Red Hot Tips Point: Forex Charting Success - 3 Simple Steps to a Triple Digit Income

Sunday, October 11, 2009

If you want a time efficient and highly lucrative way to make money then you should learn Forex technical analysis and this article will show you how to enjoy Forex charting success in 3 simple steps.

When you use charts you don't need to know the news, all you need to do is watch the reality of price change and lock into and hold trends. You don't care why prices are moving, you just want to make money when they do. The reason you can make a lot of money is simple - human nature is constant and human nature, shows up in repetitive price patterns you can trade for profit.

Here are your simple steps to charting success...

Learn Support and Resistance and Reliable Chart Patterns

Any Forex trader needs to know about support and resistance and some highly reliable chart patterns such as symmetrical, ascending and descending triangles. With a few days learning you will soon be able to spot the best chart patterns and what they mean in terms of price and next you need to add some indicators to confirm your view.

Select a Few trading Indicators

There are lots of trading indicators you can use but don't use to many in my view 3 or 4 is enough. I personally use the Bollinger band to give an idea of volatility, simple moving averages to help determine the trend and a couple of momentum indicators which can help time my trading signal; my favorites are the RSI and the stochastic. To learn these indicators, will only take a day or so and then your all set to launch your strategy.

Money Management

Now you need to bring your strategy to life and make it work and it will only work, if you have sound money management - you must keep your losses small, so pay as much attention to your stop loss as your target. The key to winning with Forex charts, is to keep losses small and if you do this, the profits will come and take care of themselves.

A Quick Way to make Big Forex Profits

If you spend a week or so learning currency trading technical analysis and some weeks practicing your art, you will soon have the confidence to start trading and making a great income in 30 minutes a day or even less. Forex charting success is open to anyone with a willingness to learn and the rewards for your effort can be immense.