Page 128 - Ultimate Guide to Currency Trading

Make your first one-tenth margin trade, and then sit back and wait. In the next twenty to
thirty minutes the pair will move and you will be in the profit point. Enter another sell order at this
point, and again wait a half hour to enter the next trade. By this time there should be some direction
to the market, and it should be easy to see by switching to a five-minute chart. When you are on a
five-minute chart, you will see the entry points clearly marked. You will also see the chart move down
and down, allowing you to capture more and more profit. You should have the last of your four trades
in by 8:00 P.M. eastern.

There are many ways in which you can amp up the risk and return of your FX brokerage
account. Naked trading is one of the most aggressive methods. Naked trades usually
have no stop losses and no take-profit points. This type of trading can yield huge gains,
but can yield huge gains, but can also bring big losses.

These trades are considered naked because there will be no hedge, and no take profit entered
into the trading system. You will be assuming the full force of the risk; you will also be able to take all
of the profit. The reason that there should not be a take-profit point is that you are not sure how far
down the markets will go, and for how many days. There are times when the market is set for a fall.
When this happens, the trade described here can go for days, allowing you to capture big profits.

It is important to walk away from your computer at this time. You should have some activity
lined up that will keep your mind off of trading for the rest of the night. Perhaps going out to dinner,
or going to a movie with friends; whatever you do, do not close out the orders on your computer.
When the time is right, you will close them out. It is best not to check your trading platform in the
morning. This type of trading works best when you monitor it remotely and you can do this best by
following the Australian dollar currency ETF, FXA. You can program your smart phone or iPad to follow
FXA, and by doing so you will be able to get an idea of how poorly the AUD is doing.

You can watch the AUD fall in percentage terms from the day before with this ETF. You can
then return to your trading platform when you see a sizable fall in the value of the Australian dollar in
the FXA ETF.

Once you notice a good amount of movement to the downside of AUD, only then return to
your trading platform to take a peek of how well your positions have done. This would be a good time
to close them out, take your profits, and take the rest of the week off.

Trade Ahead of the News

Another very aggressive trading technique is to trade ahead of the news. In this way, you will have to
use every bit of your market knowledge as well as have the best fundamental analysis and technical
analysis skills. If there is a day that there is a lot of upcoming news scheduled, then on these days most