Today I will start explaining the forex grid trading system.
Now there are too many forex trading systems. For instance, 4 hour forex trading strategy or forex day trading strategy. However, the fact is they were always horrid to drive.
Why 99% of FX traders lose money?
Many beginners are going to ignore the forex trading risk management rules and take a much larger trade. Therefore, I stick to trade using the micro lots one trade at a time.
That is my basic idea of grid forex trading. Is it very straightforward?
Here is an example of the forex grid trading:
First, many Forex traders must wait for a trend or breakouts. They don't really know what is a range-bound market. So I will only trade the daily range.
Second, I will decide to trade the major pairs like GBPUSD
Third, I will draw a trend line to identify the main trend on the daily chart. For example, on the daily chart of the GBPUSD, it stays above a bullish support trend line.
Fourth, I have to use only two forex indicators, the Relative Strength Index and the average directional index.
Fifth, I must write a forex trading plan and a forex trading checklist. It can help me find the best forex trading opportunities.
Now I have explained the forex grid trading to you. I believe that it's main advantages are simple and easy.
If you want to know more, please read my other forex trading articles.
Now there are too many forex trading systems. For instance, 4 hour forex trading strategy or forex day trading strategy. However, the fact is they were always horrid to drive.
Why 99% of FX traders lose money?
Many beginners are going to ignore the forex trading risk management rules and take a much larger trade. Therefore, I stick to trade using the micro lots one trade at a time.
That is my basic idea of grid forex trading. Is it very straightforward?
Though it is the simplest forex trading strategy, it's the basic concepts in the forex trading markets
Here is an example of the forex grid trading:
First, many Forex traders must wait for a trend or breakouts. They don't really know what is a range-bound market. So I will only trade the daily range.
Second, I will decide to trade the major pairs like GBPUSD
 |
| GBPUSD stays above a trend line |
Fifth, I must write a forex trading plan and a forex trading checklist. It can help me find the best forex trading opportunities.
- I trade GBPUSD on the 4 hour chart
- My grid spacing is 47 pips
- My grid lot size is 0.01 lots
- My take profit is 47 pips and can't set stop loss order.
- I place buy limit orders near support lines
- I place sell limit orders near resistance
- Every day I will set new forex limit orders
- When the forex market is trending, I will use a buy-and-hold strategy.
Now I have explained the forex grid trading to you. I believe that it's main advantages are simple and easy.
If you want to know more, please read my other forex trading articles.
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