Forex Trading Strategies

I am gonna be very direct with you guys, never pay for a forex strategy you found online. The reason is simple, if its really profitable, the person would never sell it or actually would avoid talking about it.

I also want to advise you about indicators. I have been trading stocks since I am 18 years old and forex since I am 20 and one thing I learned is that complicated technical indicators  are crap. MACD, stochastic, RSI are all lagging craps. How I know this? I coded probably a 100 robots to see if indicators can predict price movement, but nothing was very successful at it. The only thing I sometimes check is the moving average, but that is only to see a trend forming. I only trust support and resistance levels and price action.

So with some common sense, here are few forex trading strategies that have always worked, and that every knows about.

  1. Breakouts.  A breakout is when the price go suddenly in a direction, by breaking out of a certain price level (also called support / resistance levels). Here what you want to do is to follow the trend, and basically if price is going quickly up, you buy. You should them aim to take a profit at the next support/resistance level.  
  2. Rebounds. A price bounce, also called a contrarian stragey, is when the price is rebounding on a support or a resistance. In that case you will buy at the support (low price), and then sell at the next resistance (higher). I am actually a contrarian trader so that is the strategy I would suggest.
  3. Gap trading. This forex strategy consist of taking advantages of the market opening price difference on sundays. This do not always happen but when it does, it can be very profitable with a low risk ratio. Basically what you are going to do is bet that the gap (space between the price of friday at close and price at open on sunday) will close itself. The saying is that the markets hates voids, and thats why most gaps almost always end up closing. I am making a post just on gap trading and will also post a live youtube video of me trading the sunday gaps.

9 thoughts on “Forex Trading Strategies

  1. Stumbled on your blog through a post on forex factory. Have to say I am pretty impressed/jealous of your abilities to travel and trade. Hope to get there myself some day. Definitely enjoyed the pics of your travels and getting to see the fruits of success as so often its hard to tell the validity of some peoples claims online. Helps give me hope that sustainable profitability is a realistic possibility, albeit a challenging one to achieve. Good luck with your trading and hope to see more pics of your exploits!

    • Hey Ted, thank you for the positive feedback !
      I will try to update the travel pics gallery as often as possible hehe.
      Mind me asking, what kind of post would you like to see more on the blog?

  2. Hi ForexNomad…Cool blog page. I am trying to find you on forexfactory so I can study what you have kindly offered publicly online. I think you are spot on, and what you say is making a lot of sense to me. I’m going contrarian with ‘limit’ orders only…thanks. I hate buy and sell ‘stop’ orders…they are so easily hunted by the market.

    Take care,
    Bryan

    ps I contacted you about posting your sunday gap trades…I see you did, thanks for that, too.

    • I’m visiting from NY staying downtown. I heard about Rue Lafayette from several people. THE best cafe! There is nothing like it even in Manhattan. Can you start one there please? Can’t wait to come back, the best croissants I’ve ever had and everything else was wonderful. To the owner, start your own show, you are so great!Thanks for the experience.Sandra

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