As long as your strategy is alright and you can stick to it, you can safely expect around 20% daily profit from Forex trading. However, this doesn’t apply to the part-time traders, who often can’t trade for hours each day, exploiting the micromovements on the market. And let’s be honest — 90% of newcomers to Forex do not have that luxury.
The big issue with part-time trading is in the name — it’s part-time. This means that you can’t afford to monitor the market for hours each day, and therefore are bound to miss trading opportunities on short-term timeframes like 5M.
Such approach is very attractive for those who are searching where to invest money or how to receive an additional income. In general, beginners start online forex trading using a Demo account that allows everyone to receive relevant practice at no charge (no money losses at all).
As long as you can spare 5 minutes of your time each hour — you can use them to make a profit on Forex. At its base, long-timeframe trading is not that different. You still want to buy low and sell high, and you still have to predict the market situation to do so. Predictions tend to be a lot less precise on longer timeframes, and simple trend-trailing straight up doesn’t work. And for a long time, there hadn’t been a reliable trading strategy on timeframes larger than H1.
Everything changed in 2005 when James16 started his chart research at ForexFactory. He noticed patterns, both in candlesticks and charts themselves, that predictably affected the market. James and his followers documented those patterns and found the best way to trade on them. Now we call their strategy Price Action. It depends on delayed orders — as in orders that open and close automatically once the price reaches the defined condition.
For example, if you see a candle with a little-to-no-body and one shadow much longer than the other, it’s a Pin Bar. It indicates a change of trends on the market, and you can speculate on it. Set up a delayed order in the direction of the new trend, next to the short shadow of the pin bar. You should close that order by StopLoss when the price goes beyond the long shadow or TakeProfit once the price is double the StopLoss in your favor.
There are hundreds of patterns like these. However, most of them are relatively rare and not that precise. Newcomers to Price Action prefer to trade using only a dozen well-documented common patterns, and you can learn them all in an hour or two.
To prove the worth of Price Action in practice, let’s take two trading weeks on EUR/USD currency pair and see how much could a single trader earn on them. To make it fair, we will use only the most basic and reliable patterns — Pin Bars and Inside Bars. We will also provide two TakeProfit options — safe (win/loss being 2:1, with adjustment for market levels) and aggressive (3:1).
Here are the trading opportunities between December 17 and December 30:
Provided that the starting capital was 100 USD and leverage was 1:10, at the end of two weeks, a trader using safe strategies has 120 USD. An aggressive trader has 125 USD. It is a sizable 20-25% increase — and it is very much repeatable.
One of the companies that fit all these criteria is JustForex. Their margin call procedures are surprisingly lenient, the quality of support is on point and it offers a huge variety of currency pairs including cryptotrading. The broker is IFSC regulated and registered with the Federal Service Authority.
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