Let me first say there isn't
one best Forex trading system that works for everyone. There
are lots of great Forex trading strategies and Forex trading
systems but to say there's only one, would not be a true statement.
Forex trading systems can be as individual
as the person using the system. One Forex trader will find
a trading system that works perfectly for them and another
currency exchange trader will say it's not worth the paper
it's printed on. If you know anything about trading in the
foreign exchange market, you know there are certain times
of the day to trade specific Forex currency pairs to increase
your odds of making a winning trade. Trading off hours, using
the best Forex trading system could be a losing strategy.
Try to stay out of the market during the slow times.
Every experienced Forex trader knows the
best times to trade in the Forex market. The most active times
are between the hours of 2:00am and 11:00am EST. At 2:00am
EST the European markets are starting to open and at 3:00am
EST the London session starts to kick in. At 7:00am to 8:00am
EST the New York sessions start to come alive. At 8:30am EST
there are many news releases (mostly USD) that can cause market
volatility. This is when the market moves and can move big.
These are the times most Forex trader love and this is where
the money is made, and lost. The London session starts to
close around 11:00am EST and the Forex market tends to slow
down until the Asian market start up again around 7:00pm EST.
And everything starts all over again for the next trading
day. That's why a Forex trading system is so important to
every Forex trader.
To make the most out of any Forex trading
system, you need to have one Forex trading strategy for trading
at news times and another one to trade during the rest of
the day. A good strategy for trading the news in the Forex
market is to do your homework up front. Know what key news
releases are coming out and find out what the consensus numbers
are for each report. There are many different Forex news sites,
so I recommend looking at no less than 3 news sites to make
sure the consensus numbers are the same or very close to each
other. Sometimes Forex news sites get the numbers wrong, so
doing your homework up front, you will quickly know if the
forecast numbers are on the mark or not. At news release time,
what you're looking for are numbers with a shock value associated
with them. Numbers that do not meet the consensus but exceed
or fall far shot of expectations. These are the news events
you want to trade. You need to know beforehand what these
shock value numbers are, and take action when they're released.
When news is out of the way or it's a very
slow news day, that's when you need a Technical Forex trading
system. Forex technical trading is when you use charts and
price action. Tools such as Forex chart patterns, trendlines
(trendline analysis), Fibonacci (Fibonacci numbers/Fibonacci
studies) and a host of other Forex trading tools can be used.
The best advice I can give here is to keep it simple. Do not
go overboard with the tools you decide to use. I suggest picking
two or three at the most and work with them at all times.
Give each one at least a months time to decide if it's working
for you before you decide to move on to another. Some folks
may find they don't like using Fibonacci retracements for
example, while other traders like myself, couldn't imagine
not using them. Forex traders are all different so you need
to find the tools and Forex trading system that's right for
you.
There are lots of great online Forex training
websites available today and most are free. Read all you can
about Forex trading before jumping in. Forex trading is a
great profession and like any new business venture, it takes
time to learn and do it right. Just take your time and remember
to find the best Forex trading system that works best for
you and stick with it.
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