the golden opportunity to enter your trade at the breach of the trend line, you should always wait for the market to retrace back to retest the trend line to enter your position.

2) Using MACD Technical Indicator: This is an indicator that I like to use for my entry. I usually use the crossover of this indicator to place my entry. Whenever I have the setup that is according to my trading plan, I will wait for the MACD histogram to flip to the other side before I enter a position.

Having a good entry is only half the game; you need to have a good exit to complete the strategy. There is no point in having a good entry but your exit is too far away which is unrealistic. In the end, the price reverses and takes back all the profit and eventually stops you out.

Here is how you can plan your exit:

1) Using Support and Resistance: The support and resistance are great places to exit a position as these are usually where the market will meet with some sort of repulsive force. Usually I will exit my position at the nearest major support or resistance. In fact you can also make use of Fibonacci levels as well as pivot points for your exit.

2) Using MACD Technical Indicator: Similar to how you use this indicator for entry, you can use the flip over of the histogram to exit your position.

With a well defined entry and exit strategy, you will be able to create wealth from short term forex trading. To find out more about the various strategies you can use for short term trading, you can refer to my blog post on forex scalping system and forex breakout strategy.

If you have anything to share about this post, do feel free to give your comment below. Every comment is valuable to all the readers of this blog as we will be able to learn and grow together.

Source: how-to-trade-currency.com

[kellywilson288]

For a newbie its very tough in the forex market to creat wealth,short term forex trading.Thank you John for all the useful information about the short term trading.It really helps a lot to many.

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[ali200]

Trading is more profitable than the short term ones. Taking a good decision can help us much. If we can control our greed and emotion then its not hard to make good profit. We should have full control of our trades by choosing right size of trade volumes. And also need to care about open positions at a time. Trading with lower volume and longer version trades are more secure.

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[William Weir]

If we go with a gambling approach or mindset to get rich overnight than it’s not possible and we are only going to lose badly. We have to first gain proper knowledge, experience and also skills and only than we could easily be able to make profits but that too only with a wise money management in place.

I am so happy that my broker is OctaFX, it allow us to trade on with just 5 USD minimum investment and still give us incredible benefits like 50% bonus, low spread of just 0.2 pips for all major pairs and also they provide instant payments be it for withdrawals or deposit without even charging a penny of the fees, so really they are just perfect!

[fxapex]

It depends from trader to trader, there are people who cannot spend time daily and most of them prefer long term trading. The important part is you should try to earn from the market doesnr matter how you trade.

[Tanzil Al Banna]

I think, it’s not any professional plan on Forex trading. In addition, honestly there have nothing like short cut way of success in Forex business. Which traders want to follow short cut way here, end of the day they lose their everything. Free educational features of TradingBanks worked for as a mentor, because I found proper guideline from these educational programs.

[riva]

Great shared post!!

[Tanzil Al Banna]

Trading with low trading investment is really hard job but not impossible actually! I also started my live trading with small trading balance so, I know the criteria of trading with low capital! A professional trading plan is the most important issue in this case! But 100% deposit bonus offer of TradingBanks helped me to manage a standard trading equity!

[JohnDyson]

I don’t think you make money through short cuts; it’s done through proper way because long term is the way to achieving wealth and success in long term and that’s really how we will be able to achieve good results and receive profits. I have worked step by step way and that’s really how I am able to achieve success and keep it floating. Right now, I am trading with OctaFX broker where I get superb benefit which is to do with the available facilities and features with low spreads from 0.1 pips for all major pairs while there is also rebate scheme where we get 50% back on all trading orders which is including the losing trades too, so that’s why I find it so good and effective.

[Mark Hoffman]

It’s all about been good enough and trading with proper strategy, if we are doing that then money is just too easy to come, but if we run after money then we will only suffer. So, it’s vital that we focus on good method and strategy in order to get it working. I always work through good strategy and my covering part is OctaFX broker through their sensational 50% bonus on deposit, it’s simply epic. I like it ever so much because of been use able and keeps me entirely comfortable and relaxed with working while there are no restrictions on what techniques I use, as it’s all allowed to be used here for us, so that helps in trading with comfort and able to gain profits.

[ForexMartTrader]

Trading longer time frames usually provides higher success rates and greater profits. This is due to the fact that currency prices is trend locked, and the price trend on the higher time frames usually lasts longer than those on the shorter time frames and are more reliable.

Edited February 13, 2017 by ForexMartTrader

[sokinakhatun]

Short Term trading can be extremely lucrative, additionally dangerous. It can keep going for as meager as a couple of minutes to the length of a few days. To prevail at this technique, traders must comprehend the dangers and the prizes of each exchange. They should not just know how to spot great here and now openings, additionally should have the capacity to shield themselves from unanticipated occasions. I do binary options trading where you can make money quickly but you need good skills. I you feel interested go to lxmarkets website to know more about binary options trading.

[ForexMartTrader]

You can create wealth from forex trading whether you are a short term trader or a long term trader. It is your forex trading skills and experience that determines your performance.

Edited March 27, 2017 by ForexMartTrader