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GKFX UK Spread Betting v1 728x90

This article is aimed at anyone who has very limited time to spend on their Forex trading and wants to make Maximum profits, in the least possible amount of time.

The strategy we are going to look at here is suitable for anyone and means you sit down to do your analysis just once a week and then, you will only need to check your positions daily which will take you around half an hour to do and you can do it at any time of day you wish.

The Best Chart for Spotting Big Trends

Is the weekly chart which gives you an insight into the big prevailing trends and also those that could become big trends. By looking at the Weekly chart the longer term weekly chart shows it much better than the daily can, so this is where you will start doing your analysis of the market. You should do your main analysis after Fridays close so you have the whole weekend to do it and get your trades ready for the following week.

What you want to do is check all the key levels of support or resistance on the weekly chart and note them down. After you have studied the weekly chart, look at the daily chart and compare it and see which levels line up on BOTH Charts.

Using the Daily and Weekly Charts Together

The fact a trend line, lines up on both charts means - the level is more important in terms of it holding or breaking. You should look at the levels which line up on both charts, in terms of buying into an existing trend or a new potential trend. You can then set your orders at market or pending orders to enter new trading signals.

How many pairs should you use when doing this?

I would use about 20 which include, the major currencies and the major crosses. The more pairs you follow the better and this is because, you get more opportunities. When looking at a pair, your not interested in the pair itself just the fact that its volatile, the pair has the potential to trend, has reasonable commissions and is traded by your broker.

Some of the crosses, will have some wider pip spreads than the majors but due to the fact this trading strategy is long term, paying a couple of extra pips on the spread will not impact on your profit potential overall. By including other pairs, rather than just the majors, you increase the odds of generating trading signals.

Each week, you should do your technical analysis on both the daily and weekly charts. If you are studying 20 pairs, it will take you around, 1 – 2 hours to do your analysis of your Forex charts. Many of the pairs on the weekly chart, will not be trending so when you come to comparing with the daily chart you will probably be left with between 5 – 10 pairs to look at and then, you can see what levels of support and resistance line up on both charts.

Generating Your Trading Signals

Using this method, I find that it will give one or two good opportunities a week to look at and then you have to time your trading signal. You can use price action only, bar charts, candlestick charts or even a few trading indicators to filter trades but the important point to keep in mind is to keep it very simple. You can place trades in the market at the open on Monday or set pending orders, to trigger you into your positions later in the week.

Profit and Loss Per Trade

You should be aiming for a risk reward of at least 2:1 and preferably 3:1, on this trading method and typically, I find that trades will last for a couple of days to two weeks. You will probably on average, end up trading just a few times per month but these trades will high odds opportunities, with great potential for profits.

If you want to you can trade straight Forex or another great way to use this strategy is to buy options which are very much a set and forget trading vehicle and protect you against short term adverse price spikes against your open position in the market. Whichever method you use, once you have done your analysis for the week monitoring your trades, will take very little time once your position is placed in the market.

Why the Method Works

The longer the time frame you look at support and resistance in, the more reliable the trading level will be but of course you can't trade just off weekly support and resistance as on many occasions, your stop loss will be to wide. By getting your entry on the weekly and daily lined up, you can then set the stop loss on the daily chart for better protection ( although of course you can still consult the weekly chart to see if this level lines up with the daily as well) so you are trading SIGNIFICANT levels, with this method which means better profit potential.

It Keeps You Detached

This method of trading is not one where you have to watch the market all the time and this means, you will stay away from looking at prices regularly which will distract you or bring your emotions into play. You are looking to trade Forex for maximum profit in the least amount of time and this method will only take a few hours a week in total so anyone can use it even if they work full time.

How Much Profit Can You Make?

I have seen several people use this method and make 50 – 100% gains per annum. The fact you are spending very little time on your trading is not a disadvantage at all – its the profit you make which is important. This trading strategy is designed to help you, find the best trading signals each week and only focuses you on the best ones and even better, as your not having to do much in the week, its a very stress free way of trading which keeps you away from constantly looking at quotes screens.

In Conclusion

If you want a simple trading strategy that works, then this one will suit you and is based on the logic that the big trends are better seen on the weekly chart, than on the daily but if important levels line up on both, there more valid to trade. It might sound like its to simple to work but it does and its one of the easiest methods to use to help you become a successful Forex trader from home. 

GKFX UK Spread Betting v1 728x90

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GKFX UK Spread Betting v1 220x360