FX Trading System

After you have known if the trend is either going up or down,what we are going to do now is to trade those events.In Red(A)-HIGH IMPACT and Orange(B)-AVERAGE IMPACT.Here's is how to do it,you will buy and sell at the same time on the 2 colors(i.e.red color and orange color)then set target profit of 30 to 40 pips for trading the red color and 20-25 pips for trading the orange color and set your STOP LOSS(i.e.the amount you are willing to lose in any given trade).Here's a simple example of how to do it.If in EUR/USD,a 3 pip spread is quoted as 1.2500/1.2503.
Trade example:Take profit at 1.2503+25 pips up=1.2528,stop loss at 1.2488.And at the same time move down to step 2.Take profit at 1.500-25 pips down=1.2475,stop loss at 1.2515
It's advantage is that your trade will always close in time and you are capturing your profits.The result is this:40 pips-15 pips=25 pips.This is $250 if you use a whole lot and $500 if you use 2 lots.I personally would use 60% of my account since i am so sure the move will be above my projected 40 pips.If you have a large account say $3000 and use 0.60% of your account with a 25 pips profit that's a(1.8x10x25 pips=$450)in just one trade.Remember you can always do this with other currency pairs(if you have a larger account size)you can easily make up to $3600-$4000 with that one move.
This is my personal trading advice ,if like in the instance i highlighted earlier there is 3 times the red color and 7 orange colors,which mean a real volatility will occur.Red volatility in this case would give 9x10=90 pips,totaling 120 pips a day.Please note that this does not happen everyday.I wish you good luck.Remember you need to be confident and not be greedy.
How to Calculate Profit and Loss
For ease of use most online platforms automatically calculate the P&L of a trader's open positions.However,it is useful to understand how this calculation is derived.Consider the following example;let's assume the bid /ask price for EUR/USD is 1.2320/23,meaning you can buy 1 Euro with 1.2323US Dollars or sell 1 Euro 1.2310 US Dollars.Suppose you decide that the Euro is undervalued against the US Dollar.To execute this strategy,you would buy Euros(simultaneously selling Dollars),and then wait for the exchange rate to rise so you make the trade.To buy 100,000 Euros you pay 123,230 Dollars(100,000x1.2323).Remember,at 1% margin,your initial margin deposit would be$1,232 for this trade.As you expected,Euro strengthens to 1.2395/98.Now to realize your profits you sell 100,000 Euros at the current rate of 1.2395 and receive $123,950.You bought 100,000 Euros at 1.2323,paying $123,230.You sold 100,000 Euros at 1.2395 receiving $123,950.That's a difference of 72 pips,or in Dollar terms($123,950-$123,230=$720).Total profit=$720(TIP:When trading any USD counter currency pair,each pip is worth $10 per 100,000 trades).For more information Click Here!