Best Forex Trading Method – For Making Big Gains in 30 Minutes a Day!

Posted by on Nov 30th, 2010 | no comments home title

Here we will look at the best Forex trading method for making big profits in just 30 minutes a day. The method is simple to understand and apply and is called Forex swing trading – let’s take a look at in more detail.

If you look at a Forex chart you will see a number of accelerations in price which cause short and sharp, price spikes to the upside, these spikes however don’t last and prices soon fall back to more realistic levels which represent fair value – so what causes them?

These spikes are caused by human emotion and the emotion present is greed. When prices are rising traders become greedy and push them to far ahead of the fundamentals and then, these prices fall back down to earth. As a swing trader you need to be able to sell into greed and below you will find some simple tips to help you do this and make big profits.

- Wait for prices to accelerate and create a price spike on your chart.

- When this has occurred, you need to check how overbought the currency has become and to see this you need to look at some momentum oscillators.

- Momentum oscillators, will tell you if a market is overbought and all you have to do is look at the visual set up. We like the ADX, RSI, Stochastic and MACD. These indicators are easy to learn and you should make them part of your essential Forex education. Don’t use too many 2 is enough use to many and you simply wont generate quick enough signals.

- If a currency is overbought, you then need to wait for a turn in price and the set up you want to look out for is – Prices are rising and momentum starts to fall. When this happens you have a warning the trend is about to turn – so go short.

- You place your stop above resistance and set a profit target on the downside which is near fair value and take profits when this level is hit. A typical swing trade, will last for around a day to a week and if you hit only the best set ups, you can easily make triple digit gains but you must be selective!

- Don’t just trade any overbought market – only trade ones which are near extremes. Always remember the old saying ” the bigger they are the harder they fall” and its the same in swing trading the bigger and more overbought the price spike the bigger the profit potential will be.

Swing trading one of the best Forex trading methods for making money quickly and is fun, exciting and best of all this strategy makes big profits so learn swing trading and get on the road to a triple digit income in 30 minutes a day.