By Chris Donnell – When a Forex trader looks for an opening, they examine charts that display all the clear balance point lines and moving averages. You can see the trend tools. What do you do?
With effective Forex training, you’ll know about support and resistance. If you know where to find the support and resistance areas, you’ll be in good shape. If you know the trend direction, you can know what to do. (We can go over time frame analysis elsewhere.) However, what time is the best time to enter?
You can’t conjure up the absolute perfect time to enter. Check out these tricks that Top Gun Forex trading courses provide that can give you an edge.
Don’t buy 10 to 20 pips prior to encountering resistance. This way, you won’t have to worry about getting reversed or stopped out by random market bouncing.
After that, don’t sell 10 to 20 pips if support is coming. You do this for the same reason; don’t get reversed or stopped out of the trade before you make good.
After that, wait out the price. Head fakes is a problem a lot of traders worry about. If you want to minimize your risk, pull back after the support or resistance is broken, and once the trend line breaks, you then go in, giving yourself the advantage. (Every Top Gun course covers this very effective method.) You can see this in action in our Forex Videos.
Keep a close eye on trends. If you start seeing divergence in your trends, or even if the trade loses momentum, you might lose the trade in the end. Therefore, it would be advantageous to just see where the price goes before dumping money into it.
Only bet on sure things! Just wait a bit before going in if you have the slightest doubt about a trade. If you plan on waiting for awhile, write down what opening you’re anticipating, so that when it finally arrives, you can successfully enter the trade and earn more profit.
Don’t just take a trade for a single reason. If you want to go long in the EURUSD because their trend indicators show that the EURUSD will be bullish for awhile, people have been receiving good news about the EUR, and the resistance for it suddenly became support, you might find it advantageous to actually go long with this trade. On the other hand, you might want to use multiple time frame analysis before you go in.
Trend lines are your friend. The Top Gun Forex courses cover this topic on a regular basis.
Stops also help! In order to protect their investments from turning on them and making them lose money, stops are put into effect by traders.
Momentum indicators will be useful. With the help of LeverageFX Forex Software, you can determine how the momentum of the trade is doing using moment indicators.
Traders find these tips incredibly useful and advantageous to their trading portfolios, as they can figure out the best times to go in or duck out of a trade.
About the Author
Chris Donnell trades and teaches Currency Trading. You can see examples of his trades/systems on our ForexBlogFX.com site.
