A preceding article in this 7 article series covered how a no stop loss Forex trading system was developed due to the frustration of having stops being triggered all the time. The trading rule we are trying to ignore is "always have a stop loss when trading the Currency market".
The next strange phenomenon that we will investigate is making gains from always being in a position to cash in on whichever move, in every direction which the price goes. We are trying to disprove the concept that one has to predict the direction that the Forex market is going in to make money.
To be in an able to cash in positively all the time means that should the price goes up you will cash in that transaction at a gain and if it goes south you will also be in a position to cash that transaction in at a gain. First of all logic should now be giving you a hint that in order to do that you would have to have a buy and a sell deal active at the same time all the time. The immediate reaction to this is - How on earth can you make gains from having a buy and sell transactions active at the same time. Surely, this is completely hedged situation. There is a saying in the currency market:- Only the online forex broker makes money when you are in a buy and sell deal in the identical currency at the time. We will refute this belief too.
Before we explore how traders are amassing fortunes with this system let's have a look at the benefits of having a buy and a sell transaction active at the same time (hedging). The loss on the one makes up for the profit in the other. It is becoming clearer why this system is called the "no stop, hedged currency trading system isn't it? Transactions are fully or partially hedged when making use of this technique which makes the requirement for a stop loss redundant.
Let's review the currency markets and the way the price glides its way over our currency trading charts. You will see that with the exclusion of definite trends due to news, economic and political events the price vibrates is a undulating way 90% of the time. It either trades sideways or in a lazy upward or downward trending way. This gives us our first clue of how one can make lots of money from buying and selling at the same time. The price tends to revisit an earlier price level over and over again. If you cash in your profitable deals at these price levels you are likely to see the same deal repeating itself over and over again and you would/can therefore also cash in over and over again. Because there are many of these levels you would end up cashing in both your buy transactions and sell transactions at a profit continuously thereby repeating the same transaction over and over again.
So far we have been discussing high level trading concepts used by the no stop, hedged, forex trading grid technique (notice the new word in the system title). In the next article we will explain the how to make lots of cash trading these repetitive deals with no stops in this spiky, wavy currency market.
For more information, which is freely available, on this great trading system why not Google "no stop forex trading" or visit authority sites like expert-4x or forextradersupportservices.
This is the second in a series of seven articles on the No stop, hedged, forex trading system which will be presented in this article directory on a regular basis. Ensure that you do not miss any of them in order to get the full picture.
Find out how you can make money trading the no stop forex trading technique from Mary McArthur who is a Forex trader with http://www.forextrading-alerts.com Mary also assists with management of http://www.forextradersupportservices.com Mary is considered an expert of the system and has co authored a forex trading course available on the above sites and can be contacted at info@expert4x.com
Article Source: http://EzineArticles.com/?expert=Mary_McArthur
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment