How You Can Make Money In 2011 From Forex
I've been lucky enough to make some very nice profits from forex trading in 2010, but you can never be completely confident in your own abilities because market conditions can quickly change. So how can you make some consistent profits in 2011?
Well first of all if you're a day trader or an early morning trader, for instance, you should be aware of the average daily trading range for each of the major currency pairs. In the last few months many of the leading pairs have seen their averages fall quite considerably, as indicated by the Average True Range indicator.
So therefore if this trend continues into 2011 and we see a relatively small trading range each day, you have to take this into consideration. There is no point targeting big points gains that are well in excess of the latest ATR figure.
To give you an example, the average true range of the GBP / Dollars pair is at present 135 points at the time of writing (December 29th 2010 ). So if you're like me and enjoy trading early morning breakouts, you would need to take care about trading any breakouts early in the day if the overnight trading range is above a hundred points, for example. However if the range so far is just thirty or forty points and a breakout happens when the London market opens, then there is far more room for the price to move strongly in the same direction for the remainder of the day.
This is in bleak contrast to earlier in the year when the trading spread was above two hundred points and you might be lots more assured about the price continuing to move in the required direction.
An alternative way to earn cash in 2011 is by focusing on long term trades. Lots of folk attempt to make fast profits, but as I have already indicated, the trading ranges are quite little now for the major pairs and this will continue into next year. You are better off trading the four hour and daily charts.
The major pairs will always conform very well to technical analysis on these longer time frames, and overall it is a lot easier to make money. You simply need to come up with a straight-forward trading system that is able to detect one or two high probability trading opportunities every week.
The major pairs will always conform extraordinarily well to technical research on these longer time frames, and overall it's a great deal easier to earn income. You just need to come up with a straight-forward trading methodology that's ready to spot one or 2 high chance trading opportunities each week. The point is if prior years are anything to go by; there should be masses of opportunities to earn income from currency trading in 2011. This is very true if you lengthen your time frames and trade the long term charts. However it's still possible to earn money from short term trading as well in spite of the narrow trading ranges. You simply need to find the best trading technique.
Article Source: FxTradingStock.com
About the Author
Eric C. Herndon is a blogger and amateur cartoonist. Eric spends his time between playing Tom and Jerry Games and crating cartoons for his family.
by: Eric C. Herndon
Total views: 18
Word Count: 520
Date: Wed, 19 Jan 2011
Publish/Share this article
To use this article on your site click here to get the HTML code
Rating: Not yet rated
Login to vote
Related Articles
Tips On How To Profit In Virtual Stock TradingLet's Choose A Forex Broker.
Some Tips On How To Forex Trade Online To Know
Stay Away From Requotes In Forex.
Helpful tips for Finding the right Forex Trading Program
Forex Currency Trading Software program -- Pick the Proper 1!
Forex Trading Strategies - What To Do When You Loose
Currency exchange Robot Trading Systems - Get the Full Benefit!
