Page 155 - Ultimate Guide to Currency Trading

This type of ultralong-term trading also known as a carry trade can be used to go a long way in

building your account to earn a very high rate of return over months and even years. If you would like
to try to get into this type of trading, then spread your buy ins at properly timed points. This means

waiting for the world's stock markets to fall or otherwise experience a bit of bad times. Waiting for
these market conditions will ensure that you are buying into the commodity or other high-yielding

currencies at the lowest prices.

Waiting It Out for a Correction
If you have spent time building up a well-thought out position that looks good technically and

fundamentally, then the next thing you have to do is to wait for the trade to play out and earn you a
good profit. Even though it feels satisfying to be in and out of a trade in a matter of minutes, most of

the big money is made by extending your time horizon, sticking to your plan, and allowing the trade to
work for you.

If you find a charting system, ratio, or indicator too complicated, too difficult, or too
hard to understand, feel free to switch to a chart sys-tem or indicator you feel
comfortable with. Currency trading can be hard enough, and you shouldn't feel

Essential obligated to complicate it further.

If your well-planned trade is taking a bit of time to work out, the best thing to do is to go easy,

and give the trade a chance to work. Sometimes it seems that all of the currency traders of the world

are heavily focused upon the same currency pair, and that currency pair is not yours. Sometimes it
seems that everything in the market is moving except the FX pair in which you have taken money and

time to build a position. Sometimes the currency market is totally flat, such as between seasons, and
before and after major holidays. Either way, when these times happen you should not get nervous

about your trading ideas. During these times it is best to go over your trading diary and review the
logic of your trades.

Once you have reassured yourself that your ideas were and still are good, then you would be
best served by setting a take-profit point that is one-third the distance of your stop-loss point. If you

have your stops set up in this manner, then you will be able to ride out three times as many down-
ward swings as upward swings. In other words, if you have your program automated to win one-third