Page 102 - Ultimate Guide to Currency Trading

movement will happen, and then for a few minutes (one or two) there will be no movement at all. You
will know that the perfect time is coming when you see an up or down on the chart and then the chart
goes completely horizontal (no price movement) for two or three periods. The longer the periods (use
a fifteen-second or five-second chart) go without a change in price, the greater the movement will be
once it finally does come. You will almost be able to hear the FX traders of the world thinking of how
to place the next trades. It is almost like they are all waiting for the next guy to make the first move.
You are waiting too: You are ready to trade; you are set up, just waiting for the break, and then
jumping in for the ride!

Make Your Move

After the FX community waits to see what direction to go, the chart will begin to move. You
should wait until it moves faster and more dramatically in one direction. At that point get into the
trade. Once you are in the trade and going in the same direction as the rapid price movement, hurry
and get your "Close Order" screen up; get ready to close out the order completely. You should wait for
either the movement to stop or slow dramatically, or for your profit from the trade to bring a smile to
your face. When the movement stops, then definitely close out of the trade. On the other hand, if
your trade-profit indicator is making you giggle just a bit, and you're happy with what you just made,
then by all means close out and take the profit. Remember, keep it fun: You are enjoying the time and
making money to boot!

Overnight Trades

During the trading hours most of your money will be in cash. You will have your other three buckets of
investable cash. One of the most exciting forms of using this investable cash is engaging in what is
called overnight trading. Overnight trading is when you look for the developments at the Asian
markets in the early evening in order to get a good idea as to the direction of your bets. Once you
have decided in what direction to place long or short, an entry point would either be made or
programmed into your trading plat-form. The activity in the markets in the middle of the night will
trigger your trades and hopefully allow you to exit the trade at a preplanned and preprogrammed
profit point. The key to successfully placing and profiting from overnight trades is asking yourself if it is
the right time to get into the trade at all. Once that question has been answered, then choose
whether long or short of a few currency pairs should do the trick. This will allow you to wake up early
to a nice profit in your account.

Why is it that the world's markets seem to go up and down every few days?
The world's stock markets, precious metals markets, and currency markets usually go

QUESTION up for only so much before fortunes reverse. This is because many of the world's
traders will engage in profit taking and sell their positions after a few days of gains in
the markets.