Page 101 - Ultimate Guide to Currency Trading

If this sounds like a fun way to spend an otherwise dull weekday night, then you must
absolutely incorporate late-night, short, quick trading into your overall FX trading program. Keep in
mind that you should use a quarter to a third of your overall available margin with each trade, and
have only one trade on your books at any one time. Also, it works best if you ignore the long-term
direction of the FX pairs. It would be better to keep your focus on a five-minute or even a one- minute
chart. With these short-term charts you can almost see each and every trade as it comes into the
session: the bar chart will gently move up and down.

More on Scalping

At this point, open up your place order window and enter in the appropriate size of the trade, and
place your mouse over the "Place Trade" button. The best results are when you just sit there, and
watch your movie and wait for a sudden move up or down. Often you will be able to capture this
sudden and rapid price movement and exit out of the trade when it is done moving and at a new level.

An example of this process would to get the kids down to bed, turn on a light-hearted movie,
turn on your laptop, and make yourself a cup of hot chocolate. As you sit there and sip the sweet,
warm cocoa, get your computer screen to show the FX pair of your choice. You are going to look at the
AUD/USD pair in this example. Switching to back and forth between a five-and one-minute chart, you
begin to get a feel of what is happening in the market this early morning in Tokyo and Sydney.

Don't allow yourself to get too caught up in looking at any one time-length chart. It
would be best to keep switching back and forth among long, medium, and short time-
ALERT length charts in an effort to get a grip on what direction that currency pair is moving.

The chart will show very little movement, and at first glance you won-der if the FX market is
actually closed. The bar chart will begin to move, up and down with each and every one minute that
goes by. Nothing much is happening.

Time gently ticks by. You have a good feel for the trading platform, the AUD/USD pair, and you
are now ready to trade. You open up the "Place Trade" window, get your calculator out and figure that
you will commit a fourth of your account to the next trade. You enter this amount in the trade-size
section, place your mouse over the "Place Trade" button, and wait.

Be Patient

You are waiting for the perfect time to get into the trade. This time will come when there has
been a movement (up or down) in the chart. Usually what happens at this time of the day is that the