If you want to make it in this business, you need to recognize that simple forex trading as a strategy is going to beat out any other elaborate complex strategy. This is a very old business and you're probably not going to reinvent the wheel.
When Do I trade?
You want to trade during the peak hours of trading. This is the time when the volume is highest. Since the volume in this market is high during peak hours, there is no one trader that could influence the movement of the market with a trade. Therefore you can see the market is moving completely by market forces. The off peak hours are when it's more dangerous for a small trader to be working. Big firms and banks that make massive trades will end having an effect on the direction, since the volume is much lower. Stick to the peak times and you'll do fine.
How Do I Handle A Bad Trade?
The best thing you can do is learn from them. Obviously the less bad trades you make the better. The problem is that you're never going to get rid of them. You'll always run into trades that go bad. It's just part of life. Learning to cut your losses is a skill that can save you a lot of money. We all think if we hold onto the trade, things will improve, but that rarely ever happens. Just cut your losses and move on.
How can I Identify Profitable Trends?
Learning about reading graphs, the problem is that it takes time to go through graphs and figure it out. Usually there is a lot of different ways to determine them and it's hard just for one person to find them all. Try using software like forex Killer, which will automatically go through the currency graphs looking for trends that are profitable.
This is the simple forex trading strategy that I follow. I always keep my businesses following simple philosophies because they work.
